The Employees Provident Fund (EPF) of Malaysia has introduced its sustainable investment stewardship policy, becoming the first institutional investor in the country to adopt such a framework. This policy sets out the guidelines and processes for promoting sustainability practices among EPF’s investee companies and external fund managers.
According to EPF, the policy outlines the processes and guidelines the EPF follows to promote good sustainability practices among its investee companies and external fund managers. “This aligns with the United Nations-supported Principles for Responsible Investment (PRI), which define stewardship as institutional investors using their influence to maximise overall long-term value,” the EPF noted.
EPF Chief Executive Officer Ahmad Zulqarnain Onn emphasised that the fund believes sustainable investment is essential for creating long-term value for Malaysia. As a responsible institutional investor, EPF is committed to advancing this principle by systematically promoting and incorporating environmental, social, and governance (ESG) factors into all investment decisions.
” We aim to empower our investee companies and external fund managers to generate positive societal and environmental impacts while maximising portfolio-level risk-adjusted returns,” said Zulqarnain.
As Malaysia’s largest institutional investor, EPF is taking a leadership role in influencing the adoption of good sustainability practices within the Malaysian capital market, both individually and collaboratively through platforms such as the Institutional Investors Council (IIC).
The EPF Sustainable Investment Stewardship Policy covers approaches to key stewardship areas, including monitoring, engagement, and escalation options, to align companies with its sustainable investment policies and improve the management of material ESG risks and opportunities. EPF’s stewardship philosophy centers on four key activities: proxy voting, monitoring, active engagement, and collaborative initiatives.