On February 24, 2021, Malaysia’s Joint Committee on Climate Change (JC3) held its fourth meeting to discuss regulatory priorities to support the financial industry’s response to climate-related risks in 2021.

The JC3 was established in 2019 to pursue collaborative actions for building climate resilience within Malaysia’s financial sector. The committee is chaired by Malaysia’s central bank, Bank Negara Malaysia (BNM) and its securities regulator, Securities Commission Malaysia. Other members of the JC3 include senior representatives from Bursa Malaysia and various industry players.

The JC3’s climate-related risk priorities in 2021 include:

  1. Developing guidance documents on risk management and scenario analysis;
  2. Supporting the voluntary implementation of climate-related disclosures aligned with the Recommendations of the Task Force on Climate-related Financial Disclosures;
  3. Broadening engagements with relevant stakeholders to identify and address enabling conditions for the structuring of green financial products and solutions; and
  4. Deepening technical capacity building programs, focusing in particular on strengthening the practical knowledge and tools to support climate-related disclosures, climate risk management and climate scenario analysis.

For more information on Malaysia’s significant efforts to address climate-related risks in the near term, see BNM’s press release here.

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