Sustainable development is development that meets the needs of the present, without compromising the ability of future generations to meet their own needs. Aside from the environment, it also focuses on ensuring a strong, healthy and just society which implies meeting the diverse needs of all people in current and emerging communities, promoting personal wellbeing, social cohesion and inclusion, and creating equal opportunities. Sustainable development can be pursued in many ways, one of which is through sustainable banking. Sustainable banking, according to Triodos Bank is “using money with conscious thought about its environmental, cultural and social impacts, and with the support of savers and investors who want to make a difference, by meeting present day needs without compromising those of future generations”.
Sustainable banks strive to use their money to bring about positive and lasting change. They are industry leaders when it comes to the triple bottom-line approach- by financing companies, institutions and projects that add cultural value and benefit people and the environment. These are banks that have incorporated in their corporate governance frameworks the commitment to help make the world a better place, aside from their profitability goals.
Is the Philippines ready for sustainable banking? Are Philippine banks ready for it? In 2015, the Bank of the Philippine Islands (BPI), one of the country’s leading financial institutions, approved a total of P27.5-billion on loans for renewable energy, energy efficiency and climate resilience projects as part of its sustainability performance and initiatives. Aside from these, it also pursued sustainable development initiatives including financial wellness and financial inclusion. The bank said it will continue to empower its people to innovate services, systems and products that address the nation’s biggest sustainable development challenges of poverty, food security, climate change, and ecosystem degradation.
Union Bank of the Philippines is currently forging ahead towards sustainable banking after its branch in Olongapo City became the first bank to earn LEED Platinum, the highest possible rating for leadership in energy efficiency and environmental design. Its Tacloban City branch likewise earned a Gold certification for incorporating sustainability measures to ensure energy and water efficiency, and health and safety of everyone.
Sustainable banks strive to use their money to bring about positive and lasting change. They are industry leaders when it comes to the triple bottom-line approach- by financing companies, institutions and projects that add cultural value and benefit people and the environment. These are banks that have incorporated in their corporate governance frameworks the commitment to help make the world a better place, aside from their profitability goals.
Is the Philippines ready for sustainable banking? Are Philippine banks ready for it? In 2015, the Bank of the Philippine Islands (BPI), one of the country’s leading financial institutions, approved a total of P27.5-billion on loans for renewable energy, energy efficiency and climate resilience projects as part of its sustainability performance and initiatives. Aside from these, it also pursued sustainable development initiatives including financial wellness and financial inclusion. The bank said it will continue to empower its people to innovate services, systems and products that address the nation’s biggest sustainable development challenges of poverty, food security, climate change, and ecosystem degradation.
Union Bank of the Philippines is currently forging ahead towards sustainable banking after its branch in Olongapo City became the first bank to earn LEED Platinum, the highest possible rating for leadership in energy efficiency and environmental design. Its Tacloban City branch likewise earned a Gold certification for incorporating sustainability measures to ensure energy and water efficiency, and health and safety of everyone.
Meanwhile, the Development Bank of Philippines (DBP) has been doing its part in responding to the impacts of climate change and financial shocks by creating a more sustainable business plan. It vigorously pushes for the incorporation and integration of corporate social responsibility programs into internal operations, business processes, and product offerings.
Although these banks are some of the largest banks in the country, it means Philippines is not far behind when it comes to sustainable banking practices. Sustainable banking is gradually gaining attention and followership through the initiatives of the Bangko Sentral ng Pilipinas (BSP), International Finance Corporation (IFC), and other financial and academic institutions including the Asian Institute of Management (AIM). They are currently joining hands in shaping the banking industry by increasing their awareness and understanding of environmental and social risks and enable them to develop their own systems that incorporate international best practices and standards. Through these efforts, vanguards of sustainable banking hope to instill social profitability, economic profitability, and transparency among the country’s banks and other financial institutions.
Although these banks are some of the largest banks in the country, it means Philippines is not far behind when it comes to sustainable banking practices. Sustainable banking is gradually gaining attention and followership through the initiatives of the Bangko Sentral ng Pilipinas (BSP), International Finance Corporation (IFC), and other financial and academic institutions including the Asian Institute of Management (AIM). They are currently joining hands in shaping the banking industry by increasing their awareness and understanding of environmental and social risks and enable them to develop their own systems that incorporate international best practices and standards. Through these efforts, vanguards of sustainable banking hope to instill social profitability, economic profitability, and transparency among the country’s banks and other financial institutions.
