17 Dec 2025
The Sustainable and Transition Finance Guidance sets out the key principles that banks can follow and use to assess borrowers, at both the asset and entity levels, when providing financing to the real economy.
On 2 December 2025, the Joint Committee on Climate Change (JC3), through its Sub-Committee 3 on Product and Innovation, launched its latest publication, the Sustainable and Transition Finance Guidance (STFG, or the Guidance), at the final Transition Planning Clinic at Sasana Kijang in Kuala Lumpur. The Guidance was developed by an industry-led Working Group with members from Maybank, CIMB and HSBC Amanah, supported by Bank Negara Malaysia (BNM) and Securities Commission Malaysia (SC).
Dato’ Sri Khairussaleh Ramli, Maybank’s President and Group CEO said, “As Chair of the STFG Working Group, Maybank continues to demonstrate our commitment to strengthening the sustainable and transition finance landscape in Malaysia’s financial sector. What makes the STFG particularly meaningful is that it is the product of true 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 also highlighted that the STFG is not reinventing the wheel but merely localising it for domestic needs to promote credible sustainable finance practices in Malaysia.
Novan Amirudin, CIMB Group CEO said, “The financial sector is pivotal in driving an economy that emphasises responsible growth and long-term value for both people and the planet. As Malaysia advances its climate and sustainability ambitions, the demand for credible and practical transition finance solutions has become critical. The STFG serves as a vital resource for aligning the banking sector with national sustainability ambitions. Through this, our aim is 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.”
Raja Amir Shah, CEO, HSBC Amanah said, “As a member of the Joint Climate Change Committee (JC3), HSBC Amanah is committed to supporting collaborative actions aimed at building climate resilience within the Malaysian financial sector. A key initiative in this effort is the development of the Sustainable and Transition Finance Guidance (STFG). This guidance 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”.
The Guidance gives banks 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 taxonomies available at national and global levels to banks and explains how institutions can proceed when an asset or project/entity cannot meet all the requirements set out in those taxonomies.
It also provides tools that can help banks conduct consistent and credible assessments of clients’ transition progress, which in turn will support the flow of capital to activities and companies that are making real and measurable steps towards a low-carbon future.
The launch was witnessed by BNM Assistant Governor and JC3 Co-Chair, Madelena Mohamed, SC’s Chief Sustainability Officer, Neetasha Rauf, Maybank President and Group CEO, Dato’ Sri Khairussaleh Ramli, CIMB Malaysia and CIMB Bank Berhad CEO, Gurdip Singh Sidhu, and HSBC Amanah CEO and HSBC Bank Malaysia Chief Sustainability Officer, Raja Amir Shah Raja Azwa.
Drawing on insights from a pre-drafting survey and a public consultation process, the Guidance reflects a strong commitment across the financial sector and its regulators to strengthen the credibility, consistency and impact of Malaysia’s sustainable finance ecosystem. Download the full Guidance at JC3’s website at www.jc3malaysia.com.
Joint Committee on Climate Change (JC3)
STFG Working Group, Maybank, CIMB, HSBC Amanah
17 December 2025
About the JC3
The JC3 is a platform established in September 2019 to pursue collaborative actions for building climate resilience within the Malaysian financial sector. The JC3 is co-chaired by Madelena Mohamed, Assistant Governor of Bank Negara Malaysia and Salmah Bee Mohd Mydin, Executive Director of Securities Commission Malaysia, with members comprising senior officials from Bursa Malaysia and 25 financial industry players. The JC3’s initiatives and priorities are undertaken by its five sub-committees, namely Risk Management; Governance and Disclosure; Product and Innovation; Engagement and Capacity Building; and Bridging Data Gaps. An SME Focus Group has been established to develop strategies and solutions that support transition by SMEs.
Members: AHAM Asset Management Berhad, Allianz General Insurance Company (Malaysia) Berhad, AmBank (M) Berhad, Bank Islam Malaysia Berhad, Bank Pembangunan Malaysia Berhad, Bank Pertanian Malaysia Berhad (Agrobank), BNP Paribas Asset Management Sdn. Bhd., Bursa Malaysia Berhad, CIMB Bank, Etiqa General Insurance Berhad, Franklin Templeton GSC Asset Management Sdn Bhd, HSBC Amanah Malaysia Berhad, Kenanga Investors Berhad, Maybank Berhad, Mizuho Bank (Malaysia) Berhad, MSIG Insurance (Malaysia) Berhad, OCBC Bank (Malaysia) Berhad, Principal Asset Management Berhad, Prudential Assurance Malaysia Berhad, RHB Bank Berhad, Standard Chartered Bank Malaysia Berhad, Swiss Re Asia Pte. Ltd. (Swiss Retakaful), Syarikat Takaful Malaysia Am Berhad, United Overseas Bank (Malaysia) Berhad, UOB Asset Management (Malaysia) Berhad and Zurich General Insurance Malaysia Berhad.
For more information about JC3, please visit www.jc3malaysia.com.