The BNM Climate Change and Principle-based Taxonomy
Financial institutions and businesses
Explore what this guidance document means to the financial services industry and businesses in Malaysia
In the face of rising climate change events and disasters seen globally and in Malaysia, such natural catastrophes significantly impact businesses and households posing feedback loops within the economy.
Bank Negara Malaysia (BNM) had in April 2021 issued the Climate Change and Principle-based Taxonomy (CCPT) after public and industry consultation as one of the early regulatory leaders in South East Asia in pursuant of a standardised classification system of climate-related exposures.
This Deloitte thought leadership paper provides a brief overview and explores the intent of the BNM CCPT document, as well as its impact towards financial institutions (FIs) and businesses; providing views and recommendations on what this means to FIs, businesses and implementation considerations.