Following the eighth meeting of the Joint Committee on Climate Change (JC3) on 29 August 2022, Bank Negara Malaysia (BNM) and the Securities Commission (SC) issued a joint statement indicating that the JC3 will continue to focus on the following priorities:

  • climate change and principle-based taxonomy (CCPT) – financial institutions have submitted the first report on the application of the CCPT to BNM. The JC3, through the CCPT implementation group (CCPT IG), is working with the industry and its partners to further improve the consistency and quality of classifications under the CCPT for existing outstanding financing and investments. The CCPT IG will publish and maintain a set of CCPT FAQs on application issues to promote more consistent practices across financial institutions. It has also developed a due-diligence questionnaire together with the World Wide Fund Malaysia on selected CCPT-guiding principles;
  • environmental and social governance (ESG) – the JC3 is now supporting Capital Markets Malaysia, an affiliate of the SC, to develop an ESG disclosure guide tailored to Malaysian small and medium enterprises;
  • Sukuk framework – on 30 June 2022, the JC3 welcomed the issuance of the sustainable and responsible investment-linked (SRI-linked) Sukuk framework by the SC to facilitate companies to issue SRI-linked Sukuk to support their transition towards low-carbon activities (for further information please see "Expansion of SRI sukuk and bond grant scheme"). The JC3 is also actively exploring suitable pilot programmes to test new green solutions and instruments, such as blended finance, to support the development of climate-friendly projects; and
  • data catalogue – a data catalogue, developed by the JC3, will be accompanied by a brief report on the data availability, gaps and specific recommendations to bridge data gaps. This data catalogue is on track for publication by the end of 2022.

For further information on this topic please contact Pamela Kung at Shearn Delamore & Co by telephone (+60 3 2027 2911) or email ([email protected]). The Shearn Delamore & Co website can be accessed at www.shearndelamore.com.