Sustainability agenda

BPI embraces sustainability in the conduct of its business – a commitment that started in the 1980s and continues to the present. This orientation emanates from top management, including BPI Chairman Jaime Augusto Zobel de Ayala, named one of the world's 10 Corporate Champions of the UN Sustainable Development Goals (SDGs) in 2017. BPI’s unique sustainability formula emphasizes the need for ESG initiatives to result in Economic (E₂) gains to stakeholders in order to be truly sustainable.

Our board-approved sustainability agenda guides us in integrating sustainability into our strategic objectives and frameworks for corporate governance and risk management. Our agenda is guided by BSP Circular 1085: sustainable finance framework and BSP Circular 1128: environmental and social risk management framework.

ESG Policy Statement

We are committed to responsible banking. This means incorporating ESG principles into how we conduct our business – how we resource, craft our products and services, serve customers, and 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 focuses on allocating resources to promote financial inclusion, preservation of the environment, sustainability, and social good.

Sustainability strategy

Our objectives are embodied in our sustainability strategy framework. BPI’s Sustainability Strategy supports our vision to build 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 consistently offer financial products and services that integrate ESG criteria in business while supporting economic growth, providing lasting benefits for both clients and society while reducing pressures on the environment and addressing social needs. As part of responsible operations, we manage the environmental and social capital used in day-to-day operations. Supporting these two pillars are corporate governance and risk management, which serve as checks and balances on the implementation of BPI’s Sustainability Strategy, as well as compliance with local, national, and global standards and regulations.

Sustainability governance

The Board of Directors, through the Executive Committee, has overall responsibility for sustainability-related targets, including the integration of sustainability principles and environmental and social (E&S) risk management in the bank's strategic direction.

The sustainability council, chaired by the Chief Sustainability Officer, is the senior management-level group in charge of implementing the sustainability agenda and reports to the Executive Committee. The council is supported by the sustainability office to implement the agenda across the bank.

Through its Risk Management Committee, the board has the overall responsibility to ensure that E&S risks are considered and managed within the bank’s Enterprise Risk Management (ERM) framework. A dedicated department champions the implementation of our E&S Risk Management System, aligning these efforts with the bank’s sustainability agenda and sustainability strategy.

Environmental and Social Risk Management System (ESRMS)

In January 2022, the Executive Committee approved the bank’s general ESRMS policy.
The new policy integrates E&S risk management in our risk governance structure, in our business and our decision-making. It is designed to support responsible banking and responsible operations, and is critical in achieving our strategic environmental and social objectives and targets.

Engaging the organization on ESG
In 2021, we completed the bank-wide cascade to implement the sustainability agenda. Each business unit identified short-, medium-, and long-term sustainability goals, action plans, and metrics (GAMs).

The effectiveness of these GAMs will be measured using BPI’s unique sustainability formula – ESG+E₂ – where the economic impacts (E₂) of our ESG initiatives are considered. These will also form part of each business unit’s key result areas (KRAs) and performance appraisal. sustainability champions per business unit advocate within their groups, ensuring that initiatives are implemented and monitored. Sustainability KRAs were included in senior management’s performance appraisals starting in 2021.

To support these requirements, an online module on the sustainability agenda is mandatory for all employees starting 2022. (PLS confirm) We continue to feature sustainability in the Officership Training Program (OTP) and in conversation with Bank frontliners, clients, and partners. Our key officers continue to share insight and experience on managing E&S risks, integrating sustainability and ESG into business strategy, and sustainable banking.

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 online sustainability events to share insights and experiences on managing E&S risks, integrating sustainability and ESG into business strategy, and sustainable banking.

Sustainability achievements

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 industry-first products and services, as well as innovations on operational resource efficiency, we list below BPI’s key sustainability achievements: