EPF Sustainability
EPF Sustainability Commitments
Purpose
We build a better retirement future for Malaysia
Mission
Helping members achieve a comfortable retirement income
Sustainability Aspiration
Accelerating positive change for a sustainable future via a just transition
Sustainable Investment Policies
Sustainable Investment Policy
Sustainable Investment Policy explains EPF’s overall approach to sustainable investing and the integration of sustainability factors into EPF’s investment processes and stewardship practices. The SI policy forms part of EPF’s overarching investment strategy that has been reviewed, approved and endorsed by the IP.
Priority Sectors Policy
Priority Sectors Policy is a set of sector specific policies, consisting of sustainability requirements on six sectors namely: 1) Palm Oil, 2) Oil & Gas, 3) Mining, 4) Utilities, 5) Construction and, 6) Banking. These sectors are chosen based on EPF’s exposure as well as the sustainability risks imminent in these sectors. This policy aims to address material sustainability issues specific to the sector, beyond the scope of Climate Change and Workers’ Wellbeing Policies. Companies that are part of EPF’s priority sectors should refer to the sector policy in tandem with the Priority Issue Policies and strive to meet the expectations and requirements listed in both policies.
Climate Change Policy
Climate Change Policy reaffirms reaffirms the organisation’s commitment to supporting an orderly and just transition to a low-carbon economy, in line with global investor momentum toward achieving net zero. The updated Policy reflects the latest developments in climate standards, regulatory expectations, and investor best practices. It incorporates clearer alignment with net zero targets, strengthened portfolio decarbonisation pathways, and a more robust governance and accountability framework.
A key feature of the Policy is the EPF Climate Alignment Framework, which introduces a structured set of 13 climate-related indicators across eight alignment criteria. This framework provides credible and pragmatic expectations for assessing and advancing the climate alignment of EPF’s investment portfolio. Importantly, the Alignment Classification of investee companies based on these expectations directly informs EPF’s engagement priorities and stewardship strategy, enabling targeted action and measurable progress toward climate goals.
Workers’ Wellbeing Policy
Workers’ Wellbeing Policy which was developed to address the rising controversies surrounding labour rights issues amongst businesses, resulting in heightened scrutiny by various stakeholders. The EPF is committed to play its role in addressing this issue by setting sustainability expectations on investee companies to manage Workers’ Wellbeing matters.
Sustainable Investment Stewardship Policy
Sustainable Investment Stewardship Policy outlines the processes and guidelines the EPF follows in exercising its investor’s rights to foster good sustainability practices amongst its investee companies and external fund managers.