10-07-2025
BEYOND CONSERVATION TO ACTION
THE call to move beyond conservation echoed through the Kumpulan Wang Persaraan (Diperbadankan) or KWAP Auditorium recently, as the KWAP Inspire Satellite 2025 event brought together conservationists, corporate leaders and policymakers.
Now in its third iteration, this year's KWAP Inspire theme, 'Biodiversity in Action', called for moving beyond dialogue to turn ideas into action.
The crucial discussions centred on the pivotal role of Malaysia's forests in the country's environmental sustainability, emphasising innovative approaches to nature preservation and opportunities within the carbon market.
KWAP chief executive officer Datuk Nik Amlizan Mohamed opened the event by highlighting the urgency of integrating environmental considerations into all facets of economic development.
'KWAP Inspire is more than just an event; it is a space to foster collaboration, ignite inspiration and a platform to drive meaningful discussions that can shape a brighter, more sustainable future for Malaysia,' she said.
Aldrie highlighting our impact on mangrove ecosystems during his presentation.–AZMAN GHANI/The Star
'It is particularly special as it highlights the critical relationship between environmental action and effective leadership, policymaking and investment strategies.
'At a time when our planet faces mounting climate and ecological changes, these conversations have never been more urgent.'
She emphasised that biodiversity is central to the nation's economy, stability and health, referencing essential systems such as food security and clean water supply.
Nik Amlizan added that Malaysia's forests serve nature-based solutions crucial to achieving national targets, including a 45% reduction in carbon intensity by 2030, net-zero greenhouse gas emissions by 2050 and maintaining at least 50% of the country's forest and tree cover.
'As an institutional investor, KWAP's responsibility extends beyond delivering strong financial returns. We are here to create long-term value – not only for our stakeholders, but for society as a whole.
'That means building resilience in everything we do, especially when it comes to the environment and the communities we serve,' she said.
Blue carbon ecosystems
One of KWAP Inspire 2025's sessions, aptly titled 'Make Mangroves Great Again', featured a compelling presentation by mangrove ecologist Associate Professor Dr Aldrie Amir from Universiti Kebangsaan Malaysia's Institute for Environment and Development (Lestari).
Spearheading the Malaysian Mangrove Research Alliance and Network (MyMangrove), Aldrie passionately described mangroves as the 'friendliest ecosystem' in nature, largely thanks to its multifaceted role as natural filters between land and ocean.
He elaborated on the unparalleled efficiency of mangroves in carbon sequestration, classifying them as vital blue carbon ecosystems.
'Of all the green plants in the world, mangroves absorb carbon dioxide (CO2) better. Mangrove soil doesn't have enough oxygen in it, unlike terrestrial plants. So, the mangrove trees have to work extra hard every day to absorb CO2 for photosynthesis, facing extreme conditions like tides. Other organisms like crabs and mudskippers aid the mangroves as they drag fallen leaves (total carbon) into the soil,' he said.
Conversely, clearing these vital ecosystems for the construction of resorts or land reclamation projects releases massive carbon deposits stored within their soils, undoing years of natural carbon capture.
He painted a stark picture of the cascading effects of mangrove degradation, which impacts seagrass beds, coral reefs and a diverse array of terrestrial and aquatic ecosystems, including bats and migratory birds.
'Whatever we are facing now, whatever we are currently tackling, is an inertia of what has been going on for hundreds of years. Likewise, what we are emitting today, future generations have to deal with,' Aldrie added.
'But, if change happens now, the mangroves could recover within 30 years.'
Nature-based economy
The second session, titled 'Forest to Fortune: Our Forests can sustain not just Biodiversity but also our Economy', delved into the economic potential of sustainable forest management and carbon markets, featuring Permian Global Malaysia chief executive officer Ivy Wong and Malaysia Forest Fund (MFF) corporate development and strategy senior director Suhaini Haron.
The speakers highlighted that Malaysia boasts approximately 18 million hectares of forest, making it a biodiversity hotspot, home to at least 20% of the world's known animal species. Furthermore, a staggering 90% of the nation's water supply comes from rivers that originate from these vital forest ecosystems.
Both speakers also underscored that corporate environmental, social and governance (ESG) support extends far beyond mere tree-planting initiatives and looks at ecosystems as a whole.
'Understanding the economic importance of our forests is crucial. The pressure to protect them is real, and we must recognise the vital role they play in the broader environmental landscape,' said Suhaini.
Wong pointed out that 'impact does not happen overnight' and government bodies, environmental institutions and businesses will need to continuously collaborate for real impact.
'It's not an overnight solution. To truly see the benefits, we need to work closely with local communities. When it comes to nature-based projects, real impact does not happen in a year or two, but over a much longer period,' she said.
She also stated that there is a critical bottleneck in the endeavour to safeguard the nation's green lungs, with a significant lack of climate professionals in Malaysia, hindering the effective implementation of climate initiatives.
'Here, we lack climate scientists and specialists who study our rich biodiversity. Despite being a tropical, biodiverse country, we're seeing a decline in expert taxonomists – the very people who understand and study what exists in our forests,' said Wong.
The discussion then pivoted to the practicalities of how businesses can effectively implement carbon projects with proper governance.
Suhaini highlighted the importance of robust frameworks and standards, mentioning key entities like Verra (a leading global standard for carbon offset projects) and the government's evolving National Carbon Market Policy (DPKK).
'We have to acknowledge that standards for carbon projects are still largely voluntary and driven by market demand,' she said.
'However, the implementation of a carbon tax could serve as a compliance mechanism – requiring emitters to report their emissions and adhere to regulatory requirements. Companies that exceed allowable emission levels will need to pay for offsets.
'This could become a key driver in accelerating the development of the carbon market.'
Partnership for sustainability
KWAP and MFF penned a memorandum of understanding (MoU) to advance Malaysia's sustainability agenda through forest-based solutions, marking a pivotal step towards the nation's transition to a net-zero economy.
The MoU reinforces KWAP's commitment to achieving a net-zero portfolio by 2050, a key element of its broader ESG strategy and its broader commitment to empowering partnerships that drive collective action for sustainability, as outlined in its Sustainability Pledge 2, 'Empower Partnerships for Collective Action.'
The collaboration will focus on exploring initiatives to support forest conservation and nature-based solutions, including the Forest Conservation Certificate (FCC), to support domestic conservation, and the development of the Forest Carbon Offset (FCO), a national market-based mechanism, similar to international standards like Verra, that enables companies to offset emissions through forest conservation projects that reduce, remove and avoid carbon emissions.
KWAP's participation in the National FCO Technical Working Group (TWG) will help integrate investors' needs and align FCO standards with international best practices.
KWAP will seek to build upon its collaboration with MFF by engaging interested parties in driving collective action, with the hopes of exploring potential collaborations with fellow government-linked investment companies (GLICs), investee companies and relevant organisations.
