The Republic of the Philippines (ROP) has published its Sustainability Bond Allocation and Impact Report, which details the estimated environmental and social impact of eligible social and/or green projects funded through sustainable financing instruments, implemented in coordination with concerned implementing National Government Agencies.
“The Report demonstrates the Philippines’ commitment to achieving the Sustainable Development Goals [SDGs] through the Sustainable Finance Framework, which allowed us to mobilize diverse resources towards economic, social, and environmental transformation” Finance Secretary Benjamin E. Diokno said following the Report’s publication on October 2, 2023.
As part of its commitments under the Sustainable Finance Framework, the Report was prepared by the Development Budget Coordination Committee (DBCC) Technical Working Group on Sustainable Finance (TWG-SF). It contains details on the use of sustainable finance proceeds, process for project evaluation and selection, management of proceeds, and reporting.
The Report also highlights findings of DNV Business Assurance Singapore Pte. Ltd. (DNV), an independent global provider of assurance in the environmental, social and governance (ESG) space. The external review affirmed that ESG-labeled bonds issued by the ROP from March 2022 to January 2023 are aligned with the definition of green and social bonds within the International Capital Market Association (ICMA) Green Bond Principles 2021 and the ICMA Social Bond Principles 2023.
The assessment also states that the proceeds have been fully disbursed with 53 percent allocated to Social Projects and 47 percent to Green Projects.
The Philippines is one among 192 other member states that has committed to achieving the 17 SDGs and their 169 targets.
In line with this, the Sustainable Finance Framework was established to support the country’s sustainability commitments and lay out how it intends to raise Green, Social, or Sustainability Bonds, Loans, and other debt instruments.
The ROP has successfully issued four (4) transactions under the Framework. From March 2022 to January 2023, the ROP issued bonds worth US$ 3.55 billion, which includes JPY 70.1 billion (equivalent to an estimated US$ 550 million) in the Samurai market. The government has utilized the proceeds from the Bonds to finance projects that support employment generation, access to essential services (i.e. education and healthcare), COVID-19 expenditure, sustainable management of living and natural resources, renewable energy, and climate change adaptation.
The Report featured notable projects, including the National Greening Program and other projects of the Department of Environment and Natural Resources (DENR), Flood Management Program of the Department of Public Works and Highways (DPWH), Department of Labor and Employment (DOLE) Integrated Livelihood and Emergency Employment Program (DILEEP), and support programs under the Universal Access to Quality Tertiary Education Act.
A copy of the report may be downloaded from https://www.dof.gov.ph/download/sustainability-bond-allocation-and-impact-report/.