KUALA LUMPUR: Bank Negara in collaboration with the World Bank Group and the UN Development Programme Biodiversity Finance Initiative (UNDP BIOFIN) has released a report that examines the extent to which financial sector activities depend on, and impact nature.
Entitled "A LEAP for Nature: Advancing Nature-related Financial Risk and Opportunity Assessment in Malaysia", the report also explores how financial institutions and firms are assessing nature-related risks and opportunities.
In a statement, the central bank said the report also sets out recommendations for financial institutions, firms and public sector entities to strengthen the ecosystem for assessing nature-related risks.
It provides practical guidance to help financial institutions and firms identify and assess their dependencies, impacts, risks and opportunities related
to nature.
"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," said Bank Negara assistance governor Madelena Mohamed.
World Bank Group country manager for Malaysia Judith Green added that the report provides a practical framework to help institutions identify, assess and manage nature-related risks and opportunities – ultimately supporting the transition toward a more resilient economy and higher quality jobs.
UNDP Malaysia, Singapore and Brunei deputy resident representative Besian Xhezo said the report provides a practical starting point for companies and financial institutions to turn awareness into action and help build a more resilient, competitive, and nature-positive economy.
