Malaysia Employees Provident Fund

The financial institution transparently identifies the key sectors, clients, and investees to engage with on climate issues. It also discloses its operational details by country. However, no leading practices were identified for the financial institution with regard to Strategy, governance and stewardship, Environmental footprints, Inclusive finance and Responsible business conduct.

The financial institution commits to respecting the ILO’s fundamental rights at work but has the opportunity to formalise this in a policy document. It can also disclose its method for determining a living wage in its operational regions. Although the institution prohibits bribery and corruption, it could formalise this commitment in a public policy document and include such clauses in its contracts with business relationships.

While the institution identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis. Furthermore, it could link performance criteria for remuneration at the senior executive level to specific sustainability targets and disclose that it has a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy. Additionally, while the institution refers to sectors and areas for nature-related impacts, it has the opportunity to detail how those were identified and prioritized as those with the highest impact with regards to its provision of products, services and capital.

It is recommended that the institution disclose the breakdown of clients or beneficiaries by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Its risk assessment process should incorporate risks related to ILO fundamental rights at work for those affected by its products and services, with a mitigation process for identified risks. Moreover, the institution could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.