KUALA LUMPUR, March 31 (Bernama) – The Employees Provident Fund (EPF) right now launched the EPF Sustainable Investment Policy, Priority Issues Policies and Priority Sector Policies to information the EPF in making higher knowledgeable and holistic funding selections by integrating environmental, social, and governance (ESG) concerns in its funding administration processes.
Its chairman Tan Sri Ahmad Badri Mohd Zahir stated EPF would incorporate ESG components into its funding due diligence and decision-making course of, given its potential to boost return whereas reinforcing our present danger administration framework.
“We additionally intend to strengthen these practices by advocating sound company governance to investee firms, primarily based on our conviction that sturdy governance is a pre-requisite to defending shareholders’ pursuits and to put the muse for stronger environmentally and socially-conscious practices,” he stated in launching remarks of the EPF Sustainable Investment Policy right here right now.
He additionally defined that the initiative is aligned with EPF commitments to 2 overarching sustainable funding ambitions that may information its total pursuit of sustainability, that are to realize a totally ESG compliant portfolio by 2030 and a local weather impartial portfolio by 2050, according to the twelfth Malaysia Plan’s aspirations for a carbon-neutral Malaysia.
Hence the three insurance policies would present a high-level method to sustainable funding and integration of ESG into funding processes, outline EPF’s stance on local weather change and employees’ wellbeing; and look into pertinent sub-issues throughout sectors with directional ESG expectations for EPF’s investee firms in oil and gasoline, palm oil, mining, energy era, building and banking.
Ahmad Badri additionally emphasised that EPF is the primary organisation in Malaysia to have established and issued the Priority Issues Policies that outline EPF’s stance on local weather change and employees’ wellbeing.
“Given EPF’s position as the country’s premier retirement fund, it is crucial that it incorporates ESG factors in the evaluation of investee companies’ performance and business practices. By considering risks and opportunities beyond financial performance, the EPF will be well positioned to make better holistic investment decisions, thus safeguarding our members’ long-term returns and contribute to a wider sustainability ecosystem,” he added.
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