nestor a espenilla, jr : generativity speech by mr nestor a espenilla, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the ypo event " ph business and economy : outlook and forecasts from the bsp chief ", manila, 17 january 2018. * * * good evening. i am very pleased to be here. i thank ypo and ypo gold philippines for the opportunity to speak at this important gathering. this is quite a forum of business leaders and dynamic ceos! i understand that an application to join ypo must be approved before the applicant reaches his or her 45th birthday … your youth, your energy, your skills, your competence, and the level of resources at your disposal make you a force to be reckoned with … and a significant catalyst for change. what ’ s so special about the 40 to 45 - year old mark? as you know, these years are the gateway to mid - life. you will, or probably already have, discovered that this is a positive thing. for many, it is a time where one has a keener acceptance of self, a greater sense of security … where mental and emotional wellbeing has found equilibrium … and where one is more focused on developing generativity1 … generativity. i like that word. one definition i found on the web is that it is a need to nurture and guide younger people, and contribute to the next generation … it is also defined as the ability to transcend personal interests, a psychological concern for legacy, and desire to expand one ’ s influence and commitment to family, society, and future generations. in my readings, there was even a warning to middle - aged adults who fail to develop generativity. he or she, who does not transcend oneself, is said to experience stagnation, or self absorption. in this regard, ypo, with its focus on engagement, learning and growth is a strong proponent of generativity. for this, i congratulate you all whole - heartedly. generativity is a quality most cherished by the bsp as it pursues its mandates for the benefit of not just the present, but of future generations. as ypo clearly feels the same, we begin on common ground today. …. there is much room for the practice of this trait as we engage in nation building together. the ripe groundwork

as for all those in positions of responsibility in this country, there is one topic that is becoming more and more important : the transition to a climate - neutral economy. the urgency and significance of this issue is now clear, especially after this past summer, which saw the most sunshine since records began [ in 1881 ], with temperatures well above average and considerable drought. “ heißzeit ”, or “ hot age ”, playing on the german for “ ice age ”, was the german word of the year in 2018 – and, unfortunately, it has not lost any of its relevance in 2022. the transition to a climate - neutral economy is urgently needed. furthermore, this would help to free germany from its crippling dependence on russian gas – another reason to press ahead with full force. savings banks are helping to fund this transition. after all, it is not least bank loans that allow the many small and medium - sized enterprises in germany to be part of the green transition. however, the savings banks group has also identified a number of other ways in which it can play a part. these are set out in its “ commitment by german savings banks to climate - friendly and sustainable business practices ”. by early august, more than 230 savings banks and 14 affiliated institutions had signed up to this commitment. i hope that many more institutions will add their signatures, too. the german savings banks association should support its members in upholding this commitment as well as systematically and successfully managing the associated risks. however, not only savings banks, but also other banks as well as central banks have been paying greater attention to climate and sustainability risks for some time now. with regard to the climate, there are two very different types of risk involved here. first, there are the risks arising from the direct, physical repercussions of climate change – from the banks ’ perspective, these could be risks associated with real estate financing in areas facing a greater threat from flooding. however, there are also risks resulting from urgently needed climate policies and structural change towards climate neutrality. at its core, it is about ensuring that the costs of greenhouse gas emissions are no longer borne by society as a whole, but by the emitters themselves. this may make certain business models unprofitable and sooner or later lower the value of those enterprises ’ shares or bonds. this means that climate risks are financial risks, too. they need to be made transparent on financial institutions ’ balance sheets, and this is what we as supervisors