Etiqa Insurance and Takaful CEO Kamaludin Ahmad
KUALA LUMPUR: Etiqa, Malaysia's first and only insurer to adopt the United Nations' Principle for Sustainable Insurance (UN PSI), has outlined four key achievements in its sustainability progress report for 2023.
These include commitments to refrain from insuring any new coal-fired power plants in Malaysia, enhancing the lives of 900,000 households by 2025 and aiming for Carbon Neutral status for Scope 1 and 2 emissions by 2030, leading to a net zero carbon equivalent position by 2050.
“As part of the broader Maybank group, Etiqa has committed not to insure any new coal fired power plants in Malaysia. Etiqa also does a rigorous assessment of the environmental, social, and governance (ESG) risks associated with investments and has committed to zerorise any equity investment that carries a severe ESG risk by 2025,” the insurer said in a statement.
Etiqa stated that in 2023, it did not underwrite any new greenfield coal power generation plants, and the proportion of its equity investments with a severe ESG risk rating decreased to 0.2%.
The group is also committed to offering a range of easily accessible products for underserved and underinsured individuals. This includes enhancing affordability, accessibility, and protection value to meet customer needs, in line with Etiqa’s goal of expanding coverage and promoting financial inclusion.
“From 2021 until December 2023, Etiqa improved the livelihoods of 669,680 households, representing 74% of the cumulative 2025 target. This was achieved by partnering organisations such as the Employee Provident Fund in offering the i-Lindung product where EPF members can withdraw from their accounts to purchase insurance and takaful,” Etiqa said.
Etiqa noted that despite more staff returning to office work, its Scope 2 emissions were lower in 2023 than in 2021 and 2022. Additionally, Etiqa is transitioning its company cars to electric vehicles as part of its effort to decrease Scope 1 emissions.
The group also encourages all staff members to engage in sustainability activities, contributing positively to both the environment and society.
It accomplished a total of 84,989 hours, surpassing the 2023 target for sustainability hours by 119%
Etiqa Insurance and Takaful group chief executive officer Kamaludin Ahmad said: “I am proud to disclose the achievements that Etiqa has made on its four sustainability ambitions. These milestones are testament of Etiqa’s transparency and how seriously we take our role as a signatory of the UN PSI, and the impact that Etiqa wants to make in the area of sustainability.”
“While Etiqa began its sustainability journey back as 2019, the momentum has grown steadily over the years, where we have integrated ESG principles into our business strategy and operations wherever we can.
“Since Etiqa is a regional player, we have even started to export our sustainability practices to other Asean countries, thus extending our sustainability footprint and driving positive change across borders, in line with our vision of ‘Making the Word a Better Place’.”
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