Security Bank to halt financing coal power plants

MANILA, Philippines — Security Bank Corp. has committed to end funding for coal-fired power projects in the country by 2033, more than a year after the Department of Energy (DOE) announced a moratorium on new coal-fired power plants.

The commitment is aligned with the Philippine government pledge during the 2021 United Nations Climate Change Conference of the Parties (COP26) and the 2015 Paris climate agreement to cut greenhouse gas emissions as well as limit global warming for a more sustainable future.

Eduardo Olbes, chief financial officer and chairman of the sustainability committee at Security Bank, said the bank is focused on implementing the Environmental and Social Risk Management System (ESRMS) approved by its board of directors in 2021 complementing the bank’s sustainability framework approved in 2020.

“A focus of our ESRMS is to specifically address sustainability and climate risk, as well as health and safety risk in our operations, investment practices, and supply chain. A key aspect of the ESRMS is our coal policy, which specifies our commitment to discontinue financing the construction of new coal-fueled power generation plants, with a view to exit funding coal generation by 2033,” Olbes said.

The ESRMS details the bank’s policies and enhanced due diligence required for identifying, addressing, and mitigating environmental and social risks in the bank’s operations, lending and investing practices and supply chain.

On the other hand, the sustainability framework outlines Security Bank’s principles in addressing environmental, social, and governance issues.

In addition to the ESRMS, the bank has identified priority United Nations Sustainable Development Goals (SDGs) that highlight areas where it intends to concentrate its efforts to deliver meaningful outcomes.

These include Good Health and Well-Being (SDG 3), Quality Education (SDG 4), Decent Work and Economic Growth (SDG 8), and Industry, Innovation, and Infrastructure (SDG 9).

The bank believes these SDGs are integrated to its mission of enriching lives, empowering businesses, and building communities sustainably.

“Security Bank is committed to long-term sustainability by advocating lending, investment, and procurement activities that will help the country transition to a lower carbon economy and build resilience to climate change.” Olbes said.