Flor G. Tarriela l December 10, 2024 l Manila Bulletin
Sustainability is a popular buzzword, but what does it really mean? The UN Brundtland Commission defines sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”
To delve deeper into sustainability, the Philippine National Bank (PNB) held its full-day Sustainability Thought Leadership Workshop with the theme “SUMMIT FOR SUSTAINABLE GROWTH – ENABLING PATHWAYS, BREAKING BARRIERS” last November at Century Park. Organized by SVP Jean Marie Baruelo, PNB’s Corporate Sustainability Head, this event marked a crucial step forward as the Board of Directors and Senior Management convened to strengthen PNB’s commitment to sustainability. Partnering with the International Finance Corporation, S&P Global, the University of the Philippines Los Baños, and the World Wildlife Fund, PNB aims to build long-term sustainable growth that benefits everyone—stakeholders, the bank, communities served, and future generations. The event was spearheaded by PNB President Florido “Doy” Casuela and SVP Baruelo.
“Sustainability is no longer at the margins of business; it is a mainstream strategy to build resilience and future-proof our organization,” stated PNB Chairman Edgar Cua. “While regulatory requirements have spurred the acceleration of sustainability integration into businesses, successful implementation and achievement of sustainability goals, particularly for banks, can only be gained by viewing sustainability as a natural part of risks and opportunities. Businesses will either adapt and gain access to the opportunities or neglect the risks and bear the effects of climate risks and fragmented or misaligned strategies.” He also noted key areas for sustainability integration highlighted by asset managers globally.
With the vision to achieve the triple bottom line – People, Planet, Prosperity – the workshop provided valuable insights, helping stakeholders understand how to align with the latest Environmental, Social, and Governance (ESG) trends and make impactful changes to achieve greater resilience and future-proof the bank.
WWF Philippines Chief of Party Edgardo Tongson discussed Nature and Biodiversity Loss and the Sustainable Banking Assessment of top Philippine banks based on public disclosures on ESG metrics and indicators pertaining to Purpose, Policies, People, Products, and Portfolio.
International Finance Corporation (IFC) Senior Climate Finance Specialist Quyen Thuc Nguyen, who flew in from Washington, DC, tackled global trends in sustainability strategies and how to integrate them into business activities for responsible banking and operations. IFC Climate Risk Lead for East Asia Pacific Paul Xavier Espinosa discussed Climate Risk Management trends, tools, and methodologies to measure, assess, and integrate Physical, Transition, and Climate Risks into the bank’s risk models for safe, sound, and sustainable banking. IFC Senior Operations Officer for the Asia and Pacific Region, Oluwatoyin Alake, shared how leading financial institutions can fulfill the critical role of channeling financing flows to sustainable green and social projects and leverage thematic capital markets for funding mobilization.
A panel fireside chat, composed of PNB Board Chairman Cua, Director Enrico Alfiler, IFC speakers Ms. Nguyen, Mr. Espinosa, and Ms. Alake, and joined by S&P Global Regional Team Lead for Sustainability Analytics Services Terrence Teoh, was moderated by PNB EVP Francis Albalate. The discussion centered on how bank leadership can drive sustainable practices and ESG strategy.
Mr. Teoh provided valuable insights on decarbonization pathways and reporting expectations, and tackled use cases of successful ESG transformation, emphasizing the criticality of top-down, bottom-up, inside out, and outside-in sustainability alignment, integration, and cohesion.
Bernadette Tongko-Magadia, UPLB Associate Dean of the College of Engineering and Agro-Industrial Technology, refreshed PNB on the Environmental and Social Risk Management System (ESRMS), highlighting critical areas and recommendations for decarbonization.
Breakout sessions with small groups of board and senior management tackled case studies to produce key strategies and initiatives to embed sustainability in all facets of business and operations. Among the topics were:
- Greening the investment and loan portfolio to produce strategies for financing projects with positive environmental and social impact
- Management of portfolio exposure to climate risks
- Setting decarbonization goals and managing greenhouse gas (GHG) emissions
- Increasing employee and client awareness on sustainability
A fun activity involved participants engaging in gardening. Name tags were embedded with actual seeds, and participants “planted” their pencils in pots to support environmental objectives and symbolically pledged to nurture the seeds planted. May the seeds not just grow but thrive towards meaningful ESG transformation!
*** Ms. Tarriela is a former PNB Chairman and now serves as Board Advisor. She was Citibank’s first Filipina Vice President and a former Undersecretary of Finance. She is a director of Nickel Asia Corp., LTG Inc., and FINEX. An environmentalist, she founded Flor’s Garden in Antipolo.
“The views and opinions expressed above are those of the author and do not necessarily represent the views of FINEX”. Photo from Pinterest.