BDO partners with IFC to strengthen green finance initiatives

BDO Unibank Inc. (BDO) has reinforced its commitment to sustainable finance by collaborating with the International Finance Corporation (IFC) under the Alliance for Green Commercial Banks (Alliance).

The strategic partnership is designed to accelerate the green transformation of the banking and finance sector, focusing on reducing carbon footprints and enhancing the capacity of financial institutions to support climate-resilient projects.

As part of the initiative, IFC experts conducted comprehensive workshops aimed at equipping BDO’s leaders and relationship managers with advanced knowledge on Green Finance for Micro, Small, and Medium Enterprises (MSMEs), Transition Finance, and Impact Financing.

These sessions are expected to bolster BDO’s ability to support green projects, thereby contributing to the broader goal of addressing climate change.

“The Alliance is a global initiative convened by the IFC in partnership with the Hong Kong Monetary Authority. It aims to develop a community of banks leading in green finance across various markets to accelerate the green banking transformation of financial institutions and urgently address climate change,” said Paul Xavier Espinosa, IFC Operations Officer on Climate and Risk Management Advisory Services.

In 2023, BDO made significant strides in its green finance portfolio, with 46.2% of loans allocated to energy efficiency projects.

Notably, a substantial portion of these funds supported a Public-Private Partnership for a 900MW Battery Energy Storage System (BESS), which was commissioned to mitigate energy intermittency challenges in the Philippines.

BDO’s commitment to green finance extends beyond energy efficiency. The bank’s portfolio also includes investments in renewable energy (26.7%), clean transportation (14.7%), sustainable water and wastewater management (9.9%), pollution prevention and control (1.4%), green buildings (0.8%), and eco-efficient production technologies (0.3%).

Jerome Guevarra, BDO’s Chief of Staff and Executive Vice President, emphasized the bank’s pioneering role in sustainable finance in the country.

“As a pioneer in sustainable finance in the country, BDO is fully committed to reducing its carbon footprint while supporting the country’s transition by providing access to affordable, reliable, sustainable, and clean energy and energy efficiency initiatives,” Guevarra said.