Rebecca PY Bank Negara Malaysia, the World Bank Group and UNDP BIOFIN have jointly released a report offering practical guidance for financial institutions and firms to identify and manage nature-related risks and opportunities. The report calls on Malaysia’s financial sector to systematically embed nature considerations into strategy, risk management and capital allocation to build a more resilient and nature-positive economy.
MALAYSIA, 11 JUNE 2026 – Malaysia has taken a significant step toward embedding nature into its financial decision-making, with Bank Negara Malaysia, the World Bank Group and the United Nations Development Programme Biodiversity Finance Initiative jointly releasing a report titled A LEAP for Nature: Advancing Nature-related Financial Risk and Opportunity Assessment in Malaysia.
The report examines the degree to which financial sector activities depend on and impact the natural environment. With nature loss increasingly recognised as a systemic risk to financial stability, the report also explores how financial institutions and firms are currently assessing nature-related risks and opportunities, and what more needs to be done.
At its core, the report provides practical guidance to help financial institutions and firms identify and assess their dependencies, impacts, risks and opportunities related to nature. It sets out targeted recommendations for financial institutions, firms and public sector entities to strengthen the broader ecosystem for nature-related risk assessment. Together, these measures are intended to enhance the resilience of Malaysia’s financial system and support the country’s transition toward a more sustainable and nature-positive economy.
Bank Negara Malaysia Assistant Governor Madelena Mohamed stressed the growing urgency of incorporating nature more systematically into key decision-making processes, spanning strategy, risk management and capital allocation. She highlighted that financial institutions and firms can begin by developing a clearer understanding of three foundational areas: their dependence on nature, their impact on nature, and the risks and opportunities that arise from both.
World Bank Group Country Manager for Malaysia Judith Green emphasised that nature underpins economic activity and financial stability, yet its value is frequently overlooked in business and investment decisions. She described the report as a practical framework to help institutions identify, assess and manage nature-related risks and opportunities, noting that doing so will ultimately support Malaysia’s transition toward a more resilient economy and higher quality jobs. UNDP Malaysia, Singapore and Brunei Deputy Resident Representative Besian Xhezo echoed these views, describing nature as one of Malaysia’s most valuable economic assets. He noted that nature supports livelihoods, strengthens food and water security, sustains businesses and supply chains, and underpins long-term resilience. He called the report a practical starting point for companies and financial institutions to move from awareness to action, helping to build an economy that is more resilient, competitive and nature-positive.The full report is available for download at bnm.gov.my/leapfornature.