The Philippine Savings Bank umbrella has committed to support the sustainable finance roadmap driven by the Bangkok Sentral ng Pilipinas (BSP) as the regulator has issued guidelines on the implementation of an Environmental and Social Risk Management (ESRM) system. I promised.
The Sustainable Finance Roadmap covers green finance designed to facilitate financial flows for sustainable economic activity and climate change mitigation and adaptation projects.
“Recent and current events such as the ongoing pandemic and natural disasters have triggered awareness of the importance of sustainability in various industries, including banking,” said Cecilio San President Pedro said in a statement.
“We aim to galvanize the response of our members to this urgent call for sustainable development by Banco Central,” said San Pedro.
The CTB and its members will meet at the annual conference on October 12-13 to reinforce their commitment to sustainability.
BSP defines sustainable finance as any form of financial product or service that integrates environmental, social and governance criteria into business decisions. This reduces pressure on the environment while supporting economic growth and delivering lasting benefits to both clients and society.
“CTB will continue to serve our member banks as we move towards digitalization and focus on other growth areas such as agriculture and tourism, green banking, digital payments and MSME (small and medium enterprise) financing, I promise to guide you,” San Pedro said.
On the other hand, BSP Memorandum No. M-2022-042 provides guidance on the first steps or approaches that may be considered in the development of ESRM systems to identify, assess, monitor and assess the environment and environmental exposures. Mentions policies, procedures, and tools for mitigation. social risk.
Such issues may include climate risks, environmental pollution, human health hazards, safety and security. Threats to communities, biodiversity and cultural heritage. These risks are inherent and may affect banks directly or indirectly.
BSP Deputy Governor Chuchi Fonacier said banks should adopt an ESRM system commensurate with their size, risk profile and complexity of operations, following the principle of proportionality.
“Banks may adopt other approaches deemed more feasible given their business model, risk appetite and operational capabilities, as long as they are consistent with BSP regulations and international standards.” Fonacier said.
“Banks are also encouraged to keep up with regional and global developments at the forefront of sustainability and strengthen their awareness and capacity to respond to evolving climate and E&S risks,” she added. rice field.
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