- Daily customer touch points and branches, personnel, phone, email, and social media channels
- Annual and periodic satisfaction surveys
- Regular visits to existing clients, including area briefings
Guided by our Credo, client trust is a fundamental pillar for us. As such, we always strive to understand our clients’ needs and address them effectively and adequately. Thus, high regard and strict adherence to values and ethics in the daily conduct of our business is of primary importance in all our dealings.
Acknowledging our stakeholders’ impact on our business and how they are directly impacted by it, we have set up formal platforms of engagement to help identify diverse matters that are relevant to them. This ensures a level and frequency of engagement appropriate for each stakeholder group.
How we engage them
Their concerns
- Quality and availability of service
- Accessible electronic services
- Convenient, affordable, reliable, and efficient delivery of products and services
- Relevant products suited to their needs, including transparent product requirements and processes
- Competence of personnel to address concerns
- Sound or customized financial advice
- Turn-around time of applications
- Data privacy
How we respond
- Proactive approach to client concerns (e.g. proper allocation of manpower resources, review of outsourcing services, set up of more effective contact centers, and continuous process improvements)
- Constant monitoring and upgrade of systems
- On-going personnel capacity building through product briefings, seminars, and trainings
- Timely provision of customized feedback, advice and/or solutions to inquiries
- Economic and product briefings, financial and investment education seminars
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The bank's Credo holds that BPI's first responsibility is to our clients. If we understand and address clients' financial needs, we will be trusted with their most important financial transactions, and we will build lasting relationships. We do well when our clients do well. We continue to focus on how we respond more effectively to the customers' financial needs. We strive to deepen our understanding of customer expectations to allow us to improve the way we do business.
In line with our commitment to deepen client relationships, we focus on the excellence of our service. Our Products & Services teams work to design and deliver financial products that address specific top-of-mind needs, and in ways clients find accessible, convenient, and efficient. In so doing, we also adhere to our mission of financial inclusiveness to an ever growing base of Filipino clients.
For Asset Management, we employ highly trained and experienced investment professionals, who follow a rigorous process that delivers superior risk-adjusted returns over a time horizon established by our clients. We also employ state-of-the-art technology to construct and risk-manage portfolios, provide reports, and engage in planning and distribution.
In Retail Lending, the bank promotes easy access to its retail lending products through a dedicated website, and supports the applications with credit scoring and processing systems that enhance our responsiveness to clients.
For Corporate Lending, we offer a diverse range of lending products to corporate clients, including short term inventory and trade financing, term facilities for the financing of capital expenditures or acquisitions, project financing as well as innovative specialized lending products.
BPI also establishes strategic partnerships for customers' bancassurance needs and also offers a comprehensive array of bills and supplier payment services, both electronic and in-branch. It also continues to develop products and services in transaction banking and investment banking.
Financial Product Governance. BPI is committed to ensuring that its customers have all the information they need and the right advice to make decisions about their finances. Whenever the Bank develops a new product, it follows a stringent process to ensure it is described fully and accurately and sold responsibly. The Bank has an overarching General Product Management Policy, supported by a Product Approval Process, as well as procedures for Client Suitability Assessment. Product branding, as well as marketing communications and promotions are also conducted in accordance with set standards. Employees of business units that are involved in the development and delivery of the Bank’s products and services undergo the requisite training to acquire and enhance their skills and competencies.
Through these guidelines and activities, the Bank ensures that customer experience is consistent across all channels and the delivery of its products and services is compliant with regulations. Operating policies and procedures supporting the delivery of products and services are evaluated at least annually to identify areas for improvement and product or service gaps. Risk management, compliance, and assurance activities are also regularly conducted to monitor and ensure integrity of these policies and processes, and financial product governance.
Financial Consumer Protection Program. In 2015, the Bank, established its Customer Experience Management Office (CXMO) as part of the BPI Financial Consumer Protection Program required under BSP Circular No. 857. In compliance with the circular, BPI’s CXMO created the Customer Assistance Program (CAP) to build an enabling environment and to define safety nets for recognition and protection of consumer rights. The CAP promotes a culture of fair dealing and embeds responsible business practices in the Bank’s operations, in accordance with the BSP’s consumer protection regulations and standards of conduct. The CAP also equips Bank employees with the required education and training, and institutionalizes appropriate communication avenues as well as mechanisms for consumers to be able to provide feedback, ask questions, obtain information and clarifications, file complaints, or seek redress effectively and efficiently.
In 2021, the Client Experience Center (CXC) was formed to replace CXMO and refocus the Bank's efforts on customer experience by integrating all the units that are major customer touchpoints.
CXC is now composed of the Contact Center, Customer Care Department, and Service Quality. CX Governance, which is the lead unit on consumer protection, is also part of the group. The Head of CXC reports, functionally, to the Board through the Executive Committee and, administratively, to the Chief Operations Officer, who also heads the Bank’s Enterprise Services Group. The CXC regularly reports to the senior management and the Board.
The Bank complies with product and service information and labeling regulations and voluntary codes for consumer protection such as the Banking Code for Consumer Protection of the Bank Marketing Association of the Philippines (BMAP) and its Council of Advisors and product governance such as Markets in Financial Instruments Directive II (MiFID II). BPI continuously takes corrective and remedial action in case of any deficiencies or areas for improvement.
From 2019 to 2021, there were no confirmed incidents of non-compliance.
In terms of service architecture, the bank's active engagement with clients is done through:
Customer care department. This department is dedicated to handling customer feedback received through any of our customer feedback channels, and undertaking appropriate action on customer complaints.
Customer care events. The Bank undertakes events that promote financial wellness and dispense financial advisory to clients. Recent events include, among others, briefings and fora on the ASEAN economic integration, personal finance seminars with international and Philippine-based speakers, and regular talks on investing in the stock market.
Contact center and website. Feedback from our clients is obtained through the contact center, reachable through the BPI Online website, Contact us or the 24-Hour BPI Contact Center (632) 889-10000. Clients may make use of the e-mail feedback form available on the website.
Social media. The bank has Facebook and Twitter accounts— @TalktoBPI—through which clients may reach us for their customer service concerns. Through social media, we are also able to disseminate service advisories and other customer service information.
Mobile app. BPI dominates the digital space with its BPI Mobile app, which allows us to extend the reach of our services. The app allows clients to, among others, carry out their day-to-day transactions, view their statements of account, check forex rates, and browse promos.
Responsibilities of the board and senior management with respect to sound consumer protection
The Board and Senior Management is responsible for the development of the Bank’s consumer protection strategy and establishment of an effective oversight over the Bank’s consumer protection programs.
The Board of Directors is ultimately responsible for ensuring that consumer protection practices are embedded in the Bank’s various business Operations. This includes the approval of the Bank’s consumer protection policies as well as the establishment of mechanisms to ensure compliance with the said policies, including policies and procedures related to the consumer assistance management process.
The Board also has oversight on the implementation of and compliance with the consumer protection activities of the Bank. It also promotes a culture of ethical behavior and adherence to the highest standards of fair and responsible dealing with consumers and relationships with third parties in order to manage consumer protection risks. The Board also requires the provision of adequate information and regular reporting of actions taken for the measurement of consumer protection related risks, and monitoring of other material consumer related developments that may impact the Bank.
The Board may delegate other duties and responsibilities to a board-level Committee or to Senior Management with the exception of the function of overseeing compliance with the prescribed consumer protection framework/policies.
The Board’s Executive Committee (ExCom), as a mini-board, exercises the powers and fulfills the duties and responsibilities of the Board in the management of the Bank’s consumer protection activities, including any other duties and responsibilities that may be delegated by the Board.
The Senior Management ensures that the approved policies and procedures on consumer protection risk management and consumer assistance mechanism policies and procedures are clearly documented, properly understood, and appropriately implemented across all levels and business units. This includes the establishment of an effective monitoring and management information system to regularly measure, aggregate, and analyze consumer related issues to determine the level of consumer protection risk. Further, Senior Management also ensures that appropriate and clear reporting and escalation mechanism are integrated into the risk governance framework. Lastly, Senior Management makes certain that adequate systems and controls are in place to promptly identify issues that affect the consumer across all phases of the relationship with the consumer.
How we engage them
- Regular investor meetings and conference calls
- Annual stockholders' meetings
Their concerns
- Shareholder return
- Financial performance
- Business growth and continuity
- Responsible financing
How we respond
- Transparent and timely disclosures
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As with our stockholders, we treat our investors as strategic partners for growth, and we are accountable to them for our long-term, engaged capital. We put a premium on ensuring prompt, timely, and full disclosure to our investors, especially given the rapid evolution of the banking industry and the shifting structure of the financial markets.
We engage our investors through an investor relations program, carried out by our Investor Relations Office, whose responsibilities include:
- Reaching out to all shareholders to inform them of corporate activities;
- Communicating the banks' direction, strategies, financial condition, and operating performance to investors, shareholders, research and sales personnel of securities and investment houses;
- Timely reporting of corporate actions and financial performance in compliance with Philippine SEC and PSE rules;
- Quarterly updating of databases relative to financial performance; and
- Serving as resource for publications and other external communication initiatives of the bank's Corporate Communications office.
How we engage them
- Online portals, face-to-face meetings, and learning sessions
- Annual performance appraisals
- Periodic engagement survey
- Town halls
- Quarterly Labor Management Conferences
- HR caravans
Their concerns
- Capability building across all levels
- Opportunities for career development
- Clear understanding of the bank's strategy and direction
- Pay for performance/meritocracy
- Competitive compensation and benefits
- Work-life balance
How we respond
- Leadership development programs, Harvard management mentor (on-demand type of learning), moving towards digital learning
- Career mobility and officers' development program, shortened time in rank average
- Town hall meetings
- Promotions, performance bonuses, and salary increases are tied to performance, non-financial rewards
- Salary reviews to ensure competitiveness of compensation against market
- Semi-flexible work hours (head offices)
- Rewards and recognition programs are anchored on reinforcing the core values of the Bank
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BPI remains as the employer of choice among Philippine financial institutions. With strengths in three main employee engagement drivers of career development and opportunities, goal clarity, and leadership, we introduced more initiatives to boost competency development among our officers and staff, worked to accelerate promotions, and identified the right metrics to better align human resource measures with corporate strategy. Moreover, we strive to provide a safe, secure, and conducive working environment for our employees, to continually safeguard their rights and provide equal opportunity for everyone to realize their fullest potential and make them agents of uplifting change for their communities.
To these ends, we have instituted the following policies and activities with the corresponding data on Health, Safety, and Welfare of employees:
Employee Training and Development. Employee training and education are essential to the Bank's growth strategy. By ensuring that our staff, specialists, and officers are trained, steeped in best practices, and exposed to an environment that nurtures continuous leading, we are able to provide the highest quality service to our clients.
We have a wide array of training programs and activities designed along the Bank’s business objectives, aimed at honing the skills and capabilities of our employees in carrying out their daily duties, as well as preparing them to assume higher responsibilities as the next leaders of the organization. These programs range from the new employee orientation and values orientation workshops for new hires; officers training programs, which initiate new officers into their leadership roles; sales officers training programs; advanced leadership programs for officers; courses on financial
We use a blended learning approach that includes workshops, coaching/mentoring, instructor-led training sessions, and web-based training courses. We also design and facilitate leadership and management training programs for supervisors, functional managers, and senior managers to support our investment in leadership development. Mid-level officers take part in the BPI Leadership Excellence Acceleration Program (BPI LEAP). BPI LEAP has become a benchmark in training and development. Major focus areas include:
- Leadership and Management Development – Programs that provide opportunities for BPI Leaders to develop their ability to lead, inspire, and motivate their team members and organization. This would also cover Professional Effectiveness Programs that would develop Personal Leadership.
- Functional – Programs that develop and strengthen specific functional and technical competencies required from the individuals so they can perform their functional tasks effectively.
- Core and Team Effectiveness – Programs that would provide foundational knowledge and competencies for any member of the BPI team. This would also cover programs and interventions for teams at BPI.
The Bank requires every employee to undertake a minimum of five training days every year, ensuring not only their continuous professional improvement but also their being updated on industry developments.
For 2021, the Bank conducted, at least, 241 programs. Here are only some of the highlights of the above-mentioned recent trainings of the Bank:
Course Name | Number of Trained Employees | |
---|---|---|
2020 | 2021 | |
Code of Business Conduct | 19,501 | 18,340 |
BPI Service Plus | 566 | 227 |
Information Security Awareness Program 1 | 19,808 | 18,511 |
Information Security Awareness Program 2 | 19,795 | 18,511 |
Operational Risk Overview | 19,889 | 18,494 |
Values Orientation Workshop | 585 | 31 |
Data Privacy 1 | 19,910 | 17,797 |
Data Privacy 2 | 19,895 |
Employee Welfare. To remain the employer of choice among Philippine banks, the Bank has adopted a compensation policy that it believes is competitive with industry standards in the Philippines. Regular employees are provided with a comprehensive pay and benefits package, which is reviewed periodically and adjusted to retain current employees and attract new talent.
Tied to this is a performance management system that calls for the alignment of individual key results, competencies, and development plans with the Bank’s overall business targets and strategy. Officers and employees undergo regular performance evaluations based on their individual accomplishments vis-a-vis their responsibilities, as well as that of the business unit or the Bank. This takes into consideration our earnings performance, asset quality, business volume, customer satisfaction, corporate governance and the long-term strategy, goals and outlook of the Bank, among other things. Deserving officers are granted an annual performance bonus, which is directly related in amount to the size and quality of the Bank’s annual earnings. The performance bonuses are based not only on an employee’s individual productivity and performance relative to assigned targets, but also on a relative comparison to the performance of peers within their rank.
Another testament to BPI’s commitment of offering greater value to its employees—and aligning management’s interest with shareholders—is its equity-linked incentive plan to its all its officers, including junior officers from Assistant Manager and up (with eligibility requirements): Executive Stock Purchase Plan (ESPP). A major initiative of the Bank under its long-term incentive program, the Executive Stock Purchase Plan (ESPP) was launched in 2013. The ESPP gives the officers the opportunity to buy shares of stock in BPI, at a discounted price based on the volume weighted average of BPI’s share price for the past 30 days. Management believes that this stronger alignment between the interests of BPI officers and interests of shareholders will benefit all stakeholders, i.e., more robust earnings and a healthier balance sheet will be reflected in a stronger and higher stock valuation.
The Bank also extends the inherent benefits of being a financial institution by offering our employees and their families our products and services at affordable terms. These include low-interest rates for auto and housing loans, medical and group term insurance, salary and emergency loans. In addition, we provide financial security to employees even after their retirement from the Bank through a retirement benefit plan. The Bank has a defined benefit retirement plan which defines an amount that employees will receive dependent on the employee’s age, years of service and compensation. The Bank also has a defined contribution retirement plan, where the defined benefit minimum guarantee is equivalent to a certain percentage of the monthly salary payable to an employee at normal retirement age with the required credited years of service based on the provisions of Republic Act (“RA”) No. 7641. All non-unionized employees hired on or after the effective date are automatically enrolled under the new defined contribution plan. Employees hired prior to the effective date shall have the option to elect to become members of the new defined contribution plan. Plan assets for both the defined benefit and defined contribution plans are held in trusts, governed by local regulations and practice in the Philippines.
BPI strictly complies with labor laws and regulations and implement best practices in our workplace. The Bank recognizes the existence of company union(s) and the rights to freedom of association and collective bargaining. The Bank does not discriminate on gender, religion, age, race, color, political stand or social background. It strictly enforces non-employment of minors and is against forced compulsory labor. We maintain harmonious relations with our labor unions. The Bank also has an open-door communications policy to address concerns among employees immediately before they escalate.
As a requirement in their certification process, the Bank also trains and retrains security personnel, who are not formally part of our workforce and belong to third-party agencies, every two years on human rights-related topics. This is to ensure that they uphold the rights not only of our employees but also of our clients, suppliers and other stakeholders that do business with the Bank.
The Bank also has various interest clubs to allow employees to pursue their passions and explore talents outside of work while building camaraderie and esprit de corp.
The Bank also looks after its retiring employees through the conduct of annual seminars on estate planning, investment opportunities in the Bank and outside, and transition from being an employee to an entrepreneur. There are also counseling programs that help employees face life during retirement. The Bank’s off-boarding program has also been strengthened to further equip BPI retirees as they transition to the next chapter of their lives – among other improvements, processing of documents has been made more convenient.
Employee Health, Safety, and Well-Being. BPI continued the implementation of its Safer and Stronger program for keeping employees safe, informed, and connected especially during the pandemic.
BPI assigned a dedicated COVID Care Team, a 24/7 team that will support COVID-positive and COVID-exposed employees. COVID Buddies were also identified, who were HR personnel assigned to each individual COVID patient to provide guidance on employee health benefits and work arrangements; liase with local government units or health facilities, if needed; and provide emotional support during the isolation or confinement period.
Mobile, non-mobile, and hybrid work arrangements were made available to employees depending on job functions. Significant enhancements in work tools allowed sustained productivity while minimizing contact rates and COVID-19 transmission.
Employees who had to report on-site were provided with special meal and transportation allowances to help cover food and commuting expenses. Shuttle services were provided to over 3,500 employees in 36 routes nationwide since its inception in 2020.
Health protocols continued to be implemented for clearance before entering the workplace and for ensuring safety during the work day. Despite requiring vaccination, social distancing is still observed and all premises are regularly sanitized throughout the day.
The umbrella wellness program, Be Well, was carried out in full force this year with the introduction of various programs targetting the holistic well-being of employees. Bi-monthly relevant webinars on physical, emotional, and mental health topics were conducted. A magazine show called “Be Well On Air” was developed with each business unit co-producing an episode every other month, covering various wellness topics. This activity fostered camaraderie and allowed employees to showcase their various talents.
In May 2021, BPI launched its VacctoNormal campaign to encourage employees to get vaccinated as a way to return to the “normal” way of living. This was launched with the Ayala Vaccine and Immunization Program (AVIP), which offered COVID vaccines (both the primary series and boosters) for free to our employees, and at cost to their dependents, through 31 vaccination sites nationwide.
The VacctoNormal campaign effectively cascaded information to employees through webinars with highly-regarded infectious disease specialists; infographic posters with facts about COVID and the vaccine; testimonials from “vaccine influencers;” a Facebook frame promoting the Bank’s VacctoNormal campaign; and live assistance and photo/video coverage at all AVIP sites.
Vaccinated employees received special metal VacctoNormal pins which, when worn with the BPI ID lanyard, provided a sense of security to co-workers and clients alike. WinVacc raffles were also drawn for employees who have signed their dependents up for the vaccination through the AVIP, with cash prize equivalent to one vaccine order.
Employee volunteerism. The bank has a built-in volunteerism program called BPI Bayan, which encourages and organizes employees to devote some of their personal time to help communities relevant to BPI and its clients. BPI Bayan is self-sustaining—using a seed fund granted by the bank in 2009, when the program started, the employee volunteers have since grown the fund to finance the community development projects they organize.
In 2021, there were a total of 68 BPI BAYAN groups comprised of 4,876 members who implemented their projects addressing the needs of their local communities. Their outstanding volunteer projects implemented within the year were recognized during the annual BPI BAYAN Awards.
Employee Awareness and Compliance with Policies. Policies and guidelines on employee welfare, health and safety, conflict of interest standards, anti-bribery, and anticorruption, insider trading, related-party transactions, whistleblowing, data privacy, consumer protection, and others are included in the Bank’s employee manuals available in the internal electronic database. In addition, these policies are regularly communicated to ensure awareness of the need to comply with said policies.
How we engage them
- Accreditation
- Emails, letters, and memos
- Weekly meeting with facility maintenance agencies
- Monthly meeting with security agencies
Their concerns
- Procurement policies (requirements, criteria for evaluation)
- Other procurement-related concerns (cost, terms of payment, mode of shipment, warranties)
How we respond
- Cascade of policies
- Real-time updates
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BPI is one of the largest banking and financial services organizations in the Philippines with over 1,000 branches, offices or centers and domestic as well as international presence in territories in Europe and Asia.
- As of end-2021, we have a total of 1,176 BPI, BPI Family Savings Bank (BFSB), and BPI Direct BanKo (BanKo) branches and branch-lite units across the country. Along with this expansion, we have enhanced client experience and refurbished the look of our branches.
- Overseas, BPI has one (1) Hong Kong office (BPI IFL) and two (2) BPI Europe branches in London.
- BPI also maintains a specialized network of remittance centers for servicing overseas remittances from Filipinos working abroad. To date, BPI has three Remittance Centers located in Hong Kong and representative offices located in UAE and Japan. BPI also maintains tie-ups with various foreign entities in locations where this mode of operation is more effective and cost-efficient.
- On the lending side, there are 25 Business Centers and desk, servicing both corporate and retail clients across the country to process loan applications, loan releases, and international trade transactions. These centers also provide after-sales servicing of loan accounts.
In ensuring a global supply chain for its business of banking, the Bank operates with a focus on two areas:
Sustainability. At all times, our goal is to work collaboratively with our supply chain partners on sustainability. Our supply chain must not only be sustainable; it must also work towards improving the lives of workers, their communities and the environment. It is essential that our suppliers promote fair and sustainable development and comply with national laws and internationally recognized standards and conventions for ethical, environmental and social conditions.
Governance. From a governance standpoint, the commercial transactions with our suppliers should be economically beneficial to all parties involved and relationships should be based on the principle of fair and honest dealings, and be in compliance with internal policies that are in place to stop fraud, money laundering, bribery and corruption as well as be in adherence with local or international laws and regulations.
Supplier Accreditation and Dis-accreditation Policy. BPI has an established Supplier Accreditation and Dis-accreditation Policy that covers all processes involved in the contracting of suppliers, service providers, and business partners, and all personnel involved in the administration and execution of these processes. The policy focuses on giving equal opportunities for qualified suppliers and contractors. BPI operates on the principle of transparency with suppliers and works collectively with suppliers to ensure their adherence to the policy.
The policy involves the formation of centralized accreditation committees for all services that are common across units, i.e., professional, legal counsel, IT project management, janitorial, messengerial, security, etc. The policy on the procurement process also involves standards covering accreditation criteria, improved information on requirements and documentation, various modes of procurement, and service performance monitoring. Accreditation of parties is based on:
- Legitimacy of the party being accredited; suppliers with whom BPI has regular and recurring dealings should have good management and governance processes in place to ensure compliance with the policy.
- Capacity for continuous business operations to sustain delivery of the required goods/services or the performance of business arrangements; suppliers must ensure that their systems and procedures are sufficient to mitigate any potential negative impact on BPI’s brand and reputation.
- Quality of and reasonableness of the prices for the goods / services / business arrangements being offered, and; suppliers must make reasonable efforts to monitor their supply chain as well, ensuring their sub-contractors are also aware of, and compliant with, the aims of the policy.
- Track record on reliability, qualifications, professional activities and credit worthiness.
The policy also states the grounds for dis-accreditation as well as the processes for pre-termination, removal, inclusion in the bank's official Negative Data system and, if needed, activation of a Business Continuity Plan.
The bank actively engages suppliers.
- It has established processes for accreditation, vendor selection and suppliers audit to assure qualified suppliers of equal opportunity when bidding for projects with the Bank.
- All accreditation of suppliers, contractors, and service providers are subject to regular renewal to maintain their active status with BPI and must meet Unibank Accreditation Standards.
- All employees, departments and divisions are regularly advised to update and review their respective list of suppliers to meet accreditation requirements.
- Employees must also review the Bank's detailed policies on outsourcing services where applicable.
BPI complies with outsourcing regulations mandated by the BSP which requires banks to put in place appropriate processes, procedures, and information systems that can adequately identify, monitor, and mitigate operational risks arising from the outsourced activities.
During the annual review as well as in any application for accreditation, all related policies, such conflict of interest, related party transactions, among others, are applied and enforced to ensure that the bank and the counterparties are protected by fairness, accountability and transparency. BPI reserves the right to randomly review the supplier’s policies, procedures or any other document related to adherence to BPI’s Supplier Policy.
How we engage them
- Annual bank examination
- Regular audits and follow-up (e.g. BIR, DOLE)
- Regular correspondence through letters and e-mail (Interaction with regulators must only be made by authorized and appropriately trained individuals. This covers all forms of communications, whether formal, informal or social interaction in relation to the Bank's business including any kind of correspondence such as in-person, electronic media and/or written correspondence.)
Their concerns
- Compliance with relevant national laws and regulations, including BSP regulations and guidelines
- Transparency and accountability
- Feedback on the Bank's operations
How we respond
- Transparent and timely disclosures/reports
- Report on compliance to regulations
- Conduct of external and internal audits
- Formal explanations and responses to queries (The bank has established policies to protect interests of regulators: Related party transactions policy, Conflict of Interest policy, Whistleblower policy, Insider Trading policy. It also has a policy for dealings with regulators: Anti-bribery and Anti-corruption policy.)
How we engage them
- Partnerships and agreements
- Regular correspondence through e-mails, letters, memos, meetings, text message, phone calls
- Updates through the website, social media pages, print/online platforms
- Assessment and feedback on partnership and engagement
- Partners' Night
Their concerns
- New projects and initiatives
- Update and expansion of existing projects
- Takeaways from activities conducted
- Opportunities for capacity building and access to financial and non-financial resources
- Responsible financing
How we respond
- Organize events for beneficiaries and external partners, such as workshops, summits, symposiums, etc.
- Accomplishment reports
- Attendance in meetings and real-time updates
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We undertake initiatives that help improve the lives of people in the communities where we are, by embedding corporate social responsibility in our business and encouraging employee volunteerism. We also carry out CSR initiatives through the BPI Foundation, the Bank's social development arm, promoting not only financial empowerment, but also education, entrepreneurship, and care for the environment.
Education. The Foundation collaborates with both public and private educational institutions in various activities that promote educational excellence, and in initiatives that improve the quality of teaching and the lives of teachers in the country.
Entrepreneurship. Its entrepreneurship focus promotes the development of business startups and social enterprises through programs that aim to provide capacity-building, financial management coaching, and access to financial products and services.
Environment. Lastly, the Foundation undertakes activities and initiatives that aim to reduce the environmental impact of the Bank's operations and creates programs that help communities take better care of their environment and adapt to a climate-defined future.
As a responsible corporate citizen, the Bank also contributes to building a sustainable society in partnership with non-government organizations, government institutions, and other civic organizations on projects that promote entrepreneurship, education, and the environment.
The Bank's active engagement in support of the communities it serves is done through:
- Memberships
- Volunteerism Activities
- Dialogues and Fora
- Community Events
- CSR Activities
In 2021, community investments were at Php 330 million comprised donations and contributions to charities, including direct costs of BPI Foundation programs. Community development programs were also implemented through the support from other areas within the Bank.
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We treat capital as a most valuable asset, and seek to generate superior returns for our stockholders, while being prudent in risk-taking, spending and investment. The bank treats all its stockholders equally, whether they have majority or minority interest.
The bank is committed to respect the following rights of stockholders:
Voting rights. Shareholders have the right to elect, remove, and replace directors and vote on certain corporate acts in accordance with the Corporation Code.
- Electronic Voting in Absentia. In its meeting held on February 24, 2021, the Board approved Management’s recommendations for BPI to provide the Bank’s shareholders with the option to vote in absentia in the 2021 ASM. Hence, at the April 22, 2021 ASM, BPI shareholders were able to effectively participate and had the option to cast votes in absentia through an online electronic system, as also provided for in the Revised Corporation Code
- Cumulative voting is used in the election of directors. Directors may be removed with or without cause; however, directors shall not be removed without cause if it would deny minority shareholders representation in the Board. Removal of directors requires an affirmative vote of two-thirds of the outstanding capital of the BPI.
- No stockholders' meeting may conduct business unless a majority of the outstanding and subscribed capital stock entitled to vote is represented, except to adjourn from day to day until such time may be deemed proper.
- The bank strictly complies with the provisions of the Corporation Code, the SEC, and the Bangko Sentral in relation to receiving notice of meetings at least two weeks prior to the meeting, right to vote, and right to appoint a proxy.
- BPI adheres to the “One Share, One Vote” rule. Its Amended By-Laws state that shareholders are entitled to voting rights equivalent to the number of shares they hold, i.e., voting is by shares of stock and not “per capita”.
Pre-emptive rights. All stockholders have pre-emptive rights, unless there is a specific denial of this right in the articles of incorporation or an amendment thereto. They have the right to subscribe to the capital stock of the BPI. The articles of incorporation lays down the specific rights and powers of shareholders with respect to the particular shares they hold, all of which are protected by law so long as they are not in conflict with the Corporation Code.
Right of inspection. Shareholders shall be allowed certain reasonable limits to inspect corporate books and records including minutes of Board meetings and stock registries in accordance with the Corporation Code. They shall be provided with an annual report, including financial statements.
Right to information. Upon request and for a legitimate purpose a shareholder shall be provided with periodic reports which disclose personal and professional information about the directors and officers and certain other matters such as their holdings of the BPI's shares, dealings with the BPI, relationships among directors and key officers, and the aggregate compensation of directors and officers. The Information Statement/Proxy Forms where these are stated must be distributed to the shareholders before annual general meetings and in the Registration Statement and Prospectus in case of registrations of share for public offering with the SEC.
Right to dividends. Stockholders have the right to receive dividends subject to the discretion of the Board. However, the Commission may direct BPI to declare dividends when its retained earnings is in excess of 100% of its paid-in capital stock, except:
- When justified by definite corporate expansion projects or programs approved by the Board;
- When the BPI is prohibited under any loan agreement with any financial institution or creditor, whether local or foreign, from declaring dividends without its consent, and such consent has not been secured; or
- When it can be clearly shown that such retention is necessary under special circumstances obtaining in the BPI, such as when there is a need for a special reserve for probable contingencies.
Appraisal right. In accordance with the Corporation Code, stockholders may exercise appraisal rights under the following circumstances:
- In case any amendment to the articles of incorporation has the effect of changing or restricting the rights of any stockholders or class of shares, or of authorizing preferences in any respect superior to those of outstanding shares of any class, or of extending or shortening the term of corporate existence;
- In case of sale, lease, exchange, transfer, mortgage, pledge or other disposition of all or substantially all of the corporate property and assets as provided in the Corporation Code; and
- In case of merger or consolidation.
Minority Stockholders
All stockholders are treated equally and are equally protected to the extent of their stockholdings.
The minority shareholders shall be granted the right to propose the holding of a meeting, and the right to propose items in the agenda of the meeting, provided the items are for legitimate business purposes.
In accordance with existing law and jurisprudence, minority shareholders shall have access to any and all information relating to matters for which the management is accountable, and to those relating to matters for which the management should include in the agenda of the meeting, provided always that this right of access is conditioned upon the requesting shareholder's having a legitimate purpose for such access.
Creditors
BPI treat our investors as strategic partners for growth, and we are accountable to them for our long-term, engaged capital. We put a premium on ensuring prompt, timely, and full disclosure to our investors, especially given the rapid evolution of the banking industry and the shifting structure of the financial markets.
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As a financial institution and an active participant in the capital markets, BPI respects the rights of its creditors. It also is an industry leader, facilitating capital market access to other companies. As of end 2021, the Bank is the #2 local investment bank in the Philippine Corporate Bonds League Table for Bond Issuances (ex-bank issuances), reinforcing our strength in raising debt for top companies in the domestic and offshore capital markets. The Bank remains the only onshore investment house to take a leading role in arranging offshore capital market transactions for Philippine companies. With our broad experience, wide investor network, and commendable execution, BPI Capital Corporation has actively arranged, underwritten, and participated in one corporate notes issuance, 11 Peso-denominated bond issuances, and four Dollar-denominated issuances from October 2020 to October 2021. Total issuances were at Php 323.85 billion (~USD 6.48 billion) and USD 2.1 billion, respectively. As of December 2021, we are the #1 overall investment bank in the Bloomberg League Table for Equity Issuances, reinforcing our strength in raising equity for top companies in the domestic capital markets.
The Bank complies with all covenants of its debt and equity issuances and respects the rights of its bondholders and stockholders. BPI also complies with statutory requirements with respect to post-issuance continuing disclosure, tax compliance, and other duties, responsibilities, or actions it is obligated to perform or is prohibited from performing, for the respective capital market issuance. The Bank also has an Investor Relations Program to respond to investors’ need for information. It keeps rating agencies informed of material events and responds to other requests for information.
Environmet-Friendly Value Chain
The Bank’s policy on environmental responsibility starts from within, by adopting policies, standards, and practices to make the workplace not just a conducive environment for work, but also a place that works better for the environment. We have put in place a system of tracking the environmental impact of our places of business. We also encourage our clients, suppliers, and partners to reduce their environmental footprint.
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The concept of sustainable value underpins all of our sustainability activities. By taking action to address our impacts today, we help our business thrive in the future. The Bank innovates for operational efficiency, to empower our people and society, to use resources efficiently, and to continue to build stakeholder trust focused on three main areas:
• Financial wellness – We help individuals, communities, and businesses grow their funds and build their wealth by facilitating financial wellness opportunities, a range of innovative programs, and more accessible investment options.
• Financial inclusion – We continually strive to widen our reach by developing products and services that address the needs and preferences of clients coming from low-income and underserved segments. We adhere to the ideals that true prosperity can only be achieved when everyone is involved.
• Sustainable development investments – We promote investments in industries that strengthen urban and countryside development. Advocating and advancing shared value financing, we also stimulate business innovation through cleaner, low carbon, and resource efficient technologies.
BPI also recognizes its role as a responsible financial institution, both as a resource user and generator of waste. In our business operations, we reduce our negative impact to the environment through responsible environmental leadership across the organization, making us more cost-effective and helping improve our margins.
The Bank’s policy on environmental responsibility starts from within, by adopting policies, standards, and practices to make the workplace not just a conducive environment for work, but also a place that works better for the environment. We have put in place a system of tracking the environmental impact of our places of business. We also encourage our clients, suppliers, and partners to reduce their environmental footprint.
Energy Consumption
BPI’s energy consumption comes mainly from electricity requirements of our daily branch and office operations. Our monitoring is based on electricity billings received. Given increased economic activity in 2021 compared to 2020, primarily due to the lightened restrictions for economic activity and community movement, electricity consumption increased as expected.
For 2021, total electricity consumption added up to 128,815 gigajoules, an 8% increase versus the previous year. Energy intensity for the current year is at 1,323 gigajoules per Php 1 billion revenue.
The Facilities Services Group (FSG) handles all physical maintenance and construction-related works that support the Bank’s business activities. In line with the bank-wide strategy to shift from physical to digital, FSG’s initiatives focused less on building branches and more on reducing operating costs while maintaining the quality and integrity of our physical premises.
FSG supported preparations for the BPI and BPI Family Bank merger by ensuring the timely completion of retrofitting works for co-locating branches. By mid-year 2021, the conversion to LED lights was completed for 100% of branches nationwide. By year end, 51% of branch airconditioning units have been switched with invertertypes.
BPI also consumes fuel for generator sets during power interruptions and for armored vehicles for servicing our branches. In 2017, fuel consumed for generator sets was determined to be insignificant in the scale of our operations and so was deemed immaterial for reporting. In 2018, the Bank began outsourcing armored vehicle requirements from its previous leasing arrangement. This meant that fuel consumption was managed by the armored vehicle agency, which also served other clients, taking it out of BPI’s reporting scope.
Water Consumption
The Bank’s water consumption comes from pantry sinks, washrooms, and maintenance faucets in branches and offices. As with our electricity, our water is sourced from water distribution companies and is monitored through utility billings.
Total water consumption in 2021 amounted to 326,035 cubic meters, a 29% increase from our 2020 consumption. This is primarily due to regularized operations and utility billings in 2021 compared to 2020.
Greenhouse Gas Emissions
BPI’s greenhouse gas (GHG) emissions are computed based on the Bank’s electricity consumption and the Department of Energy’s (DOE) National Grid Emission Factors. This falls under Scope 2 of the GHG Protocol Corporate Accounting and Reporting Standard, which refers to indirect emissions from the generation of purchased energy. Scope 2 GHG emissions increased by 8% in 2021 to 25,652 tonnes CO2e, following the increase of total electricity consumption. GHG for the current year is at 263 tonnes CO2e for every Php 1 billion earned.
In May 2021, BPI signed up as an official supporter of the Task Force for Climate-Related Financial Disclosures (TCFD), showing our commitment to responsible business practices, particularly those climate-related.
Moving forward on our plans to reduce our carbon footprint, we have begun exploring new efficient branch designs, green-building certification, and the use of renewable energy for our facilities.
Other Efforts
The Centralized Operations Group (COG) continued its Electronic Statement of Account (eSOA) project in contribution to the Bank’s digitalization strategy. The initiative has helped improve customer experience with faster delivery of SOAs via email compared to physical delivery, and at the same time reducing costs for the Bank. In 2021, around 9 million BPI and BFB credit card accounts were enrolled to the eSOA program, saving 35.8 million pages of paper equivalent to 4,293 trees saved from being cut for paper.
All employees are also encouraged to use resources, including office supplies, responsibly. Despite the hybrid work arrangement which significantly reduced the number of employees reporting to the offices, the Bank was still able to collect 860 kilograms of recyclables in 2021.
Other sustainability initiatives of the Bank may be read here.
We pride ourselves as a catalyst for social and environmental change.
View BPI Foundation website here
Sustainability reporting is a means to present the Bank’s environmental, social, and governance performance, along with its corresponding economic benefits. BPI’s sustainability reports are intended to highlight transparency and accountability to various stakeholders, including employees, clients, investors, and the general public.
The Bank published its first Sustainability Report aligned with GRI standards in the year 2008, 11 years ahead of the release of SEC Memo. No. 4 (2019) formally mandating Sustainability reporting among publicly-listed companies in the Philippines.
View Sustainability Report here