Kuala lumpur: The Joint Committee on Climate Change (JC3), co-chaired by Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC), has introduced the Sustainable and Transition Finance Guidance (STFG). JC3 announced that the STFG was crafted by an industry-led working group, comprised of members from Malayan Banking Bhd (Maybank), CIMB Securities Sdn Bhd, and HSBC Amanah Malaysia Bhd, with support from BNM and the SC.
According to BERNAMA News Agency, the STFG outlines essential principles for banks to evaluate borrowers at both the asset and entity levels when offering sustainable and transition finance. Maybank president and group CEO Datuk Seri Khairussaleh Ramli emphasized that the STFG results from close collaboration between the banking sector and regulators, converting global principles into applicable guidance tailored to the Malaysian context.
CIMB group CEO Novan Amirudin pointed out the growing necessity for credible transition finance solutions as Malaysia progresses in its climate and sustainability goals. He stated that the STFG aims to boost the banking industry's capacity to mobilize sustainable finance at scale, promoting economic growth and social equity while maintaining high standards of transparency in financial practices.
HSBC Amanah CEO Raja Amir Shah affirmed the bank's commitment to supporting efforts that enhance climate resilience within Malaysia's financial sector. He highlighted the STFG's role in fostering responsible practices among financial institutions and serving as a benchmark for capacity-building initiatives advocated by JC3.
JC3 further explained that the STFG offers practical advice on aligning financing activities with sustainable and transition finance principles, accommodating the diverse range of national and international taxonomies. It also offers tools for banks to consistently and credibly assess client transition progress, aiding the flow of capital towards activities contributing to a low-carbon future.
The STFG launch event, held on December 2 at Sasana Kijang, was attended by BNM assistant governor and JC3 co-chair Madelena Mohamed, SC chief sustainability officer Neetasha Rauf, and senior executives from Maybank, CIMB, and HSBC Amanah.