Our Environmental, Social, and Governance (ESG) practices
At Security Bank, we integrate ESG considerations into our business strategies to attract investment, mitigate risks, and contribute to sustainable economic development.
Our Environmental, Social, and Governance (ESG) practices
At Security Bank, we integrate ESG considerations into our business strategies to attract investment, mitigate risks, and contribute to sustainable economic development.
Financing environmental impact
Sustainability is embedded in Security Bank’s strategy, risk management, and lending decisions. The Bank’s Environment and Social Risk Management System (ESRMS) provides a structured framework for identifying, assessing, mitigating, and monitoring environmental and social risks arising from the Bank’s activities and those of its clients. The ESRMS is embedded across the credit lifecycle and supports responsible lending, regulatory compliance, and long-term value creation.
Key components:
Policy screens
Exclusion list covers gambling, radioactive materials (except for medical use), child/forced labor, illegal activities, weapons, and coal-related projects (with a commitment to exit coal by 2033).
Risk categorization
Transactions are categorized by E&S risk level, with higher-risk activities subject to enhanced due diligence and escalation.
Mitigation and action planning
Clients are required to implement mitigation measures aligned with applicable standards and regulatory expectations.
Monitoring and reporting
Risks are monitored throughout the life of the exposure, with reporting and escalation to relevant committees.
Independent assurance
ESRMS effectiveness is subject to independent review by Internal Audit and Compliance.
Policy screens
Exclusion list covers gambling, radioactive materials (except for medical use), child/forced labor, illegal activities, weapons, and coal-related projects (with a commitment to exit coal by 2033).
Risk categorization
Transactions are categorized by E&S risk level, with higher-risk activities subject to enhanced due diligence and escalation.
Mitigation and action planning
Clients are required to implement mitigation measures aligned with applicable standards and regulatory expectations.
Monitoring and reporting
Risks are monitored throughout the life of the exposure, with reporting and escalation to relevant committees.
Independent assurance
ESRMS effectiveness is subject to independent review by Internal Audit and Compliance.
Sustainable Finance performance
- PHP107.76 billion in sustainable finance disbursed in 2025, a 38% increase from 2024, exceeding the Bank’s target by 24%.
- Of this, PHP75.8 billion supported green finance and PHP31.9 billion supported social development initiatives.
- Eligible projects included renewable energy (1,580 MW), clean transport (8.215 km electric train rail), green buildings (1 LEED Platinum, 2 LEED Gold, 1 BERDE Certified), affordable basic infrastructure (502,904 water service connections), and employment generation (479,481 microfinance beneficiaries, mostly women).
Climate risk management
Climate-related risks and opportunities are integrated into the Bank’s enterprise risk management framework, recognizing both physical and transition risks across lending, investments, and operations. In 2025, the Bank enhanced its climate risk stress testing framework to assess the resilience of its balance sheet, credit portfolio, and operations under climate-related scenarios, in line with BSP Memorandum No. 42 (2022). Results indicated no material impact on operations or profitability, reflecting the effectiveness of existing controls, including site selection processes and branch business continuity planning.
Operational environmental performance
Operational emissions: 6,849.63 tCO2e (Scope 1 & 2); Scope 3 (business travel) at 356.68 tCO2e.
Energy consumption: 14,931,424.61 kWh; 18 branches equipped with solar panels.
Water consumption: 88,789.75 Cu.M.
(37% reduction vs. 2024).
10,000 mangrove seedlings planted, supporting biodiversity and climate resilience.
No incidents of air pollution exceeding regulatory limits in 2025.
Operational emissions: 6,849.63 tCO?e (Scope 1 & 2); Scope 3 (business travel) at 356.68 tCO?e.
Paper consumption: 9,096 kg (37% reduction vs. 2024).
Energy consumption: 14,931,424.61 kWh; 18 branches equipped with solar panels.
10,000 mangrove seedlings planted, supporting biodiversity and climate resilience.
Water consumption: 88,789.75 Cu.M.
No incidents of air pollution exceeding regulatory limits in 2025.
Operational emissions: 6,849.63 tCO?e (Scope 1 & 2); Scope 3 (business travel) at 356.68 tCO?e.
Energy consumption: 14,931,424.61 kWh; 18 branches equipped with solar panels.
Water consumption: 88,789.75 Cu.M.
Paper consumption: 9,096 kg (37% reduction vs. 2024).
10,000 mangrove seedlings planted, supporting biodiversity and climate resilience.
No incidents of air pollution exceeding regulatory limits in 2025.
Looking ahead
The Bank will continue to refine its climate risk methodologies, expand transition risk assessments, and strengthen integration with portfolio management, operational planning, and contingency strategies.
Emissions reduction targets are being explored as part of an iterative process, recognizing that meaningful climate action should progress alongside robust measurement and reporting.
Providing access to finance
Security Bank offers solutions targeting unbanked and underserved customers, supports SME finance, and delivers financial literacy initiatives. Innovation in mobile and online distribution channels expands access, supporting the Bank’s commitment to financial inclusion.
Key results
- MSME loans: 5,209 MSME loans in 2025; loan disbursements grew 44%.
- Â SME finance: PHP21.46 billion in SME loan disbursements.
- Digital inclusion: 1,483,015 Security Bank App users as of Dec 2025; 769,300 new app downloads in 2025.
- Branch network: 384 branches nationwide (as of March 2026), including 44 in rural areas.
- Financial literacy: ~304,000 participants in financial literacy programs.
- Innovative products: MotorsikLOAN with insurance, solar panel loans, e-trike financing, and Patient Loans for healthcare.
Financial inclusion
- 4,929 loans supporting small business and community development (PHP4.18B).
- 980 families supported through financial training and business mentorship.
Key results
- MSME loans: 5,209 MSME loans in 2025; loan disbursements grew 44%.
- Â SME finance: PHP21.46 billion in SME loan disbursements.
- Digital inclusion: 1,483,015 Security Bank App users as of Dec 2025; 769,300 new app downloads in 2025.
- Branch network: 384 branches nationwide (as of March 2026), including 44 in rural areas.
- Financial literacy: ~304,000 participants in financial literacy programs.
- Innovative products: MotorsikLOAN with insurance, solar panel loans, e-trike financing, and Patient Loans for healthcare.
Financial inclusion
- 4,929 loans supporting small business and community development (PHP4.18B).
- 980 families supported through financial training and business mentorship.
Looking ahead
Continued focus on digital inclusion, SME support, and financial literacy.
Championing Human Capital Management (HCM)
Security Bank leads industry peers in workforce management, with robust grievance channels, annual engagement surveys, and a focus on employee wellbeing and capability building. The Bank is recognized as a top employer and maintains strong performance in human capital development, with annual turnover declining and external recognition for workplace excellence.
Key results
- 10,330 employees; 638,163 total training hours in 2025.
- 1,944 new hires in 2025; 42% recruited through employee referrals.
- Employee engagement index: Improved by 2 points, above industry benchmark.
- Flexible Benefits: 92% participation among officers.
- Zero work-related injuries or fatalities in 2025.
- Diversity: 64% female, 36% male; 44.11% female representation at management level; 27% female Board representation.
- Recognitions: #1 Best Employer for Fresh Graduates (2026, Prosple); SEA Human Capital Awards – Excellence in Digital Transformation (Bronze).
Employee development
- 80% of employees have approved Individual Development Plans.
- 100% received regular performance reviews.
- 125 internships provided, building a pipeline of potential hires.
Key results
- 10,330 employees; 638,163 total training hours in 2025.
- 1,944 new hires in 2025; 42% recruited through employee referrals.
- Employee engagement index: Improved by 2 points, above industry benchmark.
- Flexible Benefits: 92% participation among officers.
- Zero work-related injuries or fatalities in 2025.
- Diversity: 64% female, 36% male; 44.11% female representation at management level; 27% female Board representation.
- Recognitions: #1 Best Employer for Fresh Graduates (2026, Prosple); SEA Human Capital Awards – Excellence in Digital Transformation (Bronze).
Employee development
- 80% of employees have approved Individual Development Plans.
- 100% received regular performance reviews.
- 125 internships provided, building a pipeline of potential hires.
Looking ahead
Continued focus on digital learning, flexible benefits, and inclusion.
Ensuring consumer privacy and data security
Security Bank maintains robust privacy and data security practices, supported by Board oversight, information security governance, and regular assessments. Data protection policies cover all business lines and suppliers, and training is provided to employees to promote security awareness and compliance. The Bank continues to strengthen its information security controls through ongoing monitoring, regular assessments, and ISO/IEC 27001:2022-certified information security management systems.
Key results
- Zero data breaches reported to the National Privacy Commission from 2023–2025.
- ISO/IEC 27001:2022 certification (audited by BSI).
- 24/7 Security Operations Center; regular internal and third-party security assessments.
- Mandatory information security and data privacy training for all employees and relevant third parties.
- Proactive fraud monitoring: 39% reduction in fraud losses, 42% reduction in notification-related operating costs.
Customer privacy
- 18 substantiated privacy complaints in 2025, all addressed.
- No customers affected by data breaches.
Key results
- Zero data breaches reported to the National Privacy Commission from 2023–2025.
- ISO/IEC 27001:2022 certification (audited by BSI).
- 24/7 Security Operations Center; regular internal and third-party security assessments.
- Mandatory information security and data privacy training for all employees and relevant third parties.
- Proactive fraud monitoring: 39% reduction in fraud losses, 42% reduction in notification-related operating costs.
Customer privacy
- 18 substantiated privacy complaints in 2025, all addressed.
- No customers affected by data breaches.
Looking ahead
Continued investment in cybersecurity, privacy training, and compliance with evolving regulations.
Promoting good corporate governance
Security Bank’s ESG agenda is anchored on strong governance and clear accountability. Oversight begins at the Board level, with independent directors comprising a majority and dedicated committees for risk, audit, and sustainability. ESG objectives are embedded in senior management KRAs and cascaded across the organization, with performance linked to incentives and recognition.
Key results
- Board structure: 15 directors, including 7 independent directors and 27% female representation.Â
- Board meetings: 15 meetings held in 2025, including the Organizational Meeting.Â
- Separation of roles: Chairman and President and CEO roles are separated.Â
- ESG oversight: Sustainability is integrated into governance, risk management, and oversight structures across the organization.
- ESG in KRAs: Sustainability objectives are embedded into senior management KRAs and cascaded across the organization.Â
- Remuneration: Compensation structures support accountability and performance.
- MSCI ESG Rating: A (as of March 23, 2026).
Governance practices
- Whistleblower Program in place.Â
- Anti-Bribery and Corruption Policy supports a zero-tolerance approach to bribery and corruption.Â
- Board diversity: 27% female, 27% international, 40% aged 50–64.Â
Key results
- Board structure: 15 directors, including 7 independent directors and 27% female representation.Â
- Board meetings: 15 meetings held in 2025, including the Organizational Meeting.Â
- Separation of roles: Chairman and President and CEO roles are separated.Â
- ESG oversight: Sustainability is integrated into governance, risk management, and oversight structures across the organization.
- ESG in KRAs: Sustainability objectives are embedded into senior management KRAs and cascaded across the organization.Â
- Remuneration: Compensation structures support accountability and performance.
- MSCI ESG Rating: A (as of March 23, 2026).
Governance practices
- Whistleblower Program in place.Â
- Anti-Bribery and Corruption Policy supports a zero-tolerance approach to bribery and corruption.Â
- Board diversity: 27% female, 27% international, 40% aged 50–64.Â
Looking ahead
Continued focus on Board renewal, succession planning, and strengthening ESG integration.
2025 Integrated Report
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