But at the next level of detail – the standards giving specific guidance on what should be disclosed and how – there are at least five approaches to choose from: the Carbon Disclosure Project (CDP), the Climate Disclosure Standards Board (CDRB), the Global Reporting Initiative (GRI), the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB). And the raw data disclosed under these approaches are being packaged by third-party providers into a daunting variety of summary statistics, the correlation between which can be low or zero, even when they purport to measure identical concepts (Chart 4). Such diversity can be helpful in driving innovation. But fragmentation of standards is no basis for a viable global capital market for climate risk. In recognition of that fact, the ‘group of five’ framework producers,20 the ‘big four’ accounting firms21 and the International Financial Reporting Standards Foundation22 have all recently announced initiatives to deliver a single harmonised set of metrics that could be commonly adopted and reported alongside other core financial information. These are positive developments – but given the importance of consistent climate disclosures, further definitive convergence is needed, and soon. 20  https://impactmanagementproject.com/structured-network/statement-of-intent-to-work-together-towards-comprehensive-corporatereporting/ 21 http://www3.weforum.org/docs/WEF_IBC_Measuring_Stakeholder_Capitalism_Report_2020.pdf 22 https://www.ifrs.org/news-and-events/2020/09/ifrs-foundation-trustees-consult-on-global-approach-to-sustainability-reporting/ 8  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  8  Chart 3: TCFD-aligned disclosures23  The second TCFD criterion is that good metrics should be ‘decision useful’.

Of equal importance is also to integrate the domestic Islamic financial system with the international financial system. For more than two decades, we have witnessed the success of the development of each of these respective components that has contributed to the rapid expansion in Malaysia's Islamic financial services industry. Indeed, we have seen the development of a comprehensive Islamic financial system. This has placed the Malaysian Islamic financial system at the forefront of the global Islamic financial system. Notwithstanding this, there have been imbalances in the pace of the growth of the components of the financial system. While Islamic banking, being the core component, has recorded significant progress, more efforts need to be directed to promote the growth of takaful and the financial markets. My remarks today will focus on measures to accelerate the growth of the Islamic financial markets by strengthening its required linkages. Of most importance is the development of a wider range of Islamic financial instruments, developing the relevant indicators to support benchmarking and an efficient pricing mechanism as well as to actively promote the role of the market players. Development of a wider range of Islamic financial instruments For Islamic financial institutions to effectively manage its funds, there is a need to have diversity in the type and the maturity of the Islamic financial instruments. This is one area in Islamic finance that offers formidable challenges and opportunities to market participants in Malaysia. A broader range of products and services is vital in this fast changing global financial landscape.