Sustainable Finance

Note: The video shows RCBC's Sustainability Journey as PH's fifth largest privately-owned bank in 2022.

RCBC remains at the forefront of the Philippine banking industry’s move towards building a climate-resilient and low-carbon loan portfolio. Being in a country that is considered among the most vulnerable to climate change makes it imperative for the Bank to play a role in reducing carbon emissions through sustainable finance.

RCBC institutionalizes awareness of environmental and social issues within the organization, with its clients, and communities served. The Bank believes that sustainable practices are a key pillar of responsible lending which delivers meaningful impact on the environment and communities.

The Bangko Sentral ng Pilipinas (BSP) underscores the need for banks to be aware of climate change and manage its associated risks to fully maximize the opportunities for lending or investing in green or sustainable projects. Banks have the ability to design sustainable financing instruments (SFIs) to fund pandemic response and recovery, as well as support other economic activities that contribute to long-term sustainable development.

Sustainable Finance Strategy

RCBC strongly supports the BSP’s call for financial institutions to be enablers of environmentally and socially responsible business decisions.

RCBC is one of the earliest adopters of BSP Circular 1085 which mandates Philippine banks to integrate sustainability considerations in their governance frameworks, risk management systems, strategies and operations. The Bank has been implementing its Environmental and Social Management System (ESMS) since 2011 and its own Sustainable Finance Framework since April 2019.

In 2021, RCBC became the first Philippine bank to be a signatory of the Partnership for Carbon Accounting Financials (PCAF) and the first Southeast Asian advisory engagement of the International Finance Corporation (IFC) and 2 Degrees Investing Initiative (2DII) for the use of the Paris Agreement Capital Transition Assessment (PACTA) tool. In 2022, the Bank started adopting these quantitative global climate risk analysis tools to help address climate change in terms of our loan portfolio.

Sustainable Finance Risks and Opportunities

Banks and financial institutions have a vital role in reducing global warming, supporting the government in meeting its sustainability objectives, and effectively contributing to the UN Sustainable Development Goals (SDGs) and the Paris Agreement. RCBC aligns its business strategy to support the development needs of the environment and society, as articulated in the UN SDGs and the Paris Agreement on Climate Change.

In November 2022, The World Bank Group’s Country Climate and Development Report (CCDR) for the Philippines was released, emphasizing the urgency for the country to implement “vigorous adaptation efforts” to counter the ill effects of climate change. According to the CCDR, lack of action against climate change may lead to “economic damages in the Philippines” estimated to “reach up to 7.6% of GDP by 2030 and 13.6% of GDP by 2040.” The CCDR strongly advocates support for the development of projects on renewable energy, energy efficiency, sustainable transport, as well as the creation of smart cities to alleviate climate change that is seen to adversely affect the country’s agriculture and capitali ntensive sectors.

In December 2020, RCBC committed to cease funding of the construction of new coal power plants in the country. The Bank’s remaining exposure to coal-fired power projects will be zeroed out by 2031.  RCBC has continually supported renewable energy projects, funding for which has dominated the Bank’s eligible sustainable portfolio for the past five years. Financing for renewable energy and energy efficiency projects, taken together, accounted for more than half of the Bank’s total sustainable portfolio and have surpassed the Bank's remaining exposure to coal-fired power projects. 

Below are RCBC’s initiatives to lower its carbon footprint and support sustainable finance activities to help meet the UN SDGs:

  • Transformed its Corporate Head Office in Manila into a LEED Gold-certified building in 2018
  • Funded Green Projects that support the UN SDGs, in particular, the Clean Water and Sanitation, Affordable and Clean Energy, Industry, Innovation and Infrastructure, Sustainable Cities and Communities, and Responsible Consumption and Production goals
  • Channeled Php57 billion to projects and loans that contribute to reducing the carbon footprint of the Philippines
  • Funded social projects that support the UN SDGs, in particular, the Good Health and Well-being, Quality Education, Gender Equality, Decent Work and Economic Growth, Reduced Inequalities, and Sustainable Cities and Communities goals
  • Channeled Php41 billion to fund projects and loans that provide access to social needs, directly improving the living conditions of Filipinos
RCBC Sustainable Finance Framework

Under RCBC’s Sustainable Finance Framework, the Bank can issue green, social or sustainable debt instruments. Since 2019, the Bank has issued around USD1.8 billion worth of SFIs that refinanced funding for over 18,000 sustainable projects. In February 2022, RCBC launched the country’s first green time deposit to promote environmental awareness while saving funds. The continual development of SFIs aims to increase awareness among peer banks and promote a concerted effort toward preventing further damage to the environment and communities. In January 2024, RCBC raised USD 400 million from its five-year Sustainability Bonds issuance that was 5.9x oversubscribed, reflecting the trust of the global market.


Sustainability and Impact Report 2022

Allocation Report 2022

Sustainability Bonds Impact Report 2021

Sustainability Bonds Allocation Report 2021

Sustainability Bonds Impact Report 2020

Sustainability Bonds Allocation Report 2020

Green and Sustainability Bonds Impact Report 2019

Green and Sustainability Bonds Allocation Report 2019

Environmental and Social Management System (ESMS)

RCBC has been at the forefront of the Philippine banking industry’s move toward building a climate-resilient and low-carbon loan portfolio.  Through the implementation of its Environmental and Social Management System (ESMS) since 2011 and its own Sustainable Finance Framework since April 2019, the Bank has positioned itself as one of the earliest adopters of BSP Circular 1085 mandating Philippine banks to integrate sustainability considerations in their governance frameworks, risk management systems, strategies and operations.

RCBC’s ESMS Policy requires all lending relationships or credits, both pipeline and portfolio, to be vetted from an environmental and social risk perspective.

The ESMS assessment takes place before a lending decision is made, and continues during the life cycle of the loan agreement with the client.  Through RCBC’s implementation of the ESMS policy, the Bank is able to share its sustainability principles to help clients stay compliant with E&S regulations.

RCBC received a total of sixteen sustainability-related (16) awards since 2019. In the past year, RCBC has been lauded as (i) “Best Bank for Sustainable Development Philippines ” at the 2024 Global Banking & Finance Awards, (ii) “3G Eco-Friendly Financial Services Award 2023” at the 8th Global Good Governance Awards in May 2023, (iii) “Top Community Centric Companies in Asia, 2023” at the Asia Corporate Excellence & Sustainability Awards (ACES) 2023 , and (iv) "The Asset Benchmarking Award for Excellence in Environmental, Social, and Governance (ESG) – Platinum Award, 2023" by the Asset ESG Corporate Award.

For any concerns on environmental and social issues, please email

Sustainability News and Updates

Sustainability Media Pick Ups 2024:

Sustainability Media Pick Ups 2023:

Sustainability Media Pick Ups 2022:

Sustainability Media Pick Ups 2021:

Sustainability Media Pick Ups 2020:


Green & Sustainability Bond Issues: Lessons Learned One Year After


RCBC Backs BSP’s Plan to Incentivize Sustainable Finance


RCBC's Commitment to UN SDGs


RCBC Hosts Responsible Mining Roundtable


RCBC Champions Best ESG Practice, Bags Titanium Award


Environmental, Social and Governance in Practice

The YGC Earth Care Story

The YGC Earth Care Project was born in 2011 in celebration of YGC’s 100 years anniversary. It is a joint project with the DENR and the indigenous people of Tanay for a 100-hectare Reforestation Program in Mt. Bangkaan in the Sierra Madre Region.

To date, there are 23,000 trees along the 58-hectare plant site, most of which are now over 20 feet high. For 2022, our mandate is to complete the planting of trees in the remaining 42 hectares that will fulfill our 100-hectare commitment.