Call for Public Feedback on the VBIAF Sectoral Guides on Oil & Gas, Manufacturing and Construction & Infrastructure.

The Value-based Intermediation Financing and Investment Impact Assessment Framework (VBIAF) Sectoral Guide Working Group (Working Group) has issued the 2nd cohort of the VBIAF Sectoral Guides. These VBIAF Sectoral Guides serves as an in-depth impact-based risk management toolkit to guide the financial institutions in implementing VBIAF on Oil & Gas, Manufacturing and Construction & Infrastructure sectors.

In the current climate, it is apparent that trading/investor policies and regulations are increasingly focusing on sustainability or Environmental, Social, and Governance (ESG) concepts as the world moves in the direction of sustainable development. The emphasis is on achieving a greener economy and a socially-just society by adapting to various environmental and social criteria into business strategies, processes, and decisions.

Thus, it is vital for Financial Institutions (FIs) to be guided by the new environmental and social criteria into business strategies, processes, and decisions. The guiding documents are published for the purpose of aiding and informing FIs to apply sustainability screening and make responsible investment / financing / lending decisions, while creating a new band of ESG-compliant Oil & Gas, Manufacturing and Construction & Infrastructure players to pave the way for an orderly transition of the economy towards a green economy. The Sectoral Guides are also in line with BNM’s Climate Change and Principle-based Taxonomy which was issued as reference for FIs in assessing and classifying economic activities that contribute to climate change mitigation and adaptation.

In order to ensure the effectiveness and practicality of these guiding documents, feedback from the general public is essential. For this reason, Working Group invites the public to provide feedback on all three (3) guiding documents for the benefit of the industry as well as the nation as a whole.

This public feedback will be conducted for a period of 3-months starting 7 October 2021. The VBIAF Sectoral Guides can be viewed at https://aibim.com/VBIAF-2nd-Cohort-SectoralGuides-for-Public-Consultation and all responses and feedback must be completed and submitted by 7 January 2022 via the following link: https://forms.gle/Q2f5kJcM1B1eTLaNA or email direct to us at vbi@aibim.com.

 

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Published on 7 October 2021

About AIBIM

The Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) was established in 1995 as the Association of Interest Free Banking Institutions Malaysia. Currently, AIBIM has 26 member banks consists of 11 domestic banks, 5 development financial institutions and 10 locally incorporated foreign banks. The organisation promotes sound Islamic banking system and practice in Malaysia; represents interest of members locally and abroad; provides advice and assistance to members pertinent in the development on Islamic banking and finance at local, regional and global level; coordinates human capital development initiatives, and promotes public awareness.

Media enquiries, please contact:

Norhisham Mohamed @ Salleh

Association of Islamic Banking and Financial Institutions Malaysia (AIBIM)

Email : vbi@aibim.com