Legal Updates December 2022

Financial Services

Principles-Based Sustainable And Responsible Investment ("SRI") Taxonomy For Malaysian Capital Market

The Securities Commission Malaysia ("SC") has released a Principles-based SRI Taxonomy for Malaysian Capital Market ("SRI Taxonomy") on 12 December 2022. The SRI Taxonomy sets out the universal guiding principles for the classification of economic activities that qualify for sustainable investment.

The SRI Taxonomy also seeks to address concerns on the need to mitigate and manage the risks of greenwashing and to define sustainable investments.

In addition to the SRI Taxonomy, the SC also issued a public response paper in response to the feedback it received pursuant to the Public Consultation No. 1/2021 on Principlesbased SRI Taxonomy for Malaysian Capital Market that was issued on 17 December 2021.