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WHO WE ARE

Climate change poses real risks to the economy and financial system. In response to the increasing threats of climate change, the JC3 was established in September 2019 as a regulator-industry platform, aiming to pursue collaborative actions for building climate resilience within the Malaysia financial sector.

 

Our Co-Chairs are Datuk Jessica Chew Cheng Lian, Deputy Governor of Bank Negara Malaysia and Datuk Kamarudin Hashim, Managing Director of Securities Commission Malaysia.

 

​Our members comprise senior officials from Bursa Malaysia and 21 financial industry players, all sharing the same commitment and passion towards greening the financial system and greening finance. We also have 13 observers comprising industry associations, relevant experts, Employees Provident Fund, Khazanah Nasional Berhad and Labuan Financial Services Authority. More information can be found under List of Members and Observers.

OUR MANDATE

  • Building capacity through sharing of knowledge, expertise and best practices in assessing and managing climate-related risks
     

  • Identifying issues, challenges and priorities facing the financial sector in managing the transition towards a low-carbon economy
     

  • Facilitating collaboration between stakeholders in advancing coordinated solutions to address arising issues and challenges

  • Supporting the financial sector’s integration of identified solutions to address climate change or climate-related risks in their business operations.

How We Work

We have been focusing on developing practical tools for use by the industry players in a number of areas - risk management, governance and disclosure, product and innovation, capacity building, and data issues and challenges. To ensure our work is carried out in an effective, productive and inclusive manner, we structure ourselves by these 5 sub-committees:

  • SC1 Risk Management

  • SC2 Governance and Disclosure

  • SC3 Product and Innovation

  • SC4 Engagement and Capacity Building

  • SC5 Bridging Data Gaps

 

We also want to support transition by SMEs towards more sustainable operations, given that about 60% of SMEs believe that strengthening ESG  practices can increase business opportunities and create long-term value. However only 28% of SMEs have adopted elements of ESG practices in their businesses[1]. This has led to the formation of the SME Focus Group (SFG) in May 2023 that aims to enhance awareness, build capacity, promote green certification and facilitate data disclosures by SMEs.

 

[1] “ESG Insights from Malaysian SMEs: Building A Better Future Together” by Alliance Bank in partnership with UN Global Compact Network Malaysia & Brunei (UNGCMYB) and SME Corporation Malaysia (SME Corp)

Risk Management

Co-chaired by Bank Negara Malaysia and AmBank Islamic with the aim to:

  • Facilitate development of climate-related prudential standards and risk management policy

  • Identify and formulate appropriate response to climate-related issues and risks

 

Priority areas and deliverables include among others:

Our Journey So Far

2019

The inaugural JC3 meeting took place on 27 September 2019 after the successful conclusion of the Regional Conference on Climate Change organised by BNM from 25 to 27 September 2019.

Deputy Governor Jessica Chew Cheng Lian from BNM and former Deputy Chief Executive Datuk Zainal Izlan Zainal Abidin from SC co-chaired the JC3. Members comprised senior officials from Bursa Malaysia and 19 industry players, as well as 6 observers. Four sub-committees were formed, focusing on risk management, governance and disclosure, product and innovation, and engagement and capacity building.

2020

The COVID-19 pandemic raised a further sense of urgency to the work of the JC3 in supporting efforts to build resilience against climate and environmental-related events.

During the year, the JC3 completed broad-based consultation and pilot implementation of the Climate Change and Principles-Based Taxonomy (CCPT) developed for financial institutions, a stock-take on disclosure practices of selected financial institutions in Malaysia against recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) and a gap analysis on the green finance landscape. Despite the constraints of the MCO, the JC3 continued its engagement and capacity building efforts by organising three awareness and education programmes.

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