Integration of Just Transition Principles for BDO Unibank
We provided BDO Unibank with an assessment and action plan to further embed Just Transition considerations in its operations
The Philippines is among the world’s most climate-vulnerable countries. Increasing typhoons, shifting rainfall patterns, rising sea levels, and mounting energy demands pose serious risks to ecosystems and livelihoods. BDO Unibank (hereafter “BDO”) is a full-service universal bank offering corporate and retail banking services. As the largest bank in the Philippines, BDO plays a pivotal role in managing climate threats by greening the economy in a fair and inclusive way. The bank is no stranger to sustainable finance, having funded PHP 1.04 trillion (US$17.9 billion) in sustainable projects.
The International Labour Organization (ILO), through its Just Transition Programme, partnered up with BDO to further integrate just transition principles into its operations. The goal was to align BDO’s governance, product offerings, and risk frameworks with the social and environmental dimensions of a low-carbon transition. ILO and BDO involved Steward Redqueen due to our experience in developing the Just Transition Tool, which supports financial institutions in assessing transition risks and opportunities. Our role was to use the tool to provide actionable guidance for its implementation in BDO’s activities.
Our approach was structured around three components. First, we conducted a rigorous evaluation of BDO’s sustainability policies, governance structures, risk frameworks, and due diligence processes to identify gaps and strengths. Second, we held targeted interviews with BDO’s Sustainable Finance Desk team and Sustainability Office to surface priorities, challenges, and opportunities. Both components led to the formulation of a set of tangible recommendations. The assessment and action plan provided BDO with practical insights to embed just transition principles into its policy, lending, and investment decisions.
