KUALA LUMPUR: Recent global developments can heighten the prospects of delaying the progress of the financial sector’s transition to undertake sustainability efforts and underscore the need for the sector to strengthen its response to climate change, says the Joint Committee on Climate Change (JC3).

       JC3, which is co-chaired by Bank Negara and the Securities Commission (SC), comprises Bursa Malaysia Bhd and 19 other industry participants.

       The committee held its seventh meeting on Tuesday with discussions centred on the progress of action plans and priorities for 2022, and effects of recent global developments on transition efforts and policy responses of countries.

       SC deputy chief executive Datuk Zainal Izlan Zainal Abidin, who is also co-chair of the JC3, said financial institutions are initiating steps to embed climate risk in their strategy and risk management framework and are making considerable progress in committing to net zero targets.

       There is also an increasing supply of green financial and investment products in the market, he said.

       Zainal Izlan also pointed out that in driving the sustainability agenda, the top three challenges identified in the report on the sustainable finance landscape in the country are poor data quality and availability, lack of incentives, and low awareness of green finance solutions in the market. — Bernama