Philippine Sustainable Finance Taxonomy Guidelines Frequently Asked Questions Series 1.2

OFFICE OF THE GOVERNOR 025 MEMORANDUM NO. M-2025-___ To : ALL BANKS Subject : Philippine Sustainable Finance Taxonomy Guidelines Frequently Asked Questions Series 1.2 To further provide clarity and guidance on the provisions and application of the Philippine Sustainable Finance Taxonomy Guidelines (SFTG), the BSP is issuing the attached Frequently Asked Questions (FAQ) Series 1.2, in addition to earlier issued memoranda, as follows: 1. Memorandum No. M-2024-028 dated 27 September 2024 on FAQ on the Financing of Excluded Activities and Coal-Fired Power Plant Projects; and 2. Memorandum No. M-2024-035 dated 8 November 2024 on User Guide for Circular No. 1187 on the Adoption of the Philippine Sustainable Finance Taxonomy Guidelines. The SFTG FAQ Series 1.2 provides the rationale for the development of the taxonomy and its related governance and oversight framework. It likewise clarifies key SFTG provisions in relation to the scope of application, assessment of economic activities, traffic light classification system, and the current regulatory incentives supporting financing of eligible green or sustainable projects/activities. The foregoing supplementary guidance does not supersede any provision of the SFTG. Banks are expected to refer to Circular No. 1187 dated 21 February 2024 for detailed guidance on the taxonomy and its implementation. The SFTG FAQ Series 1.2 is a result of the continuous engagement and consultation with banking industry associations towards its consistent implementation. For information and guidance. Digitally signed by Eli M. Remolona Jr. Date: 2025.07.28 13:22:37 +08'00' ELI M. REMOLONA, JR. Governor