BSP’s statement of contribution to COP26

The Bangko Sentral ng Pilipinas (BSP) joins the Central Banks and Supervisors’ Network for Greening the Financial System (NGFS) and its members in conveying contribution to achieving the global climate goals under the Paris Climate Agreement. This statement is being made in light of the 26^th United Nations Climate Change Conference of Parties (COP26) summit in Glasgow, Scotland.

BSP Governor Benjamin E. Diokno said, “Central banks and financial institutions should recognize their important role in contributing to the transition to a low-carbon economy. As stewards of the financial sector, we should all commit to act with urgency in achieving the desired emissions reduction targets and in promoting the sustainability agenda.”

For the COP26, the BSP joins the collective declaration of NGFS members and commits to:

• Champion the sustainability agenda in the financial system through the roll out of the initiatives under the Sustainable Central Banking (SCB) Program to foster environmentally responsible and sustainable policies and work practices. The SCB Program embodies the essential roles of the BSP as an enabler, mobilizer, and doer in relation to advocating sustainability principles in the financial system.
• Provide an enabling regulatory environment to equip banks in managing climate change, environmental, and social risks, and at the same time, unlock financing to economic activities contributing to sustainable development.
• Facilitate the conduct of climate stress-testing exercises and collection of more granular data on climate, and environmental and social risks exposures in the banking industry.
• Promote a collaborative approach in the financial sector and harmonize policies and align initiatives with the objectives and strategies of the Philippine Sustainable Finance Roadmap and Guiding Principles.
• Build partnerships to intensify awareness and capacity-building activities for the financial sector.

“We need to take advantage of the momentum calling for action, and step up our response towards climate change,” Governor Diokno added.

In July 2020, the BSP became a plenary member of the NGFS, a group of central banks and financial supervisors that voluntarily exchange experiences and best practices to enhance the financial sector’s environment and climate risk management and accelerate the transition towards a sustainable economy.