Our sustainability framework

Security Bank integrates sustainability into its strategy, operations, and stakeholder engagement to create long-term value for customers, businesses, communities, and shareholders, in line with its vision of becoming the most customer-centric bank in the Philippines. Our sustainability approach is anchored on three pillars: Enrich lives, empower businesses, and build communities sustainably. These guide how we advance financial well-being, support business growth, and contribute to resilient communities.

Governance of sustainability

Security Bank’s sustainability agenda is anchored on strong governance and clear accountability. Oversight begins at the Board level and is embedded across strategy, risk management, and execution, ensuring that sustainability considerations are integrated into business decisions, policies, and performance outcomes, consistent with long-term value creation.

Environment and Social Risk Management System (ESRMS)

Security Bank’s 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:

• E&S risk identification and screening – All applicable transactions are screened based on sector, activity, geography, and client profile.
• Risk categorization and assessment – 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.

• E&S risk identification and screening – All applicable transactions are screened based on sector, activity, geography, and client profile.

• Risk categorization and assessment – 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 strategy and performance

Security Bank’s Sustainable Finance Framework guides the identification, selection, and reporting of eligible sustainable finance projects and instruments, including green, social, and sustainability bonds, loans, deposits, and other instruments. Eligible projects are aligned with recognized national and international standards.

As of 2025, the Bank has disbursed PHP107.76 billion to green and social projects, a 38% increase from 2024. Of this:

• PHP75.8 billion supports green finance
• PHP31.9 billion supported social development initiatives
• This exceeded the Bank’s 2023 commitment to double its sustainable finance portfolio by 2025 by 24%, underscoring strong momentum in responsible financing.

Environmental performance

Operational emissions primarily arise from the Bank’s day-to-day activities, including energy use in offices and branches, mobile combustion, other fuel and energy-related activities, and employee travel for business development and client engagements. Security Bank calculates operational emissions in accordance with the GHG Protocol, applying dual reporting, and the best practice in GHG accounting.

The Bank initiated its Scope 3 Financed Emissions Inventory in 2023 and continued to advance this work in 2025, enhancing data quality and embedding emissions measurements across the organization. In 2025, the inventory was prepared following the Partnership for Carbon Accounting Financials (PCAF) methodology, using a control approach to define system boundaries across all entities under Security Bank’s operational control.

Social performance

Our Human Capital Management (HCM) initiatives focused on helping employees work smarter by reducing administrative friction and strengthening the tools that support their work. By simplifying processes and investing in digital platforms, we enabled our people to focus more on meaningful work, collaboration, and development.

The Bank’s social initiatives focus on people—employees, customers, and communities. Efforts centered on employee wellbeing and capability building, financial inclusion, and supporting MSMEs through access to finance and advisory support.

ESG credibility and disclosure

The Bank’s sustainability performance and disclosures align with leading global frameworks, including GRI Standards, SASB, and IFRS Sustainability Disclosure Standards. In 2025, Security Bank maintained an MSCI ESG Rating of A (as of March 23, 2026), reflecting disciplined governance and integrated ESG execution.