Malaysia’s KWAP becomes signatory of Principles for Responsible Investment
KWAP becomes the first pension fund in Malaysia to be a signatory of the UN-supported Principles for Responsible Investment
KUMPULAN Wang Persaraan (Diperbadankan) (KWAP), Malaysia’s second-biggest pension fund, has become the first pension fund in Malaysia to be a signatory of the United Nations-supported Principles for Responsible Investment (PRI).
With the signing of the PRI, KWAP formally joins the PRI’s independently operated, global network of policymakers that is working to build a sustainable and economically effective financial system on the foundation of responsible investment for long-term value creation.
As a PRI signatory, KWAP will remain support and promote the use of environmental, social, and governance (ESG) investing programmes, incorporating measures to provide full transparency for investors, according to KWAP.
KWAP became a signatory to the Malaysian Code for Institutional Investors in 2015, a voluntary code which sets out six broad principles of effective stewardship by institutional investors. The code provides guidance on effective exercise of stewardship responsibilities towards the delivery of sustainable long-term value to the institutional investors’ ultimate beneficiaries or clients.
“At KWAP, we believe our focus is directed towards adopting upright ESG practices, to not only improve long-term social security to pensioners, but also our duty to future generations. Being the first pension fund in Malaysia to hold our pledge towards the PRI is in line with our effort in environmental, social, and governance (ESG) initiatives. It also further reiterates and demonstrates our commitment towards responsible investing,” said Dato' Wan Kamaruzaman Wan Ahmad, the chief executive officer of KWAP.
“KWAP is actively re-assessing our investment processes and how ESG can be further enhanced. This has translated to efforts in developing ESG products and implementing deeper investment stewardship activities,” he adds.