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July 21, 2024

ESG takes center stage: BSP’s unveils blueprint for sustainable banking

In a significant move highlighting its dedication to addressing climate risks and fostering sustainability within the financial system.

The Bangko Sentral ng Pilipinas (BSP) has released its first-ever Sustainability Report as part of efforts to address climate risks and foster sustainability within the financial system.

BSP’s Sustainability Report highlights the bank’s strategic objectives, including the development of climate stress tests, disclosure guidelines, and incentives for sustainability-related projects. These initiatives are slated for completion within the year, underscoring BSP’s proactive stance in managing climate and environmental risks.

It outlines key rules and practices related to financial supervision, reserve management, credit operations, and risk management, all integrating sustainability considerations.

A notable feature of BSP’s Sustainability Report is the introduction of the Sustainable Central Banking (SCB) Program, encompassing 11 action points to be implemented this year. One of the key initiatives within the program is BSP’s collaboration with the World Bank to establish a comprehensive climate stress testing program.

BSP is actively exploring opportunities to promote inclusive green finance and support vulnerable groups, including micro, small, and medium enterprises (MSMEs), in their transition to a resilient and environmentally sustainable economy

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