An ASEAN Sustainability Summit (E-Summit) was convened on October 21-22 to address important issues on environmental, social and governance (ESG) principles, as these provide the beacons for the corporate action in response to the challenges posed by the continuing global pandemic.
SM Investments Corporation, one of the region’s leading conglomerates, has partnered with the Global Reporting Initiative (GRI) to organize a forum for large organizations to share their ideas on expanding the coverage of their development initiatives sustainable.
The Bangko Sentral ng Pilipinas launched a three-year program last year to put in place a sustainable finance framework that “”provide granular expectations in the management of environmental and social risks in relation to the areas of credit and operational risk. Part of the BSP’s plans is to provide incentives and it is now up to Congress to approve regulatory incentives so that banks can accelerate the adoption of the sustainable principles contained in the bills amending the Agri-Agra Law. The Agri-Agra Reform Credit Act 2009 (Republic Act No. 10000) requires all government and private banking institutions to allocate at least 25% of their loanable funds to agriculture and beneficiaries of agrarian reform (ARB).
PASB’s orientations are in line with the advocacy of the United Nations Environment Program Finance Initiative for a net zero carbon economy in order to mitigate the disastrous impact of global warming and climate change. More than 250 banks in 70 countries have adhered to the United Nations Principles for Responsible Banking and, collectively, these banks’ assets are worth $ 60 trillion, or roughly 40% of the global banking industry.
The first Philippine banks issued about $ 1.15 billion in durable bonds and 84.5 billion pesos ($ 1.78 billion) in green bonds denominated in pesos since 2017. In September 2021, 15 local banks issued for 4.8 billion dollars. dollars of green bonds, or about 29% of green, social and social bonds linked to ASEAN. sustainability obligations.
The commitment of the next generation of Philippine business and industry leaders was also highlighted at the summit. They stressed the need to “close the accessibility gap”, considering that sustainable choices are often abandoned in favor of cheaper and easier options. Closing this gap means making sustainable products that are well within the reach of consumers. These include promoting green products, reducing the use of plastics in packaging and encouraging suppliers to obtain green certification for their products.
Good governance is now seen primarily in terms of general efforts to ensure a sustainable environment free from air and water pollution and does not increase the level of toxic emissions that trigger global warming and trigger disasters natural.
The Global Reporting Initiative (GRI) has become the main ESG performance standard adopted by nearly three-quarters of the world’s 250 largest companies and two-thirds of the 100 largest companies in 52 different countries. The fact that major Philippine companies have adopted the GRI standards demonstrates their commitment to report on the impacts of their activities on the economy, environment and society in a fully transparent manner, thus holding themselves accountable to the government. , investors and civil society.
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