The Bangko Sentral ng Pilipinas (BSP) encourages trust entities to actively consider environmental, social, and governance (ESG) standards in their management of risks and allocation of capital.
During a summit hosted by the Trust Officers Association of the Philippines, BSP Governor Benjamin E. Diokno underscored the importance of differentiated investment strategies for funds classified as sustainable.
“At the minimum, there must be sufficient evaluation of the issuers’ sustainability-related commitments and the sustainable impact of their products,” said the Governor.
The BSP is advocating the wider adoption of sustainable finance, which incorporates ESG standards to assess the value, performance, and long-term growth of an asset.
Trust entities are BSP-supervised financial institutions that perform trust functions or investment management services. The combined assets under management of the trust industry rose 18.4% to P4.8 trillion in June, representing nearly a quarter (24.3%) of the banking system’s total assets. (BSP)
