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.
Regulation | Subject |
|---|---|
| SEC Memorandum Circular No. 4 Series of 2019 | Sustainability Reporting Guidelines for Publicly-Listed Companies |
| BSP Circular No. 1085 | Sustainable Finance Framework |
| BSP Circular No. 1128 | Environmental and Social Risk Management Framework |
| BSP Circular No. 1149 | Guidelines on the Integration of Sustainability Principles in Investment Activities of Banks |
| BSP Circular No. 1185 | Grant of Additional Single Borrower's Limit for Financing Eligible Projects and Zero Percent Reserve Requirement Rate Against Sustainable Bonds |
| BSP Circular No. 1187 | Philippine Sustainable Finance Taxonomy Guidelines |
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 2024, the BPI segment and group heads reaffirmed their commitment in integrating ESG to their respective businesses through the following updated sustainability commitments.
| Responsible Banking | |
|---|---|
| Group / Segment | Sustainability Commitment |
| Consumer Banking | We continue our journey towards greater sustainability by going beyond green. As we began the transformation of our branches into IFC Edge-certified phygital stores in 2023 and pursued digitalization, we are today introducing innovative products and services to address financial inclusion, security, and enhanced health. We commit to Do More for sustainability, for a better Philippines. |
Institutional Banking | We bank the most influential local and foreign institutions in the Philippines. Likas-kayang pagunlad and pananatili is core to our business practices. We commit to continue to (1) actively promote, facilitate, and support sustainable practices of our clients; (2) integrate ESG criteria into our business decisions across all relevant product, and (3) provide and develop technical assistance programs that support the UN SDGs. |
| Mass Retail | We 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, fishermen, class C2D fixed income earners and now, public school teaching and non-teaching personnel. We also make financing for solar panels, schools, and hospitals more accessible and affordable for retail clients. Through digital innovations, we will continue to make our processes more efficient and paperless. |
| Agency Banking | In 2023 we pledged our commitment to expand the Bank’s distribution to reach, acquire and serve more Filipino. In less than a year, we were able to achieve what we have set out to do, now we have almost 6k customer touchpoints and growing, allowing us to reach the underserved areas far from city centers, this is a clear support for the Bank’s ESG commitments. Agency Banking is Community Banking and we go where the customers are. Expect as we move forward, these formed retail partnerships, more than a channel to acquire new customers, will also serve as an alternative for our depositors to do their banking transactions. As we build the distribution, we expect more products and low-ticket services to be moved to these channels. |
| Business Banking | We 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 accessible, sustainable and innovative solutions for their progressive needs as they navigate challenges, manage risks, and accelerate the growth of their business. |
| Chief Credit | We continue to be guided by the UN SDG standards in our evaluation of each credit proposal with sustainability initiatives instituted by our customers being highlighted in each credit offering and being considered as major factors for credit decision making. |
| Customer and Marketing Group | On top of spreading awareness on Sustainability principles and best practices, we will continue to help communicate the Bank’s sustainability offerings and initiatives which make banking easier, more efficient, more affordable, and more feasible. To date, from 18%, we now have 41% of our fellow Filipinos who are now aware of Sustainability. So, we continue our commitment to incorporate sustainability in our communications to help more Filipinos understand, appreciate, and contribute to achieving a more sustainable tomorrow. |
| Global Markets | Sustainability is in our DNA. As we grow our portfolios of sustainability loans and bonds, we also aim to grow our expertise in sustainable finance by learning the latest regulations, global standards and best practices in managing a balance sheet built to grow our commitment to sustainability. We will continue to raise ESG themed funding that aims to motivate, challenge, and enable our partners in deploying these funds in qualified sustainable assets. And we will continue to provide essential Treasury services to our clients that support priority sectors with positive environmental and social impacts, including MSMEs, social services, and clean energy. |
| Wealth Management | At 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, blue and social projects that deliver attractive returns and support the UN Sustainable Development Goals. Our commitment goes beyond mere financial management; we are dedicated to democratizing investment access and championing financial inclusion, ensuring that everyone has the opportunity to participate in wealth-building and contribute to positive social change. |
| Responsible Operations | |
|---|---|
| Group / Segment | Sustainability Commitment |
| Enterprise Operations | In Enterprise Operations, we serve with Responsible Operations through continuous end-to-end process reinventions by integrating advancements in technology to improve the overall client experience, both internal and external. EO cements its commitment to delighting our customers by utilizing Power Automate and RPA, empowering our Customer Touchpoints, engaging in Great Partnerships with our vendors and constructing EDGE Certified branches. All of which touches on Environmental and Social Responsibility, now part of EO’s Sustainability DNA. |
Payments Council and RBank Integration | As we pursue the integration of Robinsons Bank into BPI, we commit to uphold sustainability principles in the same way that BPI has embraced sustainability at the heart of its business solutions and daily operations. As a member of the BPI Payments Council, our commitment to sustainability is reflected in our efforts to advance digital domestic and cross-border payments because we believe in its transformative power to deliver more inclusive, efficient, and eco-friendly financial ecosystem in the country. |
| Enterprise Technology | We at Enterprise Technology Group will continue to champion BPI’s digital transformation by investing in the latest technology in support of the Bank’s goal to acquire more customers and serve them more efficiently while reducing carbon footprint. By harnessing the best digital technologies, we can make BPI’s banking solutions safe, secure, accessible and affordable to Filipinos anytime, anywhere, regardless of economic status or location. |
| Human Resources Group | Along with our pledge to support environmentally friendly initiatives, we at Human Resources are also committed to the wellness and wellbeing of our employees. We understand that sustainability is not only about the environment, but also about the people who live and work in it. That's why we are dedicated to ensuring capability development for a resilient workforce that can adapt to changing circumstances and challenges. We want to empower you to take care of yourselves and each other, as well as the planet. |
| Risk Management Office | At the Risk Management Office, we are committed to continuously enhancing the integration of ESG into our enterprise risk management framework. Our goal is to create value for our stakeholders while proactively managing environmental and social risks in all our activities. Through these efforts, we are able to ensure the resilience and long-term success for both our organization and the communities we serve. |
| Strategy & Finance | Sustainability, digitalization, and financial inclusion are key priorities of BPI. We are dedicated to improving the lives of Filipinos through ESG+E2 principles embedded in our strategic goals and business operations. Our commitment to Responsible and Sustainable banking is reflected in our products and services, resource allocation, and business management practices, all aimed at realizing our vision of contributing to a better Philippines, one family and community at a time. |
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 |
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| Ayala Sustainability Blueprint | To 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:
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| BPI is regulated by the Bangko Sentral ng Pilipinas