The Joint Committee on Climate Change members agreed to pursue two key initiatives in relation to data. First, to support the development of national emissions factors for key industrial sectors through closer collaboration between the government and financial sector players involved in data collection and reporting.

Second, measures to reduce reporting burdens on companies for information furnished to financial institutions. This includes the use of standardised templates by financial institutions to obtain climate-related information from customers, and arrangements to enable companies to allow financial institutions to share their information to other financial institutions with
consent.

The meeting also agreed to establish the Climate Finance Innovation Lab (the Lab) to accelerate decarbonisation efforts via innovative financial solutions. It is envisaged that the Lab, to be spearheaded by Bank Pembangunan Malaysia Berhad, will focus on bringing together industry players to ideate financial solutions for climate transition, adaptation and nature-related projects.

This Lab will also provide support to the pilot projects positioned under JC3. This, together with the Transition Finance Guidance being developed by JC3, is expected to further expand credible green financing opportunities. As part of ongoing efforts to improve climate data availability, JC3 will be publishing the third iteration of the JC3 Climate Data Catalogue in December 2024. The updated version will feature approximately 28 new unique data items, particularly on biodiversity and nature- related financial risk data, in addition to the existing 128 unique data items already captured in the catalogue.

Datuk Jessica Chew Cheng Lian, Deputy Governor of Bank Negara Malaysia and Co-Chair of JC3, said, "Data availability, collection, and reporting are all key enablers of the green transition. In this regard, JC3 is committed to improving both the quantity and quality of available climate data to support risk assessments and an orderly transition."

Following the release of the public consultation by the Advisory Committee on Sustainability Reporting (ACSR) on the proposed use of the International Sustainability Standards Board (ISSB) in Malaysia, the National Sustainability Reporting Framework is being finalised.

Salmah Bee Mohd Mydin, Executive Director of the Securities Commission Malaysia and Co-Chair of JC3, said, "It was important that we canvass and syndicate feedback from the stakeholders to inform the design of the National Sustainability Reporting Framework, for corporate Malaysia to provide consistent, comparable and reliable sustainability disclosures".

Supporting SMEs remains a priority the committee said, with the ongoing plans to spread awareness to SMEs on climate risk. Several industry-focused ESG awareness workshops will be conducted for SMEs to aid their transition. This complements efforts to promote availability of green and transition financing to SMEs which include the High Tech and Green Facility (HTG) and Low Carbon Transition Facility (LCTF) under BNM's Fund for SMEs. We are also encouraged by the increase in demand for financing supported by the HTG, as more SMEs respond to the call for sustainable growth and innovation.

BNM said it will continue to ensure that allocations under the facilities remain available to support SMEs activities in these areas. In addition, efforts are ongoing to enhance the ESG Jumpstart Portal as a key resource to help SMEs in their climate transition.

Acknowledging the need for greater visibility on catalyst projects and funding needs under the National Energy Transition Roadmap (NETR), JC3 in collaboration with Ministry of Economy have organised the NETR Engagement Session on 4 July 2024. The session provided updates on specific projects under the NETR, and opportunities for greater collaboration between financial
institutions and project owners.