Malaysia Introduces SRI Taxonomy

Malaysia’s Securities Commission (SC) has issued a new Principles-Based Sustainable and Responsible Investment (SRI) Taxonomy to advance the nation’s climate and sustainability agenda. The SRI Taxonomy, which provides guiding principles for the classification of economic activities that qualify for sustainable investment, was developed by an industry working group chaired by the SC. Members included the World Bank Group Inclusive Growth & Sustainable Finance Hub in Malaysia, as well as representatives from Bursa Malaysia, asset and fund management companies, investment banks, asset owners and other sustainable finance specialists. The SC has issued a public response paper outlining and responding to comments received during the consultation process. The SC said the taxonomy  includes a social component and will help participants address concerns regarding greenwashing risks. Dato’ Seri Dr. Awang Adek Hussin, Malaysia SC’s Chairman, said: “The SRI Taxonomy adopts a principles-based approach to enhance the standardisation and comparability of sustainable investment assets. This was done after considering the state of readiness of the wider Malaysian capital market, as the capital market constituents are at different maturity levels in their sustainability journey.” 

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