Environment and social factors are exerting an increasingly greater influence over companies’ performance and valuations. Global investors are calling for the mandatory inclusion of climate risk disclosures in the financial accounts of companies, banks and investors when providing information to their stakeholders. For financial institutions, regulators are also pushing for the adoption of reporting standards recommended by the Task Force on Climate-related Financial Disclosures (TCFD) The Malaysian bourse (Bursa Malaysia) has initiated a sustainability reporting requirement for all listed companies while the Securities Commission Malaysia (SC)’s  Malaysian  Code on Corporate Governance also recommends that the boards of public listed companies incorporate sustainability in their growth and business strategies.

The following are policies that provide a regulatory framework which facilitates the enhancement of green, social and sustainable financing. These will, in turn, thrust sustainable finance into the mainstream and fuel further diversity by encouraging more issuance from a wider range of sustainable projects that generate a positive and sustainable impact on the economy, the community and the environment.