BSP Willing to Participate in Investment Scheme Backed by UN

The Bangko Sentral ng Pilipinas (BSP) is willing to be a signatory to the responsible investment supported by the United Nations (UN).

BSP Governor Felipe Medalla has mentioned that the BSP is looking to be a signatory of the UN-supported Principles for Responsible Investment (PRI) as part of their strategy for Sustainable Central Banking.

PRI seeks to understand the investment implications of social, governance, and environmental factors and also supports its international network of investor signatories in incorporating ESG factors into their decisions regarding ownership and investment.

PRI has over 5,179 signatories representing over $121 trillion of assets under management (AUM).

“We also are looking at developing a Responsible Investment Charter, which will guide the integration of sustainability tests with financial assessments,” mentioned Governor Medalla.

The Sustainable Central Bank Strategy shows the BSP’s role as a doer, mobilizer, and enabler in promoting sustainability in the financial system.

The BSP has taken a phased approach in presenting sustainability-related guidelines, concerning the principle of proportionality with the Sustainable Finance Framework or Circular 1085, the Environment and Social Risk Management Framework or Circular 1128, and the Guidelines on the Integration of Sustainability Principles in Investment Activities of Banks or Circular 1149.

The BSP is working on the modifications to the disclosure agreement of Circular 1085 and enhancing prudential reports for surveillance analysis and data collection.

Aside from this, the central bank is collaborating with the Philippine Institute of Volcanology and Seismology, the World Wide Fund for Nature Philippines, the World Bank, and other volunteer banks in conducting climate stress vulnerability and testing assessments to have a better grasp on climate and other environmental risks as well as their potential impact on the banking system.

Source: Philstar