RCBC To Strengthen Sustainable Financing

Rizal Commercial Banking Corp. (RCBC) continues to amplify sustainable financing in line with its agenda to build a climate-resilient and low-carbon portfolio.

RCBC president and CEO Eugene Acevedo said the bank allotted approximately ₱69 billion for sustainable financing as of November last year.

Acevedo said that 75% of the total portfolio bankrolls green projects while 25% finances social projects.

“Our lending to green projects is mostly for renewable energy development,” Acevedo said.

The bank also said that it aims to finance more renewable energy projects in 2023 in response to the Bangko Sentral ng Pilipinas (BSP) to be enablers of environmentally and socially responsible business decisions.

According to Acevedo, RCBC is set to help finance 12 additional renewable energy projects with a combined capacity of 1.6 gigawatts.

Since December 2020, RCBC has no longer funded new coal energy projects as it shifts to supporting deals for renewable energy.

“Our ₱39 billion coal exposure (as of November 2022) will gradually taper off until full maturity in 2031. This is aligned with the bank’s announcement in December 2020 to cease funding the construction of new coal power plants in the Philippines,” Acevedo said.

RCBC remains committed to stopping funding new coal power plants to comply with the nationwide moratorium mandated by the Department of Energy.

The bank also engaged clients to practice environmental, social, and governance (ESG) in their operations through the Environmental and Social Management System (ESMS).

RCBC has implemented its ESMS since 2011 even before the issuance of the BSPs regulatory framework.

Source: Philstar