Malaysia launches new report to help financial institutions assess nature-related risks and opportunities

Kuala Lumpur, Malaysia — Bank Negara Malaysia (BNM), the World Bank Group, and the United Nations Development Programme Biodiversity Finance Initiative (UNDP BIOFIN) have launched a new report to help financial institutions and businesses better understand how nature loss can affect the economy and financial system.

The report, A LEAP for Nature: Advancing Nature-related Financial Risk and Opportunity Assessment in Malaysia, examines how economic activities depend on nature and how they can impact ecosystems. It also explores how financial institutions and companies can identify and manage nature-related risks while unlocking opportunities that support sustainable development.

Healthy ecosystems provide essential services that underpin economic activity, including clean water, fertile soils, climate regulation, and natural resources. As biodiversity loss and environmental degradation accelerate globally, there is growing recognition that nature-related risks can have significant implications for businesses, investors, and financial stability.

The report offers practical guidance for financial institutions, companies, and public-sector entities to assess their dependencies and impacts on nature better. It also provides recommendations to strengthen Malaysia's ecosystem for managing nature-related risks and opportunities.

Madelena Mohamed, Assistant Governor of Bank Negara Malaysia, highlighted the importance of integrating nature considerations into decision-making.

"There is growing urgency to consider nature more systematically in decision-making processes — across strategy, risk management, and capital allocation," she said. "Financial institutions and firms can start by building a better understanding of three areas: their dependence on nature, their impact on nature, and the risks and opportunities linked to both."

Judith Green, Country Manager for Malaysia at the World Bank Group, emphasized the economic value of nature and the need to incorporate it into business decisions.

"Nature underpins economic activity and financial stability, yet its value is often overlooked in decision-making," she said. "This report provides a practical framework to help institutions identify, assess, and manage nature-related risks and opportunities, ultimately supporting the transition toward a more resilient economy and higher-quality jobs."

Besian Xhezo, Deputy Resident Representative of UNDP Malaysia, Singapore and Brunei Darussalam, noted that the report can help organizations move from awareness to action.

"This report provides a practical starting point for companies and financial institutions to turn awareness into action and help build a more resilient, competitive, and nature-positive economy," he said.

The report represents an important step in strengthening the integration of nature-related considerations into financial and business decision-making in Malaysia. By helping institutions better understand their relationship with nature, it aims to support a more resilient financial system and contribute to the country's transition toward a sustainable and nature-positive future.

The launch of the report received coverage across a range of Malaysian media outlets:

• The Star
• The Edge Malaysia
• Astro Awani
• Business Today Malaysia
• Malay Mail
• Sinar Daily
• The Borneo Post
• KLSE Screener
• Nanyang Siang Pau (Chinese)