MANILA, Philippines—The Bangko Sentral ng Pilipinas (BSP) is committed to performing a lead role in promoting the wider adoption of sustainable finance in the country through an interagency group meant to coordinate and harmonize the government’s green policies.
Dubbed the “Green Force,” the 18-agency technical working group is co-chaired by the Department of Finance and the BSP.
“The Green Force recognizes the importance of taking a whole-of-government approach in mitigating environment-related risks, building our resilience against these risks, and accelerating the flow of finance to sustainable projects,” BSP Governor Benjamin Diokno said. In line with this, the Green Force last month launched the Philippine Sustainable Finance Roadmap and its guiding principles.
The roadmap provides broad plans to further foster the use of sustainable finance in the country and address climate change and other environmental and social risks.
The guiding principles, meanwhile, will serve as reference in identifying activities that address the impact of climate change and contribute to sustainable development. These principles also aim to usher in the flow of capital to these activities.
The two documents were completed with support from the United Kingdom government’s ASEAN Low Carbon Energy Program. Both frameworks build on national and regional policies that advance sustainable finance.
They will serve as a springboard for the discussion and alignment of regulatory expectations across the financial sector, particularly on corporate governance, risk management, disclosure, sustainability reporting and taxonomy.
The Green Force’s other members are the Securities and Exchange Commission, Insurance Commission, Climate Change Commission, Department of Energy, Department of Environment and Natural Resources, National Economic and Development Authority, Bases Conversion and Development Authority, Department of Agriculture, Department of Budget and Management, Department of Interior and Local Government, Department of Public Works and Highways, Department of Science and Technology, Department of Transportation, Department of Trade and Industry, Mindanao Development Authority and the Public-Private Partnership Center.
Sustainable finance incorporates the environmental, social and governance factors when investors assess the value, performance, and long-term growth of an asset. This supports the financial system’s ability to fund productive activities in the new and low-carbon economy.