KUALA LUMPUR: Bank Negara and the World Bank have released a report that examines the relationship between the Malaysian financial sector and nature, and provides an assessment of nature-related risks across banks’ financing activities.
In a joint statement, Bank Negara and the World Bank said the report, titled “An Exploration of Nature-Related Financial Risks in Malaysia”, provides a launch pad for further study in the region and highlights the importance to combat nature loss and climate change. coherently.
“It also recognizes the opportunity to leverage progress on climate initiatives to address broader nature-related risks,” he said.
Bank Negara said it will continue to engage with the financial sector and other key stakeholders to build capacity in this area.
“The health of ecosystems and the planet is important for economic and financial stability.
“While the primary responsibility for addressing these priorities lies with government, the financial sector and authorities have a critical interest in deepening our understanding and appreciation of the interactions between climate- and nature-related risks – because how these risks evolve, affect and are affected by the actions of financial institutions,” said Bank Negara Governor Tan Sri Nor Shamsiah.
World Bank Country Director for Brunei, Malaysia, Philippines and Thailand, Ndiame Diop, noted that the study identifies and quantifies nature-related financial risks to put authorities in a better position to prioritize initiatives to deal with the problem.
“This report is the first of its kind published by a central bank in Asia. We hope it will serve as an example for other countries facing similar challenges,” Ndiame added.