KUALA LUMPUR: The Employees Provident Fund (EPF) has published the EPF Sustainable Investment Stewardship Policy, becoming the first institutional investor in Malaysia to publish a standalone stewardship policy for sustainable investment.
The policy outlines the processes and guidelines that the fund follows to promote good sustainability practices among its investee companies and external fund managers.
The EPF said the stewardship undertaking has strengthened its commitment to help build a better retirement future for Malaysians by delivering long-term sustainable value.
“This aligns with the United Nations-supported Principles for Responsible Investment, which define stewardship as institutional investors using their influence to maximise overall long-term value, encompassing economic, social, and environmental assets essential for returns and the interests of clients and beneficiaries,” it said in a statement today.
Chief executive officer Ahmad Zulqarnain Onn said the EPF is committed to advancing the principle of sustainable investment by systematically promoting and instilling good business practices that incorporate environmental, social, and governance (ESG) factors into all investment decisions.
“This stewardship commitment accelerates the EPF’s progress towards achieving a fully ESG-compliant portfolio by 2030 and a climate-neutral portfolio by 2050.
“We aim to empower our investee companies and external fund managers to generate positive societal and environmental impacts, keeping all stakeholders’ best interests in mind while maximising portfolio-level risk-adjusted returns,” he said.
He added that as the largest institutional investor in Malaysia, the EPF is taking a leadership role to influence the adoption of good sustainability practices within the Malaysian capital market, whether individually or collaboratively through platforms such as the Institutional Investors Council.
The EPF Sustainable Investment Stewardship Policy covers approaches to key stewardship areas, such as monitoring, engagement and escalation options, in efforts to align companies with its sustainable investment policies and improve management of material ESG risks and opportunities.
The EPF’s stewardship philosophy is centred on four key activities, namely proxy voting, monitoring, active engagement and collaborative initiatives.
