In a statement, Security Bank said this aligns with the Philippine government pledged during the 2021 United Nations Climate Change Conference of the Parties (COP26) and is in line with the 2015 Paris climate agreement to cut greenhouse gas emissions and limit global warming for a more sustainable future.

In 2020, the Security Bank’s Board of Directors approved its Sustainability Framework, which outlines its principles in addressing environmental, social, and governance issues. 

In 2021, the Board approved the Bank’s Environmental and Social Risk Management System (ESRMS), which details the policies and enhanced due diligence required to identify, address, and mitigate environmental and social risks in the Bank’s operations, lending investing practices, and supply chain.

“A focus of our ESRMS is to specifically address sustainability and climate risk, as well as health & safety risk in our operations, investment practices, and supply chain,” said Eduardo Olbes, CFO and chairman of the Sustainability Committee at Security Bank.

“A key aspect of the ESRMS is our coal policy, which specifies our commitment to discontinue financing the construction of new coal-fueled power generation plants, with a view to exit funding coal generation by 2033,” Olbes added.

According to market and consumer research company Statista, as of 2020, the Philippines still relies heavily on coal as the primary energy source, with 57% of its energy needs coming from it. 

Renewable energy sources such as hydro, wind, solar, and geothermal energy make up only 21% of the country’s energy resources.