Security Bank says it will no longer finance new coal power plants

As part of efforts to cut greenhouse gas emissions and limit global warming, Security Bank Corp. on Friday announced that it will no longer finance new coal-fired power plants in the country.

In a statement, Security Bank said its plan to end funding for coal-fueled projects is in line with the Philippine government’s pledge during the 2021 United Nations Climate Change Conference of the Parties (COP26) as well as the 2015 Paris climate agreement.

“A focus of our ESRMS (Environmental and Social Risk Management System) is to specifically address sustainability and climate risk, as well as health and safety risk in our operations, investment practices, and supply chain,” said Eduardo Olbes, chief financial officer and chairman of the sustainability committee of Security Bank.

“A key aspect of the ESRMS is our coal policy, which specifies our commitment to discontinue financing the construction of new coal-fueled power generation plants, with a view to exit funding coal generation by 2033,” said Olbes.

In 2021, Security Bank said its board of directors approved the lender’s ESRMS, which details the policies and enhanced due diligence required for identifying, addressing, and mitigating environmental and social risks in the bank’s operations, lending and investing practices, and supply chain.

In 2020, Security Bank’s board approved its Sustainability Framework, which outlines its principles for addressing environmental, social, and governance issues.

Citing market and consumer research company Statista, Security Bank said that, as of 2020, the Philippines still relies heavily on coal as the main source of energy, accounting for 57% of the country’s energy requirements.

Renewable energy sources such as hydro, wind, solar, and geothermal energy make up only 21% of the country’s energy resources, it said.

Security Bank said it will work with its clients in the energy sector who are committed to sustainable development by supporting the use of low-carbon energy sources and financing new technologies to help in the transition to a low-carbon economy.

“Security Bank is committed to long-term sustainability by advocating lending, investment, and procurement activities that will help the country transition to a lower carbon economy and build resilience to climate change,” said Olbes. —VBL, GMA News