KUALA LUMPUR (April 13): Bond Pricing Agency Malaysia (BPAM) has released its latest service, the BPAM Climate Change and Principle-based Taxonomy (CCPT) classification for bonds, in line with Bank Negara Malaysia's (BNM) CCPT framework introduced in April 2021. 

In a statement on Thursday (April 13), BPAM said that CCPT classification allows financial institutions to classify economic activities according to BNM’s CCPT framework, and at the same time identify and manage climate-related risks and opportunities more effectively. 

“Where Malaysian environmental, social and governance (ESG) data is still highly fragmented, the BPAM CCPT classification provides a structured approach to classifying the principles that underpin climate change research.  

“The service aims to provide the financial markets with data they can rely on when integrating environmental sustainability into their business strategies,” said BPAM chief executive officer and executive director Meor Amri Meor Ayob. 

He said that BPAM CCPT classification implements a clear and consistent methodology in analysing various economic activities at the transactional and issuer levels. 

“In our capacity as the ringgit bond reference point, BPAM is always ready to respond to the needs of the market, as we transition towards a greener and more sustainable Malaysia together,” he added. 

Established as self-compliance guiding principles for Malaysian financial institutions, BNM’s CCPT framework was developed to promote sustainable finance and address climate risks in the financial sector in Malaysia. 

The BPAM CCPT classification is now available based on individual requirements, he noted. 

BPAM is currently the only registered bond pricing agency accredited by the Securities Commission Malaysia (SC).