On April 29, 2020 Bangko Sentral ng Pilipinas, the central bank of the Philippines, issued a new sustainable finance framework.
In compliance with the framework, all banks are expected “to embed sustainability principles, including those covering environmental and social risk areas, in their corporate governance framework, risk management systems, and strategic objectives consistent with their size, risk profile and complexity of operations.”
The framework outlines specific duties and responsibilities of the board of directors and of senior management. Each bank shall have an Environmental and Social Risk Management System (ESRMS).
The bank’s annual report must disclose information on: sustainability strategy; environmental and social (E&S) risks, risk exposure and risk management system; sustainable finance products and services, including green, social or sustainability bonds; and initiatives to promote adherence to internationally-accepted sustainability standards; and initiatives to integrate sustainability principles into governance, risk management systems, strategy and operations.
Publicly-listed banks may disclose this information in the sustainability report issued to the Securities and Exchange Commission. In this case, the sustainability report and the annual report should be submitted to the Central Bank.