Our Strategic Alignment

At Tenaga Nasional Berhad (TNB), Diversity, Equity and Inclusion (DEI) are business imperatives that strengthen our ability to serve over 10 million Malaysians, accelerate the nation’s sustainable growth, and deliver on our Reimagining TNB (RT) 2.0 strategy.

Fostering a safe, equitable, diverse and inclusive workforce is essential to drive organizational transformation in our energy transition journey. It is integral to our Sustainability Framework, which is built on three key pillars: Environment, Social and Governance. Our DEI efforts are a core component of the 'Social' pillar, directly contributing to a Just Transition where no one is left behind as we drive Malaysia’s Energy Transition.

The Case for DEI: Fostering Talent, Growth and Customer Value

Organisations that overlook DEI risk stifling innovation, reducing employee engagement, and undermining long-term financial performance. Research by McKinsey has shown that companies with strong ethnic and cultural diversity are 33% more likely to achieve above-average profitability. ¹ Beyond business impact, neglecting DEI can also expose organisations to legal risks, reputational damage, and missed opportunities.

To fully harness the potential of its talent pool and ensure alignment with RT2.0 - under the strategic enabler of Talent, Capabilities, and Culture, TNB is committed to building sustainable leadership by embedding DEI principles across its initiatives.

Building on the foundation of the Diversity and Inclusion (D&I) Policy introduced in 2022, TNB further reinforced its commitment to inclusive practices through the publication of the Labour Rights Policy Statement in October 2024. These initiatives underscore our dedication to diversity, inclusion, and non-discriminatory practices, reflecting a broader commitment to fostering an inclusive culture, empowering employees, and maximising the potential of its diverse workforce.

Value to Business, Employee and Customer

Business: DEI drives Innovation, stronger Business Performance with improved Risk Management and Governance

1. Enhanced Innovation & Problem-Solving

   The energy transition requires solving complex, unprecedented challenges (grid modernization, renewable integration, new customer solutions). Diverse teams bring varied perspectives, reduce groupthink, and foster innovative thinking to drive creative solutions for complex energy challenges.
2. Improved Risk Management & Governance

   Diverse boards and leadership teams are better equipped to identify blind spots, anticipate emerging risks and drive superior decision making.This strengthens corporate governance, a key pillar of TNB's sustainability framework and a critical factor for investor confidence.
3. Stronger Financial Performance & Market Positioning

   A strong DEI record enhances TNB's brand reputation as a sustainable and forward-thinking company. This attracts ESG-focused investors, aligns with Bursa Malaysia's ESG requirements, and support better financing terms.

Employee: DEI creates psychological safety for our People, attract valuable Talent, provides equitable access to Growth

1. Psychological Safety & Well-being

   We strive to create a workplace environment where employees feel included, respected, and safe to voice their opinions. By prioritising employee well-being and development, we build a highly engaged, productive, and future-ready organisation. We celebrate the unique strength of our diverse workforce, aligned towards advancing Malaysia's net zero goals.
2. Equitable Access to Growth & Development

   DEI ensure talent management and leadership development programs are fair and accessible to all employees. This means employees are recognized and promoted based on merit and potential, not background, ensuring everyone has a fair chance to build a long-term career and contribute to TNB's mission.
3. Sense of Purpose & Belonging

   Being part of a company that actively values its people and reflects the diversity of Malaysia fosters a strong sense of pride and belonging. We remain guided by a clear purpose “Leading the Energy Transition for a Sustainable Tomorrow” committed to delivering secure, inclusive, and future-ready energy for all Malaysians.

Customer: DEI promotes better Understanding, Inclusivity and build Trust

1. Improved Service & Customer Understanding

   A workforce that reflects the incredible diversity of Malaysia's population is better equipped to understand and anticipate the unique needs of different communities and customer segments. This leads to more empathetic customer service and tailored energy solutions.
2. Strengthened Social License to Operate

   By championing equity and inclusion internally and in its community investments, TNB demonstrates its commitment to a Just Transition. This builds trust, strengthens its reputation as a national utility that cares for its people, and secures its social license to operate and grow.
3. Enabling Broader Energy Access

   Inclusive design thinking, informed by a diverse workforce, ensures that new products, services, and infrastructure (like EV charging networks or digital apps) are accessible to all customers, including those in rural communities or persons with disabilities (PWD), ensuring no one is left behind in the energy transition.

Our DEI Strategic Priority Area

We are focusing to build Great Company, Great Job and Great Leaders through five (5) strategic DEI priority areas: gender, equitable access to learning & development, fair wages, protection against harassment and inclusive workplace.

The Group People Division (GPD) oversees the implementation and progress of DEI initiatives across TNB, including monitoring the delivery of DEI training and related programs, ensuring that initiatives meet organisational objectives and standards. Progress updates are presented to the People Management Committee (PMC) on a monthly basis.

In addition to this, TNB President/CEO and top management provides comprehensive oversight on talent pool for TNB succession management through Jawatankuasa Insan Kumpulan (Group People Committee).

GPC reviews the Successors Talent Pipeline for critical Senior Management positions twice a month assessing performance, potential and development opportunities to strengthen succession planning. Key elements such as merit, gender, age, background are taken into account reinforcing our commitment towards diversity, equity, and inclusion.

In 2024, TNB strengthened its commitment to ESG and DEI through targeted learning and development initiatives. Guided by the Labour Rights Policy and aligned with our five DEI priority areas — gender, equitable access to learning & development, fair wages, protection against harassment, and inclusive workplace, we embedded sustainability and inclusion across our training portfolio.

Key Highlights:

Human Rights & Integrity

• More than 29,000 staff completed integrity and anti-bribery e-learning, embedding ethical conduct and strengthening our culture of accountability across the organisation.

Environmental & Sustainability (ESG)

• With over 70 programmes on ESG, climate change, energy transition, carbon management, and green financing, we trained over 5,500 staff, investing more than RM1.1 million to equip our workforce with skills to navigate the sustainability transition.

Employee Wellbeing & Mental Health

• Through stress management, resilience, and wellbeing programs, nearly 1,900 employees benefited from initiatives that promote psychological safety and holistic health at work.

Diversity & Inclusion

• Over 460 staff participated in empowerment and women-in-leadership programs, advancing gender equity in leadership pipelines.

Equity & Fair Employment

• Training on employment laws and equitable workplace practices reached more than 300 employees, reinforcing awareness of fair treatment and non-discrimination.

1. Gender DEI

At TNB, women’s advancement is based on merit, performance, and leadership capability. Women hold key positions on the Board of Directors and within the Executive Committee, reflecting strong representation at the highest levels.

As of December 31, 2024, women comprise 33% of TNB’s Board of Directors, exceeding TNB’s target of 30%. At the senior management level, women currently represent 25% across the Group, with the company progressing towards its 30% target by 2025.

A significant portion of identified successors are women, supporting gender diversity in succession planning and leadership development. Across the Group, women are increasingly represented in senior management and executive roles, highlighting a growing talent pool for future leadership. Overall, TNB continues to maintain steady progress in fostering gender diversity, equity, and inclusion throughout the organisation.

TNB Women Representation – Progress & Targets (2024)

33%

Women on Board of Directors
(Exceeds 30% national target)

2

Women in Senior Positions
(Chief People Officer & Chief Sustainability Officer)

36%

Identified successors are women
(Succession and leadership pipeline)

25%

Women in senior management
(Target: 30% across Group by 2025)

41%

Women in executive roles
(Talent pool for growth)

22%

Overall women in TNB workforce
(Steady since 2022)

2. Equitable Access to Learning & Development

Our people are TNB’s greatest asset in navigating the energy transition, and talent development is central to our social sustainability. We invest in upskilling and reskilling our workforce, focusing on green skills, digitalisation, and critical capabilities to support business growth. Our learning programmes are inclusive, fostering a multi-generational workforce equipped with future-ready skills, knowledge transfer, and innovation.

TNB’s 3Es Learning & Development intervention (Education, Exposure, and Experience) provides aspiring women leaders with mentoring, networking, international assignments, executive education, and certification opportunities. Initiatives include the Women Leaders Forum (WLF), TNB Women in Energy Network (TWiEN), and PELITAWANIS, all which champion equal opportunities for women, foster inclusivity, and support professional growth, collaboration, and leadership development in line with TNB’s ESG commitments.

TNB Learning & Development (2024)

RM197.5m

Invested in Learning & Development for all TNB employees

1,346,477

Total training hours dedicated in 2024. Upskilling & reskilling focus: green skills, digitalisation, critical capabilities

50.47

Average training hours per employee per year

3. Fair Wages

At TNB, fair remuneration is a cornerstone of our commitment to labour rights and workforce responsibility. We ensure all employees (permanent, contract, and temporary) are compensated fairly and competitively, with pay regularly benchmarked against the market.

Equal remuneration is provided to men and women based on job worth, grade, and performance, without regard to gender, ethnicity, or other characteristics. Through ongoing monitoring and auditing, we uphold equitable, transparent, and socially responsible employment practices, safeguarding the financial well-being and dignity of our workforce.

TNB Employee Benefits (2024)

RM1,700

Minimum wage
(Effective Feb 2025) Ensured for all employees (Permanent, contract, temporary)

Pilgrimage Leave

Expanded to all employees regardless of race & religion

Medical Coverage

Expanded for spouses of married female employees
(Involving 4,400 people)

Long Service Award

1,115 people recognized in 2024 for loyalty & dedication

4. Protection against discrimination and harassment

TNB Labour Rights Policy Statement outlines our commitment to protect our people against unfair dismissal and harassment. We provide whistleblowing channel to enable employees, contractors and members of the public report instances of unethical, unlawful or inappropriate conduct on a confidential basis without any fear of intimidation or reprisal.

An independent investigation team investigates all reported concern and where applicable, provides feedback regarding the investigation’s outcome. The Board of Integrity Committee serves an oversight role to ensure consistent and effective implementation of reporting mechanism through regular monitoring and evaluation.

5. Fostering an Inclusive Culture: Where Everyone Belongs

True to our core value of "Care" (Prihatin), we define inclusion by how our employees feel. We are committed to cultivating an environment where everyone can thrive.

In 2024, TNB expanded its Pilgrimage Leave to include all employees, regardless of race or religion, and enhanced medical coverage for spouses of female employees - marking an important milestone in our DEI journey. We also continue to recognise and celebrate the dedication of long-serving employees through the Long Service Award program, reflecting our appreciation for their loyalty, passion, and commitment to growing with Tenaga.

Throughout our People Experience journey, we bring our people together through exciting events such as TNB Sports Day, TNB Family Day, TNB Run, Ihya Ramadhan, Quran Recitation Competition and many more. This involves thousands of employees across the country, at every level, generations, gender and race.

Measurement & Value Creation: Delivering on Our ESG Commitments

We measure our success through annual employee engagement surveys, with a steadfast commitment to maintaining top-tier scores in inclusivity and satisfaction.

Our approach is rigorously data-driven, as mandated by our DEI Policy. We measure:

TNB Employee Engagement and Dialogue

Understanding employee needs and perspectives enables TNB to continually enhance our policies, processes, and practices. The People Experience Survey serves as a key measure of engagement, motivation, and commitment, helping us drive better business performance and safety outcomes.

Employees have multiple avenues to engage with leadership, including forums, townhalls, webcasts, site visits, newsletters, and employee resource groups, fostering a constructive work environment. TNB upholds the rights to collective bargaining and freedom of association, supported by registered unions and workers’ associations, with DEI principles embedded in all negotiations. Employees also have access to independent channels, such as whistleblowing and forums, to raise concerns or grievances, ensuring their voices are heard and respected.

TNB Employee Engagement (2024)

89.7%

Employee survey response rate
(2024)

≥ 85%

Employee engagement score
(Since 2021)

3 Unions & 2 Associations

Protect rights of executives & non-executives via Collective Agreements
(Reviewed every 3 years with DEI embedded)

Our Unwavering Commitment

Diversity, Equity & Inclusion is not a standalone initiative; it is the bedrock of our corporate culture and a critical enabler of our Reimagining Tenaga strategy. It is how we live our values, empower our people, and deliver sustainable value for all our stakeholders. We are committed to this journey, ensuring TNB remains a respected leader in Malaysia's sustainable energy future.

This is how we execute our Sustainability Promise. This is how we Power the Nation, responsibly.

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