BSP supports green and sustainable finance in PH

The Bangko Sentral ng Pilipinas (BSP) continues to support green and sustainable finance as part of its sustainable central banking strategy.

In a speech delivered at the recent Trust Officers Association of the Philippines (TOAP) membership meeting, BSP Governor Benjamin E. Diokno said, “I am glad to note that a number of banks have already issued products in this space in the past few years and even during the pandemic.”

The BSP, Securities and Exchange Commission, and the Department of Finance have been actively involved in green and sustainable finance initiatives, he noted.

Governor Diokno also cited the Association of Southeast Asian Nations (ASEAN) for “prioritizing the work on setting of ASEAN standards that would boost capital markets that address climate change.”

In 2019, the BSP rolled out a two-pronged approach in promoting environmental, social and governance (ESG) principles via capacity building and awareness and mainstreaming ESG principles through regulations.

The BSP also participated in the open-ended green bond fund launched by the Bank for International Settlements in 2019 as part of sustainable investing in reserve management.