Impact Beyond Banking
“BDO Unibank, Inc. fosters social and environmental impact for all its stakeholders.”
BDO Unibank, Inc., (“BDO”) established in 1968 in the Philippines, is the country’s largest bank in terms of total resources, customer loans, deposits, assets under management, and capital. As a full-service universal bank, it offers a comprehensive suite of products and services such as lending, deposit-taking, foreign exchange, investments, insurance, and remittances. With its expansive network of over 1,700 branches and more than 4,800 ATMs nationwide, BDO ensures accessibility for its customers and has 16 international offices to serve its global clientele. As a member of the SM Group, one of the largest conglomerates in the Philippines, BDO benefits from a strong backing that spans various sectors, including retail, mall operations, and property development.
BDO’s approach to sustainability is guided by its Environmental and Social Risk Management System (“ESRMS”), a comprehensive framework developed in collaboration with the International Finance Corporation (IFC). The ESRMS integrates environmental, social, and governance (ESG) principles into BDO’s operations and ensures alignment with sustainable development goals. This framework addresses environmental and social risks in lending, investment, and operational activities, making sustainability a core aspect of its business decisions. BDO has expanded this system over the years to cover a broader range of sustainability initiatives, demonstrating its proactive stance on managing risks and leveraging opportunities in this evolving landscape.
BDO’s sustainability efforts have positioned it as a pioneer in the Philippine financial industry. The bank has been actively supporting renewable energy, green building developments, and climate change adaptation measures. By 2023, BDO’s portfolio included 59 renewable energy projects with a total installed capacity of 2,377 megawatts. These initiatives have significantly contributed to reducing the country’s carbon footprint by avoiding over 4.38 million tonnes of carbon dioxide emissions annually. This impact is equivalent to removing 930,491 passenger vehicles off the road each year. Further reinforcing its commitment to sustainable finance, BDO ceased financing new coal-fired plant capacity in 2019 and has since set a goal to reduce its coal exposure by 50% while limiting its portfolio exposure to coal to no more than 2% by 2033. The bank has also issued green, blue, and sustainable bonds to support sustainable projects focusing on renewable energy, water conservation and management, and social projects such as basic infrastructure.
Beyond its environmental initiatives, BDO has made strides in promoting financial inclusion and community development. Through its “Cash Agad” service, BDO has extended banking services to underserved communities in rural and remote areas, bridging the gap between these communities and the formal banking sector. By deploying point-of-sale machines to local stores, pharmacies, and cooperatives, BDO has enabled residents in these areas to perform essential banking transactions without the need for a branch or for long-distance travel. In 2023 alone, Cash Agad facilitated over 105 million transactions, with total cash withdrawals reaching PHP 448 billion. The service now covers 92% of all municipalities and 100% of all provinces in the country, making a tangible impact on the lives of many Filipinos.
Community development is another key area of focus for BDO. Through the BDO Foundation, the bank has undertaken numerous projects aimed at improving the quality of life for communities across the Philippines. The Foundation has reconstructed 160 rural health units, providing much-needed healthcare services to over 7.8 million beneficiaries. The bank’s disaster response initiatives have also been commendable, with BDO extending support to families affected by natural disasters which the country is highly vulnerable to, given its geographical location. In 2023, BDO employees collectively contributed 4,402 volunteer hours to support these activities, underscoring the organization’s commitment to social responsibility and community engagement in addressing poverty, hunger, environment, education, and financial inclusion.
Financial performance remains strong alongside its sustainability efforts. In the first half of 2024, BDO reported a net income of PHP 39.4 billion, reflecting a 12% increase from the previous year. This robust growth was driven by gains in its core businesses and prudent risk management practices. As BDO continues to champion sustainability and inclusive economic development, it remains well-positioned to address emerging challenges and capitalize on opportunities that contribute to the long-term wellbeing of its stakeholders and the broader community.
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