The Bangko Sentral ng Pilipinas (BSP) and International Finance Corporation (IFC) conducted a Training on Environmental and Social Risk Management (ESRM) for Philippine Banks on 28 to 29 June 2018. The training was attended by senior level risk officers of universal and commercial bank, representatives from the banking associations, and selected BSP examiners. The training focused on deepening participants’ understanding about ESRM approaches and tools, sustainability reporting frameworks, and consulting services that can be utilized by financial institutions. It also showcased the ESRM experiences of two Philippine banks.
Climate change and weather-related risks are increasingly felt around the world, more so in the Philippines which ranks among the most climate-vulnerable countries. Banks can play an important role in promoting environmental and social (E&S) sustainability by influencing their client firms to abide by E&S principles and standards. This training is a significant first step to encourage banks to incorporate E&S considerations in their credit and investment decisions. By capacitating banks to mainstream ESRM in their business operations, the BSP hopes to shape the banking system to become more environmentally and socially responsible.
The training was supported by the Asian Institute of Management (AIM), the Global Reporting Initiative (GRI) and the Bankers Institute of the Philippines (BAIPHIL).