Climate Portfolio Alignment for Corporate Lending in Malaysia

This report by 2DII and WWF Malaysia analyzes Malaysian banks' exposure to climate critical sectors as a source of future climate transition risk.

Applying the Paris Agreement Capital Transition Assessment (PACTA) climate scenario analysis tool to a pilot group of Malaysian banks, we find that the gas and coal power generation portfolio is aligned with the Sustainable Development Scenario in South East Asia. However, 8 out of the 10 climate critical technologies assessed are not aligned with the Paris Agreement goals. 

We make a series of recommendations for the implementation, improvement and actionability of PACTA for banks and supervisors in the Southeast Asia region, with supporting illustration on just transition.

About our funder: This work has received funding from UK PACT Malaysia. It reflects only the authors’ views, and UK PACT is not responsible for any use that may be made of the information it contains.


2DII today announced it is transferring stewardship of the Paris Agreement Capital Transition Assessment (PACTA) to RMI, formerly Rocky Mountain Institute. PACTA measures financial portfolios' alignment with various climate scenarios, including those consistent with the Paris Agreement. Under RMI’s stewardship, PACTA will remain a free, independent, open-source methodology and tool, and will continue to provide the financial and supervisory community with forward-looking, science-based scenario analysis to help users make climate-aligned financing decisions. RMI will invest in scaling up PACTA’s usability and applicability in day-to-day investment decisions as well as reporting requirements.

Access the full press release here: the coming weeks, we will update this website with additional information. For now, please note that all contact information remains unchanged.