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Philippines recognized for Progress in Sustainable Finance, Report Finds


In Manila
Rachel Nalus Quintos

Phone: (632) 465-2708

E-mail:
rnalus@ifc.org


Manila, Philippines, October 15, 2019 – Thirty-eight emerging market economies have initiated key banking reforms to drive development and fight climate change, according to the second Global Progress Report of the IFC-facilitated Sustainable Banking Network (SBN). These reforms require banks to assess, manage, and report on environmental, social and governance (ESG) risks in their lending operations and put market incentives in place for banks to lend to green projects.

Of the 38 countries, 22 have adopted national sustainable finance policies and voluntary principles, seven of which were launched in 2019 alone. The report also captures the progress made by 14 countries to actively grow their green bond markets; and data shows increasing innovation by financial institutions to green their lending portfolios.

“SBN members have demonstrated that transforming financial markets toward sustainability is possible,” said Georgina Baker, Vice President of IFC, World Bank Group. “Emerging markets are on the forefront of this shift – and SBN’s tools and guidance have laid the groundwork for more countries to follow suit.”

The Philippines is among the group of countries moving from Commitment to Formulating stage under the Preparation phase. For the last few years, a broad range of initiatives linked to environmental and social risk management (ESRM) and green finance show that efforts are being made by the banking regulators and banking associations to raise awareness, build capacity, and encourage stakeholder engagement. The Central Bank of Philippines (BSP) is currently drafting a policy framework for sustainable finance in response to growing market awareness and appetite for green and sustainable financing. The policy is targeted for completion by the end 2019.

Governor Benjamin E. Diokno noted that "The capacity building and sustainable finance policy initiatives of the Bangko Sentral ng Pilipinas were enriched by the knowledge resources, information and peer learning activities accessed through our membership in the Sustainable Banking Network. We are grateful to the International Finance Corporation for the continued support as we ramp up our efforts to implement our sustainable finance agenda”.

“Ultimately, SBN is about collaboration,” said Ye Yanfei, Deputy Director-General, China Banking and Insurance Regulatory Commission and co-Chair of SBN Measurement Working Group. “By bringing together regulators, policymakers, trade associations and development institutions, SBN has been able to not only turn sustainable finance policies into action, but also strengthen measurement to capture market impact.”

Established in 2012, SBN now represents 53 financial regulators and banking associations from 38 emerging countries committed to sustainable finance. SBN’s member countries represent $43 trillion—or 85 percent—of emerging market banking assets.


About SBN

Establishing in 2012, SBN is a voluntary community of financial sector regulatory agencies and banking associations from emerging markets committed to advancing sustainable finance. The first global network of its kind focused on sustainable finance at market level, SBN represents 38 countries and US$43 trillion (86 percent) of the total banking assets in emerging markets. SBN members are committed to moving their financial sectors towards sustainability, with the twin goals of improved ESG risk management (including disclosure of climate risks) and increased capital flows to activities with positive climate, environmental, and social impact. IFC is Secretariat and technical partner, assisting members to share knowledge and access capacity building that helps them design and implement national sustainable finance initiatives. For more information, visit
www.ifc.org/sbn

About IFC

IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org