Who We Are

Sustainability

As Malaysia’s sovereign wealth fund, we have a duty to create value beyond just monetary terms for the nation and its future generations. Through our reach and influence, we actively engage with our portfolio companies to drive the adoption of sustainable practices that deliver long-term benefit for people, communities, and natural environments.  

Our Sustainability Principles

Do Good
We aspire for positive outcomes to ensure our actions today produce results towards a positive economic, social and environmental change for current and future generations.
Do Better
We aim to build on the status quo by identifying opportunities to create positive value through managing risks and preparing for the future.
Do No Harm
We manage and mitigate risks to ensure that our actions do not expose stakeholders to negative effects on the social fabric, the economy or the environment.

Our Sustainability Approach

Recognising the importance of sustainability in the considerations of stakeholders and the investment community, we have advocated for improved ESG practices within our portfolio companies since 2004. Our approach focuses on issues that impact us and our portfolio companies most from a business materiality point of view.

Responsible Investor

Khazanah looks to ensure an equitable transition of our portfolio, creating sustainable impact through managing ESG risk and identifying value creation opportunities

Sustainable Organisation

Khazanah looks to empower its employees to advocate for responsible behaviours as professionals

Good Corporate Citizen

Khazanah continues to catalyse positive change in the environment and surrounding communities, for value distribution towards a better future for the nation

Khazanah’s Sustainability Framework

Launched in June 2022, Khazanah’s overarching Sustainability Framework is anchored on the three pillars of Environmental, Social and Governance (“ESG”) and provides us with a structured approach in delivering an equitable and responsible transition of our portfolio and companies. The focus areas we have identified within our framework are determined based on issues that are most material to our investment portfolio, business, and mandate.

Investing to Deliver Sustainable Value for Malaysians

Playing a leading role at shaping an equitable and responsible transition towards a sustainable future for Malaysia.

Environmental

Reduce environmental impact of operations and be proactive in the transition to a lower-carbon economy.

  • Carbon emissions
  • Climate change vulnerability
Social

Develop a productive and inclusive workforce and drive societal impact

  • Workforce management
  • Workplace health & safety
  • Diversity & inclusion
  • Fair & equitable access
Governance

Promote good governance and effective engagements with stakeholders and portfolio companies.

  • Regulatory exposure
  • Board composition
  • Political influence
  • Shareholder rights
  • Board & exec remuneration
  • Privacy & data security
Sustainable Investments (SI)

Embedding sustainability into investment
decision making.

Enterprise Sustainability (ES)

Embedding sustainability into our day-to-day operations, including through contributions to society and communities

Enablers to Support Implementation of SI & ES across Khazanah

Sustainability Targets

To ensure accountability, we have also committed to the following short, medium, and long-term targets across our three pillars. These targets align our aspirations with our stakeholders, including the Government of Malaysia.

Environmental

Aimed at reducing environmental impact of operations and to support the transition to a lower carbon economy.

Net zero emissions
by 2050
Carbon neutral operations
by 2023
Social

Aimed at developing a productive and inclusive workforce and drive societal impact.

30% women in Board & Senior leadership
by 2025
Enhance Diversity, Equity and Inclusion policies & programmes
by 2023
Measureble socio-economic impact targets
by 2023
Governance

Aimed at promoting good governance and effective engagements with stakeholders and portfolio companies.

Enhance Board competencies (including sustainability) by 2025
Disclose general voting principles by 2022
Include ESG-linked KPIs for key leadership positions by 2023