The Joint Committee on Climate Change (JC3) has launched the Sustainable and Transition Finance Guidance (STFG), a new industry-led framework designed to help banks assess and channel financing to the real economy in support of Malaysia’s sustainability and climate transition goals.
The Guidance was unveiled on 2 December 2025 by JC3’s Sub-Committee on Product and Innovation at the final Transition Planning Clinic held at Sasana Kijang, Kuala Lumpur. It was developed by a working group comprising Maybank, CIMB and HSBC Amanah, with support from Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC).
The STFG sets out key principles and practical recommendations for banks to assess borrowers at both the asset and entity levels when providing sustainable and transition finance. It aims to translate global sustainable finance principles into actionable guidance tailored to Malaysia’s domestic context, supporting credible and consistent financing practices across the banking sector.
Maybank President and Group CEO Dato’ Sri Khairussaleh Ramli, who chaired the STFG Working Group, said the Guidance reflects strong collaboration between regulators and the banking industry.
“What makes the STFG particularly meaningful is that it is the product of true collaboration between the banking industry and regulators. It translates global principles into practical, actionable guidance that fits the Malaysian context and supports our real economy transition,” he said, adding that the framework localises existing global standards rather than reinventing them.
CIMB Group CEO Novan Amirudin said the Guidance arrives at a critical time as Malaysia advances its climate and sustainability ambitions.
The STFG serves as a vital resource for aligning the banking sector with national sustainability ambitions. Our aim is to enhance the industry’s collective ability to mobilise credible sustainable and transition finance at scale, fuelling economic progress while advancing social equity and upholding high standards of transparency and integrity,” he said.
HSBC Amanah CEO Raja Amir Shah said the Guidance would play an important role in building climate resilience within Malaysia’s financial sector.
“The STFG promotes responsible sustainable and transition practices among financial institutions and serves as a reference point for capacity-building initiatives that the JC3 can advocate,” he noted.
The Guidance recognises the wide range of national and global taxonomies available to banks and provides direction on how to proceed when projects or entities do not fully meet all taxonomy requirements. It also offers tools to help banks conduct consistent and credible assessments of clients’ transition progress, supporting the flow of capital to companies making measurable steps towards a low-carbon future.
The launch was witnessed by BNM Assistant Governor and JC3 Co-Chair Madelena Mohamed, SC Chief Sustainability Officer Neetasha Rauf, alongside senior leaders from Maybank, CIMB and HSBC Amanah.
Drawing on insights from a pre-drafting survey and a public consultation process, the STFG reflects a strong collective commitment by regulators and the financial sector to enhance the credibility, consistency and impact of Malaysia’s sustainable finance ecosystem.
