KUALA LUMPUR, March 15, 2022 ¨C Bank Negara Malaysia and the ÐÓ°ÉÂÛ̳ published today a report entitled ¡°An Exploration of Nature-related Financial Risks in Malaysia¡±.
This exploratory study, jointly undertaken by Bank Negara Malaysia and the ÐÓ°ÉÂÛ̳, uses local and global data to examine the relationship between the Malaysian financial sector and nature. It also assesses potential exposures to nature-related risks through banks¡¯ financing activities.
Bank Negara Malaysia Governor Tan Sri Nor Shamsiah said, ¡°Ecosystem and planetary health matters to economic and financial stability. While the primary responsibility for addressing these priorities rests with the government, the financial industry and authorities have a critical interest in deepening our understanding and appreciation of the interactions between climate and nature-related risks ¨C because how these risks evolve, both affect and are affected by, the actions of financial institutions.¡±
¡°By identifying and quantifying nature-related financial risks, authorities will be better positioned to prioritize initiatives within their scope of mandate in managing this concern,¡± said Ndiame Diop, ÐÓ°ÉÂÛ̳ Country Director for Brunei, Malaysia, Philippines and Thailand. ¡°We are happy to have partnered with Bank Negara Malaysia to support their leadership on this issue. This report is the first of its kind published by a central bank in Asia. We hope that it will provide an example for other countries facing similar challenges,¡± added Ndiame.
The report provides a launch pad for further study on nature-related risks and highlights the importance of tackling nature loss and climate change in a coherent manner. It also recognises the opportunity to leverage on the progress made on climate initiatives to address broader nature-related risks. Bank Negara Malaysia will continue to engage with the financial sector and other key stakeholders to build capacity in this area.
Download the full report here:
