New Data Add Perspectives on Climate-Related Financial Risks in Malaysia, and How Financial Institutions Should React

The 2° Investing Initiative (2DII) and WWF-Malaysia release the results of a pilot study by 8 Malaysian banks to evaluate their alignment with climate scenariosThe misalignment of financial institutions’ portfolios on climate transition raises the importance of taking a holistic perspective on direct & indirect transition risks as well as physical risksIt is important to remember when selecting climate scenarios that each one represents an ethical choice that weights present and future generations differently

Financial institutions in Islamic markets are increasingly focused on climate-related financial risks. Measures to analyse these risks continue to develop, providing an important portfolio of evidence that was added to recently with a report released by the 2...