Joint committee on climate change to develop Malaysian sustainable finance taxonomy

KUALA LUMPUR, Aug. 11 (Xinhua) -- The Joint Committee on Climate Change (JC3), co-chaired by Malaysia's central bank, Bank Negara Malaysia (BNM), and the Securities Commission (SC), has planned for a unified Malaysian Taxonomy on Sustainable Finance.

Through the JC3, the financial regulators and industry will collaborate to co-develop the Malaysian taxonomy alongside relevant stakeholders and ministries, the committee said in a statement on Monday.

The taxonomy will progress from a principles-based approach to utilizing science-based technical screening criteria and quantitative thresholds to advance the accuracy and quality of assessment. This taxonomy will also be aligned with the ASEAN Taxonomy.

"We must act now and decisively by scaling up climate finance and nature-positive initiatives in Malaysia," BNM assistant governor and JC3 Co-Chair Madelena Mohamed said.

Meanwhile, SC executive director and JC3 Co-Chair Salmah Bee Mohd Mydin said climate-related data continues to be an important focus area to ensure effective mobilization of capital, especially for adaptation financing.

"Efforts to ramp up the availability and accessibility of climate-related data also support companies' ability to make effective disclosures under the National Sustainability Reporting Framework," she added. ■