BSP was calling for more sustainable financing and economy in 2022.
BSP — The Bangko Sentral ng Pilipinas was calling for more sustainable financing and economy in 2022 as climate change “is real and its impact devastating”.
BSP Governor Benjamin E. Diokno was calling for more strategy in integrating sustainability into the operations of financial institutions in 2022 in order to ensure a post-pandemic economy that’s more resilient, stable, and inclusive.
In his 2021 “Message of the Year”, Diokno said that the central bank wanted a more sustainable economy in 2022.
The financial system in 2022 needed to have a better response to the climate crisis after the country committed to reducing its carbon emissions by 75% by 2030 under the UN Framework Convention on Climate Change.
“This is a gargantuan task that requires a whole-of-nation approach to achieve,” Diokno said.
The central bank, with the Department of Finance (DOF), co-chaired the inter-agency “Green Force” which was responsible for the Philippine Sustainable Finance Roadmap to “bridge policy and regulatory gaps in promoting sustainable investments.”
At the onset of the pandemic, the central bank issued last year its “Sustainable Finance Framework” and released its “Environmental and Social Risk Management Framework” policies in October.
According to Diokno, with sustainability at the top of the policy agenda, the country was paving its way to a “climate-resilient economy and citizenry”.
The BSP was expected to implement through regulatory issuances, additional guidelines on sustainable finance aimed to embed sustainability principles, including E&S and governance considerations, in the strategies, risk management, corporate governance, and operations of banks. Also, the strategy aimed to direct the flow of capital toward green and sustainable projects.