KUALA LUMPUR: Bank Negara and the World Bank have published a report that examines the relationship between the Malaysian financial sector and nature, and provides an assessment of nature-related risks through banks' financing activities.

       In a joint statement, Bank Negara and the World Bank said the report, entitled "An Exploration of Nature-related Financial Risks in Malaysia", provides a launch pad for further study in the area and highlights the importance of tackling nature loss and climate change in a coherent manner.

       "It also recognises the opportunity to leverage on the progress made on climate initiatives to address broader nature-related risks," it said.

       Bank Negara said it would continue to engage with the financial sector and other key stakeholders to build capacity in this area.

       “Ecosystem and planetary health matters to economic and financial stability.

       "While the primary responsibility for addressing these priorities rests with the government, the financial industry and authorities have a critical interest in deepening our understanding and appreciation of the interactions between climate and naturerelated risks – because how these risks evolve, both affect and are affected by, the actions of financial institutions,” said Bank Negara governor Tan Sri Nor Shamsiah.

       World Bank country director for Brunei, Malaysia, Philippines and Thailand Ndiame Diop noted that the study identifies and quantifies nature-related financial risks to put authorities in a better position to prioritise initiatives to manage the concern.

       "This report is the first of its kind published by a central bank in Asia. We hope that it will provide an example for other countries facing similar challenges,” added Ndiame.