Malaysia’s financial institutions (FIs) are at a critical turning point. Climate change and nature loss is reshaping operations and value chains, and the pressure is mounting—from investors, regulators and other stakeholders demanding transparency and trust.
Why climate and nature matters to Malaysia’s financial sector
17%
Potential GDP loss across Asia and the Pacific by 2070 if GHG emissions remain unchecked.
Source: Asia Development Bank
53%
of Asia Pacific’s economic Gross Value Added (GVA) is moderately or highly dependent on nature.
Source: Asia Investor Group on Climate Change (AIGCC) and PwC
Study on TCFD and TNFD adoption
At PwC, we launched a study to assess how Malaysia’s financial sector is adopting the Task Force on Climate-Related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD). By comparing climate and nature disclosures, we’re unlocking insights that help shape risk strategies, drive long-term value and accelerate sustainable growth—while building trust through credible sustainability reporting.
What we found
Climate disclosure (TCFD adoption) is ahead of nature disclosure. Bank Negara Malaysia (BNM) has laid the groundwork with mandates like the Climate Risk Management and Scenario Analysis (CRMSA) policy and integration into the International Sustainability Standards Board (ISSB)—enabling more aligned reporting practices.
Nature disclosure (TNFD adoption) is still in its early stages. It’s voluntary, but momentum is building. We’re seeing nature-related risk assessments emerge, especially in the insurance sector.
Next steps to future-proof your finances
FIs can fast-track TNFD adoption by leveraging its alignment with the TCFD and the ISSB. The four foundational pillars shared between these three standards makes reporting more efficient and helps build a clearer picture of environmental risks.
Data gaps and technical capacity are real challenges. Collaboration matters—across the sector, with regulators, sustainability experts, and platforms like the Joint Committee on Climate Change (JC3).
Now is the time to bring climate and nature considerations into the core of decision-making—across boardrooms, executive teams, shareholders and stakeholders. Together, we can make informed decisions and build a resilient financial sector geared for sustainable growth.
Download the publication
Navigating TCFD and TNFD adoption in the financial sector
Contact us
Jimmy Tee
Partner, Sustainability and Climate Change and Financial Services Assurance, PwC Malaysia
