TCFD Report To Help Improve Transparency In Climate Risks

HSBC Amanah Malaysia has issued its second Task Force on Climate-related Financial Disclosures (TCFD) report and continues to be the first amongst banks in Malaysia to issue such a report – with reports covering the financial year 2020 and 2021.

Developed by the Financial Stability Board in response to the Paris Agreement, TCFD is an internationally recognised disclosure framework that is established to focus on the effects of climate change on companies and the resulting financial risks.

TCFD is a key for a company’s sustainability strategy and resiliency and will further build trust between investors and customers.

Raja Amir Raja Azwa, Chief Executive Officer, HSBC Amanah says, “Climate change presents both risks and opportunities for businesses and individuals. With increased awareness of climate change, the transparency and disclosure of climate- related risks is a key step towards addressing climate data gaps.

“In our second voluntary TCFD report, we have disclosed the progress made and highlighted the initiatives and approach that we will be taking especially in understanding and analysing the climate-related risk of our business and operations.

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“We will also take a phased approach to fully align with the TCFD recommendations in several areas such as our financed emissions, our climate risk management capabilities and our decarbonisation strategy.”

HSBC Amanah’s climate-related strategies are part of a broader commitment to sustainability that is aligned with HSBC Group’s ambition to become a net zero bank.

The bank says the planet urgently needs drastic and lasting action to protect our communities, businesses and natural environment from the damaging effects of climate change.

The ability to steer finance for the transformation of businesses and infrastructure will be key in helping to enable the transition to a net zero global economy.

Globally, HSBC Group is intensifying its support for customers in their transition to net zero.

To help its customers get there, HSBC Group’s target by 2030 is to provide between USD750 billion and USD1 trillion of finance and investment towards the transition.

Additionally, HSBC Malaysia (comprising both HSBC Bank Malaysia Berhad and HSBC Amanah Malaysia Berhad) had earmarked RM1 billion in 2021 towards green and sustainable financing to enable businesses to embark on their sustainability journey and switch to more sustainable ways of doing business – this transaction exhibits some of the work that is being done in tandem with this capital allocation.

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