Malaysia's Kumpulan Wang Persaraan pension fund for public officials will sign on to the United Nations-supported Principles for Responsible Investment.
KWAP, the country's second-largest retirement fund with 125 billion ringgit ($32.1 billion) in assets, announced its move in a news release on Monday that it "holds a strong belief that by integrating ESG practices into investment activities, sustainable risk-adjusted returns can also be generated while enabling KWAP to meet the fund's obligations at an optimum level."
The pension fund will become a signatory to the principles, which the UN launched in 2006 as a framework for asset owners like KWAP to demonstrate their commitment to sustainable investing, at a ceremony on Wednesday.
KWAP's corporate-level guidelines for environmental, social and governance investing are posted on its website.
KWAP officials could not be immediately reached to provide further information.