ADFIAP Talks about Greenbanking on TV

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ADFIAP was invited to talk about its greening project in the primetime television show Business Nightly of the ABS-CBN News Channel, or ANC, a 24-hour cable news network in the Philippines. ADFIAP Secretary General, Octavio B. Peralta, took the opportunity to inform the audience of ADFIAP’s activities and advocacies as well as answer a wide-ranging interview on green banking. Among the areas discussed was ADFIAP’s EU-Asia Pro Eco Programme-funded, Environmental Governance Standards for DFIs (EGS) project that promotes the institutionalization in DFIs of an internal environmental management system (IEMS) and an environmental risk management system (ERMS), tools that will aid banks and financial institutions to manage environmental issues in their own office premises and credit decision process, respectively. “A bank cannot be a green bank if it is not green from within”, Mr. Peralta said.

On the criticism by some quarters that banks are merely riding on the “environmentalism bandwagon” and using it as a ploy to make more money, Mr. Peralta mentioned that it is but only sensible for the banks to look carefully on environmental concerns, not because it is in vogue and presents a business opportunity, but because banks, being in the business of managing risks, must be able to cover various risks that are inherent in bank lending such as credit risk, collateral risk and even reputational risk. “If banks can make make money from opportunities brought about by the current environmental awareness and, at the same time, be of help to mitigate environmental problems, this would be a welcome development”, opines Mr. Peralta. He however adds that banks in the region are quite slow in embracing these practices compared to their counterparts in Europe and North America. Other issues discussed were carbon finance and the current moves by banks to organize along environmental financing.

For more information on ADFIAP’s environmental banking, please visit the EGS website at: https://www.egs-asia.com/

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