At PNB we aspire to preserve and support continuity of balance between people, planet and profit by harmonising our approach to business with the environment we operate in, by ensuring an orderly and just transition to a more sustainable future for long term resilience. To learn more about PNB's Sustainability Policy, please click here.

It is our great honour to be able to share this significant milestone in PNB's corporate journey as we officially launch PNB's Sustainability Framework. It is an important development that crystalises our sustainability aspirations and commitments.

We believe that by integrating Environment, Social and Governance (ESG) issues more systematically in our investing and operations, we will be better positioned to seize new opportunities while accounting for rapidly evolving risks in delivering sustainable returns to our unit holders and upholding our social mandate.

We also believe that with our size and influence, especially within Malaysia and the greater Southeast Asia region, we have an important role to play to help address the systemic challenges facing our communities and stakeholders today.

We are cognisant that we alone cannot solve these challenges. Only with collective action and greater partnership between private and public sectors will we be able to make an enduring real world impact and address these challenges effectively.

To see change in others, we first have to change ourselves. Walk the talk, so to speak.

We believe in progress over perfection. As the science around climate change, a significant component of our Sustainability Framework, continues to evolve, that will not deter us from continuing to improve on our commitment.


Our three ESG pillars will not only help PNB to produce more sustainable returns but will also impact how we engage with our investee companies as we work together to produce value that is sustainable in all aspects. Our efforts here will also align us with the United Nations Sustainable Development Goals (UN-SDG), which is a universal call to action to end poverty, protect the planet and ensure that all will enjoy peace and prosperity by 2030.

1 Net Zero Enterprise by 2025

“Enterprise” means PNB as an operating company (i.e. PNBCo). Specifically, it includes operations under its Business Units, Divisions and Departments but excludes all of investment portfolio of PNB. Net Zero Enterprise, therefore is where PNBCo as a company aspires to achieve net zero emission of Scope I and II of the anthropogenic emission of the greenhouse gases (“GHG”) (eg. carbon dioxide, methane, nitrus oxide and industrial gases such as hydrofluorocarbons, perfluorocarbons, sulphur hexaflouride and nitrogen triflouride) through pursuing operational GHG reduction and removal by the year 2025 via reduction plan or purchase of carbon offset/credits.
Portfolio is defined as financial assets that PNB invest in. It includes amongst others investment in public equities, private equities, bonds, real estate, infrastructure and other financial assets. Net Zero Portfolio relates PNB’s commitment to gradually reducing the overall emissions under Scope III contained in its portfolio by year 2050. We will do this in two ways: first, to rebalance the portfolio such that portfolio emissions decline over time, and second, by actively engaging with our investee companies to themselves reduce their respective emissions over time.
PNB aspires to set aside fresh capital amounting to RM10 billion to be invested into green & transition assets e.g. lower-carbon and energy efficient practices, investments with low GHG emitters or intensities, purchase of carbon offsets, etc by year 2030.

Living wage is the minimum income necessary for employees to afford the minimum acceptable living standard meeting their basic needs including food, housing, and other essential needs such as clothing, social participation and financial security.

PNB to define and adopt its own living wage policy to ensure that its employees are earning above the minimum living wage by the year 2023.
Since the launch of PNB’s Sustainability Framework in April 2022, our ESG commitments take on increased importance and prevalence. Progressively, we have made some good strides in embedding our commitments in the organisation's business operations. As part of fulfilling commitment #5 of our Social pillar, we are now operationalising our Labour Rights Policy. We believe that fostering the necessary labour policies drives good business practices, better productivity and risk management.

As we hold a diversified portfolio of investments with wide ranging businesses and operations, we have adopted a Labour Rights Policy underscoring our views and expectations on 6 Key Material Issues, namely:

  1. Forced & Child Labour
  2. Fair Wages & Benefits
  3. Diversity & Inclusion
  4. Freedom of Association
  5. Safety & Health
  6. Upskilling & Education
Going forward, we will assess our investments based on the Key Issues above and adopt the various touchpoints as outlined in our Escalation Matrix. For more information on our Labour Rights Policy please refer to the links below.

Labour Rights Policy

Labour Rights FAQ

From the lens of total workforce, PNB has already achieved a balanced share of participation between male and female, whereas at the senior management level, the share is close to 30% which is deemed the global reference point. We believe we can do better and set ourselves a higher target of having at least 40% women in our leadership by 2025.
Our commitment to the betterment of society through our CSR programmes will continue unabated. In particular, our commitment to funding education, community upliftment, financial literacy and knowledge sharing initiatives will continue.

TBL stewardship model focuses on an impactful engagement approach to drive change towards long-term value enhancement, taking into consideration aspects of ESG.

We plan to achieve this by refining our Stewardship Framework to include amongst others, developing an internal guideline in determining the appropriate level of engagement on our investment, transparency in voting, more active participation and coordination with other GLICs, and having impactful engagements with our investee companies, including developing and publishing our positions on ESG-related issues and high-risk sectors.
PNB aspires to continue enacting proper, effective engagement and interaction between management, boards and shareholders, and will contribute to this by making transparent both our voting policy and our actual votes at company general meetings, via a searchable website. This will provide transparency to the marketplace on the position of a large investor in a Malaysian public company.
TCFD-aligned disclosure means that PNB will publish a stand-alone report on sustainability that is aligned with TCFD reporting framework. Hence, we believe that the disclosure will also be supplemented with reporting of other non-climate indicators or initiatives that are unique to PNB to ensure completeness of information.

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