In a proactive move to fortify the resilience of the Philippine financial sector and empower micro, small, and medium-sized enterprises (MSMEs) against the escalating impacts of climate change, the Bangko Sentral ng Pilipinas (BSP) and the United Nations Environment Programme–Finance Initiative (UNEP-FI) recently convened a pivotal webinar.
The Bangko Sentral ng Pilipinas (BSP) conducted a webinar for over 100 financial institutions on “Climate Risk Modeling for Adaptation and Resilience” in coordination with the UNEP-FI V20 SIF last May 2, 2025.
The session, titled “Webinar on Climate Risk Modeling for Adaptation and Resilience,” held last May 2, drew the participation of over 100 representatives from banks and other financial institutions across the country.
The collaborative initiative underscores the growing recognition of the critical role that financial institutions play in not only safeguarding their own stability but also in actively supporting the adaptation needs of vulnerable sectors, particularly MSMEs, which form the backbone of the Philippine economy.
The webinar featured insightful presentations from experts at UNEP-FI’s V20 Sustainable Insurance Facility.
This innovative project pipeline platform is specifically designed to foster the development and implementation of climate-smart insurance solutions tailored for MSMEs operating in markets highly susceptible to climate-related risks, with the Philippines identified as a key focus area.
Role of climate risk modeling crucial in safeguarding MSME lending
Photo shows BSP Assistant Governor and Chief Sustainability Officer Pia Bernadette Roman Tayag (center) as she is joined by (from top, left to right) Director Ellen Joyce L. Suficiencia, BSP Sustainability Office; Manoj Pandey, UNEP-FI Asia-Pacific Regional Coordinator; Deputy Director Rhodora M. Brazil-de Vera, BSP ESG Supervision and Surveillance Group; Brandon Matthews, UNEP-FI Global Coordinator; and Agrotosh Mookerjee, Risk Shield Managing Director. Deputy Director Joanne Marie Decena of the BSP Sustainability Office (bottom, center) moderates the discussion.
Discussions during the webinar centered on the paramount importance of sophisticated climate risk modeling. Participants explored how accurate and comprehensive modeling can inform the development of robust financing strategies that effectively protect banks’ MSME loan portfolios from climate-induced disruptions.
Furthermore, the session delved into the creation of tailored adaptation lending products specifically designed to meet the unique needs of MSMEs in a changing climate.
This central theme resonated strongly with the opening remarks delivered by BSP Assistant Governor and Chief Sustainability Officer Pia Bernadette Roman Tayag. She emphasized the “mutually reinforcing goals for banks to build their own resilience and finance the adaptation needs of the communities they serve.” Her statement highlighted the symbiotic relationship between a resilient financial sector and the ability of communities and businesses, especially MSMEs, to adapt to and withstand the increasing challenges posed by climate change.
The webinar also provided a valuable platform for UNEP-FI to introduce its technical assistance program specifically designed for banks in the Philippines. This crucial program, generously supported by funding from the Asian Development Bank (ADB), aims to accelerate the adoption of climate-smart financing strategies that directly benefit MSMEs. By providing technical expertise and resources, the initiative seeks to empower financial institutions to integrate climate considerations into their lending practices and develop innovative financial products that promote adaptation and resilience at the grassroots level.
This informative session marked the third installment of the BSP Knowledge Exchange (KX) Series on Sustainability. This ongoing collaborative learning platform serves as a vital conduit for financial institutions and other key industry stakeholders in the Philippines to come together, share knowledge, and collectively work towards the common goal of mobilizing green finance within the nation. The KX Series underscores the BSP’s commitment to fostering a sustainable financial ecosystem that supports the Philippines’ transition to a greener and more climate-resilient economy.
The active participation of over 100 financial institutions in this webinar signals a growing awareness and commitment within the Philippine financial sector to proactively address the challenges and opportunities presented by climate change. By equipping these institutions with the knowledge and tools for effective climate risk modeling, the BSP and UNEP-FI are laying the groundwork for a more resilient financial system capable of supporting the adaptation and growth of MSMEs in the face of an increasingly uncertain climate future. This collaborative effort represents a significant step forward in integrating climate considerations into the core operations of the Philippine financial sector, ultimately contributing to a more sustainable and inclusive economic development for the nation.