

Creating a Sustainable and Inclusive Future
PNB recognises that the future is shaped by the actions taken today and is deeply committed to creating a sustainable and inclusive future that benefits not only its stakeholders but also the communities it serves.
Towards a Net Zero Future
Partnership for Carbon Accounting Financials
Principles for Responsible Investment
ESG Data Convergence Initiative
Our Sustainability Framework will help us enhance and protect the value we create for our stakeholders while fulfilling our own sustainability aspirations. Our 10 commitments under the three pillars of Environment, Social, and Governance are aligned with global endeavours for peace and prosperity by 2030 under the United Nations Sustainable Development Goals (UN-SDG).
Net Zero Enterprise by 2025
Net Zero Portfolio by 2050
RM10 billion in New Green & Transition Assets by 2030
Reduce
Replace
Offset
Our Enterprise emissions approach is based on the GHG Protocol, measuring operational emissions using activity data and emission factors from globally recognised databases.
Our Enterprise emissions include Scope 1, Scope 2 and Scope 3 GHG emissions from PNB corporation (PNB HQ and ASNB) and at operating subsidiaries and branches operational emissions (i.e., PNBD, PNBC, PHNB, PNBMV, Attana Hospitality Group, PNBRI, PNB UK) as of FY2022.
Scope 1 | Backup generators | 3 | <1% |
---|---|---|---|
Company vehicles | 200 | 1% | |
Scope 2 | Purchased electricity | 6028 | 16% |
Total Scope 1 & 2 | 6231 | 17% | |
Category (Scope 3) | 1. Purchased goods & services1 | 9,274 | 34% |
2. Capital goods2 | 7,067 | 26% | |
3. Fuel and energy-related | 709 | 3% | |
4. Waste generated | 61 | <1% | |
5. Business travel | 1314 | 5% | |
6. Employee commuting | 4,387 | 16% | |
Total Scope 1,2,3 | 29042 | 100% |
Of portfolio emissions to have credible Net Zero targets by 2030
Investment emissions intensity (tCO2e / RM Million AUM) reduction by 2030 (vs. 2022)
Invested in new green and transition assets by 2030
One of the initiatives that we utilise to ensure our progress towards the NZP goal is the baseline refresh of our financed emissions. Financed emissions includes GHG emissions that PNB financed through its investment activities and from real estate properties that PNB leases out for investment income.
We have baselined our financed emissions in 2022 and has since reported our financed emission figures annually. Our calculation methodology is guided by the Partnership of Carbon Accounting Financials (PCAF). Aligned to this guidance, our portfolio emissions are based on Scope 1 and 2 emissions1 of our investee companies which includes our listed equities, corporate bonds, private equity (direct and co-investments) and real estate holdings.
Moving forward, we plan to continue on this journey to decarbonise our portfolio by engaging with our high priority companies to influence and accelerate their net zero strategies.
Please check out our integrated annual report to see our latest progress.
Emissions breakdown by Asset Class
Emissions breakdown by Geography
Emissions breakdown by Sector
In line with our Net Zero targets, we expect our investee companies to demonstrate similar level of commitment to achieving Net Zero by 2050 and substantiate these pledges with a credible and actionable decarbonisation plan to ensure tangible progress.
As such, we developed an assessment approach to track and monitor our key investee companies’ decarbonisation progress which is underpinned by six core indicators and additional best practices:
Our evaluation approach is closely aligned with widely recognised guidelines such as the Net Zero Investment Framework (NZIF) and the Climate Action 100+. This is to ensure credibility and that we benchmark our investee companies against internationally accepted standards.
Furthermore, within our assessment, we also evaluate if the company has adopted any additional best practices to support the core indicators mentioned. This includes whether they have established strong climate governance, adopted principles of Just Transition, and transparently reported their transition risk and opportunities.
These aspirations outline the foundational elements we believe are essential for building climate-resilient businesses that are forward-thinking and capable of delivering sustainable, long-term value.
We are committed to reducing real world GHG emissions through our investee companies. This is supported by our three quantitative targets, as reported in Net Zero Portfolio. In addition, we commit to not invest in any new greenfield coal investments and will incorporate an NDPE approach in our investments. We will continue to champion ESG and lead the investing community in sustainability by actively advocating sustainability practices among our portfolio companies. In this instance, we aim to align our ESG practices and commitments with the guidelines of the Principles for Responsible Investment (PRI), the PCAF and the UN Global Compact (UNGC), of which we are members.
Through our RM10 billion commitment, we aim to invest in specific thematic areas that are aligned with our climate aspirations while unlocking new investment opportunities. Our investment objectives are guided by these principles:
We have identified four key sectors that will enable us achieve this goal and meets our risk-return profile, namely:
As of the end of FY2023, our deployments have reached about c. 40% of our 2030 target with investments across all asset classes which range from Listed Equities, Private Equity and Real Estate assets. So far, our deployed investments have been within the Power, Green Buildings and Other sectors.
Moving forward, we plan to maintain our momentum in the green investments space as more opportunities will arise within these sectors which will further assist us in reaching our climate targets and enhancing our ability to generate returns.
In 2022, our GHG emissions were
Investment emissions intensity:
% of AUM baselined:
We are committed to reducing real world GHG emissions through our investee companies. This is supported by our three quantitative targets, as reported in Net Zero Portfolio. In addition, we commit to not invest in any new greenfield coal investments and will incorporate an NDPE approach in our investments. We will continue to champion ESG and lead the investing community in sustainability by actively advocating sustainability practices among our portfolio companies. In this instance, we aim to align our ESG practices and commitments with the guidelines of the Principles for Responsible Investment (PRI), the PCAF and the UN Global Compact (UNGC), of which we are members.
Scope 1 | Backup generators | 3 | <1% |
---|---|---|---|
Company vehicles | 200 | 1% | |
Scope 2 | Purchased electricity | 6028 | 16% |
Total Scope 1 & 2 | 6231 | 17% | |
Category (Scope 3) | 1. Purchased goods & services1 | 9,274 | 34% |
2. Capital goods2 | 7,067 | 26% | |
3. Fuel and energy-related | 709 | 3% | |
4. Waste generated | 61 | <1% | |
5. Business travel | 1314 | 5% | |
6. Employee commuting | 4,387 | 16% | |
Total Scope 1,2,3 | 29042 | 100% |
We classify emissions from our real estate holdings (domestic and international) as part of our portfolio emissions, as they are treated as investments in our portfolio. Currently, we are engaging our investees to disclose their Scope 3 emissions. Limitations regarding Scope 3 emission estimates are noted in the PCAF Standard: "PCAF acknowledges that, to date, the comparability, coverage, transparency, and reliability of Scope 3 data still varies greatly per sector and data source.
(Partnership for Carbon Accounting Financials)
(Principles for Responsible Investment)
(UN Global Compact)
(Sustainable Investing Standards)
(Joint Committee on Climate Change)
Through our RM10 billion commitment, we aim to invest in specific thematic areas that are aligned with our climate aspirations while unlocking new investment opportunities. Our investment objectives are guided by these principles:
Our focus is on four key sectors are namely transport, buildings, power, Agriculture, Forestry and Other Land Use (AFOLU).
Living wage by 2023
Labour Rights Policy
40% women in PNB leadership by 2025
Balancing profitability and social investments
PNB prioritises workplace equity and equal opportunities. We ensure fair compensation through our Living Wage Framework since January 2023.
We are committed to providing our employees with fair working conditions and ensuring their fundamental rights are respected. At PNB, we believe that safeguarding labour rights is not only a moral imperative but also a fundamental aspect of responsible stewardship. We strive to create positive, lasting change by ensuring our Investee Companies adhere to fair labour standards, which we see as essential to both business sustainability and social responsibility. We recognise that labour rights issues can pose significant risks—not only to business operations but also to our reputation and long-term viability. Through our ESG Commitment #5, which focuses on responsible labour rights, we aim to promote ethical labour practices and foster a culture of accountability within our Investee Companies.
As outlined in our policy and during our one-on-one engagements, we intend for Investee Companies to publish a standalone Labour or Human Rights Policy encompassing six Key Material Issues:
We have also listed four core expectations for investee companies:
Our Investee Companies are expected to meet these core expectations and either establish or refine their own labour rights policies to align with them.
Six Key Material Issues + 21 Themes determined to be the pillars of the Policy.
Building upon our 2022 Labour Rights Policy, we demonstrate active stewardship by operationalising the policy through two key approaches: monitoring labour rights performance and conducting engagements and site visits.
Implementation:
1. Engagement based on the following Key Touchpoints
2. Our sets of expectations for Investee Companies as outlined in our PNB Labour Rights Policy
Selection of Companies
Engagement with Investee Companies on labour-related issues are selected based on:
For more information, please refer to:
PNB Labour Rights Policy FAQ on PNB Labour Rights Policy (Policy)PNB fosters an inclusive work environment, that values each employee. With a gender-balanced workforce and 36% women in senior management which exceeds global benchmark, we target 40% women in PNB Leadership by 2025.
PNB plays a prominent role in revitalising Malaysia's socio-economic development. Our commitment to the betterment of society through our CSR programmes will continue unabated. Our funding for CSR initiatives encompasses these four pillars:
Triple Bottom Line (TBL) Stewardship Model
Transparency in Voting
Task Force on Climate-related Financial Disclosures (TCFD)-aligned Disclosure
PNB prioritises transparency by openly sharing our voting policy and actual votes.As part of our investment stewardship responsibilities, we also engage actively with management, boards and shareholders of the investee companies in fostering strong marketplace accountability.
We are addressing climate change in our business and have adopted TCFD recommendations in our integrated annual report. This helps to inform stakeholders about our climate governance, strategies, opportunities and risk management. We value transparency and take the lead in exemplifying corporate responsibility on this issue.