Sustainability vital for future economy, financial system resilience – BNM
18 Sep 2020
Everyone must take full accountability for and pledge strong commitment to ensuring the resilience of the future economy and financial system, as it will very much depend on the actions taken now in building climate and societal resilience, says Bank Negara Malaysia (BNM).
Its Assistant Governor Fraziali Ismail said the severity and abruptness of the current health crisis do not make the climate crisis any less pressing.
“This pandemic has not only provided valuable lessons to us on the grave consequences of being ill-prepared when facing a crisis.
“It is also a strong reminder that sustainability must play a crucial role in our economic recovery and reset,” he said in his closing remarks at the Climate Governance Malaysia Showcase during the Climate Week NYC 2020 virtual conference yesterday.
Fraziali said for corporations and businesses, over and above concerns on regulation and legal risks, there is a need to commit to investing in doing the right thing for “people, profit and planet”.
He said corporations and businesses that align their policy and advocacy agenda to climate action have an important role in averting a path towards climate catastrophe.
“As we forge the path towards a climate-conscious future, and for the whole system to change at the needed pace and scale, policymakers need to step up as well,” he said.
For emerging economies such as Malaysia, he said, there is a careful policy balance between transitioning to a low-carbon economy while addressing the needs of society and businesses.
This is meant to minimise unintended consequences of channelling financing towards non-green and non-sustainable practices and to minimise transition risk, he added.
“BNM envisions that financial industry players and others from the private sector will play more proactive roles in increasing funding pathways for green and sustainability-related projects.
“By stepping up such efforts, there would be more innovative financial instruments or alternative financing, sustainable or green bonds or sukuk that would support the government’s climate change agenda,” he added.