Kuala lumpur: 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.
According to BERNAMA News Agency, while navigating global requirements remains a challenge, TNB has made significant progress on ESG standards and recently secured an upgrade to a strong 'AA' MSCI (Morgan Stanley Capital International) rating. Leo acknowledged that achieving this milestone required a shift in corporate mindset, viewing ESG as a business value driver, not just a compliance matter. She spoke at the Energy Transition Conference 2026 (ETCon26) during a panel titled 'ESG in the Energy Transition: Value Driver or Compliance Burden,' which 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. Leo noted that 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. She emphasized that in TNB, IFRS (International Financial Reporting Standards) requirements are seen as a motivation for driving efficiencies and achieving longer-term sustainability impacts.
Indonesia's PT Perusahaan Listrik Negara (PLN) executive vice president of Energy Transition and Sustainability, Dr. Kamia Handayani, concurred with Leo's perspective, explaining that utility companies face real physical risks from climate change that directly affect their infrastructure. She stated that overcoming these challenges requires ESG to be integrated into a company's core operations and sustainability must become embedded into the business agenda.
Despite progress by regional utility leaders, challenges remain in collecting consistent and accurate data, especially across supply chains involving small and medium enterprises. Carbon GPT advisor Seng Kee Wong highlighted the need for sustainability data to have the same rigour as financial data, noting that regulators are pushing for audited ESG disclosures. He explained that misrepresentation of financial data can lead to severe consequences for CEOs or board members, and applying the same level of scrutiny to ESG data could significantly change the landscape.