TNB Tops ESG Ranks As It Drives Malaysia's Green Energy Shift

KUALA LUMPUR, June 4 (Bernama) – Tenaga Nasional Bhd's (TNB) rigorous compliance with environmental, social, and governance (ESG) standards has not only driven the power company to meet sustainability targets but also to achieve business efficiency while advancing Malaysia's energy transition.

TNB Chief Sustainability Officer Leo Pui Yong said that ESG data should be treated with the same seriousness as financial reporting to ensure the success of the energy transition and the reduction of carbon emissions.

While navigating global requirements remains a challenge, she said the company made significant progress on ESG standards and recently secured an upgrade to a strong 'AA' MSCI (Morgan Stanley Capital International) rating.

She acknowledged that achieving this milestone required a shift in corporate mindset, viewing ESG as a business value driver, not just a compliance matter.

Leo spoke today at the Energy Transition Conference 2026 (ETCon26) during a panel titled 'ESG in the Energy Transition: Value Driver or Compliance Burden.'

The session was moderated by K Ganesan Kolandevelu, Deloitte's Sustainability and Emerging Assurance leader for Southeast Asia.

An "AA" rating reflects companies with strong management of financially material ESG risks and opportunities.

To achieve this, Leo said TNB digitalised the collection of nearly 400 ESG indicators across its 90,000 assets in Peninsular Malaysia, data that now actively drives operational efficiency on the ground.

"In TNB, we don't see IFRS (International Financial Reporting Standards) requirements as just a reporting requirement. We see it as a motivation for us to drive efficiencies, as well as a longer impact in terms of sustainability," she emphasised. 

Meanwhile, Indonesia's PT Perusahaan Listrik Negara (PLN) executive vice president of Energy Transition and Sustainability, Dr Kamia Handayani, agreed, saying that utility companies face real physical risks from climate change that directly affect their infrastructure.

She said that overcoming these challenges requires ESG to be integrated into a company's core operations.

"Sustainability cannot be treated as a separate initiative. It has to become embedded into the business agenda," she added.

Despite progress by regional utility leaders, challenges remain in collecting consistent and accurate data, especially across supply chains involving small and medium enterprises.

This is precisely why Carbon GPT advisor Seng Kee Wong said sustainability data needs the same rigour as financial data, noting that regulators are pushing for audited ESG disclosures.

"If a company misrepresents its financial data, the CEO or board members can get into trouble and go to jail. If the same rigour applies to ESG data, it will be a very different world altogether,” he elaborated. 

-- BERNAMA