on nature, as well as measure the speed at which these risks are unravelling. with these understanding, broad policies, regulatory incentives, and pricing and market mechanisms, can be put in place to recalibrate and align social and economic activities to actions that preserve nature and prevent biodiversity loss. notwithstanding the challenges, there is evidence of progress 2 / 6 bis - central bankers'speeches ladies and gentlemen, while challenges persist, let's not lose sight of the progress made thus far. allow me to highlight some encouraging progress in this area. in particular, please allow me to share some of the advancement achieved thus far, by the financial sector in malaysia. financial industry players are progressively integrating environmental factors into their evaluations of economic activities as part of their underwriting assessment. this is in alignment with bank negara's climate change and principle - based taxonomy ( the ccpt ). this is also partly supported by the due diligence questionnaire created collaboratively by the ccpt implementation group and the world wildlife fund ( the wwf ). this questionnaire aids financiers in assessing an organisation's environmental impact and its efforts to mitigate negative effects, aligning with ccpt guiding principle 3 which is'no significant harm to the environment ', and principle 4 which is'remedial measures for transition '. sustainable and green finance taxonomies are powerful tools to help financial institutions classify economic activities based on their environmental impact. ultimately, our goal is to extend the current focus on climate - related risks disclosures to encompass nature - related considerations. this allows financial institutions to make more informed lending decisions, and support nature - positive activities. for the regulators, the classifications and disclosure are critical for macro surveillance and risk assessments. meanwhile, the sub - committee on bridging data gaps, which is a sub - committee under the joint committee on climate change, is actively exploring ways to improve collection of data relevant to nature - related risks. this will facilitate more granular analysis by both financial regulators and financial industry players. while the world is aiming for net zero emissions, let us not forget that we are concurrently committed to another critical goal, the 30 by 30 pledge in the kunmingmontreal global biodiversity framework ( gbf ) under the un convention on biological diversity ( cbd ) that has over 100 signatories. this goal, which calls for 30 % of the world's terrestrial, inland water, and coastal and marine areas, to be in effective protection and

norhana endut : keynote address - conference on " nature, finance and the macroeconomy " keynote address by ms norhana endut, assistant governor of the central bank of malaysia ( bank negara malaysia ), at the conference on nature, finance, and the macroeconomy, kuala lumpur, 19 october 2023. * * * a very good morning to everyone. i am honored to be here today to address a theme of utmost importance, which is the nexus between nature, finance and the economy. the importance of focusing on nature and biodiversity loss according to the world economic forum's 2023 global risks report1, the degradation of nature or biodiversity loss and the collapse of nature ecosystems have been ranked among the top five threats humanity will face in the next decade. this is indeed alarming. while there has been growing awareness and notable progress towards understanding, measuring, and addressing risks associated with climate change arising from global warming, similar efforts in the space of nature and biodiversity loss remains nascent. this is despite its strong interlinkages. climate change and the loss of nature and biodiversity should not be treated as isolated crises but rather twin challenges that demand twin solutions. thus, this two - day conference focusing on nature, finance and the economy is indeed timely and very important. over the past several decades, human activities have altered around three - quarters of the land and two - thirds of the marine environment2. industrialisation in the absence of considerations for sustainable practices and overexploitation of resources have affected the quality of our land and marine environment. according to the unep, we are currently facing the risks of one million species being threatened with extinction, our land and soils turning infertile, and our water sources drying up. indeed, nature is declining at unprecedented rates, with many ecosystems standing on the brink of " tipping points ", marking a unique historical challenge for humanity. yet, nature is a fundamental pillar of our economies, livelihoods, food security and overall quality of life. according to the new nature economy report by the world economic forum, over half the world's total gdp – equivalent to usd44 trillion of economic value generation – is moderately or highly dependent on nature3. given its role and importance to the economy, the failure for economic agents to account for and respond to nature related risks is a source of vulnerabilities to households, businesses and the financial and economic sectors. at the same time, economic decisions with regard to spending and