For evidence, we only need to look to the spread of infectious disease such as Covid-19 and severe floods that are occurring at shorter intervals and with greater intensity. But transition risks are also intensifying. With the announcement of the net zero national target, further changes in climate policies are inevitable to achieve the target. Technological changes will also have important economic and financial consequences for businesses and those that fund them. So will changing consumer preferences. And if that isn’t sufficiently persuasive, the reality of disorderly transitions, once thought to be a risk further into the future, has now been brought painfully home for many with the energy crisis that is confronting Europe. The financial sector has a critical role in helping the economy and society mitigate these risks. At Bank Negara Malaysia, we see this from two perspectives. First, as part of our mandate to manage risks to financial stability, we expect financial institutions to understand how climate-related risk drivers can impact their risk exposures - including credit, market and insurance risks from their lending, underwriting and investment activities. We expect financial institutions to be able to identify, measure and manage these risks well. Second, we believe that the financial sector can and should play a catalytic role in the transition towards a low carbon economy through its control of resources that fuel the economy. With this in view, let me highlight a few key developments that will shape the Malaysian financial sector’s climate response in the coming years.
Deputy Governor's Opening Remarks at the Cagamas Developing and Financing Green Housing in Asia (DFGH 2022) Conference Speaker: Puan Jessica Chew Cheng Lian / Venue: Kuala Lumpur / Language: English / Speech/Interview Date: 21 Sep 2022 /  It would be hard to overstate the importance of any meaningful effort that might bring us closer to the goal of mitigating the impact of climate change. In a region with among the highest home ownership, where up to nine in every ten families will buy the home that they live in, a conference on green housing must surely be on that list. So it is my great pleasure and privilege to be here today to share some thoughts with you on what the financial sector is doing, and can still do more, to manage climate related risks and support the climate transition. The importance attached to owning a home is a long-standing cultural norm in our society. While that has not changed, there is a growing awareness of the impact that the places we live and work in day by day can have on sustainability. The environmental impact of buildings in terms of greenhouse gas emissions stems not only from energy use for lighting and air conditioning, but from the way in which buildings are constructed, operated and managed. Globally, the building sector accounts for more than 40% of energy consumption, generates approximately 40% of all waste, and consumes 16% of water for construction.