Tenaga Nasional Bhd (TNB) has made history by introducing its Transition Finance Framework, making it the first electricity utility company in ASEAN to do so. This framework underscores TNB’s dedication to energy transition and its support for Malaysia’s decarbonization agenda. It is aligned with the country’s target of achieving net zero emissions by 2050.
The Transition Finance Framework is designed to align TNB and its subsidiaries’ financing with their sustainability commitments as outlined in the Sustainability Pathway 2050, Energy Transition Plan, and the Reimagining TNB 2025 corporate strategy. This framework establishes criteria for both existing and new projects that promote energy transition, following industry best practices such as the Asean Taxonomy for Sustainable Finance Version 2 and the Asean Transition Finance Guidance.
TNB will now have the ability to issue green, social, and sustainability debt instruments, including Sustainable and Responsible Investment (SRI) Sukuk, as well as transition-labelled debt instruments to finance projects that will have positive societal and environmental impacts. Maybank Investment Bank Bhd served as the sustainability framework adviser for the development of this framework, while Sustainalytics provided a second-party opinion on its alignment with relevant guidelines and standards.
TNB’s president and CEO, Datuk Ir. Megat Jalaluddin Megat Hassan, expressed pride in being the first electricity utility player in ASEAN to establish a Transition Finance Framework. He emphasized that this framework will drive TNB’s energy transition initiatives and support Malaysia’s energy transition program. This milestone demonstrates TNB’s commitment to a more sustainable and resilient energy future in line with Malaysia’s National Energy Transition Roadmap (NETR).
Maybank’s president and group CEO, Datuk Khairussaleh Ramli, commended TNB for this groundbreaking achievement and expressed Maybank’s support for TNB’s transition journey. With the Transition Finance Framework in place, TNB can maximize its investments in low-carbon transition activities and set a positive example for other carbon-intensive sector players. Maybank remains committed to supporting corporations across ASEAN in their efforts to decarbonize and transition towards net zero, as part of its strategic thrust of being a regional sustainability leader.