"Philippine leading lender BDO Unibank imposes stricter conditions for coal-related financing", 12 September 2022

BDO Unibank (BDO), the largest bank in the Philippines, said [...] that it will reduce its coal exposure by half, while ensuring that this does not exceed two per cent of its total loan portfolio by 2033. 

The bank, in an energy transition finance statement approved by its board of directors on 26 August, added that it specifically defines coal exposure as term loans “that will naturally run their course in 2033”. The bank will continue to provide short-term working capital to “companies that need to transition out of the coal business”. 

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[...] the bank’s senior vice president and chief compliance officer Federico P. Tancongco said that the bank once thought it best to just “do things quietly and efficiently”, but has now come up with a public declaration in recognition of the role it plays as the largest bank in the country, after months of extensive discussion. 

“We have a responsibility to publicly articulate our commitments to our stakeholders and to disclose the actions we have taken towards the investments in our portfolio,” he said. 

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“The balanced approach must acknowledge the difficult trade-offs that need to be made along the way between national economic development that depends on affordable and reliable energy, and the relentless pursuit of the broader goal of climate sustainability,” he said. 

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