02/07/2025

ESG WEDNESDAY | JULY 2, 2025

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EPF drives Malaysia’s

KWAP and Malaysia Forest Fund ink MoU

longevity agenda KWASA DAMANSARA: Prime Minister, Datuk Seri Anwar Ibrahim, recently officiated the Employees Provident Fund’s (EPF) International Social Wellbeing Conference 2025 (ISWC 2025) themed “Living to a Hundred: Are We Prepared?”, reflecting the growing urgency to address the implications of increased life expectancy on retirement, healthcare and the broader economy. ISWC 2025 explores how to navigate the new reality of extended lifespans by rethinking retirement and financial security; transforming ageing into an economic driver through innovation and workforce shift; shaping policies and strategies for a more resilient and sustainable future; and harnessing intergenerational collaboration to build a thriving and inclusive society. ISWC 2025 aims to catalyse ideas and policies around the longevity economy, a transformative force that calls for rethinking how societies work, age, and thrive. EPF chairman Tan Sri Mohd Zuki Ali said:“ISWC 2025 aims to elevate the national conversation on longevity and ensure our ageing population is seen not as a challenge, but a catalyst for economic growth and social progress.” “Longer lives open new frontiers as the rise of the longevity economy, shaped by the contributions, consumption, and experience of older adults, is an opportunity for innovation. It extends beyond pensions and healthcare to encompass how we design cities, structure workforces, build inclusive technologies, and promote lifelong learning and active ageing,” he added. As of 2024, 7.7% of Malaysians are aged 65 and above and this proportion is projected to reach 14% by 2043, marking Malaysia’s transition into an aged nation. EPF is advancing pension system reforms and financial innovation. The EPF is also enhancing support for informal workers through its i-Saraan programme, which now offers a 20% government matching incentive, capped at RM500 annually and RM5,000 over a lifetime. In 2024, the number of voluntary contributors grew by 32% to 1.2 million. More than 800,000 or close to 70% of the contributors were individuals outside the formal labour force, comprising gig workers and others in informal employment, contributing a total of RM13.7 billion. Of these, more than 520,000 members had contributed to i-Saraan, with total contributions amounting to RM2.6 billion. In conjunction with the conference, the EPF will also unveil its Sustainability Commitments, marking a bold progression in advancing the EPF’s unwavering drive to lead in sustainable investing and embedding environmental, social and governance (ESG) principles across every facet of its operations and investment strategies. Recognising that long-term retirement security must be grounded by sustainable considerations to ensure resilient growth, the Commitments articulate a principled and pragmatic approach centred around three sustainability pillars: Environmental Action; Social Impact; as well as Culture and Governance. In support of the Commitments, the EPF has also undertaken a strategic refresh of its existing sustainable investment policies to reinforce its elevated ambitions and revised expectations of investee companies. The revised policies, namely the Sustainable Investment Policy, the Climate Change Policy, the Workers Wellbeing Policy and the Priority Sectors Policy, which were first introduced in 2022, as well as the Sustainable Investment Stewardship Policy, which was initially published in 2024, also reflect the EPF’s efforts to deepens its stewardship practices and refreshed alignment with national and global sustainability frameworks.

o Partnership aims to accelerate biodiversity and net zero goals

KUALA LUMPUR: Kumpulan Wang Persaraan (KWAP) recently signed a memorandum of understanding (MoU) with the Malaysia Forest Fund (MFF) aimed at advancing Malaysia’s sustainability agenda through forest-based solutions. This partnership marks a significant step towards supporting Malaysia’s transition to a net zero economy and reinforces KWAP’s commitment to achieve Net Zero Portfolio by 2050, a key element of its broader Environmental, Social, and Governance (ESG) strategy. The signing ceremony, held in conjunction with the KWAP Inspire Satellite 2025 event and witnessed by Datuk Johan Mahmood Merican, the Secretary General of Treasury, Ministry of Finance and KWAP’s chairman, marks the beginning of a collaboration to advance forest conservation and nature-based solutions (NBS). This MoU also supports the development of credible and scalable national carbon credits to help KWAP’s investee companies meet their decarbonisation goals. KWAP CEO Datuk Nik Amlizan Mohamed said: “The collaboration with MFF will be a game-changer for both KWAP and Malaysia’s broader sustainability efforts. As a responsible institutional investor, KWAP is committed to driving stewardship through impactful actions and pursuing purpose beyond returns. By contributing to the development of a credible, nationally anchored carbon ecosystem, we aim to empower our investee companies with the tools they need to meet their net-zero commitment while also making significant contributions to Malaysia’s climate and biodiversity goals.” The MoU features the Forest Conservation Certificate (FCC) to support domestic conservation initiatives, focusing on preserving Malaysia’s vital biodiversity and ecosystems. In addition, MFF will oversee the development of the Forest Carbon Offset (FCO), a market-based mechanism that allows companies to offset their emissions through investments in forest conservation projects that reduce, remove, and avoid carbon emissions. Through this MoU, KWAP has become a participant in the National Forest Carbon

Nik Amlizan and Shah Redza posing with the MoU documents.

“Therefore, the summit serves as an essential platform for aligning strategies, building competencies and fostering regional cooperation in the transition toward a green economy,” he said. Featuring over 30 distinguished speakers and moderators, discussions will revolve around the subjects of talent development, innovative technologies, governance and global collaboration. The summit is also aligned with Sarawak’s Post-Covid-19 Development Strategy (PCDS) 2030, which prioritises a green economy and showcases the state’s leadership in hydrogen fuel technology, electric vehicle infrastructure and smart city development. – Bernama reputation in the financial sector while contributing valuable insights to both domestic and international markets. By exploring potential integration of nature based solutions into its ESG investment and non-investment strategies, KWAP reinforces its role in advancing Malaysia’s decarbonisation agenda and setting a strong example for other institutional investors. Looking ahead, KWAP and MFF will continue to explore opportunities to enhance the Forest Carbon Offset system and other potential nature-based solutions initiatives, ensuring they become key drivers for sustainable development in Malaysia. The partnership will also support ongoing efforts to build local capacity for biodiversity and forestry management, ensuring that the benefits of the projects reach the communities directly involved. Additionally, KWAP will seek to build upon its collaboration with MFF by engaging interested parties in driving collective action, with the hopes of exploring potential collaborations with fellow GLICs and relevant organisations, in line with the Ministry of Finance’s Government-linked Enterprise Activation and Reform Programme (GEAR-uP) initiative, aimed at synergising efforts across Government-linked Entities for national impact. This collaboration represents a critical next step in KWAP’s broader commitment to empowering partnerships that drive collective action for sustainability, as outlined in its Sustainability Pledge 2, “Empower Partnerships for Collective Action.” By joining forces with MFF and other stakeholders, KWAP is helping to preserve Malaysia’s forests and the communities that depend on them for future generations.

Offset (FCO) Technical Working Group (TWG), established by MFF. The TWG aims to ensure the needs of institutional investors – including the nuances of ESG investing, are integrated into the framework, where relevant. This participation will also help align FCO standards with international carbon market requirements and best practices. These initiatives, aligned with Malaysia’s National Climate Change Policy 2.0, aim to drive knowledge-sharing and capacity building efforts to enhance participants’ skills in forest management and carbon offsetting. This includes supporting the achievement of targets such as a 45% reduction in carbon intensity by 2030 and Net Zero GHG Emissions by 2050, as well as Malaysia’s commitment to maintaining at least 50% forest and tree cover. MFF CEO Datuk Shah Redza Hussein said: “This collaboration with KWAP is a pivotal step in our mission to strengthen Malaysia’s carbon market, achieving the nation’s sustainability targets and accelerate meaningful climate action. By leveraging nature-based solutions, particularly through the Forest Conservation Certificate and the upcoming Forest Carbon Offset, we are creating a pathway for businesses towards achieving net-zero goals while supporting forest conservation, aligning with national climate commitments. “Our work with KWAP and other stakeholders will drive long-term environmental and economic benefits, not only for Malaysia but for the global community as we strive towards a greener and more resilient future.” The collaboration positions KWAP as a thought leader in sustainability, enhancing its

Sarawak to host green mobility summit KUCHING: Sarawak will host the Green Mobility Innovation Summit 2025 on Sept 8 and 9, aiming to lead discourse on sustainable transportation and regional innovation. transportation solutions,” the organisers said in a recent statement. This event reflects an urgent need for forward-looking strategies to develop a greener, more sustainable transport ecosystem across Southeast Asia.

Themed “Driving the Future: Talent, Innovation & Sustainability in Green Mobility”, the summit will be jointly organised by the Sarawak Ministry of Education, Innovation and Talent Development, Brunei-Indonesia Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) and Sarawak Skills. “The event is set to bring together policymakers, industry leaders, educators and innovators from across the region to share expertise, foster collaboration and promote the development of sustainable

It serves as a key component of the BIMP EAGA Vision 2025 initiative, which seeks to enhance regional connectivity and sustainable development through eco-friendly practices, climate resilience and smart city initiatives. In the statement, Sarawak Skills executive director Hallman Sabri said the summit’s significance lies in its potential to nurture talent for sustainable transportation, a shared regional goal under BIMP-EAGA Vision 2025.

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