Bank Negara Malaysia (BNM) is inviting feedback on its plans for a ‘principle-based’ green taxonomy, saying it will be meeting with banks and insurers to discuss how they will adopt the framework.
The central bank, which supervises the country’s banks (including investment banks, Islamic banks and development banks) and insurers and reinsurers, is working with the World Bank on a taxonomy “to facilitate financial institutions in identifying and classifying economic activities that could contribute to climate change objectives”.
The taxonomy will be the third such categorisation system globally, following the high-profile EU taxonomy and one in development in Canada.
In a 28-page discussion paper kicking off the public consultation, BNM said it “considers climate change as a material source of risk that could pose threats to financial stability”. “Sup