JC3 Issues Sustainable And Transition Finance Guidance

KUALA LUMPUR, Dec 17 (Bernama) -- The Joint Committee on Climate Change (JC3), co-chaired by Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC), has published the Sustainable and Transition Finance Guidance (STFG).

JC3 said in a statement today that through its sub-committee on product and innovation, the STFG was developed by an industry-led working group with members from Malayan Banking Bhd (Maybank), CIMB Securities Sdn Bhd and HSBC Amanah Malaysia Bhd, supported by BNM and the SC.

The STFG sets out key principles that banks can use to assess borrowers at both the asset and entity levels when providing sustainable and transition finance.

Maybank president and group chief executive officer (CEO) Datuk Seri Khairussaleh Ramli said the STFG is the product of close collaboration between the banking industry and regulators.

“It translates global principles into practical, actionable guidance that fits the Malaysian context and supports our real economy transition,” he said. 

CIMB group CEO Novan Amirudin said that as Malaysia advances its climate and sustainability ambitions, the demand for credible and practical transition finance solutions has become critical.

“Through this (STFG), we aim to enhance the banking industry’s collective ability to mobilise credible, sustainable and transition finance at scale, fuelling economic growth progress, and advancing social equity whilst upholding the highest standards of transparency and integrity in our financing practices,” he said. 

HSBC Amanah CEO Raja Amir Shah said the bank is committed to supporting collaborative efforts to strengthen climate resilience within Malaysia’s financial sector.

“The STFG plays a crucial role in promoting responsible, sustainable and transition practices among financial institutions in Malaysia.

“Additionally, it serves as a reference point for capacity-building initiatives that the JC3 can advocate,” he said. 

JC3 also said the STFG provides banks with practical recommendations on how to align their financing activities with established sustainable and transition finance principles at both the asset and entity levels.

“It recognises the wide range of national and global taxonomies available to banks and explains how institutions can proceed when an asset, project or entity does not meet all the requirements set out in those taxonomies,” it said. 

The STFG also provides tools to help banks conduct consistent and credible assessments of clients’ transition progress, thereby supporting the flow of capital to activities and companies making real and measurable progress towards a low-carbon future.

The STFG launch, held on Dec 2 at Sasana Kijang, was witnessed 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.

-- BERNAMA