Climate change poses significant challenges to global economies, necessitating urgent actions to address its impacts. In response to climate change, many governments and financial institutions globally strive to address extreme weather events and longer-term shifts in climate patterns (climate adaptation) and to transition towards a low carbon future (climate mitigation) through promoting and driving sustainable economic growth and development.
As part of the country’s effort to pave for Brunei Darussalam’s low carbon and climate-resilient pathways for a sustainable nation, Brunei Darussalam published the Brunei Darussalam National Climate Change Policy (BNCCP) and Economic Blueprint for Brunei Darussalam in 2020.
In support of the national sustainability agenda, Brunei Darussalam Central Bank (BDCB) published the Brunei Darussalam Sustainable Finance Roadmap (SFR) in 2025, which sets forth the strategic directions to guide the financial sector’s transition towards sustainability and climate resilience.
The SFR incorporates Environmental, Social and Governance (ESG) factors into 16 strategic directions, which are categorised into four pillars as follows:
- Pillar I: Establish a Robust Sustainability Risk Management Framework
Strengthen financial sector’s capabilities to manage sustainability related risks effectively through supportive financial policies and regulatory initiatives.
- Pillar II: Develop Innovative and Sustainable Financial Products and Services
Promote the innovation of sustainable financial products and services by financial institutions to support the national sustainability initiatives outlined in the BNCCP and Economic Blueprint.
- Pillar III: Enhance International Cooperation
Increase Brunei Darussalam’s financial sector’s contribution to regional and international efforts for sustainable finance.
- Pillar IV: Strengthen Knowledge, Skills and Talent Development
Enhance the capacity of regulators, supervisors and the financial sector for the adoption and integration of sustainable finance, and increase consumers’ level of understanding.
In conclusion, the SFR lays out the foundation for the financial sector in Brunei Darussalam to effectively adopt sustainable finance and its practices.
Through its implementation, the financial sector can ensure its resilience against sustainability-related risks, innovate to develop sustainable financial products and services, and embrace corporate sustainability, whilst contributing to the overall social well-being of the country. With the financial sector playing a pivotal role in driving sustainable finance initiatives, Brunei Darussalam can foster a more sustainable future for generations to come.
