“The Development Bank of the Philippines takes the lead in green financing.”
The Development Bank of the Philippines (“DBP”) is a government financial institution established in 1947, headquartered in Makati City, Metro Manila, Philippines. Rooted in its historical role in post-World War II rehabilitation, DBP transformed into an Infrastructure Bank supporting the National Government’s infrastructure and financial inclusive ambitions. The bank’s core mandate is to drive economic advancement by financing and providing technical assistance to key sectors such as infrastructure, environment, social services, and micro, small, and medium enterprises (MSMEs).
DBP’s commitment to sustainability is demonstrated through its proactive approach to managing environmental and social risks. The bank’s sustainability framework was crafted before the national frameworks even existed and aligned with global and national goals. It integrates environmental due diligence into decision-making processes and ensures that all financed projects align with stringent environmental standards, promoting sustainable development while minimizing potential negative impacts. Strong governance and collaboration with stakeholders fuel this broader initiative to embed sustainability into the bank’s core business strategy, fostering a culture of responsibility and environmental stewardship across its operations.
One of DBP’s flagship sustainability initiatives is the DBP Forest Program, launched in 2005 to address environmental degradation in the Philippines. The program focuses on reforestation and conservation efforts, collaborating with local communities, universities, and non-governmental organizations to restore degraded ecological zones. The bank also established nurseries and seed collection projects to ensure steady supply of high-quality native tree seedlings for reforestation, instrumental in reviving the country’s forests and promoting biodiversity.
As a cornerstone of the bank’s environmental sustainability efforts, the DBP Forest Program empowers local communities and organizations to restore and conserve critical ecological zones. As of 2023, the program has achieved 85% of its 2030 target for expanding forest cover, contributing significantly to the Philippines’ climate action and conservation goals. Over 6.62 million trees across 48 forest projects, covering more than 6,000 hectares of land. This initiative helps sequester carbon dioxide, promotes biodiversity, and supports local livelihoods, enhancing community resilience against environmental hazards.
DBP directs substantial financial resources into projects aimed at reducing greenhouse gas emissions and promoting a low-carbon economy. The bank’s project financing focuses on renewable energy, sustainable water and wastewater management, and other environmental sustainability initiatives. These efforts ensure that DBP contributes to the country’s sustainable development while conserving natural resources. Additionally, the bank supports energy efficiency programs that have led to reduced resource consumption in electricity and water use, reinforcing its commitment to environmental responsibility and sustainable practices.
Climate financing is a priority undertaking of DBP, aligned with the country’s low-carbon and resilient climate actions. The integration of environmental, social, and governance issues is a way to generate new business from sustainable investment opportunities, as well as a financial risk management technique. This underscores DBP’s consistent focus on sustainability, crafting sustainable programs and implementing climate actions to build possibilities towards meeting the needs of the present without compromising the ability of future generations to meet their own needs.
One of the key outcomes of the sustainability plan is the expansion of DBP’s environmental loan portfolio, which reached over PHP 49 billion by the end of 2023. The bank has been instrumental in financing renewable energy projects and energy efficiency programs aimed at reducing electricity consumption and improving resource use. Through these projects, DBP is expected to play a significant role in reducing greenhouse gas emissions, contributing to the country’s energy security, and promoting sustainable business practices.
In line with its sustainability goals, DBP has also developed a comprehensive waste management program and implemented energy-saving measures across its operations, reinforcing its commitment to environmental responsibility and sustainable practices. The bank’s headquarters and branch offices have transitioned to energy-efficient lighting and air conditioning systems, reducing overall energy consumption and minimizing its internal environmental footprint. These initiatives are part of DBP’s broader efforts to lead by example, demonstrating that environmentally responsible practices can coexist with business growth.
DBP’s transparency and accountability in sustainability reporting have set a benchmark in the Philippine banking industry. The bank was the first state-owned enterprise to voluntarily disclose its sustainability performance, aligning with the Global Reporting Initiative (GRI) framework since 2008. DBP continues to publish its sustainability reports, offering detailed insights into its environmental, social, and governance (ESG) performance and contributions to national development. In 2022, DBP voluntarily subjected its disclosure to an external assurance review, one of the first in the local banking industry. The bank’s reporting practices have been recognized for their rigor and transparency, further solidifying DBP’s reputation as a leader in sustainable finance.
Through strategic partnerships and active stakeholder engagement, DBP collaborates with government agencies, international organizations, and private entities to support projects that drive sustainable development. Guided by its mission to foster inclusive economic growth and environmental protection, DBP’s approach reflects its commitment to positive change. The bank’s proactive sustainability stance contributes to the well-being of future generations and positions it as a key player in advancing national and global development goals. Its legacy as a Champion of sustainable financial will undoubtedly endure, inspiring others to follow suit.
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