Despite pledges, PH banks continue to finance fossil fuel industry – report

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'Banks must realize that every time they underwrite or facilitate a toxic bond, they have a direct hand in the worsening impacts of the climate crisis,' says Avril de Torres of the Center for Energy, Ecology, and Development.

Established in 2020, the WFC-EFF is a coalition of green organizations, think tanks, and religious groups, including CEED, Living Laudato Si’, Catholic Bishops’ Conference of the Philippines, WWF Philippines, and Manila Observatory.

Financial institutions were critiqued by the coalition based on loans and underwriting issued for fossil gas exploration and production, transport, the conversion of liquified natural gas or LNG to natural gas in order to be utilized as fuel and power, and the construction of fossil gas-fired power plants.

Banks’ spending on coal was contrasted with their divestment policies to calculate their final score.Following the report’s release, BPI chief sustainability officer Eric Luchangco reiterated the bank’s divestment policies established back in 2021. In a text message to Rappler, Luchangco said BPI “remains on track” toward its target to halve coal exposure by 2026 and achieve net zero by 2032.

As of March 2022, Land Bank has approved a total of P20.1 billion in loans to support local renewable energy projects.

 

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