Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• UnionBank Plaza runs on 100% renewable energy.
• 22 branches are LEED-certified, with the rest LEED-compliant.
• Reduced water footprint to 44% of what it was five years ago.

Social Achievements

• Launched GoBeyond Communities (GBC) program, impacting 1.98 million beneficiaries.
• Launched UB Xcellerator program to build digitally proficient talents.
• Achieved zero lost-time incidents at UnionBank in 2019.
• Customer service satisfaction rating of 4.61 (out of 5).

Governance Achievements

• Implemented strict laws and policies to ensure ethical business operations.
• Zero incidents of corruption among directors and employees.
• Zero tolerance for bribery and corruption.

Climate Goals & Targets

Environmental Challenges

• Addressing the gap in the supply of talent equipped with skills in digital and emerging technologies.
• Managing environmental impacts and reducing carbon footprint.
• Maintaining high standards of corporate ethics and professionalism.

Mitigation Strategies

• Created UB Xcellerator program.
• Implemented Race to Reduce (R2R) program to manage resources efficiently.
• Established strict laws and policies, zero-tolerance for corruption, and implemented anti-corruption training.

Supply Chain Management

Responsible Procurement

• Patronizing local suppliers (48.82% of total spending).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, Sustainability Reporting Guidelines of the Securities and Exchange Commission (SEC)

Sustainable Products & Innovation

• The Ark (fully digital bank branch)
• The Portal (business banking platform)
• GlobalLinker (platform for SMEs)
• i2i (inter-island banking connectivity)

Awards & Recognition

• Gold Award for Corporate Social Responsibility (CSR) for GoBeyond Communities
• Silver Employer of the Year
• Gold Anvil for GoBeyond Communities
• Best CSR Bank Philippines 2019 (CitySavings)
• Achievement in HR Technology (Asian Banker)
• Excellence in HR through Technology (Philippine Best Employer Brand Awards)
• Best Lifestyle App (IDC) for 1UHub
• Best Cybersecurity and IT Risk Management Initiative (Asian Banker)

Environmental Metrics

ESG Focus Areas

• Digital Transformation
• Sustainable Finance
• Inclusive Prosperity

Environmental Achievements

• Reduced energy consumption by offsetting almost 160,000 kwH and saving 637 trees through digital transactions.
• UnionBank Plaza operates fully through a renewable energy source (3.4 MW in 2020).

Social Achievements

• Launched several initiatives to support communities during the pandemic, including virtual volunteerism and partnerships with organizations like HEROES2021 to train teachers.
• Maintained high employee engagement scores (4.39 out of 5) despite the pandemic.
• Provided uninterrupted banking services during the enhanced community quarantine.
• Assisted the government in disbursing cash assistance to 700,000 beneficiaries.

Governance Achievements

• Refreshed sustainability policy and framework to align with business strategy and regulatory changes.
• Established a bank-wide sustainability technical working group.
• Board of Directors’ Corporate Governance Committee oversees ESG matters.

Climate Goals & Targets

Environmental Challenges

• Lower loan growth and rise in non-performing loans due to the pandemic.
• Reduced community visits due to pandemic restrictions.

Mitigation Strategies

• Accelerated digital transformation to adapt to the shift in consumer behavior.
• Implemented virtual ways to connect with stakeholders.
• Provided uninterrupted banking services through digital channels and mobile ATMs.
• Implemented health and safety measures to protect employees during the pandemic.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Allocated 81% of procurement budget for local suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards 2016 (Core), Sustainability Reporting Guidelines of the Securities and Exchange Commission (SEC), World Economic Forum’s Integrated Reporting Document, United Nations Sustainable Development Goals metrics

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Bonds.PH app
• UBX platforms (i2i, BUX, Sentro, SeekCap)

Awards & Recognition

• 2nd Most Helpful Bank in Asia Pacific (BankQuality.com)
• 2020 Fastest Growing Fintech Company in Southeast Asia (Global Brands Magazine)

Environmental Metrics

ESG Focus Areas

• Digital Transformation
• Sustainable Finance
• Inclusive Prosperity

Environmental Achievements

• Switched 74.8% of total transactions to paperless or online processing, helping offset almost 263,850 kwH in energy consumption.
• UnionBank Plaza operates fully through a renewable energy source, using 3.4 MW of energy sourced from renewable power in 2021.
• 25 LEED-certified branches and buildings.

Social Achievements

• Launched InstaPay 2.0, enabling fund transfers by inputting your mobile number or email address.
• Launched SME Business Banking App, allowing small businesses to open accounts and perform transactions digitally.
• Collaborated with XLOG to launch the country’s first blockchain-enabled supply chain financing, embedded in a logistics platform.
• UBX platforms (i2i, Bux, Sentro, SeekCap) facilitated digital financial services during the pandemic.
• Provided training and development to 9,558 individuals through the UB Xcellerator program.
• CitySavings provided training opportunities to over 2,200 educators.
• Employee volunteerism of 5,800 hours, benefiting 64,404 individuals in 427 communities.

Governance Achievements

• Integrated key steps in managing E&S risk in credit-granting activities.
• Established an E&S approving authority to manage projects with heightened environmental and social impact.
• Developed ESG courses and training programs for Board of Directors, senior management, and employees.
• Implemented a robust cybersecurity control system.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic.
• Increased competition from big tech companies in financial services.
• Challenges of working from home for some employees.

Mitigation Strategies

• Leveraged digital initiatives to maintain operations and serve customers during lockdowns.
• Upskilling and retooling employees to meet the demands of a digital workplace.
• Facilitating super learning in a virtual-first workplace.
• Implementing DevSecOps to improve agility and security in product development.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Investing in local suppliers and supporting SMEs.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option, Sustainability Reporting Guidelines of the Securities and Exchange Commission (SEC), World Economic Forum’s Integrated Reporting Document, United Nations Sustainable Development Goals metrics

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 1 (No Poverty)
• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)
• SDG 13 (Climate Action)
• SDG 9 (Industry, Innovation, and Infrastructure)

CSR programs focus on these SDGs through initiatives in e-commerce, education tech, and climate tech.

Sustainable Products & Innovation

• InstaPay 2.0
• SME Business Banking App
• Blockchain-enabled supply chain financing
• UBX platforms (i2i, Bux, Sentro, SeekCap)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Digital Transformation
• Sustainable Finance
• Inclusive Prosperity

Environmental Achievements

• 27 branches LEED-certified
• 827.5 MW of renewable power sourced
• E-waste Zero Project launched
• Tree planting and nurturing activities at Masungi Georeserve and La Mesa Nature Reserve
• CitySavings No Impact Challenge avoided 32,000 kg of CO2 emissions

Social Achievements

• First Diversity, Equity, and Inclusion (DEI) Summit held
• Launched Magis 2.0 leadership program
• Expanded healthcare benefits to include LGBTQ+ and common-law partners
• Implemented Datus Data Literacy Program
• GoBeyond Communities program served 142,998 beneficiaries in 318 communities

Governance Achievements

• Enhanced Environmental and Social (E&S) Risk Management policy fully implemented
• Updated Operational Risk Management (ORM) manual to include E&S operational risks
• Sustainability assessment embedded in the Bank’s outsourcing assessment

Climate Goals & Targets

Environmental Challenges

• Market volatility
• Regulatory changes
• Economic downturns
• Supply chain disruptions
• Climate change risks

Mitigation Strategies

• Robust risk management practices (diversification, stress testing, compliance monitoring)
• Digital transformation to enhance resilience
• Sustainable finance investments
• Market expansion
• Contingency plans and supplier base diversification

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier assessment, monitoring, and contingency planning
• ESG criteria for new suppliers
• Procurement Guidelines, Outsourced Services Manual, Guidelines on Accreditation of Supplier and Service Providers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Financial products and services that incentivize investments in low-carbon technologies

Reporting Standards

Frameworks Used: GRI Standards 2021, SEC Sustainability Reporting Guidelines, World Economic Forum’s Integrated Reporting Document, UN Sustainable Development Goals

Certifications: LEED

Third-party Assurance: SyCip Gorres Velayo & Co.

UN Sustainable Development Goals

• SDG 1
• SDG 5
• SDG 8
• SDG 12
• SDG 13
• SDG 14
• SDG 15

Initiatives contribute to economic growth, gender equality, decent work, responsible consumption and production, climate action, life below water, and life on land.

Sustainable Products & Innovation

• Bonds.Ph
• UB Negosyante app
• SeekCap
• i2i
• QLabs
• Sentro

Awards & Recognition

• BIAN Transformation Awards 2022 Transformation Champion
• IFC Social Bond, Asia-Pacific Stevie® Awards 2023, Bronze
• The Kapatiran sa Industriya (KAPATID) Award
• Asia Pacific Tambuli Awards
• HR Asia Best Companies to Work for (Philippines)
• Stevie® Awards for Great Employers
• IDC Future Enterprise Awards Philippines
• HR Asia Best in Future of Work
• Best Digital Bank & Best Retail Bank