Page 16 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

aligning sustainable finance with the Sustainable Development Goals

Globally, there is increasing attention on the need to unlock private investments to meet the Sustainable Development
Goals (SDGs). The gap in financing needed to realise the SDGs in developing countries is estimated at US$5 to US$7
trillion annually until 2030 . While government funding is important, most of the investments would need to be sourced
4
from the private sector. There is a need to tap into the capital market to mobilise financing to meet the SDGs’ funding
needs.
This can be achieved by promoting the development of sustainable finance, which integrates ESG criteria that are aligned
to the 17 SDGs in investment decisions. Table 1 highlights how the SC’s framework and ACMF’s standards on sustainable
finance align with the SDGs.

The SRI Sukuk Framework, together with the ASEAN GBS, ASEAN SBS and ASEAN SUS, play an important role in
facilitating the region’s infrastructure and social development financing needs. To demonstrate the alignment of the
project categories under these frameworks and standards to the SDGs, the SC reviewed the 17 SDGs to identify those
that may be relevant. Of the 17 SDGs, 15 are deemed relevant to the project categories.

Table 1
Projects SDGs
SRI Sukuk Framework
1. Natural resources

2. Renewable energy and energy efficiency

3. Community and economic development

4. Waqf properties / assets

ASEAN Green Bond Standards

1. Renewable energy

2. Energy efficiency

3. Pollution prevention and control

4. Environmentally sustainable management
of living natural resources and land use

5. Terrestrial and aquatic biodiversity
conservation

4 UN Commission on Trade and Development (UNCTAD) estimates.

6 | PART 1 »» ENABLING SHARED VALUE GROWTH

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