20 January 2022

On 17 December 2021, SC issued a consultation paper seeking public feedback on sustainable and responsible investment taxonomy (“SRI Taxonomy”).

SC has adopted a principles-based approach in developing the SRI Taxonomy taking into account the state of readiness of the wider Malaysian capital market, as the capital market constituents are at different stages of their sustainability journey. The principles-based SRI Taxonomy is also aimed at contributing towards existing national climate and sustainability agendas and thereby, reinforcing the capital market’s role in supporting a meaningful climate and just transition.

The consultation paper sets out proposed guiding principles on the following:

  • environmental component;
  • principles for financing a credible transition;
  • social component; and
  • sustainability component.

SC also welcomes contributions of use cases which are relevant to the Malaysian capital market to be incorporated into the principles-based SRI Taxonomy. The public may submit feedback on the consultation paper at www.sc.com.my/feedback-sri-taxonomy by 31 March 2022.