KUALA LUMPUR – Capital Markets Malaysia (CMM) and the Institutional Investors Council Malaysia (IIC) have jointly launched the Sustainable Investment Platform (SIP) to support institutional investors and fund managers build depth in sustainable and responsible investment (SRI) strategies.
In a joint statement yesterday, they said the SIP will carry out capacity building for data collection, tools and methodologies that will support innovation in sustainable investment strategies.
“Its activities will also include advocating sustainable investing practices amongst Malaysia’s institutional investors and fund managers, facilitating the exchange of international best practices and positioning Malaysia’s sustainable capital market leadership,” they said.
CMM, an affiliate of the Securities Commission Malaysia (SC), will provide strategic support and funding for the SIP as part of its initiative to position Malaysia as a regional centre for sustainable and responsible investment.
Chairman of the SC, Datuk Syed Zaid Albar said, “Asset owners are key stakeholders in ensuring Malaysia realises its sustainable development goals. The SC is wholly supportive of this collaboration to build private sector awareness and commitment towards sustainable and green practices, which closely align with our Sustainable and Responsible Investment Roadmap for the Capital Market.”
Puan Rohaya Mohammad Yusof, Chairman of the IIC stated that “In today’s environment, investors are increasingly demanding for long term financial returns through creating social and environmental value. To this end, IIC which represents the common interest of institutional investors in Malaysia now play a more proactive stewardship role to steer the development towards building a sustainable future by advocating investee companies to embrace best sustainability practices in addition to financial return.”
The SIP will build on the foundations laid by the IIC to support Malaysia’s transition to an inclusive and climate-resilient economy by championing the sustainable investment agenda.
Three of Malaysia’s largest institutional investors, the Employees Provident Fund (EPF), Khazanah Nasional and Kumpulan Wang Persaraan (Diperbadankan) (KWAP) have signed the Principles of Responsible Investment (PRI).
A total of 37 institutional investors have also become signatories to the Malaysian Code for Institutional investors (MCII) to reflect their commitment in observing the six principles of effective stewardship as espoused in the MCII.
The PRI, the world’s leading proponent of responsible investment, will be Knowledge Partner for the SIP, providing select resources and expert speakers on sustainable investment to the Platform. Launched in New York in 2006, the PRI has grown to more than 3,800 signatories, managing over $103 trillion AUM.