Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Energy Efficiency
• Clean Transportation
• Sustainable Water Management
• Affordable Housing
• Employment Generation
• Access to Essential Services
• Socioeconomic Advancement and Empowerment

Environmental Achievements

• Secured LEED Gold certification for RCBC Plaza.
• Channelled more than PHP30 billion to fund projects and loans that contribute to decreasing the environmental footprint of the Philippines.
• Helped fund geothermal power plant projects with a total capacity of 2,460 MW, generating 11,618 GWh of energy.
• Extended loans of about PHP2 billion to businesses employing fibre technology, resulting in an estimated 14,000 tons of CO2 avoided per year.
• Funded PHP1.2 billion to infrastructure used for clean water and wastewater treatment, serving almost 1 million households.

Social Achievements

• Launched pioneering initiatives in financial inclusion through digital technology.
• Channelled more than PHP10 billion to fund projects and loans that provide access to social needs, directly improving living conditions of Filipinos.
• Funded affordable financing for a total of 8,650 houses, involving loans of PHP6.8 billion.
• Provided 679 loans reaching PHP5.7 billion to support MSME growth.
• Provided PHP2.2 billion funding support to hospitals and manufacturers of generic medicines, supporting close to 3,000 hospital beds and treating over 1 million patients.
• Provided PHP2 billion funding support to educational institutions, benefiting almost 100,000 students.
• Extended PHP1.595 billion worth of loans to cooperatives and rural banks, serving 136,000 clients.

Governance Achievements

• Received a recognition award for its rating in the ASEAN corporate governance scorecard.
• Rated “A” by MSCI ESG Ratings since December 2018.
• Won the Titanium Award at The Asset ESG Corporate Awards 2019 – Benchmark Award for Excellence in Environmental, Social and Corporate Governance.

Climate Goals & Targets

Environmental Challenges

• The Philippines' high vulnerability to climate change (5th most vulnerable according to Global Climate Risk Index 2019).
• Significant dependence on coal-fired power plants.
• Lack of financial access for MSMEs.
• Shortage of hospital beds in the Philippines.
• Lamentable conditions of public educational institutions.

Mitigation Strategies

• Investing in renewable energy and energy efficiency projects.
• Providing financing for affordable housing, employment generation, and access to essential services.
• Supporting MSMEs through loans.
• Funding healthcare and education initiatives.
• Extending loans to cooperatives and rural banks to promote socioeconomic advancement.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding due to rising sea levels
• Extreme weather events

Opportunities

• Financing the transition to a low-carbon and climate-resilient future

Reporting Standards

Frameworks Used: ASEAN Green Bond Standards, ASEAN Sustainability Bond Standards

UN Sustainable Development Goals

• 7
• 9
• 11
• 13
• 3
• 4
• 8
• 10
• 6
• 12

RCBC’s Eligible Green and Social Assets address 10 of the UN SDGs.

Awards & Recognition

• Titanium Award at The Asset ESG Corporate Awards 2019

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Financial Intermediation
• Procurement Practices
• Business Ethics
• Resource Management
• Ecosystems and Biodiversity
• Environmental Impact Management
• Environmental Compliance
• Employee Management
• Workplace Conditions, Labor Standards, and Human Rights
• Supply Chain Management
• Relationship with Community
• Customer Management
• Data Security
• UN Sustainable Development Goals

Environmental Achievements

• RCBC Plaza in Makati City received a Leadership in Energy and Environmental Design (LEED) Gold certification.
• Channelled almost Php49 Billion to projects and loans that contribute to reducing the carbon footprint of the Philippines
• Converted 281 branches into “Branch of Today” design, combining operational efficiency and the convenience of online banking.

Social Achievements

• Launched the CARE Program to provide financial assistance to customers by way of extended repayment plans.
• DiskarTech recorded overall growths of 437% in volume and 8,411% in value from 2020 to 2021.
• 99% of RCBC’s employees have been fully vaccinated as of 31 December 2021.
• Peaceful agreement on the 3-year economic provisions and the 5-year non-economic terms of the collective bargaining agreement.

Governance Achievements

• 100% of employees and business partners have been communicated to the organization’s anti-corruption policies and procedures.
• Zero incidents of corruption involving directors, employees, or business partners.
• Revised Policy on Related Party Transactions following SEC Memorandum Circular No. 10, series of 2019.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on economic results, employee well-being, and operations.
• Climate-related risks associated with lending to the energy sector.
• Potential revenue generation disruptions due to unforeseen circumstances.
• Economic downturn affecting customers' repayment capacity.
• Managing risks associated with the Bank's status as a Domestic Systemically Important Bank (DSIB).

Mitigation Strategies

• Continued push for digital transformation and data analytics.
• Steadfast commitment to the Bank’s financial inclusion model.
• Stronger resolve to occupy a leading position in the sustainability space.
• Implementation of the CARE Program.
• Crisis Management Team (CMT) and Business Continuity Program.
• Higher loss absorbency (HLA) through Common Equity Tier 1 (CET1).
• Implementation of recovery plans as outlined in RCBC’s Internal Capital Adequacy Assessment Process (ICAAP).

Supply Chain Management

Responsible Procurement

• Supplier accreditation policy
• Code of Ethics
• Sustainability questionnaires

Climate-Related Risks & Opportunities

Physical Risks

• Natural calamities (e.g., typhoons, volcanic eruptions)

Transition Risks

• Regulatory changes related to climate change
• Market shifts towards renewable energy

Opportunities

• Investments in renewable energy projects
• Development of energy-efficient products

Reporting Standards

Frameworks Used: BSP Circular 1085 (Sustainable Finance Framework), BSP Circular 1128 (Environmental and Social Risk Management Framework), ASEAN Green Bond Standards, ASEAN Sustainability Bond Standards, IFC Performance Standards

Certifications: LEED Gold (RCBC Plaza)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities

RCBC's financial inclusion programs and services, along with its Sustainable Finance Framework, address 16 of the 17 UN SDGs.

Sustainable Products & Innovation

• Green time deposit
• ASEAN Sustainability Bonds

Awards & Recognition

• Top Community Centric Companies in Asia (ACES Awards 2021)
• The Asset Benchmarking Award for ESG – Gold Award (The Asset 2021 ESG Corporate Awards)
• Best Sustainability Bond (The Asset Publishing and Research Ltd., January 2022)

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Contributions of RCBC products and services to the UN SDGs

Environmental Achievements

• Reduced coal exposure to Php39.2 billion from Php42 billion in 2021, targeting zero exposure by 2031.
• Launched the country's first Peso Green Time Deposit in February 2022.
• Helped fund projects that avoided an estimated 824,921 tons of CO2 equivalent emissions per year.

Social Achievements

• Launched "Moneybela: Barangayan Banking," the country's first human-assisted remote banking service.
• Improved employee attrition rate to 16.82%, slightly below industry level.
• Provided 703 loans amounting to Php5 billion to support SMEs.

Governance Achievements

• Integrated ESG oversight into the Bank’s Risk Governance Framework.
• Implemented a mandatory Sustainability Key Result Area (KRA) as part of employee performance evaluation.
• No incidents involving corruption in 2022.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on the Philippines.
• Poverty, hunger, and social inequity.
• Lingering effects of the COVID-19 pandemic.

Mitigation Strategies

• Adoption of quantitative global climate risk analysis tools.
• Development and issuance of Sustainable Financing Instruments (SFIs).
• Implementation of the COVID Assistance Recovery (CARE) Program and strategic digitalization.

Supply Chain Management

Responsible Procurement

• Selects locally based suppliers
• Promotes economic inclusion
• Sustainability-related questionnaires in vendor accreditation

Climate-Related Risks & Opportunities

Opportunities

• Expansion of RE portfolio

Reporting Standards

Frameworks Used: Sustainability Reporting Guidelines for Publicly Listed Companies under the Securities and Exchange Commission (SEC) Memorandum Circular No. 4 Series of 2019, BSP Circular 1085, BSP Circular 1128, RCBC’s Sustainable Finance Framework (April 2019), PCAF’s Global GHG Accounting and Reporting Standard

Certifications: LEED Gold (RCBC Plaza)

Third-party Assurance: Punongbayan & Araullo (P&A) (limited assurance for 2019-2021 Allocation Report); KPMG (2022 Allocation Report)

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 17

RCBC's products and services contribute to these goals through financial inclusion, sustainable finance, and community development initiatives.

Sustainable Products & Innovation

• Recycled credit cards (by 2023)
• Digital financial inclusion solutions

Awards & Recognition

• Best Sustainability Bond (The Asset)
• The Asset Benchmarking Award for ESG – Platinum Award
• Excellence in Sustainable Banking Awards
• Best Bank for Sustainable Development
• PMAP Regional Exemplar for Strategic HR and People Program of the Year

Environmental Metrics

ESG Focus Areas

• Digital Transformation
• Financial Inclusion
• Business Continuity and Sustainable Finance

Environmental Achievements

• Phased out coal exposure by 2031 (initially disclosed in 2021 and reconfirmed in 2022)
• Increased RE portfolio by 37% versus December 2023 level by January 2024
• Financed over 18,000 projects under its eligible green and social portfolio amounting to nearly Php 100 billion

Social Achievements

• Launched RCBC Pulz, RCBC ATM Go, RCBC DiskarTech, RCBC MoneyBela Barangayan Banking, and RCBC Boz to expand financial inclusion
• Conducted various training programs and seminars benefiting 23,134 attendees
• Awarded as a 2023 Employee of the Year Exemplar by PMAP

Governance Achievements

• 100% of employees and business partners communicated with regarding anti-corruption policies and procedures
• 100% of management received anti-corruption training
• Updated RPT Policy in July 2019 to align with SEC Memorandum Circular No. 10, series of 2019

Climate Goals & Targets

Environmental Challenges

• Climate change-related calamities, public health crises, and macroeconomic environment
• Cybersecurity/information security attacks, breaches, and fraud
• Financing support to sectors with elevated environmental risks

Mitigation Strategies

• Implemented a comprehensive Crisis Management Framework and Business Continuity Plan
• Equipped digital banking application with security features and launched #DontGetFooled cybersecurity awareness campaign
• Implemented ESMS Policy and Sustainable Finance Framework with Exclusionary Criteria

Supply Chain Management

Responsible Procurement

• Supplier accreditation policy
• Sustainability attestation for vendors
• Code of Ethics for Vendors
• Blacklisting Policy for Vendors
• Training on “Procurement Ethics and Responsibility”

Climate-Related Risks & Opportunities

Physical Risks

• Climate change-related calamities

Transition Risks

• Financing support to sectors with elevated environmental risks

Opportunities

• Investments in RE

Reporting Standards

Frameworks Used: UN SDGs, Paris Agreement, IFC Performance Standards, ASEAN Green Bond Standards, ASEAN Sustainability Bond Standards, Global Bond Standards, BSP Circulars

Certifications: LEED Gold (RCBC Plaza)

Third-party Assurance: RGManabat and Co. (KPMG Philippines) - Limited assurance for 2022 Allocation Report; Sustainalytics - Second Party Opinion for Sustainable Finance Framework

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 8
• Goal 9
• Goal 11
• Goal 13

Bank’s financial inclusion programs and services, together with Sustainable Finance Framework, address 16 of the 17 UN SDGs.

Sustainable Products & Innovation

• Peso Green Time Deposit
• Recycled materials for credit cards

Awards & Recognition

• Best Bank for Sustainable Development Philippines (2024 Global Banking & Finance Awards)
• 3G Eco-Friendly Financial Services Award 2023
• Top Community Centric Companies in Asia, 2023
• The Asset Benchmarking Award for Excellence in ESG – Platinum Award, 2023
• Best Bank for Digital Solutions (Asiamoney, 2020-2023)
• Best Financial Inclusion Initiative/Application (The Asian Banker)
• Regional Exemplar Award for Strategic HR and National Award for People Program of the Year (PMAP)
• 2024 Best Employer (Philippine Daily Inquirer)