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Etiqa Delivers on Commitment to Sustainability: Publishes its 2023 UN PSI report

Malaysia

Following Etiqa’s pioneering role as the first and sole Malaysian insurer to sign up to the United Nations’ Principle for Sustainable Insurance (UN PSI) under the United Nations Environment Programme Finance Initiative (UNEP FI) in 2023, Etiqa has published its sustainability progress report for achievements in 2023.

Etiqa’s achievements in 2023 can be grouped under 4 areas.

  1. Ambition 1: To not underwrite any Greenfield Coal Power Generation Plant and meet the internal ESG Requirements for Equity Investments by 2025

    As part of the broader Maybank group, Etiqa has committed not to insure any new Coal fired power plants in Malaysia. Etiqa also does a rigorous assessment of the ESG risks associated with investments and has committed to zerorize any equity investment that carries a severe ESG risk by 2025.

    Etiqa’s achievement in 2023: Etiqa has not underwritten any greenfield coal power generation plants and the proportion of Etiqa’s equity investments with a Severe ESG Risk Rating has dropped to 0.2%.

  2. Ambition 2: Improve the lives of 900,000 households by 2025

    Etiqa aims to have a suite of easily accessible products for the underserved and the underinsured. This involves improving affordability, accessibility, and protection value to meet customer demands, aligning with Etiqa’s goal of enhancing coverage and fostering financial inclusion. Additionally, Etiqa remained dedicated to its Corporate Social Responsibility (CSR) and Corporate Zakat Responsibility (CZR) initiatives.

    Etiqa’s achievement in 2023: From 2021 until December 2023, Etiqa improved the livelihoods of 669,680 households, representing 74% of the cumulative 2025 target. This was achieved by partnering organisations such as the Employee Provident Fund in offering the i-Lindung product where EPF members can withdraw from their accounts to purchase insurance and takaful. Etiqa also answered the call of the government in offering Rahmah insurance and takaful which are micro personal accident products targeted at the mass market. Etiqa also continues to work closely with its partner Non-Government

    Organisations (NGOs) like Rose Foundation and the National Cancer Society of Malaysia (NCSM) to roll out free cancer screening programmes nationwide as well as with Islamic Aid Malaysia to supply clean water to rural villages.

  3. Ambition 3: Achieve Carbon Neutral status for Scope 1 and 2 emissions by 2030 and Net Zero Carbon Equivalent position by 2050

    This ambition aligns with Maybank’s sustainability goals for carbon neutrality by 2030 and net zero by 2050. In 2021, Maybank partnered with TNBX Sdn Bhd to purchase Malaysia Renewable Energy certificates (mRECs), off-setting 70% of Maybank Group’s Scope2 emissions. In addition to these carbon credits, Etiqa’s ongoing efforts through various initiatives such as replacing lights with LED bulbs and encouraging power saving actions, have yielded positive outcomes, showcasing a significant reduction in electricity usage across all Etiqa premises. Even with more staff returning to work in the office, Etiqa recorded lower Scope2 emissions in 2023 compared to 2021 and 2022. In addition, Etiqa is in the process of transitioning company cars to Electric Vehicles to reduce Scope1 emissions.

    Etiqa’s achievement in 2023: Even with more staff returning to work in the office, Etiqa recorded lower Scope 2 emissions in 2023 (11,760 CO2e) compared to 2021 (11,788 CO2e) and 2022 (11,952 CO2e).

  4. Ambition 4: To achieve 80,000 hours per annum on engagements and activities related to sustainability

    Etiqa encourages all its staff to take part in sustainability activities, thereby positively impacting both the environment and society.

    Achievement in 2023: Achieved a total of 84,989 hours, which is 119% of the 2023 target of Sustainability Hours.

Kamaludin Ahmad, Group Chief Executive Officer of Etiqa Insurance and Takaful said, “As the first insurance and takaful company in Malaysia to become a signatory of the United Nations’ Principle for Sustainable Insurance (UN PSI) in 2023, I am proud to disclose the achievements that Etiqa has made on its four Sustainability Ambitions. These milestones are testament of Etiqa’s transparency and how seriously we take our role as a signatory of the UN PSI, and the impact that Etiqa wants to make in the area of sustainability.

While Etiqa began its Sustainability journey back as 2019, the momentum has grown steadily over the years, where we have integrated ESG principles into our business strategy and operations wherever we can. Since Etiqa is a regional player, we have even started to export our sustainability practices to other ASEAN countries, thus extending our sustainability footprint and driving positive change across borders, in line with our vision of ‘Making the Word a Better Place’.”

The UNEP FI is a partnership between the United Nations Environment Programme and the global financial sector to mobilize private sector finance to help create a financial sector that serves people and planet while delivering positive impact. In 2012, UNEP FI launched four key Principles for Sustainable Insurance (PSI) to provide a global roadmap to develop and expand the innovative risk management and insurance solutions that is needed to promote renewable energy, clean water, food security, sustainable cities and disaster resilient communities.

The United Nations Environment Programme Finance Initiative works with more than 400 members (banks, insurers, and investors) and over 100 supporting institutions. The UNEP PSI is the leading Sustainability Affiliation for insurance industry globally. The PSI has 135 members of insurance companies as signatories representing nearly a quarter of the world’s insurance players.

For more information on Etiqa’s sustainability journey, visit our sustainability page.