PHILIPPINES SUSTAINABLE FINANCE

Sustainable Finance Taxonomy Guidelines.

The Philippine Sustainable Finance Taxonomy Guidelines was issued in February 2024 under the auspices of the Financial Sector Forum (FSF) composed of the Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Insurance Commission (IC), and the Philippine Deposit Insurance Corporation.

LATEST UPDATE · FEB 6

Climate Mitigation Criteria v2.1

Compliance metrics for energy and transport sectors have been finalized for the Q4 reporting period.

SFTG Compass:

Navigate the classification landscape through an interactive digital interface.

SFTG User Guide

Comprehensive documentation for financial institutions and corporate entities.

FAQs repository

Expert answers to common implementation and compliance inquiries.

THE FRAMEWORK

Defining Sustainability for the Philippines

The SFTG serves as a tool to classify whether an economic activity is environmentally and socially sustainable and guides different stakeholders in making informed investment or financing decisions.

The SFTG aimed to direct and increase capital flows to economic activities that further sustainability objectives, including GHG emission reduction and building climate resilience. This likewise promotes transparency and credibility by minimizing the risk of greenwashing and supports a just transition to a sustainable economy.

Climate change mitigation (EO1)

Activities contributing to the substantial reduction of greenhouse gas emissions.

Climate change adaptation (EO2)

Enhancing resilience against the impacts of climate change and environmental volatility.

Transition to a Circular Economy (EO3)

Promoting sustainable consumption and resource efficiency across all industrial value chains.

Promotion of healthy ecosystems and biodiversity (EO4)

Protecting and restoring natural habitats, ecosystems and biological diversity.

Navigating the Process

01

Select Sector

Identify the specific economic sector relevant to your project or investment portfolio.

02

Identify Activity

Evaluate the specific economic activity against technical screening guidelines.

03

Choose SFTG Objective

Select the environmental objective most relevant to your activity.

04

View SFTG Criteria

Access detailed compliance metrics and DNSH (Do No Significant Harm) requirements.