On 30 April 2021, the Bank Negara Malaysia issued a guidance
document on Climate Change and Principle-based Taxonomy
("CCPT"). CCPT introduces the guiding
principles (GPs) intended to help financial institutions (FIs)
assess and categorise economic activities (i.e. business
activities) according to the extent to which they meet climate
objectives and promote the transition to a low-carbon economy. This
document is aimed at encouraging the adoption of ESG principles by
FIs and provides a common framework for the classification of
climate risk-related exposures of FIs to support risk assessments
and encourage financial flows towards greening the economy.
What this document would mean to businesses is that if they are
existing or prospective customers of the FIs, they may be required
to consider or take climate-related actions to meet such GPs and
climate objectives.
