2023 Integrated Report
Our sustainability framework
In 2023, our focus on ESG programs intensified, building upon the groundwork laid in 2021 with the introduction of our Environmental and Social Risk Management System (ESRMS). In February, the Board approved our Sustainable Finance Framework (SFF). This milestone underscores our commitment to sustainability and charts a clear path for deploying Sustainable Financing Instruments (SFIs) to fund eligible green, social and sustainable projects.
BetterBanking for a better tomorrow
Security Bank’s sustainability strategy is anchored on three pillars, aligned with topics material to our stakeholders, and our United Nation Sustainable Development Goal (UN SDG) focus areas.
Enriching lives
At Security Bank, we strive to create positive experiences and meaningful interactions for our customers, and employees. More than just providing financial solutions, we help customers achieve their goals and aspirations, empower employees to grow professionally and personally—investing in innovative products and services, data security and cybersecurity, customer and employee satisfaction.
Highlights
• Best Retail Bank in the Philippines (Alpha Southeast Asia)
• Best for High-Net-Worth Clients (Asiamoney)
• Philippines’ Best in Customer Service 2023
• Ranked #54 globally and #2 in the Philippines as one of the World’s Best Employers (Forbes)
• Top 70 (Philippines’ Best Employers 2024)
Empowering businesses
Our commitment to excellence defines us. Our products and services, built on a foundation of robust governance, uniquely empower businesses and industries to make significant economic contributions and create jobs. We remain dedicated to serving Filipino entrepreneurs, local social enterprises, small and medium-sized enterprises, as well as commercial and large corporations. In 2023, our focus remained on fostering economic recovery and growth.
Highlights
• PHP2 billion corporate notes issuance
• Best Corporate Bank in the Philippines (Asiamoney)
• Best Payment Solution in the Philippines for Billing Invoice Presentment and Payment System (Alpha Southeast Asia)
• Best Green Bond – SB Capital (The Asset)
• Renewable Energy Financing ProgrammePhilippines – SB Capital (ESGBusiness Awards)
• PHP43.6 billion in Sustainable Finance loans
Building communities sustainably
To deliver meaningful impact, we extend beyond traditional Corporate Social Responsibility (CSR). In alignment with our mission and sustainability objectives, we cultivate dynamic partnerships with diverse stakeholders—including national and local government agencies, academic institutions, and foundations. These collaborations are purposefully designed to drive progress in education, healthcare, enterprise development, arts and culture, disaster recovery, and women empowerment.
Highlights
• Build a School, Build a Nation turned over 108 classrooms to 16 beneficiary schools across 12 cities
• 2,000 tree seedlings planted at La Mesa Watershed as part of our ongoing commitment to reforest and protect Metro Manila’s main water supply
• Packed 6,048 meal kits to impoverished families across Visayas and Mindanao with International Care Ministries (ICM)
• 288% increase in employee volunteer hours
• 96% average satisfaction rate from CSR partner beneficiaries and volunteers
Security Bank’s sustainability journey
- Board approval of Sustainability Framework
- Alignment with UN SDGs, and adoption of SDGs 3, 4, 8, and 9
- Creation of Sustainability Committee
- Creation of Sustainability Unit to drive strategy and initiatives
- Board approval of ESRMS
- Policy: No new coal-related power generation plant financing and zero out coal financing by 2033
- Creation of Sustainable Finance Team to drive business and product development
- Inclusion into ATRAM’s 2022 Sustainable Development Growth Fund
- MSCI ESG score increase from B to BB
- Year one of five-year partnership with ABS-CBN on the restoration of La Mesa Watershed
- Board approval of Sustainable Finance Framework
- Published first Integrated Report covering FY2022
- Received ESCAP Sustainable Business Network (ESBN) Asia-Pacific Green Deal Badge
- 100% migration to renewable energy in Head Office and three branches
Environmental and Social Risk Management System
We strive to proactively manage and mitigate environmental and social risks, recognizing their impact on our business, clients, and the communities we serve.
Since the Board’s approval of our Sustainability Framework in 2020, we’ve embraced policies geared towards the responsible management of environmental and social issues. Our Environmental and Social Risk Management System is designed to identify, assess, and manage ESG risks associated with our banking operations and financing activities. The ESRMS encompasses the Bank’s lending and financing activities, investment activities, operations, and supply chain.
The ESRMS identifies our focus areas where the Bank can contribute a positive and meaningful impact and the strategies to be used in pursuit of our objectives:
Climate change
We’re committed to playing our part in addressing the challenges of climate change, and we understand that the transition to a low-carbon economy presents both risks and opportunities.
Energy
We work with Energy sector clients who are committed to sustainable development, are venturing into low-carbon energy sources, and implementing new technologies to help in the transition to a lower-carbon economy.
Health and safety
We will provide a healthy and safe work environment for our customers, employees, suppliers, and visitors. To ensure effective delivery and continuous improvement of our health and safety policy.
Supply chain
We aim to create meaningful supplier relationships, fully committed to implementing effective management and control of our supply chain and fair treatment of our suppliers, who we expect to abide by our Supplier Standards and adhere to our Sustainable Procurement Policy.
Sustainable Finance Framework
In 2023, we initiated our Sustainable Finance Framework (SFF) to uphold our sustainability goals and outline our approach to accessing Sustainable Financing Instruments (SFIs).
SFIs include green, blue, social, and sustainability bonds, loans, and other debt financing instruments supporting the Sustainable Finance Portfolio under the SFF. These SFIs will finance Eligible Projects that align with globally recognized sustainable finance principles and standards:
ICMA Principles: Green Bond Principles (GBP), Social Bond Principles (SBP), Sustainability Bond Guidelines 2021
ACMF ASEAN Green Bond Standards, ASEAN Social Bond Standards 2018, ASEAN Sustainability Bond Standards
LMA, APLMA, and LSTA Green Loan Principles 2021, Social Loan Principles 2021, and Sustainability Loan Principles 2021
UNEP Sustainable Blue Economy Finance Principles (SBEFP)
IFC Guidelines for Blue Finance for sustainable blue economy assets
We will provide a healthy and safe work environment for our customers, employees, suppliers, and visitors. To ensure effective delivery and continuous improvement of our health and safety policy.
Eligible Projects include:
Access to essential services (e.g., Pharmaceutical manufacturers distributors and traders, drugstores, etc.) that provide access to underserved (including through affordable/generic medicines).
Socio-economic advancement and empowerment programs to support and provide assistance for persons from disadvantaged socio-economic backgrounds, such as conditional and unconditional cash transfer (programs and social pension for elderly and persons with disabilities), loans to minority, underserved, and low-income individuals, and loans promoting entrepreneurship among females.
Moving toward climate resilience with ESRMS
Looking ahead, we’re actively planning the implementation of changes in credit risk assessment to directly incorporate ESRMS knowledge. We are conducting further studies based on collected data to ensure alignment with regulatory expectations and industry best practices. Our aim is to mitigate any material financial, reputational, or regulatory risks arising from failure to minimize the negative impact of our operations on the environment or ensure healthy and safepremises for our stakeholders.
2023 Integrated Report
BetterBanking for better impact
