Page 20 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

In September 2018, the SC expressed support for how seCurities regulators
the Financial Stability Board’s (FSB) Task Force on Can support the sdgs:
Climate-Related Financial Disclosures (TCFD) a sharing of experienCe
recommendations that aim to facilitate companies’ in proMoting sustainaBle
disclosure of the financial impact in relation to finanCe
climate-related risks and opportunities. To date, over
500 organisations including regulators have
expressed support for the TCFD.

The SC also participated in several global initiatives
to increase the profiling of Malaysia as a centre for The report, published in October 2018, provides an
sustainable finance: extensive overview of sustainable finance around the
world with 35 examples from 19 markets, including

initiatives by the SC and ACMF. It examines how

Creating green Bond actions are being taken on sustainability-related risks Series A (RM1 Mn)
Markets: insights, within securities regulators’ existing mandates and

innovations and tools also looks at how regulators can promote the SDGs.
froM eMerging Markets
IOSCO Growth and Emerging Markets
Committee Working Group on Sustainable
Financing
Sharing Experience on Malaysian Green Bond
and Sukuk Market – A Sustainable Banking The SC co-chairs the IOSCO Growth and Emerging
Network Report Markets (GEM) Committee Working Group on
Sustainable Financing. The work will culminate in a
With the aim of raising visibility and awareness of report that will address, among others, the
green bonds and supporting issuers in the green development of sustainable instruments such as
bond market, the SC participated in the International green and social impact bonds as well as encourage
Finance Corporation (IFC) and Climate Bonds the quality of disclosures and strengthen overall
Initiative (CBI) project for Sustainable Banking capacity and expertise on ESG issues within capital
Network (SBN) on green bond markets. Published in markets. The work is also expected to facilitate a
September 2018, the report includes a case study on degree of international consistency given the
the Malaysian green bond and sukuk market. cross-border and global nature of sustainable
instruments.
The report concludes that green bonds are effective
instruments to help achieve the SDGs. Additionally,
national guidance is essential to the creation of
green bond markets in emerging markets. BROADENING ALTERNATIVE
FINANCING AVENUES

Sustainable Stock Exchanges Initiative – Sharing Micro, small and medium enterprises (MSMEs) and
of best practices on how securities regulators entrepreneurs constitute the backbone of the
can support the SDGs Malaysian economy, accounting for 66% of total
employment and 37.1% to total GDP in 2017.
The SC contributed as an Advisory Group member to Along with the growth of the digital economy,
the Sustainable Stock Exchanges (SSE) initiative, MSMEs too have seen a shift from traditional brick
sharing best practices on how securities regulators and mortar businesses to more digitally-led
can support the SDGs. businesses, changing the way they interact with

10 | PART 1 »» ENABLING SHARED VALUE GROWTH

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