Latest news with #KWAPInspireSatellite2025
The Star
10-07-2025
- Business
- The Star
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.
The Star
13-06-2025
- Business
- The Star
KWAP, MFF INK MOU TO ACCELERATE BIODIVERSITY, NET ZERO GOALS
KUALA LUMPUR: The Retirement Fund Inc (KWAP) signed a memorandum of understanding (MoU) yesterday with the Malaysia Forest Fund (MFF) aimed at advancing Malaysia's sustainability agenda through forest-based solutions. The partnership is a step in supporting Malaysia's transition to a net-zero economy and reinforces KWAP's commitment to achieve Net Zero Portfolio by 2050, a key element of its broader environmental, social and governance (ESG) strategy. The signing ceremony, held in conjunction with the KWAP Inspire Satellite 2025 event and witnessed by Secretary General of the Treasury and KWAP's chairman Datuk Johan Mahmood Merican, marks the beginning of a collaboration to advance forest conservation and nature-based solutions (NBS). This MoU also supports the development of credible and scalable national carbon credits to help KWAP's investee companies meet their decarbonisation goals. KWAP chief executive officer (CEO) Datuk Nik Amlizan Mohamed said, 'The collaboration with MFF will be a game-changer for both KWAP and Malaysia's broader sustainability efforts. 'As a responsible institutional investor, KWAP is committed to driving stewardship through impactful actions and pursuing purpose beyond returns. 'By contributing to the development of a credible, nationally anchored carbon ecosystem, we aim to empower our investee companies with the tools they need to meet their net-zero commitment while also making significant contributions to Malaysia's climate and biodiversity goals.' The MoU features the Forest Conservation Certificate (FCC) to support domestic conservation initiatives, focusing on preserving Malaysia's vital biodiversity and ecosystems. MFF will also oversee development of the Forest Carbon Offset (FCO), a market-based mechanism that allows companies to offset their emissions through investments in forest conservation projects that reduce, remove and avoid carbon emissions. Through this MoU, KWAP has become a participant in the National Forest Carbon Offset (FCO) technical working group (TWG), established by MFF. The group aims to ensure the needs of institutional investors – including the nuances of ESG investing, are integrated into the framework, where relevant. This participation will also help align FCO standards with international carbon market requirements and best practices. These initiatives, aligned with Malaysia's National Climate Change Policy 2.0, aim to drive knowledge-sharing and capacity-building efforts to enhance participants' skills in forest management and carbon offsetting. This includes supporting the achievement of targets such as a 45% reduction in carbon intensity by 2030 and Net Zero GHG Emissions by 2050, as well as Malaysia's commitment to maintaining at least 50% forest and tree cover. MFF CEO Datuk Shah Redza Hussein said, 'This collaboration with KWAP is a pivotal step in our mission to strengthen Malaysia's carbon market, achieving the nation's sustainability targets and accelerating meaningful climate action. 'By leveraging nature-based solutions, particularly through the Forest Conservation Certificate and the upcoming Forest Carbon Offset, we are creating a pathway for businesses towards achieving net-zero goals while supporting forest conservation, aligning with national climate commitments. 'Our work with KWAP and other stakeholders will drive long-term environmental and economic benefits, not only for Malaysia but for the global community as we strive towards a greener and more resilient future.' The collaboration puts KWAP as a sustainability thought leader, enhancing its reputation in the financial sector while contributing valuable insights to both domestic and international markets. By exploring potential integration of nature-based solutions into its ESG investment and non-investment strategies, KWAP reinforces its role in advancing Malaysia's decarbonisation agenda and setting a strong example for other institutional investors. KWAP and MFF will continue to explore opportunities to enhance the Forest Carbon Offset system and other potential nature-based solutions initiatives, ensuring they become key drivers for sustainable development in Malaysia. The partnership will also support ongoing efforts to build local capacity for biodiversity and forestry management, ensuring that the benefits of the projects reach the communities directly involved. KWAP also build on its MFF collaboration by engaging with interested parties to drive collective action, with the hopes of exploring potential collaborations with fellow GLICs and relevant organisations, in line with the Ministry of Finance's Government-linked Enterprise Activation and Reform Programme (GEAR-uP) initiative, aimed at synergising efforts across Government-linked Entities for national impact. This collaboration represents a critical next step in KWAP's broader commitment to empowering partnerships that drive collective action for sustainability, as outlined in its Sustainability Pledge 2, 'Empower Partnerships for Collective Action.' By joining forces with MFF and other stakeholders, KWAP helps preserve Malaysia's forests and the communities that depend on them for future generations.
