A fifth of the lender’s portfolio faces high nature-related risks, says sustainability head Eric Lim, noting water’s broad impact and the lack of target-setting tools. Oil and gas, though a focus sector, was excluded from its analysis.
There are concerns that Malaysia's data centre boom will strain its water resources, spurring investor demand for water risks disclosures – especially in the technology sector. Firms must start valuing water risks and engaging suppliers.
Companies are using the acronym less frequently, as politics, regulation and greenhushing are pushing environmental, social and governance topics out of fashion.