Relationship Managers as Drivers of Climate Transition - A Journey : Understanding CCPT in Simple Terms
When RM hear about Bank Negara Malaysia’s Climate Change and Principle-based Taxonomy (CCPT), they immediately think:
“Is this another compliance or reporting exercise?”
In reality, CCPT is much more practical than that. At its core, CCPT helps banks and Relationship Managers (RMs) understand: ✔ How climate-related risks may affect customers ✔ Whether customers are making transition efforts ✔ How banks can support gradual business improvements over time
Importantly, CCPT recognizes that not every business can become “green” overnight. Instead, businesses may fall into different categories such as: 🔹 Climate Supporting 🔹 Transitioning 🔹 Watchlist
The key message is: CCPT is not only about where the customer is today but also where the customer is heading.
For example: A palm oil company may currently face methane emission challenges from its operations. Today, it may not fully qualify as a highly sustainable business. However, if the company starts: ✍ Installing methane capture systems ✍Improving waste management ✍Adopting more sustainable plantation practices ✍Reducing environmental impact gradually …this demonstrates positive transition efforts under CCPT.
Over time, these improvements can help the company: ✔ Improve operational efficiency ✔ Reduce environmental risks ✔ Meet buyer and export expectations ✔ Strengthen long-term business resilience
This is where Relationship Managers become important. CCPT gives RMs a practical framework to: 🔹 Understand customer transition journeys 🔹 Have better sustainability conversations 🔹 Encourage gradual operational improvements 🔹 Identify transition financing opportunities
Most importantly, CCPT changes the customer conversation from: 🔏 “Is this business green enough?” to: 🔓 “How can we support this customer to transition progressively over time?”
For many businesses, especially SMEs, transition is a journey not an overnight transformation and Relationship Managers play a crucial role in this journey.
