BSP wants more sustainable financing, economy in 2022 – Manila Bulletin

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno is calling for more strategy in integrating sustainability into the operations of financial institutions in 2022 to ensure a post-COVID-19 economy that is more stable, resilient, and inclusive.

“We want a more sustainable economy — one where businesses and citizens are more mindful of the environment,” said Diokno in his 2021 “Message of the Year”.

“Climate change is real and its impact devastating,” he added.

The financial system in 2022 needs to have a better response to the climate crisis after the Philippines committed to reduce its carbon emissions by 75 percent by 2030 under the UN Framework Convention on Climate Change. “This is a gargantuan task that requires a whole-of-nation approach to achieve,” said Diokno.

The BSP, with the Department of Finance, co-chairs the inter-agency “Green Force” which is responsible for the Philippine Sustainable Finance Roadmap “to bridge policy and regulatory gaps in promoting sustainable investments.”

Last year, at the onset of the pandemic, the BSP issued its “Sustainable Finance Framework” and in October, it released its “Environmental and Social Risk Management Framework” policies. The sustainability framework detailed the BSP’s expectations for banks to incorporate sustainability principles in their operations while the E&S showed banks’ environmental and social objectives — “which may include increasing…