Malaysia's central bank governor said financial institutions will be required to report their exposure to climate risks and the information it gathers could be used to set regulatory standards in Southeast Asia's third biggest economy. Bank governor Nor Shamsiah Mohamad Yunus said the recent shroud of haze in Malaysia and neighbouring Indonesia and Singapore from burning forests was a reminder of the environmental challenges facing countries. "It presents a major economic issue with direct implications on financial stability," she said at a regional conference on climate change in the Malaysian capital Kuala Lumpur. "It is for this reason that Bank Negara Malaysia (BNM), along with many other central banks around the globe, are giving serious attention to climate risk." She said new reporting requirements for financial institutions will kick in once classifications on green assets are finalized with the Securities Commission Malaysia and the World Bank. The Bank expects to issue the first draft of the green assets classification by the end of this year for industry feedback.

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The Asahi Shimbun