by Jan Michael Carpo, Reporter
In a powerful demonstration of its commitment to a greener future, BDO Unibank Inc., the Philippines’ largest financial institution, has announced a groundbreaking achievement: its sustainable finance portfolio surged past the ₱1 trillion mark in 2024, reaching a historic ₱1.04 trillion.
This monumental figure, the largest sustainable finance funding amount ever recorded by a Philippine bank, underscores BDO’s pivotal role in steering the nation towards a more inclusive and low-carbon economy.
The staggering ₱1.04 trillion represents a significant 15.8% leap from the ₱898 billion disbursed in 2023, signaling not just growth, but an accelerating momentum in BDO’s dedication to environmentally and socially responsible investments.
This vast capital injection has been strategically channeled into a diverse range of impactful projects, addressing critical areas such as ensuring access to clean water and sanitation, empowering micro-entrepreneurs, fostering gender equality in business, accelerating the adoption of renewable energy sources, and developing vital green infrastructure.
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Nestor Tan, the visionary President and CEO of BDO, emphasized the profound significance of these investments. “These investments underscore our unwavering commitment to championing industries that are at the forefront of environmental stewardship and building a more resilient future for the Philippines,” he stated.
“From funding essential water infrastructure projects that safeguard public health to actively supporting the burgeoning renewable energy sector and the development of cutting-edge battery technologies, we are strategically deploying capital where it can generate the most significant positive impact,” he added.
Tan further articulated BDO’s aspirational role within the national financial landscape. “As the nation’s leading bank, we recognize our responsibility to set a powerful example,” he affirmed. “We aim to inspire other financial institutions and, crucially, our valued customers to join us on this critical journey and collectively drive meaningful progress towards a truly sustainable Philippines.”
A shining beacon within BDO’s sustainable finance portfolio is its substantial backing of the renewable energy sector. To date, the bank has proudly financed 63 transformative renewable energy projects, collectively boasting an impressive installed capacity of 2,679 megawatts.
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The environmental impact of these projects is nothing short of remarkable. Projections indicate that they will prevent nearly 4.8 million tons of carbon dioxide emissions annually. To put this into perspective, this is equivalent to removing over one million gasoline-powered cars from our roads each year or nurturing a staggering 78.8 million tree seedlings over a decade.
BDO’s strategic financing within the renewable energy domain reveals a keen understanding of the diverse potential of clean energy sources. The bank has witnessed significant year-on-year growth in both hydro and solar energy projects, strategically allocating capital to these crucial sectors.
This forward-thinking approach is clearly reflected in the overall loan amounts disbursed for various renewable technologies, including a substantial ₱38.2 billion directed towards hydro power, a significant ₱21 billion fueling solar energy initiatives, and a notable ₱25.4 billion supporting biomass energy projects.
The bank’s resolute dedication to sustainable financing is not a fleeting initiative but rather a deeply ingrained long-term strategy meticulously designed to support the Philippines in fulfilling its commitments under the Paris Agreement and achieving the United Nations’ ambitious Sustainable Development Goals.
BDO has seamlessly integrated sustainability principles into the very fabric of its business strategy, recognizing that a thriving future necessitates a fundamental shift towards a low-carbon economy and the realization of the UN’s 17 interconnected goals.
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Beyond its impressive lending activities, BDO has taken proactive steps to formalize and enhance its environmental and social initiatives. In 2023, the bank significantly broadened the scope of its sustainable finance framework, expanding it to encompass 29 distinct qualifying areas.
To ensure the robustness and credibility of its approach, BDO engaged Morningstar Sustainalytics, a globally recognized leader in sustainability research and ratings, to conduct a thorough third-party analysis of its framework.
Furthermore, recognizing the increasing urgency of addressing climate risks, BDO collaborated with international experts to conduct comprehensive climate stress testing across its loan, treasury, and trust portfolios. This proactive measure allows the bank to gain a deeper understanding of its potential risk exposure under various high-emission warming scenarios, enabling it to make more informed decisions and build greater resilience into its operations.
BDO firmly believes that the banking sector occupies a critical and indispensable role in the Philippines’ determined transition towards a low-carbon economy. The transformation, the bank acknowledges, will necessitate widespread access to affordable, reliable, clean, and sustainable energy sources.
In a company statement that reflects a balanced and pragmatic perspective, the bank emphasized that “this transition is a journey that demands a carefully considered approach. It requires acknowledging the complex trade-offs that will inevitably arise between the overarching goal of climate sustainability and the imperative of national economic development, which heavily relies on access to affordable and dependable energy.”
This statement underscores BDO’s commitment to navigating this intricate landscape responsibly, ensuring both environmental progress and continued economic growth for the Philippines. The bank’s landmark achievement in surpassing ₱1 trillion in sustainable financing is not just a financial milestone; it is a powerful testament to its leadership and a significant stride towards a more sustainable and prosperous future for the nation.