What JC3 is and who leads it
Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) established JC3 in September 2019. BNM is Malaysia's central bank; the SC regulates the capital market. JC3 brings regulators and financial-industry participants together to strengthen the financial sector's response to climate change. The SC's 2021 conference keynote records its establishment by both organisations.
Its mandate includes building the sector's capacity, identifying challenges in the transition to a lower-carbon economy, coordinating with stakeholders and integrating climate considerations into financial institutions' operations. See BNM's climate and sustainability hub.
As checked on 5 October 2026, JC3's co-chairs are:
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| Organisation | JC3 co-chair |
|---|---|
| Bank Negara Malaysia | Madelena Mohamed, Assistant Governor |
| Securities Commission Malaysia | Neetasha Rauf, Chief Sustainability Officer |
The committee includes Bursa Malaysia and 25 financial-industry participants. Its members span banking, insurance, takaful — Islamic insurance — and asset management. JC3 also reports 13 observers, including industry associations and other relevant organisations. The official overview explains the structure, while the 13 August 2026 joint statement identifies the members at that meeting.
Why climate risks matter to your financing
Climate change can affect a business's ability to operate, protect its assets and repay financing. A flood might damage stock or interrupt deliveries. Changes in energy costs, technology, customer demand or climate policy might affect the cost of running a factory or the market for its products.
Financial institutions need to understand these exposures across their customers and investments. Insurers also need to consider how changing weather affects claims. JC3's banking disclosure guidance illustrates how physical risks, such as flooding, and transition risks, such as changing market conditions, can affect a bank and its customers.
This helps explain why a lender may ask for information beyond your financial statements. Useful evidence might include where your assets are located, your energy bills, environmental approvals or a costed improvement plan. The information needed will depend on your business, the financing product and the lender's assessment.
What JC3's workstreams do
JC3 currently has five sub-committees and an additional SME Focus Group. Their practical purposes are:
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| Workstream | Why it matters in practice |
|---|---|
| Risk Management | Helps financial institutions identify climate risks and apply relevant risk-management and classification guidance. This can inform how a bank examines a business or project. |
| Governance and Disclosure | Supports clearer oversight and reporting within financial institutions. This can help explain their interest in reliable customer information. |
| Product and Innovation | Examines gaps in financing, investment and protection, and develops approaches to support climate mitigation and adaptation. |
| Engagement and Capacity Building | Builds knowledge and brings financial institutions and other stakeholders together to address practical challenges. |
| Bridging Data Gaps | Identifies missing climate data and points users towards information that can support risk analysis and financing decisions. |
| SME Focus Group | Addresses the needs of small and medium-sized enterprises (SMEs), including knowledge gaps and access to relevant support and solutions. |
Useful resources for your next step
For an SME data request, start with SEDG. For an investment that changes your operations, start with the transition guidance. For a site exposed to floods or heat, use the data catalogue to locate background evidence. The sections below explain each resource's role.
“We're an SME. Where should we start?”
The JC3 SME resources page points to introductory learning resources, including ESG Jumpstart on the imSME platform. Treat it as a starting directory and check the date and scope of each linked resource.
For a practical disclosure starting point, consider the Simplified ESG Disclosure Guide (SEDG), Version 2, published in July 2025 by Capital Markets Malaysia (CMM), an affiliate of the SC. ESG means environmental, social and governance. This voluntary guide is intended for SMEs in supply chains; it is not a JC3 loan application form. Read the original guide or our SEDG guide for SMEs.
“Where can we find climate data?”
The JC3 Climate Data Catalogue helps users locate data relevant to climate risks and opportunities, including emissions and physical-risk information. The 2025 explanatory note sets out its scope and limitations.
The catalogue provides links and descriptions, rather than hosting all the underlying datasets. Coverage and access vary, and some information is only partly available. Check the original provider, geography, date and suitability before using data in your business plan or financing proposal.
“What might a bank want to know about environmental impacts?”
BNM's Climate Change and Principle-based Taxonomy (CCPT) helps financial institutions classify economic activities. Its 30 July 2026 update links tools for assessing significant environmental harm and remedial efforts.
The linked Due Diligence Questions, labelled Version 2.0, January 2024, cover areas such as pollution, biodiversity, resource use and greenhouse-gas emissions. They can help you anticipate a discussion about evidence and improvements. Ask your lender which questions apply to your activity and facility. Our policies and standards guide explains the wider framework.
“How can we explain an investment in our transition?”
JC3's published Sustainable and Transition Finance Guidance (STFG) was launched on 2 December 2025, following a public consultation. It was developed by banks for Malaysian banks and contains recommendations for assessing financing at both project or asset level and company level.
Business teams can use it to understand why a financier may examine the purpose of an investment, the credibility of a transition plan, milestones and supporting evidence. Read the published guidance and our transition-finance guide. The publication does not guarantee that a proposal qualifies for financing or will be approved.
“Why are financial institutions asking for better sustainability information?”
JC3 released sector-specific National Sustainability Reporting Framework (NSRF) guidance on 13 August 2026 for banks and insurance and takaful institutions.
These documents use fictional institutions and illustrative reporting examples. They help financial institutions prepare disclosures; they do not establish a blanket reporting duty for every SME customer. For the framework's origins and your own reporting questions, use the SC's NSRF hub and our disclosure and reporting guide.
“We have a climate project that needs development and funding connections.”
The Climate Finance Innovation Lab (CFIL) supports the development of selected climate projects and potential financing solutions. JC3 provides strategic oversight, while Bank Pembangunan Malaysia Berhad serves as the CFIL Administrator. See how CFIL works.
The published project eligibility page and Cohort 2 criteria address project maturity, commercial viability, sponsors and funding scale. This is a selective project-development route. Confirm the current intake and applicable criteria with the administrator before preparing a submission; participation does not guarantee funding.
Prepare for a useful conversation with your bank
Depending on the proposal, a bank may ask questions such as:
- What will the money pay for, and what environmental improvement do you expect?
- Could flooding or other climate risks disrupt the project, premises or supply chain?
- What evidence do you have about energy use, emissions or environmental impacts?
- If there are significant impacts, how will you address them, by when and at what cost?
- If you are seeking transition finance, who is responsible for the plan and how will progress be measured?
These are preparation prompts drawn from the resources above, rather than a universal application checklist. Start with information you can support, identify gaps honestly and ask your lender what it needs. Our financing-readiness guide covers the wider preparation process.
Where to apply for financing
For a business loan or Islamic financing facility, contact the bank or other financial institution offering the product. BNM states that applications for its SME funds go through participating financial institutions and remain subject to their normal credit assessment. Its SME funds directory is a useful place to locate official facility information; check availability and terms with the provider.
Our financing-options guide can help you compare routes. For a particular structure, continue to green loans, sustainability-linked financing or green and Sustainable and Responsible Investment (SRI) sukuk. Sukuk are Islamic capital-market instruments. The SC's SRI resource hub provides original capital-market materials.