Pioneering Responsible Banking and Responsible Operations
“The Bank of the Philippine Islands (BPI) sets new benchmarks for sustainability in the financial sector in the Southeast Asian region.”
The Bank of the Philippine Islands (BPI) has long been at the forefront of innovation in Southeast Asia’s financial sector, and its commitment to sustainability shines through as one of the institution’s core principles. As a recipient of the Top Sustainability Advocates in Asia Award by the ACES Awards for the 3rd consecutive year, BPI has demonstrated a comprehensive, and strategic approach to embedding sustainability into every aspect of its operations, from responsible banking practices to operational efficiency.
BPI’s approach to sustainability is defined by a deep integration of Environmental, Social, and Governance (ESG) principles, complemented by an economic impact (E2) across all business levels. The bank’s sustainability agenda, endorsed by the Board, strategically aligns with the Bangko Sentral ng Pilipinas’ (BSP) Sustainable Finance Framework and the Environmental and Social Risk Management (ESRM) Framework. By embedding ESG+E2 criteria into its financial products and services, BPI ensures that its impact extends beyond economic growth, actively addressing environmental challenges and social inequalities.
At the heart of BPI’s sustainability strategy is Responsible Banking. This involves offering products and services that support clients while minimising environmental harm and contributing to positive social change. Under its Sustainable Funding Framework (SFF), BPI issues green, social, and sustainability bonds to fund projects with clear environmental and social benefits. These include renewable energy, energy efficiency, green buildings, sustainable water management, and pollution control projects, underscoring the bank’s commitment to redirecting financial flows toward sustainable development.
Another standout achievement is BPI’s active support for renewable energy. By 2023, renewable energy constituted 59% of the bank’s energy generation portfolio, significantly outpacing the national average of 22%.
With 123 Energy Efficiency projects, 126 Renewable Energy projects, and 168 Climate Resilience and Sustainable Agriculture projects, for a total 417 financing packages, BPI’s Sustainable Development Finance (SDF) portfolio highlights BPI’s role as a leading financier of sustainable projects, propelling the Philippines toward a greener future.
BPI’s commitment to sustainability transcends its banking products, extending into its own operations. In 2023, the bank made substantial strides in reducing its carbon footprint, shifting several corporate offices to 100% renewable energy sources. Moreover, BPI’s digital transformation initiatives contribute to reducing the environmental impact of traditional banking. The bank has implemented digital and paperless initiatives, offering seamless services while cutting down on the carbon footprint associated with travel and paper usage. These digital initiatives tandem BPI person-to-person banking support which BPI sustains especially at more remote municipalities where full-blown branch banking services are limited.
Further solidifying its leadership in sustainability, BPI, which has won numerous distinguished accolades for its sustainability efforts, became the first Philippine bank to have IFC EDGE-certified green branches. These certified branches met the minimum requirement of 20% savings on electricity, water and embodied materials, reinforcing BPI’s role in pushing sustainable innovations within the local banking industry.
BPI’s commitment to inclusive capitalism and social responsibility plays a crucial role in its sustainability efforts. The bank has set a target to expand financial services to five million unbanked or underbanked Filipinos by 2030, particularly micro, small, and medium enterprises (MSMEs). Through initiatives like the BPI RISE Bonds and BPI SEED Bonds, and various microfinance programs, BPI enables financial inclusion, offering sustainable financial solutions to underserved sectors.
Additionally, BPI engages its suppliers and partners in its sustainability journey. In a unique effort to make its supply chain more green, BPI collaborates with service providers on environmental stewardship initiatives, such as tree planting and reforestation programs.
BPI’s ambitious vision for the future includes its Net Zero Strategy Roadmap, which outlines the bank’s path toward reducing its greenhouse gas emissions. This roadmap involves detailed greenhouse gas accounting for the bank’s operations and financed portfolios, aiming to set clear targets and interventions to mitigate emissions. The bank is also committed to phasing out coal power generation by 2032, a groundbreaking policy for the Philippine banking industry.
With its focus on responsible banking, sustainable operations, and social empowerment, BPI continues to set new benchmarks for sustainability in the financial sector. As the recipient of the Top Sustainability Advocates in Asia award, BPI exemplifies what it means to be a leader in sustainable finance, championing ESG principles not just for profit but for the greater good of the environment and society.
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