by Jan Michael Carpo, Reporter
BDO Unibank Inc. is demonstrating its commitment to a sustainable future, announcing the full allocation of P52.7 billion raised from its inaugural ASEAN Sustainability Bond (ASB) issuance.
The funds are powering a range of environmental and social projects across the Philippines, marking a significant step towards a greener economy and inclusive development. In September last year, the bank has broadened its Sustainable Finance Framework (SFF), enhancing its capacity to support projects that contribute to economic development, environmental protection, and societal growth.
The bank’s newly published ASB Impact Report, meanwhile, details how the proceeds, garnered from institutional and retail investors in January 2022, are being used to address critical environmental and social challenges.
A substantial P38.4 billion is directly supporting environmental initiatives, with a focus on renewable energy and climate change mitigation. These investments are making a tangible difference.
BDO’s funding contributing to cleaner energy sources
BDO’s funding has facilitated the installation of wind and solar power infrastructure, contributing to the Philippines’ transition to cleaner energy sources and drastically reducing greenhouse gas emissions.
Furthermore, the bond has supported the development of green buildings and other energy-efficient infrastructure, leading to measurable reductions in energy consumption and promoting sustainable urban development.
These projects align directly with the United Nations Sustainable Development Goals (SDGs), specifically SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities), and SDG 13 (Climate Action).
Beyond environmental impact, BDO is also investing in social progress. P14.4 billion from the bond is earmarked for projects that improve the lives of marginalized communities. This includes P5.6 billion directed towards the agriculture, fisheries, and food security sectors, which provide livelihoods for approximately 25% of the Philippine workforce. An additional P8.8 billion is also supporting job creation through micro-finance services, empowering individuals and fostering economic inclusion.
“BDO’s second ASEAN Sustainability Bond Impact Report underscores our dedication to financing projects that create measurable, meaningful, and long-term outcomes for both the environment and society,” said Federico Tancongco, senior vice president and chief compliance officer of BDO.
“This bond reflects our commitment to fostering sustainable growth and inclusive development across various key industries for the nation,” he added.
BDO’s commitment to sustainability extends beyond initial bond
Following the success of its first ASB, the bank issued two more in 2024, raising P63.3 billion in January and P55.7 billion in July. These subsequent issuances demonstrate BDO’s ongoing dedication to expanding its sustainable finance activities and addressing an even wider range of environmental and social issues.
The bank has articulated its intention to further accelerate the transition to a sustainable, low-carbon economy. BDO plans to achieve this by leveraging partnerships with governments, non-governmental organizations, and private sector entities, creating a collaborative approach to tackling climate change and promoting sustainable development.
As the largest bank in the Philippines in terms of assets, loans, deposits, and trust funds managed, BDO is uniquely positioned to drive meaningful change.
With an extensive network of over 5,700 ATMs and 1,700 branches nationwide, as well as 16 overseas offices, the bank has a broad reach and the resources to make a significant impact. Its diverse range of digital banking options further enhances accessibility and convenience for customers.
BDO’s commitment to sustainability is intertwined with its strong financial performance. The bank reported a 12% increase in earnings to P60.6 billion in the first nine months of 2024, compared to P53.9 billion in the same period of 2023, demonstrating that financial success and a focus on sustainability can go hand in hand.
This strong performance enables BDO to further invest in initiatives that benefit both the planet and the people of the Philippines. The bank’s leadership in sustainable finance sets a positive example for the Philippine banking sector and reinforces the growing global movement towards responsible and impactful investing.