##s has recently made headway in sustainable finance through an inaugural issuance of sustainability sukuk. the sukuk has been well received by the market, oversubscribed by more than 3 times, with the proceeds going towards supporting the government ’ s sustainability goals by financing smes involved in green projects identified under the green technology master plan malaysia. other dfis are also preparing to issue more sustainability sukuk which will also deepen the sustainability bond market in malaysia. this development augurs well for the creation of a vibrant fundraising market that will better support the economic recovery and financing of sustainable and impact projects. frameworks are in place to facilitate the adoption of sustainable finance by fis ( climate change and principle - based taxonomy, performance measurement framework ( pmf ) and value - based intermediation ( vbi ) ) my third point is that various frameworks are now being put in place to empower dfis in sustainable finance, and dfis can already step up efforts in this space. for example, bnm ’ s climate change and principle - based taxonomy facilitates all fis to be part of the driving force that promotes orderly transition towards a low - carbon future. other frameworks focus on creating incentives that would shape dfis ’ behaviour to be more in tune with their developmental roles. the adage “ what gets measured gets managed ” reflects the 3 / 5 bis central bankers'speeches importance of building a structured and holistic measurement framework for dfis. this will support dfis to pursue national economic and social well - being while simultaneously support an orderly transition of the economy towards achieving sustainability goals. in this, it is particularly pertinent for dfis to advocate accountability, transparency and efficiency since dfis are also public institutions. towards this, dfis that are part of the value based intermediation or vbi community are encouraged to apply impact - based disclosure on value - based practices and financial solutions contributing to the triple bottom line ( people, planet and prosperity ). institutions are required to disclose an optimal set of information to stakeholders with an objective to generate intended market discipline and promote stakeholder activism. similarly, the performance measurement framework or pmf is anchored on the concept of additionality creation by dfis. additionality is defined as the positive impact attributable to dfis beyond purely commercially - driven considerations, and this resonates well with the intent of sustainable finance. under the framework, an achieving dfi

adnan zaylani mohamad zahid : address on sustainable finance address by mr adnan zaylani mohamad zahid, assistant governor of the central bank of malaysia ( bank negara malaysia ), at the adfim webinar on sustainable financing, 04 august 2021. * * * thank you to the association of developmental financial institutions of malaysia for organising this webinar. i am honoured to be invited to deliver this keynote address. certainly, the theme of this webinar is highly current and crucially important. and it looks to grow even more so as we weather through this unprecedented health crisis and economic downturn. acknowledging the diverse audience and role of dfis in advancing the sustainability agenda the economic challenges are many and the economic fallout of the crisis are deep and in some cases worsening. at the global level, some of the forecasted statistics are staggering. the global economy is projected to suffer losses up to $ 8. 8 trillion1 ; as many as 150 million will be pushed into extreme poverty by 20212 ; global unemployment would exceed 200 million in 20223 ; women make up 39 % of global employment but account for 54 % of overall job losses4 ; and more than 50 million people were doubly hit in 2020 by climate - related disasters in addition to the threats due to covid5. most of these indicate an expected regress in our sustainability agenda. on the other hand, there are claims that the climate has benefitted during this crisis but it has come about in a far than ideal situation with such high human and social costs. indeed, as these costs look set to accumulate further with the ongoing crisis, there is much for us to do. most of this, naturally will be led by government. a whole of government approach, whole of nation, is absolutely necessary in dealing with the challenges. development financial institutions ( dfis ), as instruments of policy and agencies of government, will thus have a critical role to play, in particular to deal with the economic and financial challenges faced by businesses in the economy. we are well familiar with the role of dfis as complementing the market - based and commercially driven financial institutions. this already calls for dfis to adopt a balanced approach to financing, promoting and supporting public interest or development initiatives. some would involve higher risks in particular in new ventures or industries or financing those who, at the margins, are unable to obtain financing under normal commercial terms from financial institutions. all