Engagement Updates
Tenaga Nasional Berhad (TNB) is Malaysia’s primary electricity utility company, responsible for power generation, transmission, and distribution across Peninsular Malaysia, Sabah, and Labuan. The company has a large customer base and operates internationally in countries like the UK, India, and Pakistan.
In 2025, the engagement group actively discussed TNB’s decarbonisation strategy topics, including asset-level assessment of coal plant phase-out, climate governance and Board oversight, and physical resilience.
Investors in the TNB engagement group will focus on coal phase-out discussions (including coal asset retirement assessments and replacement capacity), capital allocation across a smart grid, battery storage, ASEAN interconnection projects, clarity of climate governance and executive remuneration KPIs, and management of physical climate risks on the company’s assets.
Governance
In 2023, TNB appointed its first Chief Sustainability Officer and formed its Board Sustainability and Risk Committee, which helps the Board fulfil responsibilities by overseeing the robustness and implementation effectiveness of TNB’s sustainability and risk management frameworks. In 2024, sustainability-related KPIs were further enhanced and embedded within the Board and senior management’s performance evaluation scorecard to drive group-wide accountability. This was done by adding the National Energy Transition Projects indicator.³
Decarbonisation Strategy
TNB unveiled its sustainability strategy, the TNB Sustainability Pathway 2050, in 2021. TNB’s Energy Transition Plan, aligned with its broader Reimagining TNB 2.0 (RT 2.0) strategy, cuts across the electricity value chain through three strategic pillars: 1) decarbonising power generation; 2) building a more flexible and interconnected grid, including cross-border capabilities; and 3) empowering electrification across sectors while supporting the rise of energy prosumers.
TNB is exploring the viability of retiring CFPPs earlier than planned. It has announced plans to phase down some of its CFPPs in stages, from 2029 until 2045.⁴
Physical Resilience
TNB’s physical risk assessment includes impacts from several hazards such as riverine flooding, surface water flooding, forest fire, heat, wind, soil movement, sea inundation, and breakdown provided for % of asset type and their risk exposure levels per hazard. On climate adaptation measures, TNB also considered impacts from flooding on its business continuity planning and emergency response plan.⁵