In an era where environmental sustainability is a global priority, Tenaga Nasional Berhad (TNB) continues to uphold its commitment to responsible energy management and beyond regulatory frameworks. The recent amendment to the Environmental Quality Act 2024 marks a significant step by the Malaysian Government to enhance environmental governance, and TNB is proactively aligning its operations to meet these updated requirements.
Understanding the Environmental Quality Act (Amendment) 2024
The Environmental Quality Act 2024, which received royal assent on May 27, 2024, and was gazetted on June 6, 2024, officially came into effect on July 7, 2024. The amendment strengthens enforcement mechanisms, increases penalties for environmental violations, and enhances measures to prevent pollution and ecological harm. According to the Minister of Natural Resources and Environmental Sustainability, YB Nik Nazmi Nik Ahmad, these amendments aim to deter environmental offenses through stricter financial penalties and greater accountability.
TNB's Commitment to Environmental Responsibility
As a leading energy provider, TNB operates with a strong focus on environmental responsibility. The company is fully committed to ensuring that its activities align with Malaysia’s evolving regulatory landscape.
As such, TNB has undertaken comprehensive measures to integrate the amended regulations into its environmental governance practices. This includes strengthening our policies, enhancing internal monitoring systems, and fostering a culture of environmental stewardship among employees and stakeholders, including contractors.
Ensuring the Commitment towards Good Governance
To fully realize TNB Group's commitment towards this responsibility, the company has formed a special Health, Safety & Environment (HSE) Committee that plays a critical role in providing strategic direction on these matters.
The committee consists of six (6) C-suites and six (6) Heads of Department, and is chaired by TNB's Chief Distribution Network Officer, with the alternate chair being the Chief Grid Officer.
With a full overview of HSE-related matters and regulatory compliance, the Committee's role involves the approval of strategic HSE plans, guiding corporate strategies, endorsing policies before the Chief Executive Officer's approval, and overseeing company-wide HSE-related actions.
Strategic Initiatives & Action Plan
To ensure full adherence to the amended Act, TNB has implemented several strategic initiatives.
- Strengthening Operational Risk Management through Proactive Mitigation Measures:
In line with the commitment to our operational excellence, TNB has taken proactive steps to identify potential environmental risks arising from new legislative changes. This initiative is part of our ongoing effort to safeguard TNB’s operations while promoting a culture of safety and environmental responsibility
As part of this process, TNB has reviewed and analyzed relevant sections of the newly enacted legislation to determine areas that could pose compliance risks. These findings were presented to the Health, Safety, and Environment Committee (HSEC)-the highest governing body in TNB overseeing HSE matters.
Following the presentation and deliberation in the HSEC, all relevant Divisions, Departments, and TNB subsidiaries were instructed to conduct internal risk assessments to identify specific operational exposures and formulate mitigation strategies accordingly. These assessments and proposed mitigation plans are to be presented to the HSEC to ensure that all potential risks are properly addressed and managed.
In 2025, this exercise continues to be an ongoing effort. This structured and continuous approach reinforces TNB’s dedication to maintaining high standards in health, safety, and environmental governance across all levels of the organization.
- Continuously Engaging our Stakeholders:
Since 2019, TNB has established the Strategic Engagement Plan (SEP) with the Department of Environment (DOE). The SEP serves as a platform to discuss and plan various environmental programs and initiatives. This SEP consists of three focus areas: enforcement, preservation, and recognition. Through these focus areas, enforcement is continually strengthened to ensure TNB is well equipped and capable of adapting to the new act requirements. With continuous engagement through SEP, TNB is able to proactively address any environmental matters that arise, ensuring timely resolution and improved operational alignment.
In addition, TNB continuously engages with DOE across different states to strengthen relationships and establish a discussion platform for addressing environmental issues arising from TNB's operations. TNB has engaged with the Department of Environment of Johor and Terengganu to address and resolve specific environmental concerns arising in the state.
- Employee Training & Awareness Programs:
We have organized the Environmental Quality Act 2024 Symposium at TNB Convention Centre, Bangsar, Kuala Lumpur on 21st December 2024. This symposium was organized in collaboration with the Department of Environment (DOE) Malaysia. The participants of the program consisted of 125 TNB environmentally competent persons. During this program, DOE presented the changes to the Environmental Quality Act 2024 and outlined the new monetary penalties being imposed. This platform was established to allow TNB environmentally competent persons to directly engage with DOE regarding the new requirements. Through this symposium, participants gained valuable insights to ensure full compliance with the latest regulatory requirements.
Mitigating Risks & Strengthening Environmental Responsibility
By proactively enhancing its environmental governance, TNB aims to mitigate such risks while strengthening its position as a responsible corporate entity.
TNB is committed to full transparency in its environmental performance, with regular reporting and disclosure practices in place. Through these efforts, TNB not only ensures compliance but also contributes to Malaysia’s broader sustainability objectives.
TNB's unwavering commitment to environmental stewardship and regulatory compliance underscores its role as a key player in Malaysia’s transition to a greener future. By proactively addressing the requirements of the Environmental Quality Act 2024, TNB reinforces its dedication to sustainable operations, public trust, and long-term corporate responsibility.