Regulatory Alerts2024-02-21
Circular No. 1187: Philippine Sustainable Finance Taxonomy Guidelines
The Bangko Sentral ng Pilipinas issued Circular No. 1187 to mandate the adoption of the Philippine Sustainable Finance Taxonomy Guidelines for banks, aligning with the Philippine Sustainable Finance Roadmap. The guidelines require financial institutions to classify economic activities as Green, Amber, or Red based on environmental objectives, substantial contribution, and do no significant harm criteria to direct capital toward sustainable investments. Banks must implement this framework for credit and investment decisions, with an observation period ending in December 2024 before regulatory data collection begins in 2025.
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