PETALING JAYA: The Securities Commission (SC) has launched the sustainable and responsible investment (SRI)-linked sukuk framework to facilitate fundraising by companies in addressing sustainability concerns.
The regulator said with the accelerated shift towards developing a climate-resilient future, high-emitting industries are at a high risk of being phased out.
“The SRI-linked sukuk will enable companies in these as well as other industries to transition into a low-carbon or net-zero economy.
“As at Dec 31, 2021, the outstanding global sustainable bonds exceeded US$1 trillion (RM4.40 trillion), with sustainability-linked bonds making up US$118.8bil (RM524bil),” it said in a statement.
It added that the framework was an extension of the initiatives under the SRI Roadmap that was introduced in 2019 to broaden SRI products offerings.
More significantly, this initiative reflects the SC’s commitment to expand the reach of the Islamic Capital Market (ICM) to the broader stakeholders of the economy and build an enabling ICM ecosystem for the sustainability agenda.
“The SRI-linked sukuk framework will encourage greater mobilisation of private sector and issuers’ financing towards sustainable development and meet the increasing global demand for sustainable financing.
“This is in line with the initiatives outlined in the Capital Market Masterplan 3 to reinforce Malaysia’s value proposition as the regional centre for syariah-compliant SRI,” SC chairman Datuk Seri Awang Adek Hussin said.