The NGFS membership will strengthen BSP’s collaboration with central banks and supervisors on the effective management of climate risks in the financial sector.
The BSP (Bangko Sentral ng Pilipinas) is now a member of the NGFS (Network for Greening the Financial System), a group of central banks and supervisors organised to enhance the role of the financial sector in managing climate and other environment-related risks and mobilise capital to support the transition towards a sustainable economy.
The move is part of the BSP’s initiatives to promote the sustainability agenda in the financial system.
“The NGFS membership will strengthen BSP’s collaboration with counterpart regulators in building awareness and contributing to the effective management and mitigation of the impact of climate and other environment-related risks in the financial sector,” said BSP governor Benjamin Diokno. “The Philippines has a lot to share with respect to our country’s experience in coping with calamities and natural disasters”.
The BSP has been actively involved in building awareness and highlighting the shared accountability of regulators and financial institutions in pursuing the sustainable finance agenda in the industry. The BSP has adopted Sustainable Central Banking as one of its strategic objectives. In this regard, it commits to embed sustainability principles in key areas of BSP’s operations to the greatest extent possible.
In April 2020, the BSP issued a Sustainable Finance Framework which provides high-level expectations on the integration of sustainability principles in the corporate governance, risk management systems, business objectives and operations of banks.
The NGFS is comprised of 69 members and 13 observers as of 24 July 2020.