MANILA, Philippines — ING Philippines, like many financial institutions in the country, has been facing substantial hurdles as it strives to promote sustainability amid the global transition to a low-carbon economy.
In an interview with The STAR, ING Philippines country manager Jun Palanca said the urgency for businesses and governments to promote sustainability increases as environmental, social and governance (ESG) challenges intensify.
“ING Philippines faces similar hurdles as other financial institutions in the country when it comes to promoting sustainability. The biggest challenge lies in navigating the shift towards a low-carbon economy,” Palanca said.
“This transition requires not only new technologies and financial tools, but also updated regulations to guide these changes. Furthermore, financial institutions need to be aware of, and mitigate, the new social and environmental risks that may arise during this transition,” he added.
Thus, Palanca said it is crucial to actively engage with stakeholders, including regulators and industry organizations, to advance sustainable development.
Beyond providing funding, financial institutions must also collaborate closely with its clients to help them achieve their target, amplify their impact and coalition-building.
“We are committed to an inclusive approach that makes a meaningful positive impact. By supporting industry peers and advancing the sustainability agenda, we engage in relevant discussions and working groups focused on promoting sustainable finance,” he said.
According to Palanca, the Bangko Sentral ng Pilipinas (BSP) has been proactive in promoting sustainable finance.
This, as Philippine banks navigate through global and local economic challenges that affect their funding decisions.
Thus, banks recognize the BSP’s measures, which includes reducing reserve ratio requirements for sustainable bonds to zero and increasing the single borrower limit by an additional 15 percent for loans dedicated to eligible green or sustainable projects.
“These efforts could help address the significant financing requirements for the country’s sustainable development needs,” he said.
Aside from their commitments, Palanca said ING has made significant progress in advancing sustainability using a data-driven approach.
He said data-driven sustainability involves collecting and utilizing information to guide the bank in implementing measurable and responsible business practices aligned with sustainability goals.
“Data provides insights into commercial opportunities, aids the development of products to support our clients’ transitions, and helps us identify transition risks. It also enables us to benchmark clients against their peers,” he said.
He said the bank tracks data points like whether clients have net-zero targets, intermediate 2030 targets, net-zero transition plans and their positions on the convergence pathway.
The information allows the bank to provide robust…
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