Regulatory Expectations
BNM Requirements
Financial institutions must integrate climate-related risks into their risk management framework
Governance, Strategy, Risk Appetite & Management
Compliance by 31 December 2023
Scenario Analysis, Metrics, Targets & Disclosures
Compliance by 31 December 2024
CRMSA Framework Summary
Climate-Related Risk Assessment
Covers physical risks (e.g. extreme weather) and transition risks (e.g. policy or technology shifts).
Develop Risk Management Strategies
Includes investment diversification, energy efficiency, and climate-resilient services
Conduct Scenario Analysis
Simulates climate change impacts on financial stability
Disclose Climate-Related Risks & Opportunities
Ensures transparency and accountability in financial reporting
PIAM’s Strategic Role
PIAM’s Approach
PIAM is actively steering members toward improved climate risk disclosures
Bridging Disclosure Gaps
Emphasizing transparency to surpass current reporting benchmarks
Enhancing Financial Sector Resilience
Strengthening risk management to support environmental sustainability
TCFD 4 Pillars for Climate Disclosures
Governance
Oversight by board and management on climate risks
Strategy
Corporate plans for managing risks and seizing opportunities
Risk Management
Processes for identifying, assessing, and mitigating climate risks
Metrics & Targets
Measurement and reporting of climate performance
*The write-up is sourced from the Climate Change Action Committee 2022/2024