SEC, IFC team up to boost ‘green’ financing
The Securities and Exchange Commission (SEC) has partnered with the International Finance Corp. (IFC) to boost the country’s sustainable finance capacity as demand for thematic bonds rises amid a growing climate crisis.
The corporate watchdog said in a statement over the weekend that it would conduct capacity-building initiatives with IFC for issuers, investors and domestic external reviewers of fixed income securities aimed at generating positive impact on society and the environment.
“Through this partnership, we aim to channel long-term funding into climate-focused initiatives that prioritize both people and the planet,” SEC Commissioner McJill Bryant Fernandez said.
Christina Ongoma, IFC regional manager for East Asia and the Pacific, also noted that the activities in the pipeline include technical workshops and training sessions to “further enhance the awareness and capacity of the capital market players regarding climate thematic instruments and opportunities.”
Under the agreement, the SEC and IFC will likewise conduct a stocktaking survey to gauge the public’s interest in the thematic capital market, including sustainability-related funding.
The partnership also aims to support the 30 by 30 Zero Philippines Program jointly developed by IFC and its parent group, the World Bank.
Raise to 30%
According to the SEC, the program is aimed at growing climate-related lending of financial institutions to an average 30 percent of the total portfolio, with nearly no exposure to coal by the end of the decade.
“This initiative is expected to strengthen the role of financial institutions as aggregators of climate financing, integrating green finance strategies into investment plans to mitigate climate risks and reduce greenhouse gas emissions,” the regulator said.
This comes after the SEC released its draft guidelines for green equity offerings to promote transparency among companies and encourage sustainable financing.
The regulator defines green equity as the shares of a company whose revenue is “derived significantly from green activities and whose majority of investments are in green activities.”
