BPI Sustainability Agenda

BPI has embraced sustainability in the conduct of its business – a commitment that started in the 1980s and continues to the present. This sustainability orientation emanates from top management and has been part of the Bank’s business strategy and operations. As a result of his contributions in pioneering sustainability initiatives, BPI Chairman Jaime Augusto Zobel de Ayala was named as one of the 10 Corporate Champions of the UN Sustainable Development Goals (SDGs) in the world, in 2017. BPI’s unique sustainability formula– ESG+E₂–emphasizes the need for ESG initiatives to result in Economic (E₂) gains to stakeholders in order to be truly sustainable.

 

BPI has a Board-approved Sustainability Agenda which guides the Bank in the integration of sustainability principles into its strategic objectives as well as corporate governance and risk management frameworks. Our Sustainability Agenda also allows the Bank to position its compliance with local Sustainability regulations, as follows.

Regulation

Subject
SEC Memorandum Circular No. 4 Series of 2019Sustainability Reporting Guidelines for Publicly-Listed Companies
BSP Circular No. 1085Sustainable Finance Framework
BSP Circular No. 1128Environmental and Social Risk Management Framework
BSP Circular No. 1149Guidelines on the Integration of Sustainability Principles in Investment Activities of Banks

ESG Policy Statement

We are committed to Responsible Banking. This means incorporating Environmental, Social, and Governance (ESG) principles into how we conduct our business – how we resource, how we craft the products and services we offer, how we serve our customers, and how we add value to our various stakeholders.

 

As a bank responsible for a meaningful share of the country’s loans and deposits, how we allocate resources will have a significant impact on how we grow as a nation. Our governance is focused on the allocation of resources in a manner that promotes financial inclusion, preservation of the environment, sustainability, and social good.

 

Sustainability strategy

Our sustainability objectives are embodied in our Sustainability Strategy Framework with the pillars of Responsible Banking and Responsible Operations. BPI’s Sustainability Strategy supports our vision of building a better Philippines, one family, one community at a time, and focuses on key ESG areas where the Bank can have the most impact.

 

As part of Responsible Banking, we aim to consistently offer financial products and services that integrate ESG criteria in business decisions while supporting economic growth, thereby providing lasting benefits for both clients and society while reducing negative impacts on the environment and addressing social needs.

 

As part of Responsible Operations, we aim to responsibly manage environmental and social capital resources we use in the performance of day-to-day operations.

 

Supporting these two Sustainability pillars are our Corporate Governance and Risk Management structures, which serve as checks and balances on the implementation of BPI’s Sustainability Strategy, as well as compliance tools with local, national, and global standards and regulations.

 

Sustainability Governance

BPI’s Sustainability Agenda and Strategy is ultimately governed by the Board through the Executive Committee (ExCom) and the Risk Management Committee (RMC). The ExCom oversees the overall integration of sustainability principles in the strategic direction of the Bank while the RMC is responsible for ensuring that Environmental and Social (E&S) risk management is incorporated in the Bank’s risk management systems. Reporting under the ExCom, the senior management level Sustainability Council oversees the implementation of the Bank’s Sustainability Agenda.

 

The following dedicated teams have also been established as part of the Bank’s Sustainability governance and management structures.

 

1. Sustainability Office

  • Manages the over-all implementation, coordination, and monitoring of the Board-approved BPI Sustainability Agenda across all segments and groups of the Bank
  • Serves as the Secretariat of the Sustainability Council and the Sustainable Funding Committee

 

2. Environmental and Social Risk Management unit, under the Risk Management Office

  • In charge of the implementation and coordination of all Bank ESRM activities on an enterprise level

 

Environmental and Social Risk Management System (ESRMS)

BPI has a sound Enterprise Risk Management (ERM) framework that governs how we manage risks as we create and maximize value for our stakeholders. As guided by BSP Circulars 1085 and 1128, BPI has established under the ERM framework a general policy on ESRMS, approved by the Risk Management and Executive Committees in December 2021 and January 2022, respectively.


The general policy on ESRMS serves the ff. purposes for the Bank:

  • Integration of E&S risk management in our risk governance structure
  • Boost for the establishment and/or updating of policies, processes, methods, and tools that embed E&S risk management in our main business activities and decision-making processes
  • Support for the two sustainability pillars of Responsible Banking and Responsible Operations

 

Engaging the Organization on ESG

The BPI Sustainability Agenda has been cascaded bank-wide to all business segments and groups, with each business unit guided in the identification of their respective short, medium, and long-term Goals, Action Plans, and Metrics for Sustainability (GAMS). All employees, including all executives, officers, and staff, are mandated to have a 10% minimum allocation to sustainability in their respective annual performance targets, thereby impacting each employee’s remuneration.

 

In 2023, the BPI segment and group heads reaffirmed their commitment in integrating ESG to their respective businesses through the following updated sustainability commitments.

Group / SegmentSustainability Commitment
Institutional Banking

We bank the most influential local and foreign institutions in the country. Embedded in our mission to assist our clients achieve their business goals is our commitment to partner with them to do so in sound ESG-fashion that over time will come naturally across our client universe. 

 

To achieve this, we promise to continue with and improve our programs that promote the UN Sustainable Development Goals.

Business BankingWe recognize the valuable role of small and medium enterprises (SMEs) in driving local employment and nation-building. We are committed to deepen our reach and enable more Filipino SMEs by providing sustainable, innovative, and responsible solutions for their progressive needs as they manage challenges and risks, and strive to grow their businesses.
Consumer Banking 

Sustainability is a key priority.

 

Through Phygital innovations, we continue to minimize our carbon footprint and enhance the quality of sustainability-oriented products and services to deliver seamless, delightful experiences that make every day and every tomorrow better for the families and communities we serve.

Mass RetailWe help ensure the unbanked and underbanked are included in the country’s economic recovery and growth by providing sustainable financial solutions tailor-fit for microbusinesses, farmers, and fishermen. Through digital innovations, we also make financing for solar panels, schools, and hospitals more accessible and affordable for retail clients.
Agency Banking

As a complement to traditional branches and digital infrastructures, Agency Banking allows clients to access banking products and services through trusted and vetted third-party partners.

 

This is BPI’s way of expanding our reach to the underbanked and underserved in areas far from city centers, a clear support for the bank’s ESG commitments.

Global MarketsWe integrate sustainability in our business offerings. We have a fast-growing sustainability portfolio of bonds and cross-border loans, fund-raising initiatives for deployment to green and social assets, and a dedicated sales team providing Treasury services to SMEs, schools, and hospitals.
Wealth ManagementAt BPI Wealth, we continue to be your trusted partner in navigating volatile financial markets, in making investment decisions, and in creating a legacy for future generations. We offer a suite of sustainable investment funds that help finance high-impact green and social projects that deliver attractive returns and support the UN Sustainable Development Goals.
Centralized Operations Group

At the Centralized Operations Group, we spearhead the over-all improvement in the accuracy, efficiency, and timeliness of transaction processing, settlements, accounting, reconciliation, and reporting to minimize resource consumption.

 

Via our Facilities Services Group, we also ensure the physical safety and resource efficiency of BPI Offices while working to shift to renewable energy and help reduce the Bank’s carbon emissions.

Human Resources GroupWe at Human Resources are always working to ensure that we have a workforce physically and mentally fit, risk-resilient, and always ready to serve. Through well-designed and relevant capacity building initiatives, we also ensure a conducive environment for employees to enhance their skills and knowledge and improve their day-to-day work.
Information Systems GroupAt the Information Systems Group, we ensure that the Bank's systems are robust and secure, in support of digitalization initiatives across the whole bank. We also enable a remote working set-up among employees promoting resource efficiency, via well-crafted work mobility tools.
Digital Channels GroupWe at the Digital Channels Group spearhead BPI's digital transformation through highly automated digital products and services, reducing the carbon footprint of banking while also expanding the Bank's reach to the underbanked and underserved.
Customer and Marketing GroupOn top of spreading awareness on sustainability principles and best practices, we help communicate the Bank’s sustainability offerings and initiatives which make banking easier, more efficient, more affordable, and feasible. A number of our fellow Filipinos are not even aware of what sustainability means nor its benefits. We commit to incorporate sustainability in our communications to help the Filipino people understand, appreciate, and contribute to achieving a more sustainable tomorrow.
Chief CreditWe have incorporated sustainability standards in the Bank’s credit evaluation processes. Our credit review checks for alignment to the UN SDGs, project technical and financial viability as well as resilience to environmental and social risks.
Risk Management OfficeBPI has integrated ESG into the Bank’s risk management, compliance, and internal audit systems and processes. We are integrating ESG risks into the Bank’s enterprise risk management framework while evaluating the robustness of internal policies in the process. We likewise ensure compliance with ESG regulations and internal policies. Remember, sustainability is no longer about doing less harm. It’s now all about doing more good.

The effectiveness of these GAMS are measured using BPI’s unique sustainability formula – ESG+E₂ – where the economic benefits (E₂) of our ESG initiatives are also considered.


Each business unit has Sustainability Champions who spearhead the integration of ESG principles into their respective business models and operations.


To ensure that business units are able to deliver on their GAMS, all employees are required to take a sustainability training course conducted by the Sustainability Office. The following topics are covered in the mandatory sustainability training course:

 

1. Fundamental Sustainability Concepts

  • Definition of Sustainability
  • Environmental, Social, and Governance (ESG)
  • People, Planet, Profit (PPP)
  • Creating Shared Value (CSV) and Corporate Social Responsibility (CSR)

 

2. ESG Risks and Challenges, including Climate Risks

  • Environmental and Climate Risks (eg. earthquakes, floodings/typhoons, volcanic eruptions)
  • Social Risks (eg. poverty incidence)
  • Governance (eg. risk and compliance, transparency)

 

3. Global and Local Standards, including Regulatory Developments

  • UN Sustainable Development Goals
  • Paris Climate Agreement
  • Local Regulatory Developments

 

4. BPI’s Sustainability Journey, including the BPI Sustainability Agenda and the Ayala Sustainability Blueprint

 

5. BPI’s Sustainability Programs, Products, and Services


BPI continues to feature sustainability in the Officership Training Program (OTP) as well as in conversations with the Bank’s frontliners, clients, and partners. Our key officers continue to participate in public and private sustainability events to share insights and experiences on managing E&S risks, integrating sustainability and ESG into business strategy, and sustainable banking.

 

 

Public Commitments on Sustainability

Coal Phase-Out Policy
  • BPI Group shall have no additional commitments to finance greenfield coal power generation projects.
  • Outstanding loans of BPI Group to coal power generation shall be reduced to 50% of the Bank’s year-end 2020 exposure by 2026, and zero by 2032, ahead of the Paris Climate Agreement target for non-OECD countries.
Ayala Sustainability BlueprintTo expand access to banking and financial services to 25 percent of the underbanked population of the Philippines (addressable C and D markets)
Council for Inclusive Capitalism (CIC)The Bank of the Philippine Islands (BPI) will promote greater financial inclusion by expanding financial services to five million:
  • Micro, Small, and Medium Enterprises (MSMEs)
  • Unbanked and underbanked Filipinos such as but not limited to Self-Employed Micro-Entrepreneurs (SEMEs), informal workers, and low-salaried individuals, by 2030.