ESG

Bank Negara Malaysia (BNM) is strengthening its commitment to regional sustainability by aligning with Malaysia’s Asean chairmanship theme of “Inclusivity and Sustainability”. The central bank will prioritise two key areas: financing energy transition initiatives across Asean and supporting the low-carbon transformation of small and medium enterprises (SMEs). These focal points were underscored during the recent Asean Finance Ministers’ and Central Bank Governors’ Meeting, held in Kuala Lumpur earlier this month. As part of its efforts to catalyse the region’s energy transition, BNM will play a facilitative role in mobilising funding mechanisms for the Asean Power Grid (APG). Assistant Governor Madelena Mohamed, who leads the central bank’s new strategy and sustainability division, noted that enabling the APG is essential to boosting cross-border electricity trade, particularly for renewable sources. Launched in 2018, the APG aims to establish a connected regional power grid to drive energy security and sustainability. However, realising this vision requires substantial investment in infrastructure upgrades. The Asean Investors Roundtable—held during the same week—served as a platform to convene project champions, investors, and philanthropic capital providers to deliberate on financing modalities, practical challenges, and policy enablers. “This marks an important step towards realising this long-term, highly complex and economically significant infrastructure project,” said Madelena in a written response to ESG. In tandem, BNM is scaling up its Greening Value Chain (GVC) programme, originally launched in Malaysia in 2023, to the broader Asean region. The initiative equips SMEs with tools and financing support to measure and disclose their greenhouse gas emissions. A playbook, Building Supply Chain Resilience: Insights into Greening Value Chains for Asean, was released during the meeting week, drawing on insights from the programme’s rollout in Malaysia. According to Madelena, “We envisage GVC to be rolled out in at least one other Asean country this year, and for the playbook to serve as a key reference by businesses and financiers.” Navigating a Complex Sustainability Mandate Appointed assistant governor in January, Madelena brings 32 years of experience at BNM, most recently serving in its sustainability unit. Acknowledging the growing complexity of climate-related challenges, she emphasised that public and stakeholder trust in the central bank’s stewardship must be matched with decisive and inclusive action. “The stakes are high. Our operating environment is becoming more challenging. The public and other stakeholders trust and expect us to discharge our mandates well, and this should not be taken lightly,” she said. The financial sector remains instrumental in Malaysia’s path towards net zero emissions by 2050. Madelena highlighted that the foundations are already in place, with Islamic financial institutions having taken the lead in sustainable finance. “This provided us valuable lessons that shaped our approach to climate finance and risk management,” she said. BNM’s Joint Committee on Climate Change, launched in 2019 alongside other stakeholders, has evolved into a platform for collaborative innovation in climate risk and finance. “With the foundation in place, we are shifting the gear towards impactful implementation. Realising this ambition requires Bank Negara to work collaboratively with our stakeholders, particularly peer regulators, government ministries and agencies, and industry players.” The bank’s close engagement with regional central banks is evident through its work with the Asean Taxonomy Board. In December 2024, the board released Version 3 of the Asean Taxonomy for Sustainable Finance, the world’s first regional transition taxonomy. Its distinctive “traffic light” system acknowledges firms at various stages of decarbonisation. BNM’s own Climate Change and Principle-based Taxonomy—mandatory for financial institutions—aligns with this regional framework. Internally, the central bank is advancing its own climate transition plan and has implemented a structured capacity development programme to support its objectives. The Asean Investors Roundtable also explored the role of Islamic finance in funding large-scale climate projects. Madelena revealed that RM11.9 billion in Sustainable and Responsible Investment (SRI) sukuk were issued in 2024, a threefold increase from 2021. Under the Values-Based Intermediation (VBI) framework, Islamic financial institutions have channelled over RM26 billion into green and decarbonisation-focused activities. -The Edge Malaysia

MCIS Life, one of Malaysia’s leading life insurance providers, continues to advance its position as a forward-thinking organisation by embedding sustainability at the core of its operations. Under the leadership of Chief Executive Officer and Managing Director Prasheem Seebran, the company has taken bold steps to champion environmental responsibility, social inclusion, and ethical governance. Seebran emphasised that sustainability is not a passing trend at MCIS Life but a fundamental principle guiding its strategies and decisions. The insurer’s sustainability roadmap is rooted in its ambition to address environmental challenges, mitigate climate change, and foster social equity—all aimed at securing a brighter and more sustainable future for generations to come. MCIS Life’s approach is framed around four key pillars: shared value creation focused on socio-economic development and climate change mitigation, integration of Environmental, Social and Governance (ESG) considerations across its operations, financial inclusion to empower underserved communities, and strategic partnerships to drive impact at scale. What distinguishes MCIS Life is its commitment to stakeholder engagement. The company maintains an open dialogue through multiple platforms including customer service centres, employee town halls and consistent communication with regulators and shareholders. This ensures its ESG efforts remain aligned with stakeholder expectations. “By actively soliciting feedback and understanding stakeholders’ evolving needs, we ensure that our initiatives are impactful and relevant,” said Seebran. MCIS Life’s environmental goals include reducing its carbon footprint and enhancing energy efficiency. The company has pledged to achieve net-zero carbon emissions by 2050. A key milestone was the launch of the MCIS Life Legacy Forest at Sireh Park in Johor Bahru in 2023. Over 6,000 endemic rainforest trees have been planted, which are expected to offset around 567 tonnes of carbon by 2029. This initiative reflects the company’s commitment to biodiversity conservation and carbon sequestration. Governance and transparency remain integral to the company’s sustainability strategy. Seebran affirmed that robust governance structures are in place to ensure accountability and compliance with ethical standards. The company provides regular training and awareness programmes for employees to instil a strong culture of transparency, integrity and ethical conduct. MCIS Life also adheres to Fair Treatment of Financial Consumers (FTFC) practices, underscoring its commitment to responsible communication and business operations. The company further invests in its employees through continuous training and development, fostering a high-performance and inclusive workplace. “We strive to create an environment where everyone feels valued and respected,” said Seebran, highlighting MCIS Life’s emphasis on diversity and inclusion. Volunteering is encouraged among staff to build morale and purpose. MCIS Life views this as an opportunity for employees to contribute meaningfully to social causes. “By engaging in community initiatives, our employees support issues aligned with our core values,” Seebran added. MCIS Life integrates ESG principles into its insurance solutions as well. Recognising the gap in insurance coverage for Small and Medium Enterprises (SMEs), the company introduced the SME Care+ product in September 2023. This innovative product offers comprehensive protection tailored to the needs of SME owners, with guaranteed rates for the first two years. Additionally, its modular protection plans allow organisations to customise coverage that includes death, total and permanent disability, critical illness, retrenchment and hospital income—ensuring flexibility and affordability. Customer experience remains a priority for the insurer, driven by innovation and personalisation across digital touchpoints. These enhancements improve efficiency, reduce operational costs, and accelerate product development tailored to customer needs. In investment, MCIS Life upholds sustainable finance practices by limiting exposure to non-ESG-compliant activities to just 10% of its portfolio. The company continues to refine its investment strategy in alignment with evolving ESG benchmarks, contributing to long-term environmental and social progress. Community engagement is a cornerstone of MCIS Life’s sustainability agenda. Collaborations with local authorities and non-governmental organisations aim to drive collective impact. In early 2024, MCIS Life participated in the Hari Terbuka Taman Jaya 2024, partnering with the Petaling Jaya City Council (MBPJ) to plant 60 saplings in Taman Jaya Park. The MCIS Life Purple Truck initiative, launched in 2022 in partnership with the National Cancer Society of Malaysia (NCSM), exemplifies the insurer’s commitment to healthcare access. The truck delivers essential medical services, including cancer screenings such as clinical breast examinations, pap smears, and faecal occult blood tests, alongside educational sessions and doctor consultations. Equipped with solar power and wheelchair accessibility features, the Purple Truck underscores MCIS Life’s drive for inclusive and energy-conscious community solutions. As of 2024, the initiative has conducted more than 21,000 health screenings across the country. At the NCSM’s Relay for Life event on 24 November 2024, MCIS Life further contributed to the cancer awareness campaign by offering complimentary screenings to participants, reinforcing the importance of early detection and community support. In recognition of its efforts, MCIS Life was awarded the Sustainability and CSR Award in the ‘Community and Environment Care’ category in 2024. Seebran reiterated the organisation’s enduring dedication to sustainability, viewing it as a long-term journey rather than a destination. “Sustainability is not just a goal. It is a journey of creating positive change and leaving behind a legacy for our planet and society,” he said. With its holistic and inclusive approach to sustainability, MCIS Life continues to set a benchmark in the Malaysian insurance sector, inviting others to join in building a more equitable and resilient future. -The Edge Malaysia

KUCHING: Sarawak has reinforced its position as a regional clean energy frontrunner, presenting its strategic vision at the Energy Export Conference (EEC) 2025 in Aberdeen, United Kingdom. Delivering the keynote address, Deputy Minister for Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni highlighted Sarawak’s unwavering policy direction, ongoing innovation investments and its emphasis on regional collaboration as core pillars in its energy transition framework. “Sarawak is proud to be a pioneer in ASEAN in clean energy development. Our participation at EEC 2025 reflects our commitment to forming global partnerships and exporting low-carbon energy solutions,” he said in a statement issued by the ministry on Thursday evening. Dr Hazland outlined Sarawak’s integrated strategy focused on four strategic hubs – renewable energy, natural gas, carbon capture and storage (CCS), and hydrogen – aimed at enhancing regional resilience and supporting long-term sustainable development. Over 70 per cent of the state’s electricity is currently generated through hydropower, and plans are underway to significantly expand renewable energy capacity by 2030 and 2035. Sarawak continues to solidify its role as the “Battery of ASEAN” by advancing regional electricity exports to West Kalimantan, Brunei, Sabah, and in the near future, Singapore. The state also leads Malaysia in natural gas reserves and CCS development, and is spearheading the hydrogen economy with flagship projects and tailored legislation to attract foreign direct investment. Sarawak Deputy State Secretary for Economic Planning and Development Datuk Seri Dr Muhammad Abdullah Zaidel described international platforms such as EEC as essential for building resilient energy ecosystems. “Our presence in Aberdeen signals a clear intent. Sarawak is open for business, committed to innovation and ready to lead in clean energy exports,” he said. During the conference, Sarawak Energy Bhd presented its long-term sustainability roadmap and cross-border grid integration strategies. Meanwhile, SEDC Energy, a subsidiary of Sarawak Economic Development Corporation, showcased collaborations with Japanese and South Korean partners aimed at developing hydrogen and ammonia export capabilities. These efforts reflect Sarawak’s strong commitment to innovation, supported by strategic policies and roadmaps designed to attract international investment and generate high-value employment within a sustainable economy. The state’s achievements have earned international recognition, including acknowledgment by the World Economic Forum. With key events such as International Energy Week 2025 and the Sustainable and Renewable Energy Forum (SAREF) 4.0 on the horizon, Sarawak is actively inviting global stakeholders to join in its journey toward a sustainable and inclusive energy future. -Bernama

In a continued demonstration of its environmental stewardship, Kenanga Investors Berhad returned as the lead sponsor for the Dive Against Debris initiative for the third consecutive year. The programme, organised by the Black Eye Scuba Team (BEST), was held from 10 to 12 May 2025 at Pulau Perhentian Kecil, focusing on both marine and shoreline clean-up efforts along Long Beach and its surrounding waters. A total of 282.4 kilogrammes of waste was successfully removed from the beach and marine environment, thanks to the collaborative efforts of local and international volunteers. Among them were 25 representatives from Kenanga Investors, including employees, distribution partners, and clients—all united by a shared commitment to sustainability.The initiative also featured an environmental awareness session at Sekolah Kebangsaan Pulau Perhentian, where students were engaged on topics related to conservation, sustainability, and the importance of protecting marine ecosystems. This educational component reflects Kenanga Investors’ broader ESG mission to empower future generations with the knowledge and values to make a difference. “Phase 3 marks our third year supporting this initiative and reinforces our commitment to environmental, social, and governance priorities,” said Datuk Wira Ismitz Matthew De Alwis, Executive Director and Chief Executive Officer of Kenanga Investors. “We believe in taking active steps to protect our environment and remain dedicated to long-term efforts that drive meaningful and lasting change. This initiative is one of the many ways we uphold our belief in ‘Invest for Good’.” He added, “We are thankful to everyone who represented Kenanga Investors during this programme. It is through the dedication of all of our stakeholders that we bring our values to life and make a tangible difference where it matters.” Beyond beach clean-ups, Kenanga Investors continues to integrate ESG principles into its investment strategies. A standout initiative includes the Eq8 FTSE Malaysia Enhanced Dividend Waqf ETF (Eq8WAQF)—the world’s first Waqf-featured Exchange Traded Fund. This innovative financial product reflects the firm’s commitment to impact investing and delivering sustainable value to both investors and communities. Through initiatives like Dive Against Debris, Kenanga Investors is not only advocating for environmental preservation but also actively shaping a more responsible and resilient future for all. -Manila Times

Not everyone begins life with the same opportunities. While some are born into privilege and security, others face adversity from the outset—be it poverty, conflict or marginalisation. These disparities, particularly in developing nations, can have far-reaching consequences, creating structural barriers that hinder progress. In the dynamic ASEAN region, rapid economic expansion often contrasts starkly with uneven development. Despite improvements in infrastructure and technology, large segments of the population across Malaysia and Southeast Asia remain underserved, lacking access to essential services such as quality education, stable housing and financial products. These communities are also the most vulnerable in times of crisis. Recognising this urgent need, RHB Banking Group has placed social inclusion at the core of its sustainability agenda, embedding inclusive financing, social-focused initiatives, and long-term capacity-building into its strategic roadmap. Group Managing Director Mohd Rashid Mohamad articulates the bank’s commitment: “When we expand financial access and equip individuals and businesses with the right tools and knowledge, we unlock opportunities for communities to thrive sustainably. Financial inclusion isn’t just a goal—it’s the cornerstone of meaningful social impact and a resilient future for all.” Purpose-Driven Financing for Real Impact At the heart of RHB’s strategy is a belief that financial services are a basic right. The Group is actively reshaping the financial ecosystem to better serve underrepresented communities, including gig workers and low-income households, often excluded by traditional banking systems. RHB has committed to mobilising RM90 billion in Sustainable Financial Services by 2027 under its Sustainability Strategy and Roadmap. As of December 2024, the bank had already channelled over RM40 billion into these services, directly supporting affordable housing, essential services, food security and socioeconomic empowerment. Particularly noteworthy is the First Home Mortgage/-i scheme, tailored to support first-time homebuyers. Through partnerships with Syarikat Jaminan Kredit Perumahan Bhd and Cagamas SRP Bhd, RHB approved RM1.29 billion in home financing for 4,376 buyers by the end of 2024. RHB also champions environmentally aligned financial products, offering Green Residential Financing with enhanced margins and Shariah-compliant options for certified developments. In insurance, the Group has introduced targeted products such as the Rahmah Personal Accident Insurance for gig workers and inclusive fire insurance with flood protection, as well as Motor Saver Insurance, which incentivises low carbon emissions. By the close of 2024, RHB had issued 96,197 policies under its ESG-aligned insurance offerings, helping individuals and families across Malaysia build resilience against environmental and socioeconomic risks. Empowering Through Education and SME Growth Beyond access to finance, RHB invests in long-term empowerment through financial literacy, digital tools and sustainability education. Its MySISWA Programme, launched in 2021 in collaboration with the Higher Education Ministry, has reached students at 20 public universities. The initiative includes the ProSavings-i account and MySISWA Debit Card, which not only facilitates cashless transactions but also serves as a multifunctional university access card. Employees of RHB serve as financial ambassadors, delivering practical education on saving and budgeting to foster responsible financial habits among students. RHB is equally committed to the development of small and medium enterprises (SMEs). In 2024, through a collaboration with Tenaga Nasional Berhad (TNB), the bank conducted nine nationwide roadshows, engaging more than 570 SMEs to promote renewable energy and energy-efficient practices. Partnerships with SME Corporation Malaysia, the SME Association of Malaysia, and the Malaysian Retail Chain Association have further extended RHB’s outreach. Through initiatives such as the Low-Carbon Transition Facility (LCTF) and the RM100 million LCTF Portfolio Guarantee, the bank enables SMEs to integrate low-carbon practices into their operations with access to ESG reporting tools like the Low Carbon Operating System (LCOS). Clients such as Antara Ventures Sdn Bhd and Roflex Pipe Sdn Bhd have credited RHB’s tailored green financing solutions for enabling the installation of solar panels and the optimisation of sustainable production processes. RHB has also enhanced its SME digital ecosystem through its SME e-Solutions platform. By the end of 2024, 27,687 SMEs had been onboarded. Of the 7,354 new customers acquired in 2024, 66% were new-to-bank, contributing to RM253 million in total current account balances. Notably, SME e-Solutions users held 13% higher deposit balances on average than non-users. These achievements reflect RHB’s broader ambition to modernise operations and broaden access to sustainable banking tools while reinforcing ESG integration through participation in forums such as the Joint Committee on Climate Change (JC3) SME Focus Group. Tangible Impact, Real Lives At the centre of RHB’s social strategy is a focus on delivering real, measurable outcomes. Through the RHB #JomBiz initiative, individuals like Mohd Shafiq Ezwanie Jafri, founder of Senju Co in Sarawak, have transformed their businesses. With RM12,000 in seed funding and expert support, he expanded production capacity and streamlined his supply chain, setting his bakery business on a path of sustained growth. From enabling homeownership and protecting against natural disasters to digitising SME operations and equipping students with vital life skills, RHB remains unwavering in its mission to create a financial ecosystem that leaves no one behind. As ASEAN continues to advance, RHB stands firm in its belief that growth must be inclusive—rooted in empathy, equity and a commitment to a sustainable future where all individuals and businesses are empowered to thrive. -The Star

KUALA LUMPUR: Malaysia boasts a national electrification rate exceeding 99%, however, certain rural and remote areas continue to experience limited access to electricity. Kampung Chenderong Kelubi in Perak is one such example, where schoolchildren commute during early morning hours without proper lighting. To improve electricity access in the area, Solarvest Holdings Berhad (“Solarvest”) implemented off-grid solar and battery systems at four bus stops in Kampung Chenderong Kelubi. These installations equipped with high-quality solar panels sponsored by Solarvest, provide a reliable and sustainable source of electricity that benefits over 1,000 residents from 11 surrounding Orang Asli villages, including approximately 300 school-aged children. The project, conducted from 7 to 9 May 2025, was a collaborative effort between Universiti Teknologi PETRONAS (UTP) engineering students and Solarvest, with support from the Department of Orang Asli Development (JAKOA). As an industry player committed to talent development, Solarvest went beyond sponsorship to provide hands-on mentorship. Solarvest engineers guided the students through every phase of the project, from conceptual system design and project feasibility assessments to meticulous installation planning and on-ground execution. Chief Operating Officer of Solarvest, Mr. Vincent Yap Pei Koon (叶培根) added, “This is a meaningful initiative, not only to electrify a remote community, but also to support the young engineers from UTP. It’s impressive to see young talents taking bold steps to turn their ideas into reality. Through this hands-on training, they gain invaluable exposure to the practicalities of solar system deployment, bridging the gap between theoretical knowledge and real-world application. We hope the training will spark their passion and shape their future careers in the clean energy industry.” He further added, “At Solarvest, we are committed to create meaningful impact, from enabling access to reliable clean energy to supporting the development of young talent and uplifting local communities. As corporates, we all have a role to play. Our team has carried out several similar initiatives in the past, and each time, they return with a deep sense of fulfilment. Being able to help others while doing what we do best is the greatest reward. This project empowers remote Orang Asli villages with energy access, and opens doors to improved healthcare, better educational opportunities and an enhanced quality of life.” Echoing the sentiment, Puan Ostini Erna Binti Abdul Wahab, Representative of the Department of Orang Asli Development (JAKOA) also shared, “This project was not merely about installing solar PV systems. It was a meaningful step towards building a brighter, more sustainable future for the Orang Asli community. This project proves that collaboration across sectors, industry, academia, and government, can directly address community needs. As the agency responsible for their welfare, our priority is to enhance basic infrastructure, empower communities, and introduce green technologies. This initiative now stands as a foundation for many more impactful and sustainable development programmes to come.”