BDO ramps up sustainability initiatives

MANILA, Philippines — Top lender BDO Unibank Inc. continues to ramp up its efforts in sustainable finance to help achieve the private and public sectors’ impactful global activities that cushion the destructive effects of climate change.

Marla Garin-Alvarez, vice president for sustainability at BDO, said the country’s biggest bank has long practiced sustainability in its business operations to achieve stability and resilience in the financial value chain as part of its environmental, social and governance (ESG) journey.

“We recognize that a strong foundation for inclusive economies and a sustainable future is having a robust banking system which provides multiple ways to promote positive environmental and social impact,“ Garin-Alvarez said.

BDO was among the pioneers of promoting renewable energy and energy efficiency project financing in 2010 by putting together a risk-based Sustainable Energy Finance Program in partnership with the World Bank’s International Finance Corp. (IFC).

The Sy family-run bank was also the first to offer a green bond in the country and in East Asia Pacific in 2017, raising $150 million to finance seven renewable energy projects that have since been expanded to 50 renewable projects nationwide.

In over a decade of pursuing sustainable finance, BDO has financed up to 2,184 megawatts of the country’s total installed renewable energy capacity as part of its support to the Philippine Development Plan 2017-2040 which aims to reduce 70 percent of greenhouse gas emissions by 2030.

As one of its earliest flagship projects to provide renewable energy in the country, BDO provided the project finance structure and co-financed the wind farm of Alternergy Wind One Corp. in Pililia, Rizal.

Today, the wind farm generates 146,642 megawatt-hours of electricity each year and avoids 64,927 tons of carbon dioxide a year. It provides clean energy to 66,000 households and creates various business infrastructure, learning and tourism opportunities for its immediate community.

“This is why our sustainability framework is focused on resilience and embeds ESG in everything that we do as a bank,” Garin-Alvarez said.

Over the years, BDO’s Sustainable Finance Desk has expanded its scope to include energy efficiency, climate-smart agriculture, green infrastructure and clean transportation.

“BDO recognizes its critical role in contributing to a lower carbon economy through its financial resources, extensive operations and network. We are committed to promote environmentally-sound and climate-resilient practices to support our customers, communities, and the country,” she said.

New York-based leading independent ESG research and ratings provider Sustainalytics recently endorsed BDO’s sustainable finance framework, making the bank well positioned to issue sustainable finance instruments.

The increasing destructive effects of climate change have prompted governments towards immediate action to reach net-zero emissions by 2050.

To achieve this goal, private and public sectors are banking on impactful global activities to help reduce greenhouse gas emissions.

In the Philippines, the local banking industry is leveraging its resources and reach to hasten the transition towards a more sustainable future.