The Climate Financial Landscape: A Case Study Of Financial Companies In Malaysia

Abstract

A growing recognition among nations underscores the necessity of mobilizing domestic resources to finance the transition to low-carbon and climate-resilient economies. This is especially crucial for developing and low-income countries, which predominantly depend on international aid and financing and often lack sufficient internal resources to address climate change. This paper analyzes the climate finance landscape of Malaysia's financial holding companies using the Domestic Climate Finance Landscape (DCFL) methodology developed by the Institute for Climate Economics (I4CE). The primary objective is to examine and track climate-related investments and funding flows of 13 Malaysian financial holding companies listed in Bank Negara Malaysia website. Data were sourced from financial statements and sustainability reports. The findings reveal that these FHC exhibit diverse focuses on financing climate activities, each aligned with their respective missions and visions Furthermore, all Malaysian FHCs finance climate activities for businesses and corporate clients, with five FHCs specifically targeting small and medium-sized enterprises (SMEs). Future research could explore a comparative study between the climate finance strategies of Malaysian FHCs and those in other developing countries which could provide valuable insights on climate financing issue at global level.