Our sustainability focus
Our sustainability focus
Our sustainability focus
We’re committed to developing lasting relationships with our stakeholders, and promoting shared and sustainable growth for a better world. We achieve this by efficiently and responsibly utilizing our resources to create meaningful value for our stakeholders.
Sustainability strategy
Since 2020, we’ve marked critical milestones in our pursuit of responsible banking. Our alignment with the BSP’s evolving sustainability priorities and our stakeholders’ needs has shaped our strategic responses to the rapidly changing, climateimpacted landscape.
In 2024, we refreshed our Sustainability Framework to better articulate our long-term vision and refine our strategic direction. This refreshed framework serves as our guiding star, directing our approach to navigating environmental, social, and economic challenges. It offers a blueprint for embedding sustainability into our decision-making processes and is anchored on various local and international standards.
Goal 1: Cultivate a progressive culture of sustainability
To achieve our sustainability goals, we must cultivate a strong internal culture of sustainability, integrating it into our operations through robust governance, responsible and efficient resource management, education, innovation, accurate, and transparent reporting.
Highlights
• Held over 20 team meetings, SFF, and sustainability training sessions to align on goals and strengthen ESG capabilities.
• Participated in community-driven initiatives to bridge finance, sustainability, and social impact.
• Digitized manual processes to cut down on paper use and greenhouse emissions.
• Installed solar panels in five branches to reduce our reliance on conventional power.
• Became the first Philippine bank to join the International Finance Corporation’s (IFC) Alliance for Green and Commercial Banks.
• Supported 359 scholars for the School Year 2024-2025 through Security Bank Foundation, Inc.
• Supported 200 local vendors, 100 small enterprises, and 23 community partners through 2024 Trade Fairs.
Goal 2: Become a role model in climate risk management
We’re committed to proactively managing environmental and social risks, recognizing their impact on our business, customers, and communities. We continuously assess climate change effects on our operations and address environmental risks, while supporting our customers in transitioning to a low-carbon, sustainable, and resilient economy.
Highlights
• Embedded ESG principles into our investment strategies via our Environment and Social Risk Management System (ESRMS).
• Integrated climate risk into our Operational Risk Management (ORM).
• Began inventory of our portfolio emissions following the standards of the Partnership for Carbon Accounting Financials (PCAF).
Goal 3: Become the preferred partner in sustainable finance
We recognize the critical role that financial institutions play in directing investments towards the global transition to a low-carbon economy and in achieving sustainable development goals. We’re committed to promoting this shift, leveraging our Sustainable Finance Framework. Our goal is to ensure an inclusive transition that creates value for both customers and society.
Highlights
• Disbursed PHP78.36 billion in Sustainable Finance loans, an 80% increase from 2023.
• Ceased involvement in coal projects and shifted focus to renewable energy financing.
• Committed resources to solar and hydro projects totaling nearly 1 GW in 2024.
• Played an integral part of several landmark deals:
• Loaned PHP4.8 billion for Negros Ph Solar, Inc. (NPSI) to finance, develop, and construct their second solar power project in the Philippines.
• Co-arranged a 15-year senior term-loan facility for 3 Barracuda Energy Corporation (3BEC), raising PHP18.23 billion for its 550MWp solar power project in Pangasinan.
• Supported Meralco PowerGen Corporation’s (MGen) Twin Green Energy Auction Program (GEAP) projects, which will generate 93.3 GWh of clean energy annually.
Our sustainability journey
Environment and Social Risk Management System
We understand the important role that financial institutions play in nation building and sustainable development. We aim to manage environmental and social risks from our activities and customers by providing quality products and services, acting responsibly, and supporting worthy causes to contribute to business growth and corporate value.
Climate change
We aim to balance our lending and investment portfolios toward low-emission, sustainable investments and support our clients and communities during the transition. We’re committed to addressing climate change by:
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- Understanding and managing climate impacts in our operations.
- Ensuring lending and asset management policies support a low-carbon economy.
- Increasing business resilience to climate risks with products like green mortgages and sustainable bonds.
- Support clients and employees in their transition to a low-carbon economy.
- Disclosing our actions and progress on climate-related risks to stakeholders.
Energy
We recognize the elevated E&S risks in the energy sector and support the transition to a low-carbon economy. While coal reduction is urgent, developing countries like the Philippines need more time. We aim to help our clients and communities’ transition to low-carbon technologies by providing the necessary capital to develop efficient processes and reduce carbon footprints.
Achieving energy goals is a multi-year transition. We’ll support clients in the Energy sector committed to sustainable development by investing in low carbon energy sources and new technologies. Our support will come from corporate lending and capital markets.
Our energy policy relates to clients with operations in the following business activities:
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- Power generation, including energy from coal, oil, gas, nuclear, and hydropower dams. It excludes clients involved in renewable energy businesses such as solar, wind, and waste-to-energy, since these businesses are able to make a net positive impact sustainable development.
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- Oil and gas, including its exploration, development, production, and refining.
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- Transmission of oil or gas either by pipeline or electricity from generating plant to substation.
Health and safety
We value our people and their health and wellbeing as vital to our success. Our policy outlines our commitment to a healthy and safe work environment for all employees, suppliers, clients, and visitors. We aim for an incident-free workplace through leading health and safety management standards across our operations.
The Occupational Safety and Health Committee ensures proper governance on health and safety matters for our employees and facilities.
Supply chain
We recognize the importance of sustainable and ethical procurement practices. Security Bank ensures its supply chain operates responsibly, improving the lives of its stakeholders, their communities, and the environment.
We aim to create meaningful supplier relationships by delivering superior, cost-competitive products and services, aligned with our values. Our suppliers must adhere to our Supplier Standards and comply with all applicable laws, regulations, and standards.
This includes suppliers that provide services to or on behalf of the Bank and third parties sub-contracted by a supplier:
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- Suppliers must comply with laws prohibiting bribery, corruption, fraud, and false statements, implementing fair trade and ethical sourcing practices relevant to their services.
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- Suppliers must have an environmental or sustainability policy commensurate to the size and nature of the supplier’s operations to prevent, manage, and mitigate impacts from operations including greenhouse gas emissions, energy, water, waste and air quality.
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- Suppliers must have a safe work environment that complies with local laws and regulations, managing health and safety systems effectively.
2024 Integrated Report
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