KUALA LUMPUR (May 12): The Joint Committee on Climate Change (JC3) will review the Task Force on Climate-Related Financial Disclosures (TCFD) Application Guide for financial institutions to support enhanced sustainability and climate-related disclosures.

In a joint statement by Bank Negara Malaysia (BNM) and the Securities Commission (SC), the regulators said the review was in light of the upcoming release of the general sustainability-related (S1) and climate-related (S2) disclosure standards by the International Sustainability Standards Board (ISSB).

The TCFD Application Guide for Malaysian Financial Institutions was published in June 2022.  

“As the ISSB standards are aligned with TCFD recommendations, the Application Guide will continue to serve as a useful practical reference for financial institutions in Malaysia — particularly in supporting enhanced sustainability and climate-related disclosures,” said the regulators. 

The statement was an update by JC3 on its tenth meeting on May 9, 2023 to review developments in the financial sector’s ongoing response to climate-related risks and related initiatives. 

JC3 members discussed updates on implementing three initial green pilot projects and several capital market initiatives that aim to expand sustainable and transition finance.  

The projects and initiatives focus on greening supply chains, scaling up green technology adoption in the agriculture sector, increasing climate resilience through parametric flood insurance and supporting the development of the sustainable sukuk and bond market. 

“As Malaysia transitions towards a low-carbon economy and a more sustainable future, it is critical that both companies and financial institutions play their part to facilitate this transition,” said the managing director of SC and co-chair of JC3 Kamarudin Hashim. 

JC3 is co-chaired by BNM deputy governor Datuk Jessica Chew Cheng Lian, and SC managing director Kamarudin Hashim, with members comprising senior officials from Bursa Malaysia and 21 financial industry players.