Major causes of deforestation in Southeast Asia include unsustainable production of agricultural and forest commodities, and infrastructure development. Aside from producers, buyers, consumers and government, the financial sector is one of the most powerful actors to stimulate sustainable commodity production as well as infrastructure development through its financial leverage and capital allocation decisions.

The integration of sustainability principles in publicly listed companies’ disclosures, and in banks’ strategies, products, and corporate governance and risk management frameworks, will contribute towards better understanding of opportunities from low-carbon development while mitigating systemic risks from climate change.

To reduce negative impacts and contribute to long-term sustainability of the banking sector, the project supports the development of:

1. E&S policies by financial regulators;
2. E&S safeguards are in place in target countries’ financial institutions;
3. green financial products;

Key milestones:

1. Co-organized biannual sustainable dialogue fora with the Bankers Association of the Philippines since 2018
2. Engaged financial institutions and regulators on climate and environmental risk mapping methodology and sustainable finance framework tool
3. Supported policy development, i.e. 2020 BSP sustainable finance framework, and 2019 PSE-SEC sustainability reporting guidelines for publicly listed companies
4. Conducted CEO Breakfast Forum with board members of banks to communicate  BSP expectations on BSP Circular 1085
5. Convened academe, training institutions, and standard setting bodies to harmonize standards in sustainability reporting for banks
6. Organized webinar series for local and regional banks
7. Published annual sustainable banking assessment report for Philippine banks using SUSBA, an online interactive tool
8. Published assessment of regulations on ESG integration by banks in the ASEAN region