SEC to Collaborate with DOF and ADB on Digitally Tracked Green Bonds Initiative

SEC to Collaborate with DOF and ADB on Digitally Tracked Green Bonds Initiative

by May 2, 2024

In a recent initiative to bolster the sustainable finance sector, the Securities and Exchange Commission (SEC), in collaboration with the Department of Finance (DOF) and the Asian Development Bank (ADB), successfully hosted a Joint Knowledge Sharing Event (JKSE).

The gathering presented, and agreed to work together, on the potential of digitally tracked green bonds (DGTBs) to an audience comprising potential issuers, investors, and policymakers. The event forms a part of ongoing efforts to enhance the issuance of environmental, social, and governance (ESG) bonds, improve market disclosures, and foster the use of digital technologies in financial services.

Toshihiro Akema from the Japan Exchange Group, Inc. provided a detailed overview of DGTBs, addressing the current green bond market, challenges of existing green bonds, and the essential features and infrastructure of DGTBs.

Meanwhile, Mr. Masayuki Oyamatsu of Hitachi delved into the technologies that support the DTGB initiative and their implications for sustainable finance. His presentation highlighted Hitachi’s ongoing development plans, particularly in applying the platform to carbon credits.

McJill Bryant T. Fernandez

McJill Bryant T. Fernandez

SEC Commissioner McJill Bryant T. Fernandez reaffirmed the Commission’s dedication to nurturing a sustainable capital market in the Philippines. He emphasised the critical role of digital advancements in meeting investor demands for data transparency and standardization, stating,

“By leveraging advancements in digital technology, markets can service this need, providing both issuers and investors with tools to report and access credible information with ease.”

According to the SEC, the JKSE not only facilitated a comprehensive dialogue on DGTBs but also highlighted their potential to revolutionise sustainable finance by ensuring greater transparency and efficiency through blockchain and Internet of Things technologies.

Besides the SEC, DOF and ADB, the joint session saw participation from key industry stakeholders including officials from the Bangko Sentral ng Pilipinas, the Maharlika Investment Company, publicly listed companies, and asset managers.

This approach holds the promise to enhance the integrity of sustainable finance in the Philippines, by offering clear and traceable insights into the environmental impact of funded projects.

 

 

Featured image credit: SEC Commissioner McJill Bryant T. Fernandez, and Directors Rachel Esther J. Gumtang-Remalante and Oliver O. Leonardo join the participants of the joint knowledge sharing event with members of the DOF and ADB.