Tenaga Nasional Berhad announces that it has established its inaugural Transition Finance Framework the first by an electricity utility player which serves to align the group and its subsidiaries’ financing to its corporate sustainability commitments.
The Framework outlines criteria for existing or new projects that contribute to the energy transition agenda in adherence with relevant market best practices, including the ASEAN Taxonomy for Sustainable Finance Version 2 and the ASEAN Transition Finance Guidance.
Developed in alignment with the relevant local, regional and international sustainable finance guidelines, principles, standards, and frameworks, the Framework outlines how the Group intends to enter into sustainable finance transactions to fund projects which will deliver positive societal and environmental impacts in support of TNB’s decarbonisation and transition initiatives.
Maybank Investment Bank Berhad acted as Sustainability Framework Adviser for the development of the Framework whilst Sustainalytics has been engaged by TNB to review and provide a Second-Party Opinion on the Framework’s alignment with the relevant guidelines, principles, standards, frameworks and the recommendations of the International Capital Market Association’s Climate Transition Finance Handbook 2023.
Morningstar Sustainalytics, a globally recognised leader in Environmental, Social and Governance risk, ratings and data for investors, is of the opinion that the TNB’s Transition Finance Framework is credible and impactful and aligns with Sustainability Bond Guidelines 2021 along with the four core components of the Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023 and Social Loan Principles 2023, ASEAN Sustainability Bond Standards 2018, ASEAN Green Bond Standards 2018 and ASEAN Social Bond Standards 2018.
