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Joint Statement by BNM and Securities Commission Malaysia from the 13th Joint Committee on Climate Change (JC3) Meeting
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Second, measures to reduce reporting burdens on companies for information furnished to financial institutions. This includes the use of standardised templates by financial institutions to obtain climate-related information from customers, and arrangements to enable companies to allow financial institutions to share their information to other financial institutions with consent.
The meeting also agreed to establish the Climate Finance Innovation Lab (the Lab) to accelerate decarbonisation efforts via innovative financial solutions. It is envisaged that the Lab, to be spearheaded by Bank Pembangunan Malaysia Berhad, will focus on bringing together industry players to ideate financial solutions for climate transition, adaptation and nature-related projects.
This Lab will also provide support to the pilot projects positioned under JC3. This, together with the Transition Finance Guidance being developed by JC3, is expected to further expand credible green financing opportunities.
As part of ongoing efforts to improve climate data availability, JC3 will be publishing the third iteration of the JC3 Climate Data Catalogue in December 2024. The updated version will feature approximately 28 new unique data items, particularly on biodiversity and nature-related financial risk data, in addition to the existing 128 unique data items already captured in the catalogue.
Datuk Jessica Chew Cheng Lian, Deputy Governor of Bank Negara Malaysia and Co-Chair of JC3, said, “Data availability, collection, and reporting are all key enablers of the green transition. In this regard, JC3 is committed to improving both the quantity and quality of available climate data to support risk assessments and an orderly transition.”
Salmah Bee Mohd Mydin, Executive Director of the Securities Commission Malaysia and Co-Chair of JC3, said, “It was important that we canvass and syndicate feedback from the stakeholders to inform the design of the National Sustainability Reporting Framework, for corporate Malaysia to provide consistent, comparable and reliable sustainability disclosures”.
Supporting SMEs remains a priority for JC3, with ongoing plans to spread awareness to SMEs on climate risk. Several industry-focused ESG awareness workshops will be conducted for SMEs to aid their transition. This complements efforts to promote availability of green and transition financing to SMEs which include the High Tech and Green Facility (HTG) and Low Carbon Transition Facility (LCTF) under BNM’s Fund for SMEs. We are also encouraged by the increase in demand for financing supported by the HTG, as more SMEs respond to the call for sustainable growth and innovation.
BNM will continue to ensure that allocations under the facilities remain available to support SMEs activities in these areas. In addition, efforts are ongoing to enhance the ESG Jumpstart Portal (ESG Jumpstart for SMEs | JC3 (jc3malaysia.com) as a key resource to help SMEs in their climate transition.
Acknowledging the need for greater visibility on catalyst projects and funding needs under the National Energy Transition Roadmap (NETR), JC3 in collaboration with Ministry of Economy organised the NETR Engagement Session on 4 July 2024. The session provided updates on specific projects under the NETR, and opportunities for greater collaboration between financial institutions and project owners.
JC3 will also launch the second series of the JC3 Upskilling Sustainability Training (JUST) on 6 August 2024, focusing on climate risk assessment and its integration into strategic risk management. This builds on the JC3-GFANZ CEO Roundtable Luncheon organised in May on transition planning.
Bank Negara Malaysia
Securities Commission Malaysia
30 July 2024
About the JC3
The JC3 is a platform established in September 2019 to pursue collaborative actions for building climate resilience within the Malaysian financial sector. The JC3 is co-chaired by Datuk Jessica Chew Cheng Lian, Deputy Governor of Bank Negara Malaysia and Salmah Bee Mohd Mydin, Executive Director of Securities Commission Malaysia, with members comprising senior officials from Bursa Malaysia and 21 financial industry players. The JC3’s initiatives and priorities are undertaken by its five sub-committees, namely Risk Management; Governance and Disclosure; Product and Innovation; Engagement and Capacity Building; and Bridging Data Gaps. An SME Focus Group has been established to develop strategies and solutions that support transition by SMEs.
Members: Allianz General Insurance Company (Malaysia) Berhad, AmBank (M) Berhad, Bank Islam Malaysia Berhad, Bank Pembangunan Malaysia Berhad, Bank Pertanian Malaysia Berhad (Agrobank), BIMB Investment Management Berhad, BNP Paribas Asset Management Sdn. Bhd., Bursa Malaysia Berhad, CIMB Bank, Etiqa Family Takaful Berhad, HSBC Amanah Malaysia Berhad, Kenanga Investors Berhad, Maybank Berhad, MIDF Amanah Investment Bank Berhad, MSIG Insurance (Malaysia) Berhad, RHB Islamic Bank Berhad, RHB Islamic International Asset Management Bhd., Standard Chartered Bank Malaysia Berhad, Swiss Re Asia Pte. Ltd. (Swiss Retakaful), Syarikat Takaful Malaysia Am Berhad, UOB Asset Management (Malaysia) Berhad and Zurich General Insurance Malaysia Berhad.
Disclaimer
The information provided in this report is of a general nature and has been prepared for information purposes only. It is not intended to constitute research or as advice for any investor. The information in this report is not and should not be construed or considered as an offer, recommendation or solicitation for investments. Investors are advised to make their own independent evaluation of the information contained in this report, consider their own individual investment objectives, financial situation and particular needs and should seek appropriate personalised financial advice from a qualified professional to suit individual circumstances and risk profile.
The information contained in this report is prepared from data believed to be correct and reliable at the time of issuance of this report. While every effort is made to ensure the information is up-to-date and correct, Bond and Sukuk Information Platform Sdn Bhd (“the Company”) does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information contained in this report and accordingly, neither the Company nor any of its affiliates nor its related persons shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.
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