97.4% of all businesses in Malaysia are SMEs, contributing 37.4% of GDP. Our engagements reveal that these significant contributors often have low levels of knowledge on sustainability. Communication is thus key. Banks and industry leaders, those seated in this room, have the responsibility to communicate and create the awareness and acceptance of your clients on the importance, risks and opportunities related to the impacts of climate change. Alignment. 2050 is the goal for Malaysia. But, it is not one that can be achieved if we each march to the beat of our own drums. Our collective effort is key if we are to achieve a just and orderly transition. Aside from alignment between institutions, even more critical is the need for alignment within institutions. Climate objectives decided at the board and management level must be cascaded to the frontlines and across branches to ensure that clients have the support needed regardless of where they are situated. In combination, this alignment will ensure that efforts by each institution are complementary and achieve the maximum impact. Proactiveness. The Sixth Assessment Report by the Intergovernmental Panel on Climate Change states irrevocably that the window of opportunity to reach the Paris Agreement goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels is rapidly closing. Decisions of today already have a profound impact on tomorrow's future. Financial institutions must be proactive in ensuring that your own institutions and your clients are prepared in the face of a changing climate and economy.
Aznan bin Abdul Aziz: Banking and ESG revolution – going beyond aspirations Closing remarks by Mr Aznan bin Abdul Aziz, Assistant Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the AICB-ABM 2nd Malaysian Banking Conference, Kuala Lumpur, 27 June 2023. *** Y Bhg Tan Sri Azman Hashim, Chairman of the Asian Institute of Chartered Bankers; Y Bhg Dato Khairussaleh Ramli, Chairman of the Association of Banks Malaysia, Vice Chairman of AICB and Group President and CEO of Maybank Group; Esteemed guests, ladies and gentlemen Assalamualaikum and Salam Sejahtera It's past 5 pm. And I have the unenviable job of keeping you from leaving after a highly productive and packed day. It is simply incomplete to adjourn without the regulator relaying its thoughts and expectations . I understand that the day started with a focus on where we, as a country, are in the climate journey. We know that 2050 is THE Year – the earliest point by which Malaysia aspires to reach Net Zero GHG emissions. Many significant policies are now either in place or are due to be finalised soon to get us to 2050. These include key frameworks and roadmaps for Malaysia to transition such as the Long-Term Low Emissions Development Strategy (LT- LEDS), Nationally Determined Contributions Roadmap (NDC Roadmap) and National Energy Transition Roadmap (NETR). These policies will enable yourselves and your clients to better align your transition plans.