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.
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.
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.
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.
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.
BPI has reaped multiple achievements in the field of sustainability over the years, as further augmented by the implementation of the Bank’s Sustainability Agenda.
Comprising of industry-first products and services, as well as innovations on operational resource efficiency, we list below BPI’s key sustainability achievements: