Bank Negara Malaysia, the World Bank Group and the United Nations Development Programme Biodiversity Finance Initiative have jointly released a report aimed at helping Malaysia’s financial sector better assess and manage nature-related risks and opportunities.
Titled “A LEAP for Nature: Advancing Nature-related Financial Risk and Opportunity Assessment in Malaysia”, the report examines how financial sector activities both depend on and affect natural ecosystems, while highlighting the growing financial risks associated with biodiversity loss and environmental degradation.
The report explores the extent to which financial institutions and businesses are currently evaluating nature-related risks and opportunities and outlines recommendations to strengthen Malaysia’s ecosystem for nature-related risk assessment.
According to the report, improving the understanding of nature-related dependencies, impacts and associated risks is becoming increasingly important as environmental factors play a larger role in economic performance and financial stability.
The publication provides practical guidance for financial institutions, corporations and public-sector agencies to identify, assess and manage nature-related dependencies, impacts, risks and opportunities as part of broader sustainability and risk management frameworks.
BNM Assistant Governor Madelena Mohamed said there is growing urgency for organisations to incorporate nature considerations more systematically into strategic planning, risk management and capital allocation decisions.
She noted that financial institutions and companies can begin by developing a clearer understanding of how their operations depend on nature, how they affect natural ecosystems, and the risks and opportunities arising from those relationships.
World Bank Group Country Manager for Malaysia Judith Green said nature remains a fundamental pillar of economic activity and financial stability, although its value is often underappreciated in decision-making processes.
She added that as Malaysia advances its sustainability agenda, understanding the relationship between businesses and natural capital will become increasingly important for managing risks and supporting long-term economic resilience.
Meanwhile, UNDP Malaysia, Singapore and Brunei Deputy Resident Representative Besian Xhezo described nature as one of Malaysia’s most valuable economic assets, supporting livelihoods, food and water security, supply chains and long-term economic resilience.
He said the report offers a practical starting point for companies and financial institutions to translate awareness into action and contribute to building a more competitive and nature-positive economy.
The initiative forms part of broader efforts to strengthen the resilience of Malaysia’s financial system while supporting the country’s transition towards sustainable development.
As environmental risks increasingly influence investment decisions, financing conditions and business operations globally, the report is expected to serve as a reference framework for financial institutions seeking to integrate biodiversity and nature-related considerations into their governance, risk management and financing activities.
