Bank of the Philippine Islands (BPI) has reported that it has reduced 1.8 million tons of carbon dioxide emissions per year through green financing, making it the country’s first financial firm to win the World Bank-International Finance Corporation or IFC’s “Highest Estimated Greenhouse Gas Emissions Mitigated” in East Asia and Pacific award.
The award came after BPI secured a $250-million green bond investment from the IFC in 2023 under the latter’s 30 by 30 Zero Program, BPI told the media in an email on Monday.
The program encourages financial firms to increase green financing to 30 percent of their total loan portfolio and achieve zero to nearly zero funding for coal projects by the year 2030.
Critical role
“We are proud to continue to fund projects that deliver measurable environmental benefits for the communities we serve. This recognition highlights BPI’s critical role in financing projects that contribute to a more sustainable and low-carbon future for the Philippines,” BPI president and chief executive officer TG Limcaoco said.
BPI said the bond proceeds were used to expand renewable energy and other climate change mitigation projects in communities.
In 2021, BPI committed to stop funding new coal projects under its Energy Transition Financing Facility which requires companies to retire their coal plants 15 years ahead of their technical lives and shift to renewable power plants.
BPI chief of sustainability Eric Luchangco said the bank’s loans for green projects have exceeded 50 percent of its energy loan portfolio.
Sustainable development finance program
The bank has already financed over 390 projects amounting to over P250 billion under its Sustainable Development Finance Program which helps build energy-efficient buildings and jumpstart sustainable agricultural projects.
Data from the Securities and Exchange Commission reveal corporations have issued 28 sustainability bond issuances amounting to over $10 billion since 2016.
As of September 2024, the Asian Development Bank said 66 percent were foreign-currency denominated.
