PNB eyes RM10bil investment in ESG-related companies

PNB president and group chief executive officer Ahmad Zulqarnain Onn

PETALING JAYA: Permodalan Nasional bhd (PNB) has earmarked RM10bil of its portfolio to specifically invest in “green and transition” assets by 2030.

President and group chief executive officer Ahmad Zulqarnain Onn said the allocation is part of the fund’s commitment to achieve a Net Zero Enterprise by 2025 and Net Zero Portfolio by 2050.

“It is important for us to make a commitment under this framework by having a slice of our portfolio in new environmental, social and governance (ESG)-related investments.

“That is consistent with our desire to shift our portfolio and reduce emission towards our net-zero 2050 target,” he said at a media briefing on Thursday after the launch of PNB’s Sustainability Framework.

Zulqarnain said the allocation is also an opportunity for the fund to catch the upside of the new sector as more companies are serious about reducing their carbon emissions.

“It is also a signal to the market that ESG investing is an opportunity today. The world is shifting towards a new method of investing to more responsible investing.

“There will be a lot of opportunities in terms of finding new companies and new sectors which are going to be fast-growing sectors.

“For instance, companies that help other companies to reduce emissions are expected to grow. By allocating this is about finding the right opportunity for us to rise the upside on this trend,” he added.

Asked if PNB is going to divest any companies that are not in line with its sustainable framework, Zulqarnain said “divestment will be the last resort”.

He pointed out that PNB will continue to be a trusted custodian of Malaysian wealth and assets, PNB has a responsibility to lead and effect change to ensure an orderly and just transition to a sustainable economy.

“At PNB, we will work hand-in-hand with our investee companies to develop value creation plans that will ensure sustainable growth of their operational and financial performance.

“There is tremendous pressure nowadays for companies to not just perform financially, but also to integrate ESG aspects into their business.

“We believe that, through our collective effort, this new way of doing business will create meaningful benefits for PNB, our investee companies, partners as well as other stakeholders, and ultimately the millions of Malaysians who have entrusted their investments with us,” he said.