The Bangko Sentral ng Pilipinas is establishing sustainable finance with strong elements of financial inclusion, unlike other banks in the rest of the world.
Bangko Sentral ng Pilipinas Governor Eli M. Remolona on Monday, Aug. 14, in a Philippine Economic Briefing, said he is determined that domestic banks will follow a sustainable framework that will be pro-poor to meet both the BSP and government’s financial inclusion goals. “So, when we do sustainability, we will emphasize the small-scale strategies including electric tricycles and solar in other small-scale projects,” he said.
The Philippines has minimal greenhouse gas emissions compared to other countries, but it is one of the most affected by climate change. For one thing, climate change impacts the extreme weather disturbances in the country, and this will in turn strike food supply which will lead to inflation because of large supply shocks resulting to second order effects.
The second phase includes a taxonomy that BSP is developing. “We’re trying to develop a taxonomy for the assets of banks based on what assets finance. Are they financing things that are bad for the climate? Or are they financing things that are bad for the poor? We will classify their assets according to what they finance, with regard to sustainability and financial inclusion both at the same time,” he said.