Overview

The COVID-19 pandemic raised a further sense of urgency in supporting efforts to build resilience against climate and environmental-related events. 

We completed broad-based consultation and pilot implementation of the Climate Change and Principles-Based Taxonomy (CCPT), a stock-take on existing disclosure practices against recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD), and a gap analysis on the green finance landscape.  

Despite constraints of the pandemic, we continued engagement and capacity building efforts by organising three awareness and education programmes virtually. 

In addition to advocacy initiatives to promote alignment of financial sector policies and national strategies, we conducted climate risk-related Foundation Level training programmes in 2020 and 2021. 

The virtual JC3 Flagship Conference "Finance for Change" was successfully organised in June 2021. The Flagship Conference hosted over 6,300 participants from over 400 companies.  

JC3 Flagship Conference 2021 Rapporteur Report 

The TCFD Application Guide for Malaysian Financial Institutions was published in June 2022 to strengthen climate-related financial disclosures of financial institutions. The CCPT Implementation Group continued to further improve the consistency and quality of CCPT classifications. 

A Report on the Sustainable Finance Landscape in Malaysia was published in April 2022, capturing key insights from a survey on sustainability practices among financial institutions in Malaysia. In December, the Policy Document on Climate Risk Management and Scenario Analysis was released, as well as the JC3 Data Catalogue and Accompanying Report (DC) to enhance data availability. 

A series of Specialised Level training programmes were conducted, focusing on climate risk management, governance and reporting, financial solutions, and social sustainability.  

We made our debut at COP27 held in Egypt from 6 to 20 November 2022, with participation by BNM, SC and selected members as speakers. 

Our membership expanded with capital market institutions, and industry players, alongside Labuan Financial Services Authority, as observers.

Progress made in supporting credible, consistent and reliable implementation of the CCPT via capacity building initiatives.  We launched several key initiatives to support the real sector transition, including pilots such as Greening Industrial Parks, Greening Value Chain and Green Agritech. 

An SME Focus Group was formed in May to enhance awareness, facilitate green certifications of SMEs and support better disclosures. This was complemented by the launch of the ESG Jumpstart Portal for SMEs.   

The biennial JC3 flagship conference (JC3 J20) was held from 23 to 25 October, hosting over 3000 participants. The Conference proposed practical and actionable solutions, and emphasised the critical role of the financial industry in driving sustainable transformation. We also participated as speakers in COP28 in Dubai. 

We focused on strengthening the Malaysian financial sector’s role in climate action.  We pursued new data-related initiatives, i.e. development of national emissions factors for key industrial sectors, and standardised templates to ease climate-related reporting by financial institutions and facilitate information sharing. We enhanced the Climate Data Catalogue with 28 new unique data items, particularly  biodiversity and nature-related financial risk data.  

Securities Commission Malaysia published the National Sustainability Reporting Framework to guide climate-related disclosures aligned to international standards.  

We held workshops to build capacity in various key priority areas, e.g. in expediting SMEs’ transition, and in climate risk assessment and its integration into strategic risk management.