RCBC ramps up green financing  

MANILA, Philippines — Rizal Commercial Banking Corp. (RCBC) continues to ramp up sustainable financing in support of the banking sector’s move toward building a climate-resilient and low-carbon portfolio.

RCBC president and CEO Eugene Acevedo told The STAR that  the   bank has set aside approximately P69 billion for sustainable financing as of end-November last year.

Acevedo said that 75 percent of the total portfolio bankrolls green projects while 25 percent finances social projects.

“Our lending to green projects is mostly for renewable energy development,” Acevedo said.

The Yuchengco-led bank aims to finance more renewable energy projects this year as it continues to heed the call of the Bangko Sentral ng Pilipinas (BSP) to be enablers of environmentally and socially responsible business decisions.

Acevedo said that RCBC is targeting to help finance 12 additional renewable energy projects with combined capacity of 1.6 gigawatts.

As early as December 2020, Acevedo said RCBC was no longer funding new coal energy projects as the country moves to cleaner energy sources.

It aims to reduce to zero its remaining existing exposure in coal-fired power projects by 2031 as it shifts funding deals for renewable energy.

“Our P39 billion coal exposure (as of end-Nov 2022) will gradually taper off until full maturity in 2031. This is aligned with the bank’s announcement in December 2020 to cease funding of the construction of new coal power plants in the Philippines,” Acevedo said.

RCBC remains committed to stop funding new coal power plants in compliance with the nationwide moratorium imposed by the Department of Energy.

The bank has engaged clients in embedding best practice environmental, social, and governance (ESG) in their operations through our Environmental and Social Management System (ESMS).

RCBC has implemented its ESMS since 2011, several years ahead of the issuance of the BSPs regulatory framework.