A new report sets out how Malaysia’s financial sector can factor nature-related risks and opportunities into risk management, strategy and capital allocation.
Bank Negara Malaysia, the World Bank Group and the United Nations Development Programme Biodiversity Finance Initiative released the report, titled A LEAP for Nature: Advancing Nature-related Financial Risk and Opportunity Assessment in Malaysia.
The report examines how financial sector activities depend on nature and affect natural ecosystems.
It also looks at how financial institutions and companies are assessing nature-related risks and opportunities.
It provides recommendations for financial institutions, firms and public sector bodies to improve how they identify nature-related dependencies, impacts, risks and opportunities.
The report also offers practical guidance for institutions and companies to include nature-related considerations in business and financial decisions.
Bank Negara Malaysia Assistant Governor Madelena Mohamed said,
“There is growing urgency to consider nature more systematically in decision-making processes – across strategy, risk management, and capital allocation.
As highlighted in the report, financial institutions and firms can start by building a better understanding of three areas: their dependence on nature, their impact on nature, and the risks and opportunities linked to both.”
Featured image: (From left to right) UNDP Malaysia, Singapore and Brunei Deputy Resident Representative, Besian Xhezo; Bank Negara Malaysia Assistant Governor, Madelena Mohamed; and World Bank Group Country Manager for Malaysia, Judith Green.
