The Bank of the Philippine Islands (BPI) has been recognized by the International Finance Corporation’s (IFC) Climate Assessment for Financial Institutions (CAFI) for its exceptional commitment to climate action and efforts to mitigate climate change.
According to IFC, BPI achieved the “Highest Estimated Greenhouse Gas Emissions Mitigated” in the East Asia and Pacific region, with an impressive reduction of 1,754 thousand tCO2e/year. This marks the first time a Philippine financial institution has received such recognition.
“Receiving this recognition from IFC is a testament to BPI’s unwavering commitment to sustainable finance and our dedication to mitigating climate change,” said TG Limcaoco, President and CEO of BPI. “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.”
In 2023, BPI secured a $250 million green bond investment from IFC, a member of the World Bank Group. This landmark deal represented the largest green bond transaction IFC has ever made with a financial institution in the Philippines and underscores the Bank’s leadership in driving sustainable finance in the country.
“We are thrilled to present this award to BPI, in recognition of its unwavering commitment to promote investments that will help the country achieve its climate goals,” said Arnaud Dupoizat, IFC Financial Institutions Group Manager for East Asia Pacific. “We hope to continue working together to further deepen sustainable capital markets and accelerate the transition to a low-carbon economy.”
Building a Greener Future Together
The green bond investment is aligned with IFC’s 30 by 30 Zero Program, which aims to mobilize private financing for climate-related projects in the Philippines. The program’s goal is to increase climate-related lending to 30% of total financial institution portfolios by 2030 while achieving near-zero coal exposure.
The green bond proceeds have been used to finance eligible green projects in the Philippines, such as renewable energy, with a focus on reducing greenhouse gas emissions and improving climate resilience. The majority of the proceeds have supported local projects. IFC also continues to help BPI build its capacity to assess the eligibility and impact of its climate projects, strengthening its role as a leader in sustainable finance.
A Vital Response to Climate Change
The Philippines is one of the most climate-vulnerable countries in the world, with about three-quarters of its population exposed to the impacts of natural hazards. According to the World Bank’s Country Climate Development Report, the economic damage caused by climate change in the Philippines could reach up to 7.6% of GDP by 2030. Given these risks, the BPI-IFC partnership plays a pivotal role in advancing climate-resilient infrastructure, renewable energy projects, and other initiatives aimed at mitigating the impacts of climate change.
A Growing Green Bond Market
The Philippines’ green bond market has grown significantly in recent years. Since the first green bond was issued in 2016, there have been 28 sustainability bond issuances totaling more than US$10 billion, according to the Philippines Securities and Exchange Commission. This expansion of sustainable finance is crucial for supporting the Philippines’ transition to a low-carbon, climate-resilient economy. In addition to facilitating bond issuances, IFC plans to engage with regulators and conduct training sessions for potential issuers to strengthen the overall market for thematic bonds in the Philippines.
Looking Ahead
The partnership between BPI and IFC sets a powerful example for other financial institutions in the Philippines and the region. BPI remains committed to supporting the country’s climate goals through innovative finance solutions and is poised to continue leading the charge toward a more sustainable future.
“We believe in the power of partnerships to drive real change,” Limcaoco added. “With the BPI-IFC partnership, we are not just financing projects — we are building a better, more sustainable future for the Philippines.”
