Malaysian pension fund Kumpulan Wang Persaraan (KWAP) has pledged to commit 20 billion ringgit (US$4.52 billion) towards transition assets to fight climate change, and to achieve a net zero portfolio by 2050.
The promises are among five that KWAP, Malaysia’s second largest pension fund with nearly 170 billion ringgit of assets under management, unveiled in its first ever sustainability report.
The 20 billion ringgit commitment to transition assets is aimed at mitigating the impact of climate change and enhancing the long-term value of the fund’s investments, KWAP says in a statement on August 6.
According to Nik Amlizan Mohamed, the pension fund’s chief executive officer, environmental, social and governance “is not just an aspiration” but “a core operational principle guiding both our community outreach and investment strategies”.
The fund’s other pledges are to enhance its sustainability governance, advocate for a social agenda, and empower partnerships for collective action.
KWAP, which manages the retirement savings of civil servants, managed 169.8 billion ringgit of assets in 2023.