The Joint Committee on Climate Change Sub-Committee 1 (JC3 SC1), through the Climate Change and Principle-based Taxonomy Implementation Group (CCPT IG) and technical partner, World Wide Fund for Nature (WWF) Malaysia, has published updated implementation guidance to support financial institutions (FIs) in the consistent and effective application of the Climate Change and Principle-based Taxonomy (CCPT). The documents are as follows:

1. Due Diligence Questions (DDQ) for Assessment of BNM CCPT Guiding Principles 3 & 4 (GP3 & GP4)

The DDQ contains a foundational set of questions for adoption by FIs in assessing Guiding Principle 3 (No Significant Harm to the Environment) and Guiding Principle 4 (Remedial Measures to Transition). The DDQ serves as a common baseline for evaluating environmental and climate-related harms, including greenhouse gas (GHG) emissions, and the measures undertaken to address and remediate such harms.

2. Guidance Notes (GN) to Facilitate Adoption of DDQ and Assessment of CCPT Guiding Principles

The Guidance Notes provide detailed guidance to support the practical implementation of the DDQ and the assessment of CCPT Guiding Principles. The updated Guidance Notes include enhanced guidance on the assessment of GP1 (Climate Change Mitigation), GP2 (Climate Change Adaptation), GP3 and GP4, illustrative examples and case studies, examples of supporting documentation, and references to relevant tools and data sources, including the JC3 SC5 Climate Data Catalogue.

3. Frequently Asked Questions (FAQs)

The FAQs provide additional clarification on the application of CCPT requirements. Recent update features feedback and implementation experiences from industry participants and provide further clarification on areas relating to GP assessments, classification outcomes, reporting expectations, financial investments, and other practical implementation considerations.