KUALA LUMPUR, Dec 17 (Bernama) — The Securities Commission Malaysia (SC) has released a consultation paper seeking public feedback on a principles-based Sustainable and Responsible Investment (SRI) Taxonomy for the Malaysian capital market.
The securities market regulator said the SRI Taxonomy was developed to enable capital market participants to identify economic activities that are aligned with environmental, social and sustainability objectives, in line with the recommendation of the SCs SRI Roadmap for the Malaysian capital market
This will facilitate a more informed and efficient decision-making for fundraising and investment.
The SRI Taxonomy also provides guiding principles in financing a credible transition to enable more companies to leverage market-based instruments in meeting their transition finance needs, it said.
It said the SRI Taxonomy aimed to accelerate the development of the SRI asset class and promote greater awareness and adoption of sustainability practices within corporate Malaysia.
It provides voluntary guidance for capital market participants to undertake sustainable economic activities based on the principles provided, it said.
It said interested parties and members of the public are welcome to submit their comments and feedback to the SC by March 31, 2022.
The SRI Taxonomy was developed by an Industry Working Group (IWG) chaired by the SC.
Members of the IWG comprised of the World Bank Group Inclusive Growth and Sustainable Finance Hub in Malaysia as the lead technical expert and representatives from Bursa Malaysia, asset and fund management companies, investment bank, asset owner and other sustainable finance specialists.
TAGS: SC, consultation paper, SRI Taxonomy, capital market, SRI Roadmap, IWG, World Bank