Net Zero 2050
Moving Forward with Greater Transparency
A significant milestone occurred in August 2021 when TNB announced our aspiration of achieving Net Zero Emissions by 2050. Building on this commitment, we then unveiled the TNB Energy Transition Plan. Our Energy Transition Plan is a comprehensive roadmap that traverses the entire electricity value chain, delineating a clear trajectory towards embracing low carbon sources.
At TNB, we are committed to integrating sustainability into our business strategy and operations. By entrenching this culture of sustainability as a core value that drives our journey towards net zero, we can engage all our business entities, including our subsidiaries, to be active participants in this journey.
The BSRC remains dedicated to overseeing the effective implementation of sustainability initiatives with robust risk management to address exposures and harness opportunities and to ensure strategic integration of sustainability into operations and decision-making.
To embed sustainability into every facet of our operations, we are expediting the deployment and execution of ESG initiatives through collaborative efforts with our key stakeholders. A strong sustainability governance and leadership structure is vital to spearhead our sustainability agenda and provide us with clear and definitive guidance to achieve our net zero aspirations. 2023 has been a year where proactive steps are taken, from forming the TNB Sustainability Division, developing a roadmap towards becoming a global ESG leader, establishing the Board Sustainability and Risk Committee to revising the TNB Environmental Policy. Originally focusing on environmental regulations and limits, the revised policy now champions four core principles – emission reduction, climate change mitigation and adaptation, natural resource optimization and environmental ecosystem protection.
The TNB Sustainability Division stands as a cornerstone for strengthening sustainability governance and propelling our net-zero aspirations. We prioritise actionable strategies to fulfil our sustainability commitments without impeding business growth. Integral to this journey is the digitalisation of ESG data and indicators, a key stride for transparent disclosure and well-informed decision-making.
Transparency in ESG reporting is the way forward. The Global ESG Monitor’s (GEM) recent global recognition spurs our unwavering commitment to fortify sustainability governance. As we enter 2024, we will continue to focus on elevating transparency in our sustainability practices, cementing our dedication to sustainable growth.
Leo Pui Yong
Chief Sustainability Officer
Global trends in the power sector are driven by four key areas: Net Zero commitment, electricity demand, energy transition, and regulatory reforms.
Sustainability stands as an unequivocal priority, with countries like Malaysia setting ambitious targets. At the core of sustainability lies electrification, and as its prevalence grows, electricity demand is projected to double by 2050, outpacing the demand for other fuels. In shaping the global energy transition, where decarbonisation, decentralization, and digitalization play pivotal roles, decarbonization emerges as the most impactful trend steering the development of new technologies:
Renewables are expected to grow significantly, with Malaysia targeting 70% of its 2050 installed capacity. Advancements in storage technologies are making renewables more dispatchable.
The sources of supply are diversifying, incorporating emerging green technologies like green hydrogen, carbon capture and storage (CCS) and nuclear small modular reactor (SMR).
As decentralization in power generation grows, the role of the grid becomes increasingly vital, shifting objectives towards enhanced flexibility and resiliency while upholding reliability and security. Digitalization is paramount to enable the grid of the future. Digitalisation takes centre stage in paving the way for the grid of the future, providing dynamic energy solutions for electricity customers
TNB Corporate Strategy
TNB sustainability journey is anchored on Reimagining TNB Strategic Framework. First introduced in 2016, the rapidly evolving industry landscape, ignited by global energy transition, has led us to refresh the Group’s strategy and aspiration “to be a leading provider of sustainable energy solutions in Malaysia and internationally”.
TNB SUSTAINABILITY PATHWAY: SETTING THE TARGET
Positioning for the future and moving forward towards energy transition, in August 2021 TNB announced our Net Zero Emission aspiration by 2050.
INTEGRATING SUSTAINABLE PRACTICES
As a responsible organization, TNB places its sustainability pillars – environmental, social and governance (ESG)
– at the heart of our progress
Reinforcing ethical business practices and a forward-looking culture.
Minimising our environmental impact wherever we operate.
Developing long-term and meaningful relationships with our customers, employees, and communities.
In today’s landscape where ESG considerations hold growing prominence in global business conversations, integrating ESG principles into our operations stands not just as an ethical necessity but also as a strategic endeavor bolstering TNB's long-term prosperity and resilience.
To infuse sustainability across all dimensions of our operations, we are accelerating the deployment and execution of ESG initiatives, fostering collaboration with our key stakeholders.
PRIORITIZING AND DIGITALIZING ESG INDICATORS
ESG elements encompass a wide range of concerns, spanning climate change, social responsibility, diversity and inclusion, and ethical governance.
To bolster disclosure requirements and transparency, while effectively execute and orchestrate ESG initiatives across the TNB Group, TNB is consolidating over 150 ESG data indicators from various sustainability reporting frameworks. Integral to this journey is the digitalisation of ESG data and indicators, a key stride for transparent disclosure and well-informed decision-making.
Prominent sustainability reporting frameworks, including the Bursa Sustainability Reporting Guideline 3rd Edition and the Global Reporting Initiative (GRI) Standards, provide organisations with a standardised and consistent structure to disclose their ESG performance.
Diagram: TNB’s ESG data universe identified in accordance with existing sustainability reporting frameworks for greater transparency of its ESG performance management and disclosure.
The adoption of these frameworks promotes corporate accountability and transparency, allowing stakeholders to compare and analyse information across companies. Investors increasingly rely on established frameworks like MSCI ESG Ratings, SASB and sector specific GRI Standards to make informed decisions aligned with their values and risk tolerance.
Currently, TNB's sustainability reporting consistently aligns with both local and global sustainability standards and frameworks. TNB, aligning with these sustainability reporting frameworks, ensures stakeholders gain a comprehensive understanding of its ESG performance, facilitating global comparability.
Paving the Path to Sustainability: Tenaga Nasional's FY2022 Sustainability Report is your window into our sustainable journey. Discover our performance highlights, strategies, and the groundbreaking Energy Transition Plan that will drive our nation's energy future. Our dedication to Environmental, Social, and Governance principles guides us toward a more sustainable and responsible energy landscape. Learn more here: