The Bangko Sentral ng Pilipinas is eyeing more investments in the Asian green bond fund to be launched this year by the Bank of International Settlements. It had already invested $550 million in the green bond fund of the BIS as of 2021.
THE Bangko Sentral ng Pilipinas is eyeing more investments in the Asian green bond fund, to be launched this year by the Bank of International Settlements. It had already invested $550 million in the green bond fund of the BIS as of 2021.
BSP Governor Benjamin Diokno said earlier they do not have a particular target for BSP’s sustainable investments but that BSP’s green bond contributions could hit $1 billion by 2023.
“As part of grading the BSP’s investment process, we are gradually incorporating sustainability considerations in our portfolio management,” Diokno said at a virtual forum organized by PCM Asia. “We are also reviewing the strategic allocation investments towards those that espouse environmental, social and governance principles,” Business World reported.
“Through these actions, we lead by example and trust that banks will follow suit. Our initiatives are guided by our active participation in global and local conversations in sustainable finance,” he said.
The BSP launched a sustainable finance framework for the banking industry in 2020. It directed banks to adopt sustainability principles through environmental and social risk management systems as well as in their governance frameworks, strategies and operations
Last year, the second phase of the framework directed banks to monitor environmental and social risks in their credit exposures and business operations. The BSP expects banks to fully adopt the framework by 2023.
“We have witnessed how the health crisis and severe weather events like Typhoon Odette disrupted the operation of banks. This has highlighted the importance of integrating environmental and social risk in the banks’ operational risk management system and in turn, building the operational resilience,” said Diokno.
Diokno earlier said they are looking at granting incentives for banks extending sustainable financing.
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