Bank Negara Malaysia (BNM) issued a finalized guidance document for assessing and classifying economic activities that contribute to climate change mitigation and adaptation. The document introduces a progressive system of transition categories to acknowledge the concrete efforts and commitments of businesses to adopt sustainable practices.
The guidance document also provides greater clarity and guidance for assessing the Guiding Principles (GP). In addition, the updated guidance incorporates broader environmental outcomes with a specific focus on how business operations affect pollution, biodiversity, and resource efficiency.
The document applies to licensed banks, investment banks, international Islamic banks, Islamic banks, insurers, reinsurers, takaful operators, retakaful operators, and prescribed development financial institutions. The guidance may also be helpful for other financial sector stakeholders such as capital market players and intermediaries and analysts to guide investment and asset selection decisions, as well as for rating agencies in making rating decisions.
Click here to read the original article published by Regulation Asia.
Please give your feedback on this article or share a similar story for publishing by clicking here.
