Sustainability has become an essential and crucial component of a financial institution’s success vis-à-vis the growth of the country it serves.
Recognizing this, the Rizal Commercial Banking Corp. (RCBC) has fully embraced sustainability in the Philippine banking industry.
RCBC’s dedication to sustainability has not gone unnoticed. The bank was recently honored at The Asset ESG Corporate Awards 2022 held in February 2023, where it bagged the Platinum Award for creating sustainable value for its investors and stakeholders. This is the Bank’s second ESG recognition, following last year’s Gold award, which is an affirmation of RCBC’s progressive stance in making sustainability a core part of its business strategy.
RCBC’s environmental and social management system (ESMS) is at the core of the bank’s sustainable lending practices. The ESMS adheres to the Eight Performance Standards of the International Finance Corp. (IFC) and has been in place since 2011, well ahead of the Bangko Sentral ng Pilipinas (BSP) sustainability regulations. In April 2019, RCBC developed its own Sustainable Finance Framework, a further testament to its commitment to sustainability.
By implementing the ESMS monitoring mechanism to address potential environmental and social concerns, RCBC has effectively engaged its clients to take appropriate action, thereby fostering a shared commitment to sustainable practices. Since the implementation of its Sustainable Finance Framework, RCBC has issued US$1.4 billion in sustainable financing instruments that refinanced its eligible green and eligible social assets.
RCBC’s eligible green and social assets contribute to the following United Nations’ Sustainable Development Goals (UN SDGs) – SDG 3: Good Health and Well-being, SDG 10: Reduced Inequalities, SDG 4: Quality Education, SDG 11: Sustainable Cities and Communities, SDG 6: Clean Water and Sanitation, SDG 12: Responsible Consumption and Production, SDG 7: Affordable and Clean Energy, SDG 8: Decent Work and Economic Growth, SDG 9: Industry, Innovation, and Infrastructure, SDG 13: Climate Action, and SDG 14: Life Below Water.
One of RCBC’s latest initiatives is the Digital and Customer Centricity Culture Transformation (DC3T), which educates business units to adopt, embrace, and practice a digital mindset and customer-centricity. The bank’s ongoing “Digital and People Transformation” initiatives aim to create a digital-savvy, innovative, and customer-focused organization. This transformation is a crucial link in staying ahead of the curve, equipping, re-tooling, and re-skilling employees to prepare them for their roles as the economy recovers from the pandemic. This initiative contributes to the attainment of UN SDG 8.
RCBC’s recent recognition by the People Management Association of the Philippines (PMAP) for its human resource management (HRM) performance and dedication to maintaining excellent industrial relations (IR) is also contributing to the UN SDG 8’s goal of promoting sustainable economic growth that is characterized by inclusive employment and decent work for all.
Effective HRM practices are critical for creating and maintaining a productive and engaged workforce, which in turn, can contribute to the economic growth and sustainability of a company. By investing in HR programs and maintaining excellent industrial relations, RCBC is not only supporting the well-being of its employees but also promoting decent work and economic opportunities within the banking industry.
Through its active role in promoting best practice ESG principles and the development of proactive HR programs, RCBC demonstrates its commitment to promoting sustainability as the “new normal” fundamentals in Philippine banking.
