It was paradise on earth. With seven white sand beaches, three awe-inspiring water-falls, two picturesque saltwater lakes, and extensive coral reefs, many would like to live there.
But until last year, some tourists were still reluctant to visit. With 10-hour blackouts everyday, the island of Tablas in Romblon was largely undeveloped and under-appreciated.
Fortunately, the blackouts finally ended when, after a long wait, Sunwest Water and Electric Co. (SUWECO), through its subsidiary, Suwesco Tablas Electric Corporation (STEC) tapped the Bank of the Philippine Islands (BPI) to partly finance the biggest solar off-grid facility in the country on the island.
STEC’s 10-year P360-million loan for its 7.5-megawatt solar hybrid off-grid power plant further expanded BPI’s loan portfolio for renewable energy.
This is just one of the many projects that help the country become more sustainable.
For BPI, this focus on sustainability has been further strengthened by four events in 2019; the establishment of its Green Finance Framework in June, the Swiss franc-de-nominated ASEAN Green Bond in August, the US-dollar-green bond in September, and the launch of the bank’s Sustainable Development Finance program in November.
All these demonstrate a shifting and deepening focus on sustainability, on going beyond financing projects that only have a clear economic benefit. More than economic progress, BPI is fueling a more sustainable kind of growth that considers the impact on the environment and the responsible use of natural resources.
But why this focus now on sustainability?
It started a few years ago with institutional investors carrying scorecards for rating local banks on how they contribute to a sustainable world. It was deliberate and it became de rigueur. BPI, which has long had its sustainability initiative, began to take a closer look.
Sustainability a business imperative
It was then that the Bank fully realized the wisdom of sustainability. It meant more profits and greater efficiency in the use of resources for clients, leading to sustainable businesses that will be a boon to the environment and generations to come.
Sustainability, which used to be on the sidelines for BPI, has become front and center in every aspect of the Bank’s business. With the Bank’s chairman, Jaime Augusto Zobel de Ayala, as a corporate champion of the UN sustainable development goals (SDGs), the focus on sustainabilty trickled down the whole organization.
BPI now contributes to 12 SDGs: 1.) No poverty, 2.) Zero hunger, 3.) Good health and well-being, 4.) Quality Education, 5.) Clean water and sanitation, 6.) Affordable and clean energy, 7.) Decent work and economic growth, 8.) Industry innovation and infrastracture, 9.) Reduced inequalities, 10.) Sustainable cities and communities, 11.) Responsible consumption and production, and 12.) Climate action.
Under the BPI’s Sustainability Strategy Framework, value creation centers on financial inclusion and wellness (for the benefit of underserved segments and clients who want to grow and protect their assets), scaling up enterprises (for enterprises, who want to bring their businesses to the next level), and sustainable development financing (for sustainable development projects.)
Putting it all together
BPI, through the launch of its SDF program in November last year, has consolidated its financing activities for renewable energy, energy efficiency, climate resilience, and sustainable agriculture in response to the increasing need for creating sustainable businesses across all industries.
For the Bank, sustainability is now an essential part of the discussions in its credit committee, where a company’s credit is assessed based on how sustainable they are, and in how BPI assesses projects that affect the renewable energy mix in its loan portfolio.
BPI is ready to include more green projects that will result in a double benefit: less carbon emissions and sustainable business profit.
Financing a green project is no longer considered charitable work or part of corporate social responsibility, but an investment with a strong business case for both financial and environmental impact, reflecting the bank’s commitment towards sustainability.
Tracking ESG
All these activities are reported by the Sustainability Office (SO), which ensures the quarterly and annual monitoring and analysis of Environment, Social and Governance (ESG) data as well as contributions to the UN SDGs mentioned above.
The SO also oversees sustainability employee engagement and initiating conversations on innovation with regard to sustainability. It helps create a culture of sustainability in the employees through learning sessions and exposure trips that open minds to sustainable living and business practices. There are regular fairs, where employees can bring their recyclables—used paper, plastics, glass bottles, metal cans, electronic waste, etc.
Other initiatives include the installation of LED lights and inverter-type air-conditioning units to reduce energy consumption. Efficient use of water and carbon emissions are also closely monitored tominimize impact to the environment. Soon, the old head office building of BPI will be torn down to give way to a new high-tech, environmentally friendly edifice.
Complementing all these are the programs under the BPI Foundation, which has its own projects that contribute to sustainability by catering to the underserved segments of society.
BPI Foundation focuses on programs that create a culture of financial wellness and sustainable positive social change. BPI Sinag, an annual competition for social enterprises, is one of the Foundation’s flagship projects. It seeks to encourage and support businesses that focus on the triple bottomline: people, planet, and profit.
The Foundation has programs for financial literacy, starting with elementary and high school students as well as teachers who benefit from sessions on financial wellness, entrepreneurship, and integrating lessons on finance in classroom teaching.
The foundation also has specific projects that look after environmental sustainability. There is the Mindanao reforestation, which is committed to rehabilitate 100 hectares of denuded watershed in the Lanao del Sur mountain range, and the Business Risk Assessment and Management of Climate Change impact study, which assesses the environmental risks of key cities all over the country. By looking at potential risks that climate brings to the identified cities—which include Baguio, Batangas, Iloilo, Cebu, Davao, General Santos, and others—BPI helps businesses and government agencies plan for the future. The study covers an extensive analysis of factors that include climate exposure, socio-economic sensitivity, and adaptive capacity, with scenarios and an overall assessment of each city.
Another project is the Climate-Proofing Agricultural Landscapes (AgriClima) together with WWF-Philippines. It seeks to implement a landscape approach to managing the natural capital of the sugarcane ecosystems in Negros Occidental.
Sustainability through volunteerism
BPI also empowers its employees to create need-based volunteer programs, a vital component of the bank’s performance on ESG indicators.
Recently, through BPI Foundation, employee volunteers were activated to support the “BAYANihan para sa Taal” program to distribute relief goods to some 3,000 individuals, who were displaced by the ash spewed by the Taal Volcano. It is a holistic program providing relief sending reminders on disaster preparedness and giving assistance for recovery. Part of the program was an employee-led fund drive to raise at least P1 million until February 7, 2020, wherein proceeds raised will be matched by BPI Foundation.
With the whole gamut of sustainability projects and initiatives in place, clearly, BPI is banking on sustainability.
There’s a long way to go. A challenge remains finding the right mix of financing for the nation’s progress and financing for sustainability.
It’s not going to be easy, but for the sustainability of our nation, it’s all worth it.