The Bangko Sentral ng Pilipinas (BSP) has joined the ranks of monetary authorities around the world working toward managing climate- and environment-related risks in a bid to mobilize capital toward a sustainable economy.
In a statement, BSP Gov. Benjamin Diokno said the regulator’s move was part of its initiative of promoting a “sustainability agenda” in the Philippine financial system, which includes encouraging and giving incentives to local banks to include these themes in their lending frameworks.
The international body called the Network for Greening the Financial System is a group of central banks and supervisors organized to enhance the role of the financial sector in managing climate and environmental issues.
“The NGFS membership will strengthen BSP’s collaboration with counterpart regulators in building awareness and contributing to the effective management and mitigation of the impact of climate and other environment-related risks in the financial sector,” Diokno said.
The group is presently comprised of 69 member institutions and 13 observers.
“The Philippines has a lot to share with respect to our country’s experience in coping with calamities and natural disasters,” he added.
The BSP has been actively involved in building awareness and highlighting the shared accountability of regulators and financial institutions in pursuing the sustainable finance agenda in the industry.