Beyond CCPT: A Banker’s Guide to ASEAN Sustainable Finance - Series 4/6
From Classification to Conversation : What Should RMs Start Asking Differently?
In the earlier posts, we explored how transition is not a single state, but a spectrum. The question now becomes: ⚠️ What does this actually mean when we sit across the table from a client?
From classification....
With frameworks like Bank Negara Malaysia’s CCPT, many of us have become more comfortable with classification. We assess: ➡️ Where the client stands ➡️ Whether the activity is aligned, transitioning, or higher risk This has been an important step.
…to conversation
But as we move towards broader alignment with the ASEAN Taxonomy for Sustainable Finance, the emphasis begins to shift. Not away from classification, but beyond it. Because classification alone does not move a client forward. Conversation does.
So what should change? Not the role of the Relationship Manager, but the nature of the questions being asked. Instead of: ⚠️ 💠 “Where does this client fall today?”
We begin to ask:
✔️ “Where is this client heading?”
Some simple shifts in conversation. These are not technical questions. But they are telling. 1️⃣ “How is your business being affected by changing customer or supply chain expectations?” 2️⃣ “Have you started exploring any changes in processes, energy use, or sourcing?” 3️⃣ “What challenges are you facing in making these changes?” 4️⃣ “If support is available, where would you priorities improvements?”
These questions do something important. They move the discussion: 🛞 From classification → direction 🛞 From risk → transition pathway
Why this matters ?
Many SMEs may not have: ❓ Structured data ❓ Formal transition plans ❓ Clear sustainability reporting But they often have: ✔️ Awareness ✔️ Early actions ✔️ Practical constraints And sometimes, what they need is not a framework; but the right question at the right time.
The evolving role of the RM. In this environment, the RM’s role becomes more than just: ⭕ Originating business ⭕ Assessing credit
It becomes about: ✅ Guiding conversations ✅ Understanding intent and direction ✅ Identifying where financing can support transition
A small shift, but a meaningful one From: ⛔ “Let me classify this client” To: ⏩ “Let me understand this client’s transition journey”
In the next post, I’ll bring this one level higher:
What does all this mean for credit assessment and portfolio strategy?
hashtag #SustainableFinance hashtag #CCPT hashtag #ASEANTaxonomy hashtag #ClimateRisk hashtag #ESG
