Policies : Others

Bursa Malaysia and BNM have issued their own guidelines for the sustainable finance sector. In the wider ESG space, Bursa’s Sustainability Reporting Guide and Toolkits is an overarching guide for how listed corporations report their ESG disclosures, while BNM’s Financial Sector Blueprint 2022-2026 places special emphasis on the financial system’s role in facilitating Malaysia’s transition to a greener economy. BNM has also made efforts to marry the shariah principles inherent in Islamic finance with ESG concerns, via its value-based intermediation (VBI) framework targeted at Islamic financial institutions and how they measure and report their sustainability metrics.

Policy Summary Publication Date Objectives Key stakeholders
Sustainability Reporting Guide and Toolkits
(Bursa Malaysia)
This guide and toolkits detail the business case for embedding sustainability and provides guidance on how this can be achieved. It also provides specific guidance on the information that should be disclosed when producing a Sustainability Statement in the Annual Report in accordance with Bursa Malaysia's Listing Requirements. September 2022
  • Assist companies to appreciate how sustainability can facilitate, support and drive corporate and societal value.
  • Improve awareness of the risks and opportunities connected to the company's sustainability matters/ issues.
  • Identify, prioritise, and manage material sustainability matters, and in turn, create long term value to stakeholders and society at large.
  • Improve the quality and depth of sustainability information disclosed to better serve the needs and expectations of users of sustainability information.
Public Listed Companies
Financial Sector Blueprint 2022-2026
(Bank Negara Malaysia)
Under Strategic Thrust 4, the blueprint aims to position the financial system to facilitate an orderly transition to a greener economy. January 2022
  • Integrate climate-related and environmental risks in prudential regulation and supervision.
  • Support orderly transition to a low-carbon economy.
  • Integrate climate risks in the BNM's internal functions and operations.
Financial institutions
Value-based Intermediation: Strengthening the Roles and Impact of Islamic Finance
(Bank Negara Malaysia)
This strategy paper sets out definition and underpinning thrusts of value-based intermediation (VBI). March 2018
  • Propose implementation approach and strategies in advancing VBI as the next strategic direction for Islamic banking industry.
  • Adoption of relevant practices, offerings, and conduct that generate positive and sustainable impact to the economy, community, and the environment, consistent with the shareholders' sustainable returns and long-term interests.
Islamic financial institutions
Value-based Intermediation Financing and Investment Impact Assessment Framework
(Bank Negara Malaysia)
The guidance framework aims to facilitate the implementation of an impact-based risk management system for assessing the financing and investment activities of Islamic financial institutions in line with their respective VBI commitments. November 2019
  • Overarching principles governing the development of an effective impact-based risk management system.
  • Considerations in enhancing governance process.
  • Approaches to integrate impact-based elements in existing credit risk management system.
Islamic financial institutions

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