2 0 2 3 S U S TA I N A B I L I T Y R E P O R T

About the Report

2-1, 2-2, 2-3
This report is BDO Unibank’s sixth Sustainability
Report outlining the Bank’s economic, environmental,
social, and governance performance from January
to December 2023. It is a substantiation of BDO’s
commitment to the United Nations Sustainable
Development Goals (UN SDGs), the principles of the
United Nations Global Compact, and the Greenhouse
Gas Protocol (GhG) Protocol. This report has been
prepared in accordance with the GRI Standards
2021. For the Content Index - Essentials Service,
GRI Services reviewed that the GRI content index
has been presented in a way consistent with the
requirements for reporting in accordance with
the GRI Standards, and that the information in
the index is clearly presented and accessible to
the stakeholders.

This report covers the sustainability efforts of BDO

Unibank and its subsidiaries and affiliates, including
BDO Private Bank, BDO Network Bank, BDO Capital
& Investment, BDO Life, BDO Insure, and Dominion
Holdings, Inc.

This report should be read in tandem with the 2023

BDO Annual Report and expanded disclosures on the
BDO website at www.bdo.com.ph.
BDO 2023 SUSTAINABILITY REPORT

Table of Contents

04 BDO’s Footprint

06 Message from the Chairperson

07 Message from the President and CEO

08 BDO’s Path to Creating Shared Value

10 Sustainability Overview

11 BDO Sustainability Framework

12 Sustainability Governance

14 Materiality Topics

16 Stakeholder Engagement

17 Mainstreaming Sustainable Banking

63 Strengthening Business Resilience

104 Pursuing Partnerships for Impact

122 GRI Content Index

127 Supporting the UN Sustainable Development Goals

133 Memberships in Associations

134 Sustainability and ESG Awards and Recognition

135 Contact Information

The limited copies of the

BDO 2023 Sustainability Report
are printed on Toccata paper.
Acid-free and made with materials
from well-managed forests,
Toccata is certified by the Forest
Stewardship Council (FSC).
To know more about FSC,
please visit https://fsc.org/en.
 BDO’s Footprint 2-1

BDO is a full-service universal bank in the Philippines, providing a complete array of industry-
leading products and services including Lending (corporate and consumer), Deposit-taking, Foreign
Exchange, Brokering, Trust and Investments, Credit Cards, Retail Cash Cards, Corporate Cash
Management, and Remittances. Through its local subsidiaries, the Bank offers Investment Banking,
Private Banking, Leasing and Finance, Rural Banking, Life Insurance, Property and Casualty Insurance
Brokerage, and Online and Traditional Stock Brokerage Services.

BDO’s institutional strengths and value-added products and services hold the key to its successful
business relationships with customers. Its branches remain at the forefront of setting high standards
as a sales- and service-oriented, customer-focused force. The Bank has the largest distribution
network with over 1,700 operating branches and more than 5,500 teller machines nationwide. BDO
has 16 international offices (including full-service branch offices in Hong Kong and Singapore) spread
across Asia, Europe, North America, and the Middle East.

The Bank also offers digital banking solutions to make banking easier, faster, and more secure for
its clients.

Through selective acquisitions and organic growth, BDO has positioned itself for increased balance
sheet strength and continued expansion into new markets. As of December 31, 2023, BDO is
the country’s largest bank in terms of total resources, customer loans, deposits, assets under
management and capital, as well as branch and ATM network nationwide.

BDO is a member of the SM Group, one of the country’s largest and most successful conglomerates
with businesses spanning retail, mall operations, property development (residential, commercial,
hotels and resorts), and financial services. Although part of a conglomerate, BDO’s day-to-day
operations are handled by a team of professional managers and bank officers. Further, the Bank
has one of the industry’s strongest Board of Directors, composed of professionals with extensive
experience in various fields that include banking and finance, accounting, law, and business.

Corporate Mission
To be the preferred bank in every market we serve.

Corporate Vision
To be the leading Philippine bank and financial services company that empowers customers
to achieve their goals and aspirations, combining our entrepreneurial spirit, international
perspective, and intense customer focus to deliver a personalized banking experience that is easy,
straightforward, and convenient, while taking pride in building long-term relationships and finding
better ways to deliver offerings of the highest standard.

Core Values
Commitment to Customers. We are committed to delivering products and services that surpass
customer expectations in value and every aspect of customer service, while remaining prudent and
trustworthy stewards of their wealth.

Commitment to a Dynamic and Efficient Organization. We are committed to creating an

organization that is flexible, responds to change, and encourages innovation and creativity; we are
committed to the process of continuous improvement in everything we do.

Commitment to Employees. We are committed to our employees’ growth and development and
we will nurture them in an environment where excellence, integrity, teamwork, professionalism, and
performance are valued above all else.

Commitment to Shareholders. We are committed to providing our shareholders with superior

returns over the long-term.

04
A262.1 billion
(US$4.7 billion)
Direct Economic Value Generated

A2.9 trillion
(US$51.5 billion)
Gross Customer Loans

A3.6 trillion
(US$64.4 billion)
Total Deposits

A518.6 billion
(US$9.3 billion)
Capital

A4.5 trillion
(US$80.9 billion)
Total Resources

A73.4 billion
(US$1.3 billion)
Net Income

A687.5 billion
(US$12.4 billion)
Market Capitalization

A898 billion
(US$16.2 billion)
Total Sustainable Finance funded

1,722
Total Branches and Banking Offices,
including foreign branches in Hong
Kong and Singapore

5,514
Teller Machines Nationwide
(ATMs, Cash Accept Machines,
Universal Teller Machines, and
Self-Service Teller Machines)

P1 = US$55.37

05
 Message from the
Chairperson
Dear Clients and Shareholders,
At BDO, we believe that being socially and environmentally responsible is
more than just ensuring business continuity and resiliency. As we continue
on our sustainability journey, we carry a much greater conviction of our
role in empowering more Filipinos to make sustainable choices.
Our products and services helped enhance financial inclusion and
well-being, especially for unbanked and underserved Filipinos. Through
our sustainable finance initiatives, we supported businesses that promote
environmental protection and conservation. We also pursued projects that
provide opportunities for the growth and development of individuals and
communities through entrepreneurship or employment.
The pioneering BDO Blue Bond raised US$100 million from the investment
of the International Finance Corporation and funded projects that help
ensure the availability of clean water in key areas where there is water
scarcity, and manage wastewater so that it is recycled and kept from
flowing directly to the ocean.
BDO’s first ASEAN Sustainability Bond, which successfully raised
P52.7 billion in 2022, funded the expansion of renewable energy sources;
the development of sustainable infrastructure; the creation of job
opportunities for displaced, underprivileged, and unemployed Filipinos;
and the provision of loans for Micro, Small, and Medium Enterprises
(MSME) to increase productivity.
Through MSME financing, we supported women clients who comprise the
majority of entrepreneurs we finance. As more women become financially
self-reliant, they also become more empowered to participate actively in
“As we continue on the economy.
our sustainability We are able to pursue all these sustainable initiatives with the help of our
journey, we carry dedicated BDO employees. To further develop their appreciation for the
Bank’s sustainability efforts and hone their capacity to better implement
a much greater its accompanying projects, BDO employees were encouraged to join
capacity-building sessions organized by the Sustainability Office, such as
conviction of our workshops on the UN Sustainable Development Goals and sustainable
role in empowering finance trainings in partnership with the International Finance Corporation.
more Filipinos to BDO employees also participated in community-building activities through
the Bank’s employee volunteer program. BDO employees worked hand-
make sustainable in-hand with partner communities and organizations to help in disaster
choices.” recovery and to promote financial literacy and inclusion. In 2023, we saw
an increase in the number of participating employees — they offered
4,402 hours of their time and expertise to promote the Bank’s advocacies
in 86 volunteer events nationwide. We also forged partnerships with more
organizations in order to reach out to more communities, especially those
in the more remote areas of the country.
We recognize how immense the challenges are ahead of us. Rather than
be daunted, we take these challenges as opportunities to live out our
We Find Ways mantra and make our world better for future generations.
Yours truly,

Teresita T. Sy
Chairperson
06
Message from the
President and CEO
Dear Stakeholders,
Another year in our sustainability journey, another year to reflect on our policies
and activities, and another year to implement improvements in our approach
to sustainability. Our philosophy remains constant, continuous improvement
implemented in small steps over time.
In 2023, we upgraded BDO’s sustainability policy into the more comprehensive
framework, the Environmental and Social Risk Management System (ESRMS).
The upgraded policy reflected our position on social and environmental issues
in support of the United Nations Sustainable Development Goals. The ESRMS
clearly defined the Bank’s risk appetite on issues such as climate change, the
environment, human rights, and disaster risk management and response. In
addition, we are increasingly factoring in our business decisions the dependencies
and impact on the environment of the organizations we support.
BDO is also active in the market promoting financing instruments in support
of sustainability. We issued the Blue Bond for ocean and water projects, the
Green Bond for cleaner energy, and the ASEAN Sustainability Bond for economic,
environmental, and social development.
We continue to expand the scope of our branches to promote financial inclusion.
BDO Network Bank’s branches and loan offices increased by 12% year on year,
providing the rural population and Micro, Small, and Medium Enterprises (MSMEs)
easier access to financial support to meet their needs and to grow their business.
Our loans to MSME grew 30% in 2023.
Through BDO Foundation, we reconstructed our 160th rural health unit in 2023. In
partnership with the Philippine Red Cross, we inaugurated our first Blood Center
to serve Agusan del Norte and neighboring provinces. We continue to create
“Remaining true and nurture partnerships that allow us to conduct disaster response for families
to our sustainable gravely affected by disasters and to pursue the advocacies we champion.

finance framework, These efforts have not gone unnoticed. BDO was named Top Sustainability
Advocate in Asia for the third straight year at the 2023 Asia Corporate Excellence &
we believe that Sustainability (ACES) Awards in Kuala Lumpur, Malaysia. For the 13th consecutive
year, The Asset Awards gave BDO the Platinum Award for Excelling in Environment,
ensuring viability Social and Governance (ESG) in Hong Kong. BDO received the Best Advance in
of our business Sustainability Practices Award at the 14th Annual Retail Banker International Asia
Trailblazer Awards in Singapore. The Bank also won the Best Sustainability Bond
goes hand-in-hand for Financial Institution in the Philippines at The Asset Triple A Country Awards for
with promoting Sustainable Finance. In addition, BDO received the Four Golden Arrows rating at
the ASEAN Corporate Governance Scorecard (ACGS) Awards for the top publicly-
the well-being of listed Philippine companies in corporate governance.
our planet and its Remaining true to our sustainable finance framework, we believe that ensuring
viability of our business goes hand-in-hand with promoting the well-being of our
people.” planet and its people. We celebrate our milestones and I personally thank all BDO
bankers for their integral role in ingraining sustainability in everything that we do.
With their steadfast dedication, we forge ahead to shape a more sustainable and
resilient future for everyone.
Sincerely,

Nestor V. Tan
President and CEO

07
 BDO’s Path to
Creating Shared Value

Creates jobs Fosters Accelerates Facilitates

banking economic infrastructure
41,647 habits growth development
Employees
825,414 A37.7 billion A73 billion
75% Lives insured Taxes paid in 2023 Loans disbursed to
Employees are national projects
women A18.8 million Supports
Customers customer A18.1 billion
59% expenditure Loans disbursed in
Women in senior 1,722 the past 5 years for
management
(Assistant Vice President
Branches and 8% airports
and up) Banking Offices 5-year CAGR** in
including foreign Home Financing A31.2 billion
37% branches in Hong Loans disbursed in
Women in top
Kong and Singapore 11% the past 5 years for
5-year CAGR** in road networks
management
(Senior Vice President 1,993,044 Credit Cards
and up)
Total new checking (Cards-in-Force)
and savings **Compounded Annual
Helps Growth Rate
accounts
businesses
grow
5,514
Teller Machines
A50.1 billion Nationwide
Bank-wide (ATMs, Cash Accept
outstanding Machines, Universal
SME Loans Teller Machines,
and Self-Service
Teller Machines)
08
Promotes Champions Finances environment-friendly
community financial solutions
development inclusion
A898 billion 59
160 26 Total Sustainable Renewable Energy
Rural health units Financial education Finance projects Projects funded
(RHUs) rehabilitated videos developed funded to date to date
to date since 2018
2,377 MW Volunteers for
29 6,989,916 **
Total installed the community
RHUs rehabilitated Total beneficiaries renewable energy
in 2023 reached through capacity in 86
financial education megawatts Volunteer activities
861,791 programs
Total beneficiaries since 2018 4,382,572 1,263
of RHUs Tonnes of carbon
rehabilitated 1,951,984 dioxide avoided Employee
per year volunteers
in 2023 Beneficiaries
reached through
7,831,373 financial education 72,466,757 4,402
Total beneficiaries of programs in 2023 Equivalent tree Volunteer hours
RHUs rehabilitated seedlings grown
to date 12 over 10 years
Partner government
agencies 930,491
Equivalent
passenger
vehicles taken off
*
Sustainable Aviation Fuel
roads yearly
**
Excludes partner agency data which were not
available at the time of reporting.
09
 Sustainability
Overview
BDO Sustainability Philosophy
We seek to achieve strategic resilience by
incorporating sustainability principles in the
way we do business and in everything we
do — from making business decisions to
assessing relationships to creating products.

Alignment with the United Nations

Global Compact Principles
BDO supports the principles of the United Nations Global compact.
The Bank upholds:
▪ Corporate Governance
▪ Climate-friendly solutions and opportunities for business
▪ Access to clean, renewable, and reliable energy sources
and services
▪ The adoption of instruments that help quantify, manage, and
report the carbon footprint of our businesses
▪ The responsibility to protect the dignity of every person and
uphold human rights
▪ The recognition of the role of women in achieving economic
growth and poverty reduction
▪ The elimination of all forms of forced, compulsory, and
child labor

10
BDO Sustainability
Framework
The Bank’s Sustainability Framework defines the strategies that serve
as guideposts in its journey towards sustainability.

We create products and services which anticipate

the evolving needs of our customers and support
sustainable development goals.

We develop our capabilities to understand We support the achievement of national

our customers and reach the underserved economic goals through financial
markets with relevant products and inclusion and impact financing in
services that meet their infrastructure, eco-friendly
unique needs and ways Sus solutions, green facilities,
gy Contr ta
of doing business. ct Strate ibu ina and disaster
u tio bi resilience initiatives.
od ility n li
St
b
in r

ty
sta P
a

ra
te
gy
Su

We seek to achieve strategic

resilience by incorporating
ma lity Strategy

sustainability in the way we do

Contribution Base
Governanc

business and in everything we do

pital

— from making business

decisions to assessing
n Ca

relationships to We continuously
creating products.
H abi

enhance our corporate

e-
S
ain

governance framework
tra d
u

to sustain superior
st

te
u

y
business performance
S

anchored on the
Di
Su saster Res p onse principles of accountability,
sta y transparency, integrity, and
We develop leaders in the i n a b il i t y S t r a t e g
sustainability movement. We fairness, together with
aim to grow a “can lead” our partners.
workforce that adopts a
sustainability mindset and
thrives with innovative
thinking and
customer-
focused attitude.

We leverage our resources towards the

relief, rehabilitation, and recovery of
disaster-stricken communities.

11
 Sustainability Governance 3-1

“Since the release of our first Sustainability Report in 2018, we have kept true to the
17 Sustainable Development Goals outlined by the United Nations. We are constantly striving to
infuse sustainability, inclusion, and equity into our corporate culture, products, and services.”

Nestor V. Tan
President and Chief Executive Officer

BDO’s commitment to sustainability is fostered at the Board level, role modeled by senior executive
leaders, executed by the business units and subsidiaries, and brought to life by BDO employees.
BDO’s sustainable development strategies are anchored on the United Nations Sustainable
Development Goals.

BOARD OF DIRECTORS

Executive Committee Corporate Governance Risk Management Board Audit Committee

Committee Committee

PRESIDENT & CEO

SUSTAINABILITY STEERING COMMITTEE

Investor
Risk Central Human
Office of the Relations & Institutional Compliance
Management Operations Resources
Chief of Staff Corporate Banking Group Group
Group Group Group
Planning Group

BDO Foundation Sustainability Office (Convenor)

SUSTAINABILITY TECHNICAL WORKING GROUPS

Board Strategic Facilities Human Products Supply

Counterparty
Governance Focus Management Capital Innovation Chain

12
Roles and Responsibilities 3-1
Oversight for sustainability initiatives reside in four BDO Board Committees, aligned to their key
responsibilities. The Executive Committee approves all sustainability programs across the BDO
Group and their corresponding budgets for implementation. The Corporate Governance Committee
oversees sustainability initiatives related to the following: culture change towards a sustainability
mindset for the organization; stakeholder communication; progress reporting on programs, metrics,
and targets; and sustainability reporting. The Risk Management Committee oversees environmental,
social, and governance risks in the Bank’s risk management system, including climate change
risks. The Board Audit Committee oversees internal audit reporting on sustainability programs and
sustainability reporting, as well as compliance testing against regulatory mandates on sustainability.

Across these four Board Committees, all Board Directors are effectively engaged in various
capacities and according to their expertise, in driving the Bank’s sustainability framework across
corporate governance, risk management, strategy, and operations. In 2022, the Board Committees’
Terms of Reference were updated to reflect their oversight on sustainability matters. The President
and CEO provides high level strategic direction on sustainability — from the articulation of the BDO
Sustainability Strategies to key focus areas where the Bank has the most ESG impact. The CEO also
approves the Bank’s strategic external partnerships and commitments on sustainability on global,
regional, and local levels. He is supported by the Sustainability Transition Steering Committee
which oversees the Bank’s policy formulations, programs review, and recommendations from
the Sustainability Technical Working Groups, as the Bank transitions into a sustainable finance
framework. The Steering Committee is composed of heads of business groups, support groups, and
the BDO Foundation, whose work cover corporate governance, risk management, business strategy,
operations, and corporate social responsibility. The Steering Committee meets on a quarterly basis,
and as needed. Acting as Convenor for the Steering Committee is the Sustainability Office, which
oversees and implements the Bank’s Sustainable Finance Framework transition plan through the
Technical Working Groups. The Sustainability Office also reports to the Corporate Governance
Committee, drives the day-to-day implementation of sustainability initiatives, manages ESG due
diligence, produces the annual Sustainability Report, and represents BDO in external forums. The
Technical Working Groups are assigned a key Focus Area where BDO has the greatest ESG impact
and tasked to review and enhance related policies to embed environmental and social impact
principles and criteria, articulate practice into policy, and recommend and implement sustainability
programs for the Bank. The Technical Working Groups are composed of representatives from
business groups, support groups, and subsidiaries who are chosen for their expertise and
experience in their respective fields.

Reporting Process
1 2 3 4

STEPS TAKEN Capacity Building Materiality Assessment Data Gathering Management Review
GRI Standards Review of operations and Collection of Validation and
training and management approaches, stories and data acceptance of material
workshops identification of key based on identified topics and reported
impact across the value material topics information
chain and performance
indicators
GRI Stakeholder Materiality, Sustainability Stakeholder Stakeholder
SUSTAINABILITY Inclusiveness Context, Stakeholder Inclusiveness and Inclusiveness and
REPORTING and Sustainability Inclusiveness, and Completeness Completeness
STANDARDS Context Completeness

13
 Materiality Topics 3-1, 3-2, 3-3

Data Security Employee Health & Safety Customer Privacy Customer Welfare
How BDO safeguards the privacy How BDO creates and How BDO manages risks How BDO manages customer
and security of financial data maintains a safe and healthy related to the use of personally relations to cover customer
against emerging cybersecurity workplace environment free of identifiable information and satisfaction, customer
threats and technologies injuries, fatalities, and illness other customer or user data experience, and welfare
protection
Topic Boundary Topic Boundary Topic Boundary
Within BDO and with regulators Within BDO and Within BDO and with regulators Topic Boundary
and customers with employees and customers Within BDO and
with customers

Systemic Risk Management Business Ethics Labor Practice Diversity & Inclusion
How well BDO is positioned How BDO operates on How BDO upholds commonly How BDO ensures that its culture
to absorb shocks arising from principles of accountability, accepted labor standards in the and hiring and promotion practices
financial and economic stress transparency, integrity, and workplace, in compliance with build a diverse and inclusive
and meet stricter regulatory fairness labor laws and internationally workplace that reflects its talent
requirements accepted norms and standards pool and customer base
Topic Boundary
Topic Boundary Within BDO Topic Boundary Topic Boundary
Within BDO and Within BDO and with key Within BDO and
with regulators government agencies and with employees
employees

Access & Affordability Physical Impact of Financing Sustainable Selling Practices and Product
How BDO promotes and Climate Change Development Labeling
practices the financial inclusion How BDO incorporates How BDO supports sustainable How BDO manages its practices
of the unbanked, underbanked, climate change into lending financing, including financing in consumer finance selling,
or underserved, complemented analysis and risk mitigation renewable energy and green mortgage finance lending, and
with financial literacy to ensure in its mortgage finance and facilities, and/or sustainable insurance products sales and
that customers make informed insurance businesses in order development for positive social marketing
financial decisions to protect shareholder value impact
Topic Boundary
Topic Boundary Topic Boundary Topic Boundary Within BDO and
Within BDO and with regulators Within BDO and Within BDO and with partners with customers
and customers with regulators and customers

Management of Legal and Direct Economic Executive Responsibility in Human Rights

Regulatory Environment Value Generated ESG How BDO manages its direct
How BDO engages with How BDO delivers on How BDO’s sustainability and indirect impact on human
regulators and complies with sustainable returns to its governance structure oversees rights in its operations, including
legal requirements shareholders, and attains and manages ESG material its socioeconomic community
consistent market growth, in topics at the Board and senior impact and engagement
Topic Boundary support of national economic executive levels
Within BDO and development Topic Boundary
with regulators Topic Boundary Within BDO and with community
Topic Boundary Within BDO and with partners and beneficiaries
Within BDO and with key stakeholders
key stakeholders

Product Design and Lifecycle Supply Chain Management Waste Management Water and Wastewater
Management How BDO manages How BDO manages the How BDO manages the impact of
How BDO incorporates environmental, social, and hazardous and non-hazardous its operations on water resources
environmental, social, and governance risks within its waste generated by its
governance factors into the supply chain operations Topic Boundary
lending process Within BDO and with key
Topic Boundary Topic Boundary government agencies
Topic Boundary Within BDO and Within BDO and with key
Within BDO and with regulators with suppliers government agencies
and customers

Energy Management GHG Emissions

How BDO manages its environmental impact associated with energy How BDO manages its direct (Scope 1) and indirect (Scope 2)
consumption greenhouse gas emissions (GHG) generated through its operations,
and GHG emissions from lending and financial intermediary
Topic Boundary activities (Scope 3)
Within BDO
Topic Boundary
Within BDO and with key stakeholders
Note: Total of 22 Materiality Topics for BDO

14
 ESG Materiality Matrix 3-1
BDO’s Materiality identified ESG topics using the GRI Sustainability Reporting Standards, the
Sustainability Accounting Standards Boards (SASB) framework, and the Task Force for Climate-
related Financial Disclosures recommendations, as well as topics reported on by BDO’s peers. S&P
Global designed a bespoke stakeholder survey for BDO’s internal and external stakeholder groups
to rate the importance of identified material topics to the Bank’s ESG impact on stakeholders,
and identify ESG factors that affect the Bank. This enhanced stakeholder group engagement for
materiality assessment aims to better prepare BDO to anticipate and mitigate emerging risks
to the Bank and to its stakeholders. The resulting matrix shows the intersection of ESG topics
most important to both, as ranked by stakeholders in the Philippines and overseas. In 2022, BDO
reviewed each material topic and incorporated it in our policies and programs for the bank. Our
performance on these material issues are discussed in this report.

Environmental
HIGH

Social
Governance

Employee Health and Safety Data Security

Customer Privacy

Customer Welfare

Business Ethics Systemic Risk

Diversity and Inclusion Management
Labor Practice
Impact to Stakeholders

Physical Impact of Climate Change

Access and Affordability
Financing Sustainable Development
Selling Practice and Product Labeling
Management of Legal and Regulatory Environment
Direct Economic Value Generated
Executive Responsibility in ESG
Human Rights

Product Design and Lifecycle Management

Supply Chain Management

Water and Wastewater
Waste Management
Energy Management

GHG Emissions

Impact to BDO HIGH

15
 Stakeholder Engagement 2-29

Stakeholder Channels of
Group Relevance Engagement Relevant Topics Our Commitment
Shareholder or ▪ Providers of ▪ Annual ▪ Access and ▪ Continue to promote the financial
Investor resources Stockholders’ affordability inclusion and financial literacy of
essential to BDO’s Meeting ▪ Systemic Risk the unbanked, underbanked, or
goal to deliver ▪ Investor meetings Management underserved
results, enhanced ▪ Enhance embedded environmental
economic returns, and social criteria in credit risk and
and shared value operational risk systems

Employee ▪ Proponent of ▪ Face-to-face ▪ Employee health and ▪ Prioritize occupational health and
BDO’s vision, meetings safety safety at all times
mission, and ▪ Annual ▪ Customer welfare ▪ Provide timely feedback to customer
objectives performance concerns
appraisals

Customer ▪ Patrons of BDO’s ▪ Customer ▪ Customer Privacy ▪ Provide guardrails to manage risks
or Client products and touchpoints ▪ Data Security related to customer or user data
services ▪ Regular visits and ▪ Safeguard the privacy and security
▪ Greenhouse Gas
briefings Emissions of financial data against emerging
cybersecurity threats and technologies
▪ Disclose our Scope 1, 2 and 3 emissions

Creditor ▪ Source of assets ▪ Regular ▪ Business ethics ▪ Meet our contractual obligations
that support correspondence ▪ Financing Sustainable ▪ Continue to support sustainable
BDO’s business and updates Development financing and sustainable development

Service Provider ▪ Suppliers and ▪ Vendor ▪ Business ethics ▪ Continue to operate on principles of
or Supplier service providers accreditation ▪ Supply Chain accountability, transparency, integrity,
vital to BDO process management and fairness
▪ Regular ▪ Manage ESG risks within our supply
correspondence chain, in partnership with suppliers

Regulator or ▪ Driver of ▪ Formal and ▪ Data Security ▪ Safeguard the privacy and security
Policy Maker regulations and informal ▪ Access and of financial data against emerging
policies that aid correspondence affordability cybersecurity threats and technologies
BDO in achieving ▪ Regular audit ▪ Continue to promote the financial
▪ Business ethics
its goals inclusion and financial literacy of
the unbanked, underbanked, or
underserved
▪ Continue to operate on principles of
accountability, transparency, integrity,
and fairness

Community ▪ Partners in ▪ Community ▪ Customer Privacy ▪ Provide guardrails to manage risks

Beneficiary community engagement ▪ Human rights related to customer or user data
development and dialogues ▪ Protect human rights in our operations,
local economic ▪ Meetings including our socioeconomic
growth for program community impact and engagement
implementation

Analyst or ▪ Partners in ▪ Analysts’ briefings ▪ Financing Sustainable ▪ Continue to support sustainable

Research accurate reporting, ▪ Media events Development financing and sustainable development
Organization upholding ▪ Physical Impacts of ▪ Incorporate climate change into lending
and Media transparency and Climate Change analysis and risk mitigation in our
integrity businesses to protect shareholder value

16
Mainstreaming
Sustainable Banking
We develop and enhance products and services that enable
our customers to make sustainable financial decisions and
practices wherever they are. We manage our environmental
and social risks and create opportunities for our clients,
communities, and country. We support sustainable
development that incorporates financial inclusion and
impact financing to help achieve a low carbon economy that
is environmentally responsible and socially equitable.

*Sustainable Aviation Fuel

17
 Managing Climate Change and Other Environmental
and Social Risks and Opportunities
BDO acknowledges that environmental and social (E&S) risks arising from its activities and those of
its clients have significant impact on its operations. The Bank recognizes sustainability as long-term
risk management, and seeks to manage these risks by incorporating sustainability in the way it does
business. BDO’s Sustainability Philosophy aims to embed sustainability principles when making
business decisions, assessing relationships, and creating products and services.

Over the years, the Bank has adhered to sustainable finance practices that long incorporated
Environmental, Social, and Governance (ESG) in the way that it conducts business as an
organization and as a bank committed to sustainability. Since 2010, the Bank has abided by its
Social and Environmental Management System (SEMS) Policy, which was co-developed with the
International Finance Corporation (IFC) and based on IFC’s ESG standards. The SEMS Policy aims to
control and address social and environmental risks in the Bank’s lending operations by categorizing
E&S risks as High, Medium, and Low, based on type (sector/industry), location (proximity to
environmentally and socially sensitive areas), sensitivity (potential impact whether irreversible/
reversible), and extent of environmental and/or social issues.

The SEMS Policy covered the lending operations, particularly for sustainable finance of renewable
energy projects, energy efficiency initiatives, and green buildings. BDO evolved its longstanding
SEMS Policy into the more comprehensive Board-approved Environmental and Social Risk
Management System (ESRMS) Framework that will help identify, assess and manage E&S risks
associated not only in its lending activities, but also its investment activities and administrative
operations. This Framework is fully incorporated in BDO’s banking policies and procedures and
is aligned with the Bank’s risk appetite which defines the nature and level of risk that the Bank
is willing to take in order to achieve its sustainability strategies. In Q4 2023, BDO started training
priority groups of employees on the ESRMS – starting with its Relationship Managers, Credit
Analysts, and Facilities Managers – to identify and evaluate potential E&S risks associated with its
clients and its administrative operations. The ESRMS Framework will be regularly updated to adapt
to any applicable developments in the Bank’s commitments and in national legislation.

The Bank is continuously working towards its commitment to develop long lasting relationships
with its clients by making sure that its businesses, products, and services are resilient and will be
able to adapt to the ever-changing environment that the Bank operates in. In doing so, BDO will
be in a better position to promote sustainable growth and achieve strategic resilience in all of its
business operations.

Identifying climate-related Risks

The ESRMS Framework is incorporated in the banking policies and procedures and is aligned with
the Bank’s risk appetite which defines the nature and level of risk that the Bank is willing to take in
order to achieve its sustainability strategies.

There are four main key drivers of E&S risks considered by BDO, which are mainly linked to the
characteristics of the Bank’s clients, investments, and its operations. These drivers are:

a) Industry, based on 2019 Philippine Industry Classification System (PSIC);

b) Location;
c) Risks in the value chain; and
d) Identification and management of E&S risks by the business

BDO recognizes that E&S risks can translate to financial risks if left unmitigated.

18
 Environment and Economic Transmission Financial
Climate-related Risks Channels Risks
Transition risks Credit Risk
▪ Policy and Micro ▪ Defaults by
regulation change Affecting individual businesses and
business and households households
▪ Technology
▪ Property damage from
development ▪ Collateral
severe weather
▪ Consumer depreciation
▪ Loss of income from weather
preferences
impacts and health issues Market Risk
Physical risks ▪ Business disruption from ▪ Repricing
▪ Chronic severe weather of equities,
(e.g. temperature ▪ Stranded assets and new capital fixed income,
rise, high expenditure due to transition commodities, etc.
precipitation, sea ▪ Changing demand and costs
levels rise, loss of Underwriting Risk
▪ Legal liability (from failure to
agricultural ▪ Increased
mitigate or adapt)
productivity) insurance losses
▪ Acute Macro ▪ Increased
(e.g. heatwaves, Aggregate impacts insurance gap
floods, cyclones, on the macroeconomy
and wildfires) ▪ Capital depreciation and Operational Risk
increased investment ▪ Supply chain
disruption
▪ Shifts in prices (from structural
changes, supply shocks) ▪ Forced facility
closure
▪ Productivity changes (from
severe heat, diversion of
Liquidity Risk
investment to mitigation and
▪ Increased
adaptation, higher risk aversion)
demand for
▪ Labor market frictions (from liquidity
physical and transition risks)
▪ Refinancing risk
▪ Socioeconomic changes (from
changing consumption patterns,
migration, conflict)
▪ Other impacts on international
trade, government revenues,
fiscal space, output, interest
rates, and exchange rates.

Environment & climate and economy Economy and financial system

feedback effects feedback effects

Physical Impacts of Climate Change

BDO has engaged a third-party consultant to assess the physical impacts of climate change to
BDO's operations, including its offices and branches in the Philippines and abroad, and the Bank's
lending and investment portfolio.

19
 Integration into enterprise risk management
BDO has started to integrate its wider E&S risk assessment in its existing processes for credit,
investments, and operations through the use of an E&S Due Diligence questionnaire developed
in-house called the Environment and Social Tool 4 Risk (EAST4R) for scoring E&S risks, where E&S
issues are assigned weights considering different factors such as industry issues, and relevant
E&S laws and regulations. The environment and climate-related issues considered are climate
change physical risk, climate change transition risk, energy use and conservation, water use and
conservation, deforestation or site clearance, waste management, and biodiversity loss. The social
issues are health and safety, child labor, modern slavery, labor rights, human rights, indigenous
peoples’ rights, and community rights.
Environmental Social

Climate change
Health and safety
(physical risk, transition risks)

Energy use and conservation Child labor

Water use and conservation Modern slavery

Waste management Labor rights

Deforestation or site clearance Human rights

Biodiversity loss Indigenous peoples' rights

Community rights

Key Focus Areas

Disaster Risk Management
Climate Change Environment Human Rights
and Response

Manage the risks Manage and reduce the Recognize and Manage the risks associated
associated with climate Bank’s environmental uphold its role to with the economy, society,
change (physical, impact in its credit, respect human and environment in the
transition risk) and investments, and rights among aftermath of a disaster.
the transition to a low operations, recognizing its stakeholders.
Commitments

carbon economy today that environmental Focus resources to mitigate

and in future scenarios. degradation will and adapt to the E&S impact
exacerbate destruction of disasters brought about
and loss of life. by climate change and
human activities.

Low risk appetite Low risk appetite No risk appetite High risk appetite
for activities that do not for client activities that for activities that for activities that create
support the transition to have significant adverse violate human opportunities, drive
a low carbon economy. environmental impact rights in the Bank’s socioeconomic development,
Activities should be workforce, clients, and respond to needs of
in line with the BDO No risk appetite investees, and marginalized sectors of
Energy Transition for any non- supply chain society
Risk Appetite

Finance Statement compliance with

environmental laws No risk appetite
High risk appetite and regulations for activities that significantly
for clean and renewable disrupt bank operations
energy activities

20
Climate Change
BDO is committed to managing the risks of climate change, both transition and physical risks, that
it is facing today and will face under future scenarios; and managing the risks associated with the
strategic commitment to help the Philippines to transition to a low-carbon economy.

Low risk appetite for activities that are not contributing to the transition to a low carbon economy,
and should be in line with the BDO Energy Transition Finance Statement released in 2022. The Bank
has a high risk appetite for clean and renewable energy sources that emit low greenhouse gas emissions
in its value chain.

This is reflected in current commitment to reduce the Bank’s thermal coal exposure to 50% by
2033, while imposing a limit of 2% of total loan portfolio by 2033. In addition, the Bank will continue
to engage with its clients to determine how best it can support them in their low-carbon transition
journey. However, in line with the Bank’s Energy Transition Finance Statement, in a situation where
the Philippine government implements provisional emergency measures to address an energy
crisis, or to the extent that the country’s energy resources can no longer meet its energy demand,
BDO may reconsider extending capital to coal projects, in the interest of advancing the country’s
social goals. The Bank anticipates that its position on energy security in general, and on coal-related
financing in particular, will evolve along the way in response to the country’s economic realities,
taking into consideration government’s energy-related priorities and programs.

Overall, the Bank aims to:

In its dealings with clients and investees:

▪ Leverage its BDO Sustainable Finance Framework (SFF) which serves as a guidepost in issuing
Green, Social, and Sustainability Bonds and other debt financing instruments that allow the Bank
to diversify funding sources and broaden investor base to include ESG-focused investors. Under
the BDO SFF, eligible projects are expected to reduce the Philippines’ environmental footprint and
assist in the energy transition towards a low-carbon economy, as well as drive socioeconomic
development nationwide.
▪ Improve efforts and capability on climate scenario analysis by regularly reviewing its
exposures to carbon-intensive sectors to better assess its portfolio resilience under various
possible outcomes.
▪ Advocate and support its clients in their transition to a low-carbon economy through innovative
product offerings that promote renewable energy, energy efficiency, green buildings, and transition
financing, among such credit and investment opportunities, across all its target markets.

In its own operations:

▪ Better understand the impacts of climate change by properly identifying and managing the Bank’s
E&S risk exposures in its operations and third-party service providers (i.e., vendors/suppliers).
▪ Ensure strict compliance to applicable environmental laws and regulations such as Republic Act
(RA) 8749 (Philippine Clean Air Act of 1999).
▪ Measure, monitor, and report its emissions using monitoring and evaluation tools [e.g., best
available technologies (BAT)].
▪ Advocate and support its stakeholders in their transition to a low-carbon economy through
capability building and stewardship.

21
 ▪ Disclose the actions that the Bank is taking or has taken and report the progress to its internal
and external stakeholders in a timely manner.
▪ Keep up-to-date with the latest developments from local and international regulatory and
disclosure bodies, such as the following:
▪ Securities and Exchange Commission (SEC)
▪ Bangko Sentral ng Pilipinas (BSP)
▪ Hong Kong Monetary Authority (HKMA)
▪ Monetary Authority of Singapore (MAS)
▪ Global Reporting Initiative (GRI)
▪ Task Force on Climate-related Financial Disclosures (TCFD)
▪ International Financial Reporting Standards (IFRS)

Environment
BDO is cognizant that environmental degradation will exacerbate destruction and loss of life. This
drives the Bank’s commitment in embedding sustainability in its day-to-day operations to reduce
its environmental impacts.

In relation to dealings with clients and investments, the Bank has a low risk appetite for events
brought on by the client’s business that have been determined to have significant adverse
environmental impact (e.g., oil spill affecting marine life, tailings dam failure impacting waterways,
etc.) or for non-compliance with relevant environmental laws and regulations, specifically on waste,
water, and energy, which impact both credit and reputational risk. The Bank has reflected this in its
E&S due diligence procedures.

In relation to banking operations, the Bank has no risk appetite for any non-compliance with
environmental laws and regulations it is being monitored on.

BDO is cognizant that forests play an essential role in global climate stability, preserving genetic
biodiversity, and supporting biological health and well-being. From a financial standpoint,
deforestation jeopardizes the long-term stability and growth of various sectors that depend on
forest resources. Industries such as agriculture, fisheries, construction, and tourism rely on the
ecosystem services provided by forests. Without sustainable forest management, these sectors
face increased risks of productivity decline, supply chain disruptions, and heightened vulnerability
to natural disasters. The Bank is committed to address deforestation and contribute to the
preservation and sustainable management of the Philippines’ forest resources. In terms of its
lending and investment activities, BDO has a low risk appetite regarding activities that may involve
deforestation and will exercise caution and employ strict criteria to evaluate potential clients and
investment opportunities by actively screening borrowers and projects to minimize exposure to
deforestation practices.

In terms of the Bank’s own operations, BDO has no risk appetite for activities that may involve
illegal forest clearing operations. The Bank will prioritize sustainable procurement practices and
will actively seek vendors and suppliers who demonstrate responsible forest management and
sustainable sourcing.

The Bank is committed in ensuring that its operations have reduced impact to the environment
in which it operates in. Moreover, the Bank is also committed in improving the lives of its clients,
employees, and communities it caters to by effective management of its operational footprint.

WATER MANAGEMENT

▪ Reducing water consumption in branches and offices through recycling facilities

▪ Use of best available technologies (BAT) to ensure water use efficiency such as waterless toilets,
leak-free and well insulated piping systems to limit water waste

22
ENERGY MANAGEMENT

▪ Reducing water and energy consumption in branches and offices by using BAT to ensure energy
management such as passive infrared (PIR) motion sensors in bathrooms/toilets, LED lighting,
and inverter technology for air-conditioning units
▪ Switching to renewable/clean energy sources

WASTE MANAGEMENT

▪ Reducing the amount of paper used in bank operations, aligned with its digitalization initiatives,
and where possible, switching to post-consumer recycled paper
▪ Proper disposal of hazardous wastes [e.g., busted fluorescent lamps (BFL), used lead-acid
batteries (ULAB), used oil] and non-hazardous wastes (e.g., food wastes)
▪ Enhancing its reuse of surplus office equipment and furniture as it continues to
expand operations

This Environmental Policy encompasses water, energy, fuel, and waste management and applies to
all business operations, including products and services being offered by the Bank to all companies
operating across all industry sectors.

Human Rights
BDO is committed to understand and uphold the role of business, and in particular the Bank,
in respecting human rights among its stakeholders. The Bank has partnered with the Philippine
Commission on Human Rights (CHR) to build BDO’s capacity to create and implement its own
Human Rights policy across its operations; help BDO create its own Human Rights Impact
Assessment Tool that can inform the Bank’s risk assessment for social risks; and overall, manage
BDO’s human rights impact and responsibility to respect the human rights of its stakeholders.
As such, the Bank has no risk appetite for activities that violate human rights in the Bank’s
workforce, its clients and investees and supply chain. Moving forward, the Bank will engage with its
stakeholders, including:

EMPLOYEES

The Bank will conduct capability-building and surveys in relation to human rights with its
employees, in accordance with its Code of Conduct and Business Ethics, and ensure that any
violations are properly resolved through appropriate methods and channels. The Bank will also
develop its own Human Rights Impact Assessment Tool as part of its partnership with the
Philippine Commission on Human Rights.

CUSTOMERS

The Bank will leverage its Sustainable Finance Framework in its lending activities and will not
finance clients that are involved in activities that violate human rights, such as harmful or
exploitative forms of forced labor, modern slavery, and child labor.

VENDORS AND SUPPLIERS

The Bank will not engage with vendors and suppliers that have violations in human rights policies
and standards. Moreover, the Bank will adhere to its Manual on General Procurement Guidelines
that establishes the policies on procurement of products and services and provides a framework
of efficient, consistent, transparent, and compliant purchasing practices across all business units
of BDO. The Bank reserves the right to terminate any contracts with vendors and suppliers that
did not abide by the Manual. The Bank is developing its own Supply Chain Ethical Code patterned
after the Bank’s Code of Conduct and Business Ethics and ask vendors and suppliers to abide by
its provisions.
23
 The BDO Human Rights Policy applies to the BDO Group in the Philippines and in other countries
where it operates, the entities that it owns, and the entities in which it holds a majority interest.
This policy also applies, to the extent achievable, to the Bank’s supply chain through partners,
suppliers, and third-party contractors.

Disaster Risk Management and Response

BDO recognizes its critical role in economic development and social inclusion. The Bank is
committed to focus its resources to mitigate and adapt to the E&S impact of disasters brought
about by climate change and human activities. The Bank has a high risk appetite for activities that
create opportunities and initiatives that drive socioeconomic development projects addressing
disaster risks and respond to the needs of marginalized sectors of society, especially those affected
by disasters brought about by climate change.

In terms of the Bank’s own operations, BDO remains true to its commitment to embed
sustainability in its day-to-day operations to reduce its environmental impacts that will exacerbate
destruction and loss of life brought about by climate change and human activities. As such, the
Bank has no risk appetite for activities that would significantly disrupt the Bank’s operations. BDO
will consistently adhere to, improve, and adapt its established Business Continuity Plan.

The Bank established the BDO Foundation that serves as its corporate social responsibility arm
and is responsible for harnessing the strengths and resources of the Bank, including those of its
employees for its various programs. The BDO Foundation has laid out a list of target beneficiaries
that may benefit from disaster response activities, focusing its resources on the aftermath of such
events to immediately provide relief, fund rehabilitation, help advance recovery, and strengthen
adaptive capabilities of disaster-stricken communities. The Bank’s Employee Volunteer Program
(EVP), co-managed by the Foundation with Human Resources and the Sustainability Office, focuses
on activities that complement disaster response and adaptation: addressing poverty and hunger,
the environment, education, and financial literacy – sustainable development themes in support of
the UN SDGs.

E&S Risk Assessment

Part of the risk assessment procedures conducted by BDO includes the assessment of E&S risks
inherent at the industry level. For each industry covered in the industry risk assessment, the
Bank assigned a score to each identified E&S risk based on the potential level of risk exposure
considering the nature of the industry’s operations (i.e., low, medium, or high risk). Based on the
aggregate scoring for each of the E&S risk inherent under a particular industry, an overall E&S score
was determined to identify the exposure from an environmental and a social perspective. Results of
the E&S risk assessment at an industry level has been summarized in the next page.

24
Lending and investments portfolio exposure by sector
▪ As of March 2023
Lending Investment Total Portfolio
Sector (79% of total) (21% of total) Exposure
Real Estate Activities 23.8% 2.4% 19.4%
Financial and Insurance Activities 16.3% 9.6% 14.9%
Wholesale and Retail Trade; Repair of Motor Vehicles 11.5% 0.2% 9.2%
and Motorcycles
Electricity, Gas, Steam and Air Conditioning Supply 10.6% 4.2% 9.3%
Activities of Households as Employers; Undifferentiated 9.7% 0.0% 7.7%
Goods- and Services-producing Activities of Households
for Own Use
Manufacturing 8.8% 0.6% 7.1%
Information and Communication 3.5% 0.9% 3.0%
Construction 3.2% 0.4% 2.7%
Transportation and Storage 3.1% 0.6% 2.6%
Arts, Entertainment and Recreation 3.0% 0.1% 2.4%
Water Supply; Sewerage, Waste Management and 1.5% 0.1% 1.2%
Remediation Activities
Accommodation and Food Service Activities 1.3% 0.9% 1.2%
Human Health and Social Work Activities 1.1% 0.0% 0.9%
Other Service Activities 0.9% 0.0% 0.7%
Agriculture, Forestry and Fishing 0.5% 0.0% 0.4%
Mining and Quarrying 0.5% 0.5% 0.5%
Education 0.4% 0.0% 0.3%
Administrative and Support Service Activities 0.2% 0.0% 0.1%
Professional, Scientific and Technical Activities 0.1% 0.0% 0.1%
Public Administration and Defense; 0.0% 79.4% 16.4%
Compulsory Social Security*

*Includes investment exposures to government and sovereigns

Key Focus Sectors

Based on its portfolio exposures in lending and investments, BDO has probable high E&S risk
exposures primarily in the Energy sector. The bulk of financing for the Energy Sector goes to electric
power transmission and distribution infrastructure, followed by electric power generation from
renewable energy, coal, and natural gas. To a lesser extent, BDO also has E&S risk exposures in the
Transportation and Storage, Construction, and Mining and Quarrying sectors. To address these, the
BDO ESRMS provides for the Bank’s commitment and approach to these high E&S risk sectors.

Energy Sector
The Bank is committed towards financing more sustainable sources of energy in the Philippines.
The Bank recognizes that the banking industry plays a critical role in the Philippines’ committed
transition to a low carbon economy, a transition that will require providing access to affordable,
reliable, sustainable, and clean energy.

The Bank believes that this transition is a journey that requires adopting a balanced approach,
which must acknowledge the difficult trade-offs that need to be made along the way between
national economic development that depends on affordable and reliable energy, and the relentless
pursuit of the broader goal of climate sustainability. 25
 Transportation and Storage Sector
The Bank is committed towards supporting sustainable modes of
transportation in the Philippines. The Bank recognizes the critical role the
banking industry has in decarbonizing transportation in the Philippines.

Construction Sector
With green buildings, the use of sustainable construction materials and
methods are increasingly becoming the standard. The Bank is committed
to work closely and support its clients in the construction industry to
shift towards becoming sustainable.

Mining and Quarrying Sector

The Bank is committed towards more responsible mining in the
Philippines. The Bank recognizes that the banking industry plays a critical
role towards responsible mining, as many mining clients have seen the
feasibility of a proper E&S management program that is valuable to the
environment and communities. The Bank also notes that certain mined
metals and minerals are key to green technologies, energy generation,
and battery storage.

Additional Due Diligence Applicable to Key

Focus Sectors
The Bank will continuously assess the adherence of each client to
applicable E&S standards by performing periodic evaluation and review of
its projects and operations. In addition, the Bank will assess controversies
its clients and investees are a party to, such as issues related to
deforestation, pollution/improper waste disposal, biodiversity loss, health
and safety, high energy and water use, and violations to indigenous
people and community rights.

The sector commitments are subject to periodic review by the Bank and
will be revised as needed. The clients, investees, suppliers and employees
of the Bank are expected to be guided by these commitments in all their
business transactions.

Sustainable Finance
BDO recognizes the value of natural capital, which presents businesses
with both risks and opportunities. As a pioneer in sustainable finance in the
Philippines, the Bank continues to find ways to protect the environment
through innovative financing instruments that contribute to ensuring
sustainable use of natural resources. BDO also works to advance inclusive
growth through financial inclusion of the underserved and the underbanked.

The Bank’s Sustainable Finance Framework serves as the guidepost

for BDO’s credit and investment activities which takes into account
economic, environmental, and social risks and opportunities.

Financial Instruments for Sustainability

Blue Bond
BDO’s first Blue Bond issuance helped finance and refinance projects
that improved water management in Luzon by increasing the capacity 19,240
of wastewater treatment facilities, providing access to technologies for Tonnes of carbon dioxide
reducing non-revenue water (NRW), and constructing sustainable water emissions avoided
26
supply infrastructure, rain water harvesting and surface water utilization
facilities. The projects increased clean water supply for the area, while
323,939 m3
avoiding groundwater extraction. The three projects that benefitted from Water loss avoided
the bond issuance saved 60,062,121 cubic meters (m3) of water from
groundwater extraction. The projects also avoided 323,939 m3 in water
loss. An additional 4,517 m3 of wastewater was also treated annually. All 60,062,121 m3
of these water savings are equivalent to 19,240 tonnes of carbon dioxide Saved from groundwater
emissions (CO2e) avoided. The projects also included technological extraction
solutions that ensure efficient water use and prevent water discharge from
households to river basins and coastal areas.
The financing also led to a 14% increase in the number of households
with clean water and a 52% increase in the number of establishments
whose wastewater were treated before water reuse or discharge to
bodies of water. The number of hospitals provided with wastewater
treatment also increased by 16% after the financing.
BDO issued its first Blue Bond on May 2022, for US$100 million from
the International Finance Corporation (IFC) as anchor investor. The Blue
Bond is the first in Southeast Asia and first to use the IFC’s Blue Finance
Guidelines. The issuance comes at a critical time for the Philippines,
where severe and extreme water scarcity currently exist in parts of Luzon,
especially in Greater Metro Manila and nearby provinces. Water availability
in the Philippines is only 1,446 m3 per capita per year nationwide,
indicating that the country is experiencing water stress — a situation
when water supply is from 1,000 to 1,700 m3 per capita per year.
For more details on the 2023 BDO Blue Bond Impact Report, see
https://www.bdo.com.ph/aboutbdo/sustainability/sustainability-reporting

ASEAN Sustainability Bond

BDO issued its first ASEAN Sustainability Bond in January 2022 and
successfully raised P52.7 billion for the peso-denominated bond with a
tenor of two years and a fixed rate of 2.90% per annum under its P365
billion Bond Program. As of September 2023, use of proceeds of the bond
has been allocated to 28 projects amounting to P35.75 billion which is
68% of the total issuance. Of these 28 projects, 18 are under the green
eligible categories, while 10 are under the social eligible categories of the
BDO Sustainable Finance Framework (SFF). These projects contributed to
the following social and environmental impacts:
▪ increased access to affordable, safe, nutritious, and sufficient food;
▪ increased production of Fair-Trade certified products;
▪ more beneficiaries of agricultural projects;
▪ creation of jobs and support for micro, small, and medium
enterprises (MSME);
▪ reduction in greenhouse gas (GhG) emissions;
▪ increased renewable energy generation; and
▪ water savings
The Bond is the largest issuance for any Philippine financial institution or
company to date, and was oversubscribed by over 10 times its original
target of P5 billion. BDO’s use of proceeds for the bond supported a
range of sustainability initiatives that improve food security, generate
employment, promote renewable energy, develop green buildings,
improve sustainable water and wastewater management, enhance
resource efficiency, and pollution prevention and control.
For more details on the 2023 BDO ASEAN Sustainability Bond Impact
Report, see https://www.bdo.com.ph/about-bdo/sustainability/
sustainability-reporting
27
 Lending
Pioneering sustainable energy financing: BDO Institutional Banking
For over a decade, BDO Sustainable Finance under the BDO Institutional Banking Group (IBG) has
been at the forefront of financing large scale eligible green and social impact projects. This covers a
wide range of business activities — from renewable energy, energy efficiency, green building, clean
transportation, pollution prevention and control, sustainable management of natural resources
and land use, eco-efficient technology, sustainable water and wastewater management, terrestrial
and aquatic biodiversity conservation, climate change adaptation, affordable housing, access
to essential services, employment generation, and food security. Having pioneered Sustainable
Finance since 2010, BDO has built a robust portfolio of large-scale renewable energy projects across
the nation and in the region. This extensive experience has led to positive economic, environmental,
and social impacts, serving as the foundation for the BDO Sustainable Finance Framework (SFF) for
Bond Issuances.

To further expand sustainable finance coverage, the BDO Board approved a new financing type and
additional categories (see colored text) for the SFF in 2023:

Green Finance Social Finance

▪ Renewable energy ▪ Employment generation
▪ Green buildings ▪ Food security
▪ Clean transportation ▪ Access to essential services
▪ Resource efficiency and pollution ▪ Affordable basic infrastructure
prevention and control ▪ Affordable housing
▪ Environmentally sustainable management ▪ Social and economic empowerment
of living natural resources and land use
▪ Sustainable water and wastewater
management
▪ Energy efficiency
▪ Climate change adaptation

Blue Finance Orange/Gender Finance

▪ Sustainable water and wastewater ▪ Gender responsive products and/or
management services
▪ Offshore renewable energy ▪ Projects or enterprises with a substantially
▪ Ocean-friendly and water-friendly products gender diverse and equitable workforce,
and/or gender-inclusive value chains,
▪ Ocean-friendly chemicals
that ensure gender-pay equity and equal
▪ Prevention, control, and reduction of workplace and employment-related rights
waste from entering the coastal and to all regardless of gender identity
marine environments
▪ Women-owned and/or Women-led
▪ Sustainable fisheries, aquaculture, and enterprise
seafood value chain
▪ Financing other ESG or SDG-aligned
▪ Ecosystem management, protection and projects or initiatives that are
natural resources restoration intentionally designed to substantially
▪ Resource efficiency and circular economy and disproportionately have a positive
▪ Sustainable shipping and port logistics net impact on women, girls or gender
sector projects minorities

28
The BDO SFF acts as a guiding principle for issuing Green, Blue, Social, Orange/Gender, and
Sustainability Bonds, as well as other debt financing instruments, enabling the bank to diversify
funding sources and expand its investor base to include those focused on Environmental,
Social, and Governance (ESG) criteria. The Bank actively contributes to the Philippines’ Nationally
Determined Contribution (NDC) by financing projects that reduce carbon footprints through the
financing of Green, Blue, Social, and Orange/Gender Finance projects.

Projects eligible for financing under the BDO SFF are mandated to demonstrate clear environmental
benefits, including reduced carbon footprints and enhanced community resilience to climate
change. Socially impactful projects must show positive outcomes for impoverished, excluded,
marginalized, vulnerable, disabled, undereducated, underserved, and unemployed populations.

The following activities are ineligible for financing:

▪ Production or trade in any product or activity deemed illegal under host country laws or
regulations or international conventions and agreements, or subject to international bans, such as
pharmaceuticals, pesticides/herbicides, ozone depleting substances, PCB’s, wildlife or products
regulated under CITES
▪ Production or trade in weapons and munitions1
▪ Production or trade in alcoholic beverages (excluding beer and wine)2
▪ Production or trade in tobacco3
▪ Gambling, casinos and equivalent enterprises4
▪ Any business related to pornography and/or prostitution
▪ Production or trade in radioactive materials. This does not apply to the purchase of medical
equipment, quality control (measurement) equipment and any equipment where IFC considers
the radioactive source to be trivial and/or adequately shielded
▪ Production or trade in unbonded asbestos fibers. This does not apply to purchase and use of
bonded asbestos cement sheeting where the asbestos content is less than 20%
▪ Drift net fishing in the marine environment using nets in excess of 2.5 km. in length
▪ Production or activities involving harmful or exploitative forms of forced labor5/harmful
child labor6
▪ Commercial logging operations for use in primary tropical moist forest
▪ Production or trade in wood or other forestry products other than from sustainably
managed forests
▪ Activities involving (i) involuntary resettlement; (ii) risk of adverse impacts on indigenous peoples,
(iii) significant risks to or impacts on the environment, community health and safety, biodiversity,
cultural heritage, or (iv) significant occupational health and safety risks

As of December 31, 2023, BDO funded P898 billion in sustainable finance, including loans to help
finance 59 renewable energy projects (see breakdown of RE projects in succeeding pages).

BDO Sustainable Finance continues to catalyze a green recovery by financing innovative projects
and pioneering financial instruments, contributing to the development of a sustainable financial
value chain.
1
This does not apply to project sponsors who are not substantially involved in these activities. "Not substantially
involved" means that the activity concerned is ancillary to a project sponsor’s primary operations. Note that the
highest contributor to topline revenues determine the industry classification and the Bank’s SEMS is mapped to
industry classification.
2
ICMA Sustainability Bond guidelines
3
Ibid.
4
Ibid., 2
5
Forced labor means all work or service, not voluntarily performed, that is extracted from an individual under threat of
force or penalty
6
Harmful child labor means the employment of children that is economically exploitive, or is likely to be hazardous to,
or to interfere with, the child’s education, or to be harmful to the child’s health, or physical, mental, spiritual, moral, or
social development.
29
 Economic, Environmental, and Social Impact 2-4, 203-1

Description 2022 2023

Total Sustainable Finance Funded P781 billion P898 billion
Loans disbursed in the past 5 years National projects - P56.7 billion National projects - P73 billion
Airports - P12.4 billion Airports - P18.1 billion
Road networks - P31.2 billion Road networks - P31.2 billion
Road Network Development 167.7km 167.7km
Vehicles Served 138.1 million 138.1 million
Carbon emissions annually reduced 4,260 tonnes 4,260 tonnes
through efficient roadways
Total Installed Renewable Energy 2,252 MW 2,377 MW
Capacity
Renewable energy projects funded 58 59
Carbon dioxide avoided per year by 4,302,502 tonnes 4,382,572 tonnes
funded renewable energy projects
Equivalent passenger vehicles taken 913,491 930,491
off roads yearly
Equivalent tree seedlings grown over 71,142,786 72,466,757
10 years
Families Served by Renewable 2,016,602 2,047,480
Energy Projects
Biomass/Biogas Capacity 164 MW 164 MW
Geothermal Capacity 1,179 MW 1,179 MW
Mini Hydro Capacity 433 MW 433 MW
Solar Capacity 380 MW 505 MW
Wind Capacity 96 MW 96 MW
Disbursed Loan Amount per RE Biodiesel: P137 million Biodiesel: P137 million
Technology Type Bioethanol: P920.9 million Bioethanol: P920.9 million
Biomass/Biogas: P24.9 billion Biomass/Biogas: P24.9 billion
Geothermal: P17 billion Geothermal: P17 billion
Hydro: P28.2 billion Hydro: P28.2 billion
Solar: P12.9 billion Solar: P15.7 billion
Wind: P3.9 billion Wind: P4.1 billion
Bioethanol Production 44.1 million liters per year 44.1 million liters per year
Biodiesel Production 60 million liters per year 60 million liters per year

In 2023, loans deployed to Energy Efficiency projects accounted for 46.2% of the Bank’s Green
Finance portfolio. A significant amount funded a Public-Private Partnership for a 900MW Battery
Energy Storage System (BESS) commissioned to address energy intermittency challenges in
the country.

BDO continues to fulfill its commitment to finance other green initiatives including renewable
energy, clean transportation, sustainable water and wastewater management, pollution prevention
and control, green buildings, and eco-efficient production technologies.

30
 Green Finance

Energy Efficiency 46.2%

Renewable Energy 26.7%

Clean Transport 14.7%

Sustainable Water and

Wastewater Management 9.9%

Pollution Prevention
1.4%
and Control

Green Buildings 0.8%

Eco-efficient and/or
0.3%
Circular Economy

In the same year, BDO's Affordable Basic Infrastructure portfolio accounted for 87% of its Social
Financing. Over P67.4 billion in loans funded social projects under Affordable Basic Infrastructure,
Employment Generation, Access to Essential Services, Affordable Housing, and Food Security.

Social Finance

Access to Basic Infrastructure 14.7% 87.1%

Employment Generation 6.2%

Access to Essential Services 4.9%

Affordable Housing 1.3%

Food Security 0.5%

Loan proceeds were used for electrification projects that delivered power to underserved areas,
telecommunication equipment, building a major airport, and constructing a mass rail transit for
clean transportation. The Bank also financed MSMEs and financial institutions providing access to
inclusive financial services, development of low-cost and economic housing, and other initiatives in
the health, education, food, and agriculture sectors.

In adherence to BSP Circular 1159 which states the implementing Rules and Regulations of the
Mandatory Agriculture, Fisheries and Rural Development Financing under Republic Act (RA) No. 11901
or “The Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022”, the
Bank also ensures responsible evaluation and reporting of Sustainable Finance Projects to the BSP,
aligning the Bank’s initiatives with regulatory frameworks and industry standards.

ENERGY TRANSITION FINANCE COMMITMENT

BDO aims to be consistent with its commitment in its Energy Transition Finance Statement in 2022
to cease lending to coal-fired power plant capacity (since 2019) and limit its coal exposure in the
lending portfolio to no more than 2% by 2033. For the full Energy Transition Finance Statement, see
https://www.bdo.com.ph/bdo-energy-transition-finance-statement.
Coal Exposure in Lending Portfolio (Bank-wide)

6%
5.0%
5% 4.4%
3.7%
4%

3%

2% 2033 target

1%

0%
2021 2022 2023 -
31
 Sustainable Energy Finance Projects 203-1
Biodiesel
Production capacity Disbursed loan amount GHG avoidance per
60 ML/Y P137 million year based on Net (in
tonnes CO2e)
12,000
GHG avoidance per year Equivalent passenger Equivalent tree
based in Gross vehicle off the road seedlings grown for
(in tonnes CO2e) per year 10 years
153,732 32,640 2,541,996

Bioethanol
Production capacity Disbursed loan amount GHG avoidance per
44.1 ML/Y P920.9 million year based on Net
(in tonnes CO2e)
35,296
GHG avoidance per Equivalent passenger Equivalent tree
year based in Gross vehicle off the road seedlings grown for
(in tonnes CO2e) per year 10 years
49,540 10,518 819,153

Biomass/Biogas
Installed capacity Disbursed loan amount Net Energy Generation Gross Energy Generation
164 MW P24.9 billion (MWh/year) (MWh/year)
1,075,002 1,194,447
Value of energy GHG avoidance per GHG avoidance per year
generation per year year based on Net based in Gross
(Php/year) (in tonnes CO2e) (in tonnes CO2e)
P7 billion 435,522 483,913
Equivalent passenger Equivalent tree No. of households/
vehicle off the road seedlings grown for families (average of
per year 10 years 6 persons per family)
102,743 8,001,614 supplied by RE
228,555
Amount of agricultural No. of farmers
wastes converted to supported
feedstock/power T/Yr 169,745
1,572,241

Geothermal
Installed capacity Disbursed loan amount Net Energy Generation Gross Energy Generation
1,179 MW P17 billion (MWh/year) (MWh/year)
5,522,758 6,136,397
Value of energy GHG avoidance per GHG avoidance per
generation per year year based on Net year based in Gross
(Php/year) (in tonnes CO2e) (in tonnes CO2e)
P22.1 billion 2,237,468 2,486,075
Equivalent passenger Equivalent tree No. of households/
vehicle off the road seedlings grown for families (average of
per year 10 years 6 persons per family)
527,835 41,107,779 supplied by RE
1,254,032
32
Hydro
Installed capacity Disbursed loan amount Net Energy Generation Gross Energy Generation
433.1 MW P28.2 billion (MWh/year) (MWh/year)
1,743,038 1,926,950
Value of energy GHG avoidance per GHG avoidance per
generation per year year based on Net year based in Gross
(Php/year) (in tonnes CO2e) (in tonnes CO2e)
P10.2 billion 706,167 780,677

Equivalent passenger Equivalent tree No. of households/

vehicle off the road seedlings grown for families (average of
per year 10 years 6 persons per family)
165,751 12,908,653 supplied by RE
395,785

Solar
Installed capacity Disbursed loan amount Net Energy Generation Gross Energy Generation
504.9 MW P15.7 billion (MWh/year) (MWh/year)
656,946 729,939
Value of energy GHG avoidance per GHG avoidance per
generation per year year based on Net (in year based in Gross (in
(Php/year) tonnes CO2e) tonnes CO2e)
P5.2 billion 291,072 323,413
Equivalent passenger Equivalent tree No. of households/
vehicle off the road seedlings grown for families (average of
per year 10 years 6 persons per family)
68,666 5,347,700 supplied by RE
124,722

Wind
Installed capacity Disbursed loan amount Net Energy Generation Gross Energy Generation
96 MW P4.1 billion (MWh/year) (MWh/year)
224,229 237,483
Value of energy GHG avoidance GHG avoidance per
generation per year per year based on year based in Gross
(Php/year) Net (in tonnes CO2e) (in tonnes CO2e)
P1.8 billion 99,349 105,221
Equivalent passenger Equivalent tree No. of households/
vehicle off the road seedlings grown for families (average of
per year 10 years 6 persons per family)
22,340 1,739,863 supplied by RE
44,386

33
 BDO Sustainable Energy Finance Project Map

RE Project No. of Projects Capacity

1 37.5 MW of 150 MW Wind Power Plant 20 MWe Rice husk-fired Power Plant 2

(Burgos, Ilocos Norte) Biodiesel 1 60ML/Y* (Alicia, Isabela)

7 6.8 MWp Solar PV Power Plant

Bioethanol 2 44.1ML/Y*
16 19 MWe Cogeneration Power Plant
(Burgos, Ilocos Norte) Biomass/Biogas 164 (San Mariano, Isabela)
3

Geothermal 6 1,179
70 MW RoR Hydro Power Plant
3

(Alilem, Ilocos Sur)

Hydro 13 433 15 MWe Biomass-fired Power Plant 4

Solar 17 505 (Burgos, Isabela)

2 140 MW Hydro Power Plant Wind 4 96
(Benguet) 12 MWe Rice husk-fired Power Plant Phase 1 6
Total 59 2,377 MW (San Jose City, Nueva Ecija)
7
1
4 31.8 MW Several RoR Hydro Power Plant
(Benguet) * Million liters 12 MWe Rice husk-fired Power Plant Phase 2 7
per year (San Jose City, Nueva Ecija)
5 19 MW Several RoR Hydro Power Plant
(Benguet - Hydro Power Plant) 12 MWe Biomass-fired Power Plant Phase 3 8

(Llanera, Nueva Ecija)

5 100 MWp Solar Farm
(Tarlac City, Tarlac)
4
3 6 MWe Biomass-fired Power Plant 14
3 2 (San Jose City, Nueva Ecija)
12 2 MWe Biomass-Fed Power Plant
(Tarlac City, Tarlac) 4
2 5
132 MW Hydro Power Plant 12

9 12 MWe Biomass-fired Power Plant (Nueva Ecija - Pangasinan)

(Orani, Bataan) 12
12 7 6 14
8 0.32 MWe Rice husk-fired Cogeneration Power Plant 13
3 0.3 MWp Solar Rooftop 5 12 (Sta. Maria, Bulacan)
(Ortigas Center, Pasig City)
24 MW of 54 MW Wind Power Plant 2
1 63.29 MWp Solar PV Farm (Pililia, Rizal)
(Calatagan, Batangas) 9
13

13 3
1
7 8 MW RoR Hydro Power Plant
2
1.8 MW Mini-hydro Power Plant 10

(Bugasong, Antique) 11
16 (Buhi, Camarines Sur)
17
11 7 MWe Biomass-fired Power Plant 1
1 10 9 2.1 MW RoR Mini-hydro Power Plant 8
(Brooke’s Point, Palawan) 8 (San Miguel, Catanduanes)
15
4 172.5 MW Geothermal Power Plant 1.5 MW RoR Mini-hydro Power Plant
(Valencia, Negros Oriental) 13 2
9
9 (Obi, Catanduanes)
8
6 49.4 MW Geothermal Power Plant
(Nasulo, Negros Oriental) 5.2 MW Solar Rooftop 8

(Iloilo, Leyte, Cebu and Sorsogon)

16 0.38 MWe Biogas plant
(Sta. Cruz, Davao del Sur) 140 MW Geothermal Power Plant 2

(Manito, Albay)
2 14.12 ML/Y Bioethanol Production Plant
(Talisay City, Negros Occidental) 7 125 MW Geothermal Power Plant 3
3
5 (Kananga, Leyte)
1 30 ML/Y Bioethanol Production Plant 8
9 8
15
(La Carlota City, Negros Occidental) 6 586.4 MW Geothermal Power Plant 5

8 (Tongonan, Leyte)
15 20.58 MWe Turbogenerator Power Plant 2

(Silay City, Negros Occidental)

12.9 MW of 25.8 MW RoR Mini-hydro Plant 6

(Jabonga, Agusan del Norte)

6 132.5 MWp Solar Farm 4
6
(Cadiz City, Negros Occidental)
11 6 1.6 MW Mini-hydro Power Plant 11

9 0.325 MWp Solar Rooftop (M. Fortich, Bukidnon)

(Bacolod)
10 MW Hydro Power Plant 13
10 0.5 MWp Solar PV 1 (Oriental Mindoro)
(Zamboanga City) 11
4
106 MW Geothermal 1
4 0.32 MWp Solar Rooftop 14 Power Plant
(Zamboanga del Sur) 8 15
(Kidapawan, North Cotabato)
5 15 MWe Biomass-fired Power Plant 10
28.59 MWp Solar PV Power Plant 2
(Sultan Kudarat, Maguindanao) 5 16 16
(Digos, Davao del Sur)
2
1 60 ML/Y Biodiesel Production Plant 10

(Bagong Ilog, Pasig) 6 MWe Biomass-fired Power Plant 10

(Surallah, South Cotabato)

13 1.17 MWp Solar PV Rooftop
(Western Bicutan, Taguig City) 5 MWe Biomass-fired Power Plant 1
(Pili, Camarines Sur)
14 28.76 Mwac Solar PV Plant
(Jaisalmer district of Rajasthan, India)
1.128 MWp Solar Rooftop 11

3 (Carmona, Cavite)
14 2.4 MW Mini-hydro Power Plant
(Maramag, Bukidnon) 14
0.015 MWp Solar Rooftop 12

3 14.1 MW of 762.8 MW Wind Power Plant 4

(Umingan, Pangasinan)
(Jaisalmer district of Rajasthan, India)
10.5 MW Solar power plant 15
4 20 MW of 640 MW Wind Power Plant (Kibawe, Bukidnon)
(Yunlin, Taiwan)
0.5 MW Solar Rooftop 16
Taiwan India (Sta. Rosa, Laguna)

125 MW Solar Power Plant 17

(Tuy, Batangas)
34
Supporting Evolving Consumer Preferences:
Consumer Banking

AUTO LOAN

BDO Auto Loan aims to be the leading and preferred auto loan
provider nationwide that recognizes and practices sustainability. 991
BDO Auto Loan incorporates ESG principles into business operations HEV/EV Units Booked
through the adoption of environment friendly initiatives, such as
its Green Mobility Program which offers affordable rates and special
promos to customers who choose to purchase eco-friendly vehicles such
P1.4 billion
Amount Booked
as hybrid or electric vehicles. A second initiative is the Adopt-a-Tree
program in partnership with Haribon Foundation Inc. which plants a tree
for every auto loan availed. BDO recognizes how the planting of trees
help mitigate the impacts of climate change, help combat deforestation,
5,713
Seedlings Donated
and reduce greenhouse gas emissions. It also supports biodiversity
conservation and enhances the quality of life of local communities.

Women Empowerment
P2.8 million
Equivalent Amount Donated
BDO Auto Loan supports gender empowerment by providing various
opportunities and benefits for women to access auto loans and purchase
their preferred vehicles. In 2023, women make up almost half of the total
auto loan portfolio, with a 48% share, which shows their strong presence
and influence in the business.
48%
Female Auto
Loan Borrowers
Supporting Overseas Filipino Workers
Overseas Filipino Workers (OFWs) are considered modern-day heroes for
their significant economic contributions that account for one third of the
Philippine economy. BDO Auto Loan recognizes that vehicle ownership
supports the personal and entrepreneurial goals of OFWs. BDO ensures
that they have easy access to financing options that suit their unique
needs and circumstances. The Auto Loan Team diversifies the vehicle 25%
choices and options for OFWs with a wide range of brands, models, and OF Auto Loan Borrowers
competitive rates. Among such choices, BDO Auto Loan also promotes
and encourages environment-friendly and fuel-efficient vehicles. BDO
empowers OFWs to fulfill their aspirations of owning a vehicle for
personal and business use.

HOME LOAN

BDO Home Loan is primarily engaged in providing end-user financing

to various home buyers. BDO Home Loan partners with many of the 49%
country’s reputable real estate developers in the development and Female Home
construction of sustainable projects. These developers aim to support Loan Borrowers
the long-term ecological balance of the environment through energy
efficiency, use of sustainable materials, waste reduction, and more
open-space designs for better health and well-being.

Through BDO Home Loan’s Contract-To-Sell Receivable Financing,

the Bank is able to assist real estate companies in the development and
completion of their projects while buyers are still on their equity period
and eventually providing end-user financing to these buyers with at least
six to 12 months paid equity installments. These developers have likewise
created separate business units to cater to low income groups by

35
 providing affordable housing. The Bank supports these efforts by providing
affordable financing, offering flexible payment options, and extended loan
P72.6 billion
Home Loan Bookings
terms of up to 25 years.

Existing residential real estate property owners also have the

opportunity to go green via BDO Home Loan Equity Loan financing P42 billion
for the construction and renovation of their homes. BDO supports the Home Loan Bookings for
sustainability initiatives of the real estate industry and finds ways to use First time Owners
digital innovations to make home loan financing more accessible for
Filipinos in the country and abroad.

SME LOAN

BDO SME Loan provides flexible loan facilities that support sustainable
financing. SME Ready Check is a revolving credit line facility that 17%
provides for working capital requirements, such as for inventory SME Loan Booking Increase
build-up and management of collections and payables to suppliers.
The SME Term Loan is ideal for investments in fixed assets such
as purchase and upgrade of equipment and machineries, process
engineering, construction of commercial or industrial buildings, and
property acquisitions.

In 2023, SME Loan financed various enterprises engaged in sustainable

businesses: suppliers/traders of solar panels, providers of energy-saving P22.3 billion
power systems and equipment, and small companies in wastewater Outstanding SME Loans for
management and climate smart agriculture (e.g., hydroponic farming). For Consumer Banking Group
end-users, a number of loan releases went to the acquisition of green
office spaces.
P1.7 billion
Since sustainability and sustainable financing are still uncommon Outstanding SME Loans
concepts among SMEs, BDO continues to create awareness and direct by women-owned sole
application of green financing in the business — starting with training the proprietorship for Consumer
Bank’s salesforce front liners on Green Finance for SMEs from experts Banking Group
from the International Finance Corporation, in partnership with the
Bank. For more details on this training, refer to the section on Pursuing
Partnerships for Impact.

PERSONAL LOAN

BDO’s Personal Loan is a financial product designed with flexibility to

cater to diverse individual needs. As a multi-purpose cash loan facility,
153%
Client Growth
a customer may use the funds depending on their requirements,
whether for tuition fees, medical-related expenses, or debt payment.
Customers who avail of a Personal Loan are able to enjoy longer and
lighter payments through its installment feature, along with competitive
48%
Female Personal Loan
interest rates. BDO enables customers to access financial solutions while Borrowers
ensuring responsible lending.

42%
Clients in Provincial Areas

36
CARDS ISSUING

BDO is the leading credit card issuer in the Philippines with 3.5 million
cards in force (30% higher vs. previous year). Growth in card issuance 3.5 million
is driven by BDO’s goal to provide our consumers an unsecured loan Cards in Force
product that provides financial flexibility, whenever, wherever needed.
A significant share of BDO’s newly issued cards are to first-time
credit cardholders, aligned to BDO’s financial inclusion thrust to
60%
Female Credit
the underserved.
Card Holders
In line with BDO’s digitization efforts, the Cards Issuing Group launched
the Customer Relationship Management (CRM), a new online card
application platform which provides customers a more seamless, faster,
and convenient way to apply for a BDO credit card. Customers can simply
click on the “apply now” button at the BDO website or scan a Quick
Response (QR) code available at BDO bank branches, partner merchants,
and BDO pop-up booths nationwide. Card application processed through
the CRM platform not only allows for a better onboarding journey for our
customers but also achieves operational efficiency through paperless
processing, significantly reduced paper consumption, and digital storage
of applications. In 2023, Cards Issuing processed an estimated 37,000
credit card applications in a month through the CRM.

BDO Cards Issuing has also encouraged credit card clients to shift from
printed to electronic statements of account (eSOA) to provide customers
with better data protection and convenient access, along with eliminating
paper use. In 2023, 97% of customers who have usage enrolled in eSOA.
For card delivery, customers were given the option to pick up their credit
card from BDO branches and courier hubs, particularly for those who
reside or work in areas which cannot be reached by couriers or those in
calamity-stricken areas.

Exploring New Cards

In June 2021, Mastercard introduced their Sustainable Card Certification
Program where Issuers can choose from a range of independently verified
Sustainable Card products, from a range of vendors and in a variety of
materials. Aligned with this approach, BDO is exploring ways to identify
environmentally friendly cards, while still ensuring consumer protection.

37
 Investments
Financial wellness by turning savers to investors:
BDO Trust and Investments
BDO Trust and Investments Group (TIG) advocates financially inclusive growth
and responsible investing through its educational programs and investment 26
product offerings. BDO TIG recognizes that financial literacy is essential to Financial Education
enable Filipinos to make sound plans and decisions to achieve financial Seminars Conducted
independence. The goal is to first encourage Filipinos to save, then transform
them from being savers into investors by improving their financial know-
how, and consequently lead them to be more financially prepared for the
1,310
Participants of Financial
future. BDO TIG‘s dedicated team of certified investment trainers conduct Education Seminars
free financial education seminars to a varied audience, covering topics
such as financial budgeting, basics of investing and retirement planning
attuned to their level of investment needs and experience. In 2023, BDO
TIG conducted a total of 26 seminars attended by 1,310 participants. In
the future, it expects higher demand for financial literacy programs, as
household income normalizes with the expected decline in inflation and
the continued growth of the Philippine economy.

EASY INVESTMENT PLAN

To make financial independence a reality, financial literacy should be

coupled with affordable, easy, and simple access to investments. For 57%
this reason, BDO TIG developed the BDO Easy Investment Plan (EIP). Females Enrolled in Easy
The EIP allows individuals to automatically and consistently invest their Investment Plan
hard-earned savings in Unit Investment Trust Funds (UITFs), instilling the
discipline and habit of regular investing to build their wealth and achieve
their life goals in the future. The EIP gives its participants the flexibility and
convenience of investing at lower minimum investment amounts of P1,000
(US$200 for dollar UITFs) per month, providing them access to a diversified
pool of financial securities like bonds or equities, which typically require
higher minimum transaction amounts. The EIP provides ordinary Filipinos
opportunities to start investing and participate in the long-term financial
growth through an affordable investment plan with their chosen UITF.

PERSONAL EQUITY AND RETIREMENT ACCOUNT (PERA)

BDO TIG recognizes the need for Filipinos to prepare ahead to ensure their
financial security and social protection upon retirement and hopefully
achieve a comfortable life during their senior years. For this reason,
BDO TIG prides itself as the first trust entity to be accredited by the
Bangko Sentral ng Pilipinas (BSP) and the Bureau of Internal Revenue as
an administrator of the Personal Equity and Retirement Account (PERA),
a voluntary retirement savings account aimed to supplement future
individual retirement benefits from either SSS, GSIS, and/or from the
employer's retirement plan. BDO PERA instills the mindset of planning for
retirement early, as well as enables customers to take advantage of the tax
benefits offered exclusively to PERA contributors.

38
Since PERA’s launch in 2016, BDO TIG continues to be at the forefront of bringing PERA more
accessible to Filipinos. In 2017, BDO TIG rolled out the country’s first PERA Online facility which
provided ease and convenience in onboarding new PERA clients. BDO also became the very first
participant in Seedbox, a digital platform that allows one to invest in PERA funds online from
different fund providers, making BDO PERA UITFs available to a wider market. BDO’s participation in
Seedbox’s online platform as the sole PERA Product Provider was instrumental to the BSP’s launch
of its Digital PERA initiative in September 2020.

In 2023, the allowable PERA contribution limit of P100,000 increased to P200,000 for local Filipinos
and P200,000 to P400,000 for Overseas Filipinos, which help attract PERA contributors to invest
more. We continue to see high growth rates in both assets under management (AUM) and number
of contributors as Filipinos become more aware of the need to augment their retirement pay
through PERA.

In addition to its own series of financial literacy sessions, BDO TIG maintains active participation
in various events and roadshows organized by the BSP, other industry organizations and media
partners, held in various locations and attended by clients and other stakeholders. These include
the four-week feature on Net 25’s Ano Sa Palagay N'yo? talk show, partnership with the BSP in a
Trust Officers Association of the Philippines (TOAP) webinar organized for the families and members
of the Overseas Filipinos Negros Occidental Federation, Inc. (ONOFI), and participation as resource
speaker in BSP’s Economic and Financial Learning Office – PERA Roadshow held in Cagayan de Oro.
BDO TIG plays a pivotal role and holds the distinct privilege in the industry in promoting PERA to the
public, aligned to BDO’s advocacy of financial inclusion and literacy. The consistent promotion of
PERA through various channels helps spread PERA awareness throughout the country.

BDO TIG believes in instilling the investment discipline of EIP and the retirement planning aspect
of PERA to Filipinos. Driven by the We Find Ways philosophy, BDO TIG took a major step to redefine
corporate pension planning with Pension 360®, a first-of-its-kind integrated pension plan solution.
Pension 360 incorporates TIG’s corporate pension fund management services with complimentary
investor education tools and programs such as financial literacy sessions, savings and investment
programs such as EIP and PERA tailored to sync with the business goals of the employer and
financial goals of the employees.

Personal Equity and Retirement Account

1,947
200 2,000
1,765 194
1,605
151
150 1,500
1,188 123

100 1,000
692 79

427 47
50 500
24

0 -
0
2018 2019 2020 2021 2022 2023
AUM (in Php millions) No. of PERA Accounts

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) EQUITY FUND

BDO TIG also integrates environmental, social, and governance factors in its investment offerings to
clients through the BDO ESG Equity Fund, the first ESG-themed UITF in the Philippines that aims to
support and promote local companies that exhibit noteworthy and credible ESG performance.

39
 In the evaluation and monitoring of the Fund’s investments, BDO TIG adheres to its rigorous
investment process, with the added layer of assessment that takes into account the Bank’s
sustainable finance framework. The Fund follows a negative screening process to exclude
companies with primary businesses associated with alcohol or tobacco, gaming, mining and oil
exploration, power companies deriving 5% or more of total capacity from coal power plants, and
companies with unethical business practices, among others. The Fund’s investments are reviewed
monthly to ensure underlying investments are in strict compliance with the ESG criteria.

The Fund ended the year with a net asset value (NAV) of P347.4 million, experiencing its first annual
decline in NAV since its inception in 2015. The decline in NAV was primarily affected by the general
investor sentiment on the equities market brought about by high inflation and high interest rate
environment, as evidenced by the negative returns posted by the Philippine Stock Exchange Index
(PSEi) in 2023. Given this macroeconomic scenario, investors took profits from their investment
in the Fund from the past years and opted to invest in the safety of time deposits and other fixed
income outlets which offered attractive yields throughout the years. Nevertheless, the BDO ESG
Equity Fund posted positive returns in 2023, consistently outperforming the PSEi. Since its launch,
the Fund has provided robust long-term returns, outperforming the PSEi by more than 11.4% in a
5-year period and by 8.25% since its inception.

Moving forward, BDO TIG will continue to manage the Fund to provide long-term capital
appreciation by looking for growth opportunities in the local stock market through companies that
exemplify ESG principles in their business operations. Through the BDO ESG Equity Fund, BDO TIG
also strives to provide both retail and institutional clients with a values-driven investment product
that upholds their own ESG principles. By supporting the sustainability initiatives of the Bank and its
clients, BDO TIG believes that this will yield significant social return on investment in the long run.

BDO ESG Equity Fund

Net Asset Value (in Php millions)

450 423.68 160%

400 137% 140%

347.38 120%
350

88% 100%
300
80%
250
60%
200 179.12
27% 40%
150 13%
8% 11% 20%
0% 95.51
100 75.15 0%
60.11 66.56
55.5 -18%
50 -20%

0 -40%
2016 2017 2018 2019 2020 2021 2022 2023
Net Asset Value Growth

Managing Wealth for Future Generations: BDO Private Bank

BDO Private Bank (BDOPB) finds ways to maximize sustainability initiatives available to it, keeping
in mind the nature of its products and services and the profile of its clients. In achieving its
sustainability goals, the Bank ensures that it is fully aligned with its parent bank. BDOPB follows
BDO Unibank’s Environmental and Social Risk Management System (ESRMS) that helps identify,
assess, and manage E&S risks associated with its lending and investment activities, as well as its
day-to-day operations.

40
In order to achieve its E&S goals, BDOPB’s approach is three-fold: through internal policies and
processes; through products and services; and through clients.

Internally, BDOPB has embedded processes to manage and reduce the carbon footprint of
the business and its operations, reduce its energy, water, and fuel consumption, minimize the
production of all types of waste, especially paper, and drive the reuse and recycling of
non-hazardous waste, and the safe and proper disposal of hazardous waste in all its offices. BDOPB
tracks and reports its energy and water consumption to the parent bank. Employees are also
encouraged to take part in sustainability activities through volunteerism and in-house recycling and
waste segregation initiatives.

On the business side, through its open architecture

platform, BDOPB is able to make available to its
clients green, social, and sustainability-related
financial instruments. At present, the clients of the
Bank have invested about P3 billion in various green
and sustainability bonds traded in the Philippines.

BDOPB communicates sustainability topics to

its clients by including informative articles in its
in-house client magazine, Managing Wealth. In
past issues, BDOPB featured its parent bank’s ESG
activities as well as a variety of inspiring articles on
ecotourism, conservation, and businesses which
promote sustainability.

With its strategy, BDOPB will be in a better position to promote sustainable growth and achieve
strategic resilience, anchored on good governance, and guided by the principles of accountability,
transparency, integrity, and fairness.

In 2023, BDOPB celebrated its 20th anniversary. Throughout its 20 years, BDOPB has been
determined to adapt and grow with the shifting financial landscape, staying ahead of the curve with
cutting edge practices. Driven by a culture of trust and integrity, BDO Private Bank is set up not only
to take care of families, but to serve entire generations of Filipinos.

Investing in ESG: BDO Treasury

Following the Bank’s Sustainable Finance Framework, BDO Treasury Group has accumulated a
modest amount of green, social, and sustainability bonds in the sovereign, financial institutions,
and energy sector. Treasury intends to diversify and grow this portfolio as opportunities for
investment become available. In 2023, Treasury was invested in a total of 12 labeled bonds which
adhere to ESG-compliance practices relating to or involving achievement of UN sustainable goals,
environmental and social risk assessment in the use of proceeds, project evaluation and selection,
reporting, and external ESG reviews. Specifically, Treasury has invested in bonds with use of
proceeds that span across advancement of renewable energy, clean transportation, conservation
of biodiversity, agriculture and forestry, climate change adaptation, green and/or affordable basic
infrastructures, access to essential services, food security, reduction of inequalities, employment
generation, sustainable water management, socioeconomic advancement and empowerment,
pollution prevention and control, and energy efficiency among others.

Treasury is keen to expand this investible universe of ESG-compliant issuers, having obtained
favorable ESG risk assessment from the BDO Sustainability Office for additional investments in the
telecom, logistics, mining, real estate, and healthcare sectors, and one sovereign. Likewise, annual
reviews now incorporate ESG risks, as well as the entity’s progress versus their stated ESG targets.

41
 Underwriting
Financing Sustainability through the Capital Markets:
BDO Capital
The global sustainable finance market was valued at US$5.8 trillion
in 2022 based on the World Investment Report 2023 issued by P3 billion
United Nations Conference on Trade and Development (UNCTAD). Green Bond for
The sustainable finance market remains a key driver of change in Green Building
the way companies implement their investment strategies. ESG risks
and opportunities are becoming increasingly relevant in equities and
fixed income underwriting and management, loan syndication, project
P50 billion
Telecom Tower Sale
financing, and advisory services.
and Leaseback
BDO Capital & Investment Corporation (BDO Capital) integrates ESG
factors into its underwriting, arrangement, and advisory services,
particularly on the environmental, social, and governance performance of
P10 billion
ASEAN Fixed-Rate
companies it underwrites, and the impact of transactions that it brings
Green Bond
to the market. BDO Capital promotes green and sustainable finance
initiatives through its underwriting of green and social bonds, advisory for
projects that promote investments in renewable energy, green buildings,
and other infrastructure to support the Philippines’ transition to a more
P6.4 billion
Initial Public Offering for
sustainable mode of economic development. an investment trust in
BDO Capital has been recognized by local and international recognition renewable energy real estate
bodies for this approach. It was named as the country’s Project Finance
House of the Year for the 6th time (2017-2021 and 2023) at The Asset
Triple A Sustainable Infrastructure Awards 2023. BDO Capital also won
P100 billion
Term Loan Facility for Mass
the Green Project Deal of the Year for real estate developer Arthaland
Rail Transit
Corporation’s P3 billion green bond issue, where a large part of the
proceeds will fund the company’s investment in new certified sustainable
residential projects.

Apart from these two awards, BDO Capital received from The Asset
in 2023 the Telecom Acquisition Deal of the Year for Frontier Towers
Associates Philippines’ P50 billion debt facilities, for having supported
the largest telecom tower sale and leaseback transaction closed in
the country in 2022. It is among the largest telecom-related financing
packages signed within said year.

BDO Capital jointly managed and underwrote the maiden P10 Billion
ASEAN Fixed-Rate Green Bonds of energy company ACEN Corporation
(ACEN) issued in 2022. The Green Bonds complies with ASEAN Green
Bond Standards and is aligned with the International Capital Market
Association’s Green Bond Principles, which require proceeds to be used
exclusively for the funding of eligible green projects. Proceeds will be used
to finance ACEN’s various solar energy projects in northern and central
Philippines. The deal was awarded the 2023 Best Green Bond of the Year
(Philippines) by Alpha Southeast Asia and Best Fixed Income Deal by the
Investment House Association of the Philippines (IHAP).

BDO Capital acted as Joint Global Coordinator, Lead Local Underwriter,

and Joint Bookrunner for the P6.4 billion initial public offering (IPO) of
Citicore Energy REIT, Corp. (CREIT) listed in 2022. CREIT is a Real Estate

42
Investment Trust (REIT) formed primarily to own and invest in income-
generating renewable energy real estate properties of the Citicore Group.
The IPO was CREIT’s debut into the capital markets and a pioneer for
the Philippine Capital Markets as the first renewable energy and non-real
estate player to list via REIT in the PSE. Proceeds from the primary offer
were used by CREIT to acquire Citicore’s Bulacan and South Cotabato
solar plants. Cicero Green rated these companies as Dark Green - the
highest rating by Cicero’s Shades of Green Assessment. Meanwhile,
proceeds from the secondary offer were reinvested by the Citicore Group
to fund additional renewable energy projects. The deal was named in
2023 Best IPO (Philippines) by The Asset, Best Equity Deal, and Deal of the
Year by IHAP.

In May 2023, BDO Capital jointly arranged a P100 billion term loan facility
for San Miguel Corporation’s Mass Rail Transit 7 Inc., with proceeds
to partially finance the design, construction, testing, commissioning,
operation, and maintenance of an integrated rail-based mass
transportation system consisting of the following:

▪ A 22-kilometer open road segment of the system, consisting of at least

six (6) vehicular lanes from the Bocaue, Bulacan interchange of the
North Luzon Expressway to an intermodal transportation terminal,
▪ An intermodal transportation terminal built adjacent to the Mass Rail
Transit System (MRTS) station terminal, and
▪ The MRTS, including the depot and rolling stock.

The project aims to significantly improve the transportation system in the

Luzon region, allowing for a more efficient and faster flow of commuters,
travelers, goods and services, as well as reduce emissions, when MRTS
becomes operational.

FIRST GENDER BOND IN THE COUNTRY

In July 2023, BDO Capital, in partnership with Landbank of the Philippines,
jointly arranged a P5 billion first-ever Gender Bond issue in the country P5 billion
for ASA Philippines Foundation Inc. (ASA), a non-profit engaged in First-ever Gender Bond
microfinance, micro loans and other financial services to underprivileged Issuance in the Philippines
and underserved communities. The proceeds will be used for working
capital to fund ASA’s lending program that specifically targets women
of the lower income sector engaged in microenterprises as principal
borrowers. The transaction supports the United Nations’ SDG 5.a that
aims to “undertake reforms to give women equal rights to economic
resources, as well as access to ownership and control over land and
other forms of property, financial services, inheritance, and natural
resources, in accordance with national laws”.

PHILIPPINE SOVEREIGN BOND ISSUANCE US$1.26

BDO Capital continues to support the Retail Treasury Bond (RTB) and
Retail Dollar-Denominated Bond (RDB) issuances of the Philippine
billion
Retail Dollar-Denominated
government as part of the latter’s proactive strategy to finance key Bond
initiatives and programs in the areas of food security, infrastructure,
education, and healthcare. At the same time, RTB and RDB issuances
aim to promote financial literacy and inclusion, the value of saving for P283.7 billion
the future, and smart investing in safe and relatively higher earning Retail Treasury Bond
investments, among the country’s general population. In pursuit of these Joint Issue Manager

43
 goals, BDO Capital acted as joint issue manager for the P283.7 billion 29th
RTB and the US$1.26 billion second RDB issuances of the Republic of
the Philippines via the Philippine Bureau of the Treasury in 2023, making
sovereign-risk rated, high yielding investment instruments widely available
to small savers all over the country for subscription amounts as low as
P5,000 for the RTBs and US$200 for the RDBs.

Insurance
Leaving a lasting legacy for future generations: BDO Life
Life insurance is a financial instrument that not only protects
breadwinners’ dependents from unforeseen financial risks; it also enables
them to secure a lasting legacy for those they leave behind, helping
them accomplish their dreams for the future. In 2023, BDO Life launched
initiatives to make life insurance simple, easy, accessible, and sustainable
for breadwinners.

AWARENESS IS WHERE IT ALL BEGINS

Among the principal reasons why people don’t buy life insurance is the
lack of awareness and understanding of what life insurance can do for
their families. A 2023 research study conducted by BDO Life revealed that
real life experiences of life insurance beneficiaries, coupled with guidance
from financial advisors, are the main factors that help customers
understand and realize the need for financial protection. Guided by
these insights, BDO Life launched two ad campaigns that featured true
stories of families who were able to benefit from the program. The first
story illustrated how life insurance proceeds were utilized to support
children's education. The second demonstrated how proceeds enabled
the family to pay off loans and keep their home. Both are real life financial
issues that surface when a family’s primary income provider prematurely
passes away. BDO Life also utilized its digital presence by employing
short posts on social media that feature simple and informative content
to address common life insurance misconceptions, aimed particularly at
primary breadwinners.

FINANCIAL PROTECTION FOR ALL

In addition to offering micro-insurance plans to underserved communities
through BDO Network Bank (BDONB), BDO Life participated in the World 1,190
Teachers’ Day event organized by the Department of Education (DepEd) Teachers Provided with Free
in partnership with BDONB. In this event, BDO Life and BDONB provided Micro-Insurance Coverage
1,190 teachers with the "Kabalikat Plan," free micro-insurance coverage
against accidental death and disability, on top of in-hospital income
benefits. The plan provides valuable social protection at no cost for public
school teachers, a majority of whom are breadwinners for their families.

44
ENHANCED CUSTOMER EXPERIENCE, REDUCED
ECOLOGICAL FOOTPRINT

Recognizing the significant environmental impact of paper consumption,

BDO Life embarked on digitalizing its processes. Apart from promoting
operational efficiencies and improving customer experience, BDO Life’s
digitalization efforts will significantly minimize the organization’s
ecological footprint.

▪ ePolicies. Clients are provided an electronic copy of their policy

contract. Electronically distributed policies offer a more efficient way of
delivering policy contracts, while reducing courier expenses and paper
consumption by 39%.
▪ eReceipts. Similar to ePolicies, clients now receive electronic copies
of their official receipts via email. This initiative allows clients to receive
their receipts in a timely manner while ensuring secure personal
information. Over time, eReceipts will help cut mailing costs and
reduce paper consumption by 60%.
▪ Sales Tool. To improve customer experience and make the sales
process more efficient and engaging, BDO Life is digitalizing its entire
customer onboarding process. With the sales tool, Financial Advisors
can help customers identify their financial needs, explore insurance
options, walk them through product benefits, and purchase their life
insurance plan, all with a few taps on the screen. Once rolled out, the
sales tool is expected to reduce BDO Life’s use of paper products by
80% and cut backroom operational processes by 23%.
▪ Customer Portal. Clients can conveniently access their policy details,
update their contact information, pay premiums, and make policy-
related service requests online. The web-based customer portal
minimizes the need for manual interventions from financial advisors
and customer service representatives.

Driving stronger awareness for the value of life insurance, finding ways
to protect the underserved, and taking steps to shift to a paperless
operational environment – these initiatives form part of a broader effort
by BDO Life to improve customer experience and make life insurance
more sustainable and accessible for all.

De-risking business and individual activities: BDO Insure

Insurance products and programs play a crucial role in supporting the
SDGs and aligning with environmental, social, and economic sustainability
in several ways.

First, insurance helps mitigate risk associated with climate change

and environmental disasters in support of SDG 13 on Climate Action,
by providing coverage for property damage, business interruption,
and liability resulting from environmental events. Insurers incentivize
businesses to adopt sustainable practice and build resilience against
climate-related risk.

Second, insurance fosters economic stability and poverty, aligning with

SDG 1 on No Poverty and SDG 8 on Decent Work and Economic Growth.
Microinsurance programs can empower low-income individuals by
offering financial protection against unforeseen events, enabling them to
invest in income-generating activities without fear of losing everything.

45
 Insurance contributes to SDG 3 on Good Health and Well-being by providing health insurance
coverage. Access to healthcare services becomes more affordable and widespread, positively
impacting the well-being of individuals and communities.

Climate change is a significant challenge facing the insurance industry, and insurance brokers
are no exception. Brokers can expect to see an increase in claims costs and underwriting losses,
reduced availability and affordability of insurance coverage, and increased regulatory scrutiny.
However, climate change also presents some new opportunities for brokers, such as helping
clients to identify and manage their climate change risks, developing strategies to adapt to the
impacts of climate change, and supporting clients to develop and implement sustainable business
practices. Insurance is also a form of adaptation measure that increases resilience and protects the
businesses from the increasing number of risks like climate change physical risk.

When designed with sustainability in mind, insurance products and programs become powerful
instruments in advancing the SDGs and supporting BDO’s sustainability strategies. They will not only
protect against risk but also promote responsible business practices, economic development, and
social well-being.

INSURANCE AND SUSTAINABILITY

BDO Insurance Brokers, Inc. (BDO Insure) program offerings are designed to provide comprehensive
coverage while adhering to sustainability principles and encompassing risk mitigation, financial
inclusion, and alignment with BDO’s sustainability strategies. This involves offering innovative
policies that integrate environmental, social, and governance (ESG) considerations.

The program caters to a diverse audience, including businesses seeking sustainable risk
management solutions and individuals desiring inclusive and eco-conscious insurance options.
BDO targets markets where there is a growing awareness of sustainability, appealing to
environmentally-conscious consumers and responsible corporate entities. Collaborations with
stakeholders amplify the impact, creating a synergy between the insurance program and BDO’s
broader sustainability initiatives.

In 2023, BDO Insure successfully launched ESG-integrated policies, emphasizing climate resilience
and social impact. The program expanded its reach, penetrating new markets, and witnessing
increased adoption of sustainable insurance practices. Collaborations with key partners further
enhanced the program’s effectiveness. Among its milestones are:

▪ Notable improvement on paperless transactions within BDO Insure such as E-policy, Risk
Engineering Survey Reports, and other internal reports transactions. At least 22% reduction of
paper consumption from 5,896 reams in 2022 to 4,615 reams in 2023.
▪ Successful claims settlement of Acts of Nature such as the damages caused by Typhoon Odette
in December 2021. This shows that BDO Insure fully understands the effect of climate change
prior to insurance inception.
▪ Proactively participated in bidding for Property Insurances on renewable energy such as a hydro
power plant, wind power plant, and solar power plant. As a part of the property insurance
program, BDO Insure also includes coverages for sewage treatment plants and chemical
treatment plants.
▪ Risk Advisor to critical businesses such as mining, petrochemical plants, and steel manufacturing.
BDO Insure provides inputs on their loss mitigation program on potential incidents that may
lead to environmental liabilities. Examples of these are insurance cover for floating solar panels,
construction of a client’s own sewage treatment plant, tailing storage facilities (TSF), and
establishing their own Materials Recovery Facility (MRF).

46
RISK MANAGEMENT ADVISORY

BDO Insure strengthened economic resilience through risk mitigation and support for businesses in
navigating uncertainties. It also facilitated economic growth by promoting responsible investment
and financing initiatives aligned with sustainability goals. In terms of environmental impact, the
company reduced environmental risks by encouraging clients to adopt eco-friendly practices
through specialized insurance offerings such as shifting to e-policy and electronic Risk Engineering
Survey Reports to clients, insurance, and reinsurance companies.

BDO Insure provides advisory to clients through Risk Management Reports on:

▪ Good housekeeping, to prevent further losses due to fire, typhoon, flood, and earthquake
▪ Loss Control Recommendation (LCR) to clients most especially to natural hazards and
construction such as the implementation of preventive maintenance program to vital equipment
fire protection and detection system, LPG, sewage treatment plant, drainage system, and a
materials recovery facility
▪ Premises liability of clients on environmental issues such as effluent discharge, carbon emission,
noise, and ambient air
▪ Establishment of proper chemical storage practices

BDO Insure promotes enhanced financial inclusion by providing accessible insurance solutions to
underserved communities, as well as improved public health by offering health insurance options,
ensuring affordable access to quality healthcare services.

CASE STUDY:
Parametric Insurance to manage
climate risk
In 2023, BDO Insure added Parametric Insurance Cover in its product portfolio. Initially provided
by the Department of Finance (DOF) and the Government Service Insurance System (GSIS) in
support of SDG 11 on Sustainable Cities and Communities, parametric insurance supports faster
response to severe natural disasters. BDO Insure’s Parametric Insurance coverage is tailored to
the insured’s needs, based on specific risks triggered by certain events.

The impacts of climate change have become evident with the increasing shocks that
communities and individuals face. Parametric insurance may cover natural events such as
earthquake, cyclone, flood, storm surge, and hail. The insurance may also cover shocks within
the supply chain like construction interruption and other risks associated with natural capital.
The insurance may also cover wind power volatility and the agriculture sector in cases where
there is excess precipitation leading to crop loss.

47
 Financial Services Reach and Value

Nationwide presence through branches:

BDO Unibank and BDO Network Bank
BDO Branches Nationwide
BDO Unibank 1,206 branches

BDO Network Bank 393 branches

Biodiversity index based on

provisioning services

2.87 4.07

Phygital Strategy
Establishing frontline client relationships:
BDO Branch Banking
As a universal bank, BDO continues to find ways to enable access to
financial services, both in person and online as it recognizes that to
be inclusive is to provide different types of services for the different
financial needs of the community.

Branch Banking supports the SDGs by fostering innovation aligned

with SDG 9 and promoting responsible consumption and production
aligned with SDG 12. To cater to BDO clients who still prefer in-person
transactions in branches because they enjoy dealing with another
person, BDO combines the warmth of human interaction with the
benefits of digital technology through its Phygital Banking strategy.
Phygital comes from the words Physical and Digital, describing the
domains in which banks operate to reach its clients. BDO pursues a
Phygital Strategy which recognizes the value of integrating the expansion
of its digital reach, with the continuous growth of its physical reach
through its network of branches and offices nationwide and abroad.

▪ Through BDO’s Branch Online Booking portal, clients also have the
option to book an appointment online for their branch visits, receive 100%
a QR code to be scanned on the Queue Management System (QMS) Branches with Queue
scanner once they reach the branch, and immediately fall in queue. Management System
Access at https://www2.sam.bdo.com.ph/
48
▪ BDO branches introduced self-service technologies as part of its digital
transformation efforts to make its service delivery more efficient and to
promote customer satisfaction across all its channels

a) The account opening and self-service stations inside bank

branches enable clients to input their transaction details before
talking to a branch employee. This eliminates the need for manual
form-filling and allows bank personnel to focus more on building
relationships with clients, instead of processing paper transactions.
b) BDO’s ATMs are the first in the country to be equipped with QR and
biometric technology that allows for cardless cash withdrawal.
c) The Universal Teller Machine, a combined Automated Teller
Machine (ATM) and Cash Deposit Machine (CDM) with additional
features is now available in selected branches. Clients now enjoy
the following new features: Check Deposits, Passbook updates,
Biometric-enabled transactions, and more.

BDO recognizes that building trust is important in digitization and

provides in-branch assistance to encourage individuals to perform
financial transactions in digital format. This helps eliminate the clients’
fear of making mistakes that may result in loss of access or loss of
funds in their account. The Bank has cascaded guides in Taglish or a
combined vernacular Tagalog and conversational English language format
to bank employees so that customers entering the branch may feel more
comfortable rather than intimidated.

AVAILABILITY IN TIME OF NEED

With more than 1,200 branches nationwide and extended hours and
weekend banking availability, BDO Branch Banking ensures it remains as 1,993,044
accessible as possible to both existing and potential customers. BDO Total New CASA (Current
recognizes that having more branches require more resources but given Accounts/Savings Accounts)
the country’s high vulnerability and exposure to disaster risk, the Bank
continues to expand and provide convenient access to products and
services nationwide, more so during times of emergency. To manage
18.8 million
Number of Customers Served
resources at the branch, employees are issued reminders for business
continuity requisition, ensuring ample supply while also limiting the
request for forms depending on the nature of the transactions received
in the branch. Branch personnel also encourage paperless transactions
processing through a kiosk inside the branch to reduce the use of paper.

BDO branches aim to provide services to its clients at the soonest

opportune time to ensure that cash is available when and where it
is needed by the community. During natural disasters (i.e. typhoons,
flooding, earthquakes), advisories are released by Branch Banking
Group to guide employees on proper handling of safety reminders and
instructions during such situations, including assistance to be provided to
our clients.

Whenever there are unusual/hazardous circumstances happening within

the branch premises (e.g. vehicular accident which destroyed the façade
of the branch, foul smell caused by sewer pipe leak, lithium ion battery
fire incident of nearby establishment, etc.), the branch bankers are
trained to handle safety and security. Concerned branch is also advised
to go on early closure/branch closure depending on the gravity of the

49
 situation. To ensure that banking operations will not be compromised, a
buddy branch nearest the concerned branch is announced where clients
can proceed to fulfill their banking transactions.

To ensure that clients visiting the branch are reminded about the safety
banking tips to protect clients from fraud-related activities, branch
personnel are trained to discuss Anti-Scam Tips and refer them to the
BSP 1140 Advisory material displayed on the branch counters.

PARTNERSHIP WITH SM MALLS

Some 44% of adult Filipinos remain unbanked according to the most

recent survey of the BSP. To further the reach of its financial inclusion
efforts, the Bank has partnered with SM Supermalls, also a member of
the SM Group, to be able to serve clients in urban areas and in provinces.
When SM opens a new mall, a BDO branch in the mall opens for clients
as well, making it a one-stop shop where bank clients can conveniently
transact with BDO while also enjoying the mall attractions, even during
weekends. Families of Overseas Filipino Workers, for example, are BDO
clients who are also frequent visitors at SM Malls.

Ensuring availability of cash: BDO Cash Services

BDO supports access to financial services by helping ensure the
availability of fit banknotes and coins needed by the Bank’s branches,
automated teller machines, and clients. BDO Cash Services operates a
logistics network with cash centers in more than 60 strategic locations
nationwide to reach not just urban areas, but also remote municipalities.

Aside from the circulating fit banknotes and coins, BDO also supports the
Clean Note and Coin Policy of the BSP by helping ensure that:

▪ Fit banknotes/coins are properly segregated from unfit

banknotes/coins;
▪ Only fit currency is re-circulated, as well as loaded in automated
teller machines;
▪ Unfit currency is removed from circulation; and,
▪ Measures that deter unacceptable practices, such as, among others,
stapling and writing on currencies, and excessive folding, are in place to
extend the life of banknotes and coins.

BDO also supports the efforts of the BSP in making the circulation of
currency more efficient through the Cash Service Alliance.

AUTOMATED TELLER MACHINES 5,514

The Bank’s focused expansion of new branches mainly in provincial Teller Machines Nationwide
areas is supplemented by Automated Teller Machines (ATMs), digital (ATMs, Cash Accept Machines,
channels, and agency banking, as well as increased market coverage of Universal Teller Machines, and
the unbanked and underserved segments of the population to broaden Self-Service Teller Machines)
financial inclusion. These initiatives have allowed BDO to generate and
widely distribute economic value, supporting economic activity across
the country.
99%
Municipalities and Cities
Deployed with
ATMs and CAMs

50
 CASE STUDY:
BDO and the Cash Service Alliance
The Cash Service Alliance (CSA) is a cash circulation mechanism designed by the BSP to allow
banks to service requirements for fit Philippine currency of other banks from their available cash
holdings. Before the CSA was implemented, banks sourced their requirements for fit banknotes
and coins exclusively from the BSP and deposited excess currency holdings only to the BSP.
With the CSA, BDO supplied other banks with their cash requirements, while it also rationalized
its cash services by reducing armored car trips to and from BSP branches.

The Bangko Sentral ng Pilipinas (BSP) named BDO as one of its outstanding institutional partners
during its 2023 Outstanding BSP Stakeholders Appreciation (OBSAC) ceremony held in Manila
on 27 October 2023. BDO was recognized for serving as the primary source of fit banknotes, in
terms of amount, among all CSA participants in the Greater Manila Area.

According to Rosabel B. Guerrero, Managing Director, Regional Operations Sub-Sector of the

BSP, “the BSP lauds CSA-participating banks like BDO for working together to develop innovative
means to ensure unhampered service to the public. The CSA has resulted in concrete benefits,
including reduced cash verification activities of the BSP and maximized use of fit banknotes in
circulation. The BSP is keen to continue working together with the industry, including BDO, for
worthwhile endeavors that benefit the Filipino people.”

The CSA initiative of the BSP was cited as the “Best Currency Initiative Implemented in Response
to the COVID-19 Pandemic (Central Banks Category)” by the International Association of Currency
Affairs (IACA) in 2021. It was also one of the recipients of the Presidential Lingkod Bayan
Award conferred by President Ferdinand Romualdez Marcos Jr. during the awards rites on 8
March 2023 in Malacañang Palace.

Facilitating access and inclusion: BDO Digital

BDO’s Phygital Strategy continues to create banking relationships in person and online, to reach
the underserved and the unbanked, and provide access to financial services for all, wherever and
whoever they may be. BDO digital banking serves as a strategic complement and alternative for in-
branch banking transactions and addresses client needs on multiple levels:

▪ Accessibility and convenience. Customers can transact anytime (24/7), anywhere.

▪ Security. BDO digital channels make use of technology such as biometrics, multi-factor
authentication, and other fraud management tools for secure transactions.
▪ Individual health and safety. Digital platforms enable access to basic financial services through
personal digital devices, eliminating exposure to health and safety hazards.
▪ Reduced carbon footprint. Decreases the need for travel for bank transactions.

51
 BDO ONLINE

In 2023, BDO relaunched its new BDO Online application, with an

improved user interface and experience, for smoother bank transactions 22%
similar to experiencing it inside a BDO branch or through a customer Growth in New Users
contact center. With the addition of security features such as personal
identification number (PIN) and biometrics transaction confirmation,
account notifications, and the ability to view and manage their accounts
9%
Growth in Transaction
according to their preferences, the app saw a 22% growth in new users Amount
and a 9% increase in the volume of digital transactions compared to the
previous year.

BDO PAY, BDO PAY ACCOUNT

The new BDO Pay app was relaunched in November 2023 and positioned
as the everyday e-wallet application that provides BDO customers
different ways to pay for purchases, as well as send and receive money
anywhere, making financial transactions even easier. Payments are made
simple with the option to choose the source of payment between their
linked debit and credit cards. This makes purchases, utility payments,
and other bills payment even more convenient, especially with the app’s
compatibility with QR Ph, the Philippines’ national Quick Response (QR)
code standard. The app also makes it easy for customers to find exciting
and exclusive deals available for their BDO cards and accounts.

Together with BDO Pay, the BDO Pay Account allows non-BDO customers
to open an account anywhere and anytime through the app. With zero 41%
initial deposit and zero minimum maintaining balance requirements, BDO Growth in New Users
Pay Account is the easiest way to start banking with BDO without visiting
a branch. It supports the digital transformation roadmap of the BSP to
provide bank accounts to 70% of Filipinos by 2023.
130%
Growth in Transaction
Amount
BDO CHECKOUT

BDO’s merchant partners avail of BDO Checkout, an online payment

solution that gives businesses of all sizes the capability to accept credit 67%
card, debit card, and mobile wallet payments, even without a website Growth in Merchants
or outside of large and established e-commerce platforms. This is
especially helpful to micro, small, and medium-sized businesses, as
they seek to grow through offering convenient payment options to their
151%
Growth in Transaction
own customers. BDO Checkout also enables large businesses to simplify Amount
and confirm online transactions with clients in a few very easy steps,
compared to other online payment solutions in the market.

BDO Pay, the BDO Pay Account, and BDO Checkout offer a suite of digital
innovations that enable familial, friendly, and business relationships to
thrive online and do business easier, more so when used in combination
with the strength and reach of BDO’s largest and ever-growing network
of bank branches, automated teller machines (ATMs), and partner
agencies nationwide.

52
CASH AGAD AGENCY BANKING

BDO’s Cash Agad mobile banking solution is one of the earliest

proponents of digital financial inclusion in the country, either extending 9,764
or complementing the reach of the Bank in the rural areas where bank Cash Agad Partner Agents
branches and ATM channels are scarce. The accredited Cash Agad
agent-stores in communities provide ATM cardholders direct access to
their bank accounts by allowing balance inquiry and cash withdrawal
105 million
Cash Withdrawal
services at their stores.
Transactions to date
With 9,764 Cash Agad agents nationwide in 2023, the agents cover 100%
of provinces and 92% of the municipalities in the Philippines. The thriving
community of neighborhood customers which grew even more during
P448 billion
Total Cash
the pandemic is a perfect example of bringing to life the Bank’s focus on
Withdrawn to date
financial inclusivity and economic growth of micro, small, and medium
enterprises (MSMEs). The Cash Agad partners fulfill the need for access
to financial services in underserved markets. The agents, in turn, earn
additional income from convenience fees paid by the customers, while
92%
Philippine Municipalities
their stores also benefit from sales as first use of cash withdrawn by the Covered
same customers. The withdrawal service in itself, recycles the money at
the store by letting these be withdrawn by the customers, while the Bank
credits the agent’s account the next banking day. It is a cost effective and 100%
efficient solution that lets the agent flourish as more transactions are Philippine Provinces
processed. Best of all, the money remains in the community and helps Covered
the local economy grow.

From the time of its launch in 2015, Cash Agad has cumulatively
processed over 105 million withdrawal transactions. This translates to
P448 billion worth of total cash withdrawn. Customers in the countryside
comprise of cash grant recipients of the government’s Pantawid
Pamilyang Pilipino Program (4Ps), payroll employees of private and
local government units, beneficiaries of Overseas Filipinos, pensioners,
and business owners. Customers are serviced by equally diverse Cash
Agad agents ranging from pawnshops, cooperatives, and micro to small
businesses. These include sari-sari stores, pharmacies, mini-groceries,
gasoline stations, and other high traffic establishments in the community.

Cash Agad Coverage and Transaction Count

94% 120
92%
92% 90% 104.6
100
90% 88%
88% 86% 85.0
80
86%
84% 60.6 60
81%
82%
41.4 40
80%
78%
21.9 20
76%
74% 0
2019 2020 2021 2022 2023
Municipalities covered Count of transactions (in millions)

53
 CASE STUDY:
Uplifting women entrepreneurs
Among Agency Banking’s progressive partner agents is a group of
mothers who are beneficiaries of the 4Ps program in Barangay
Siana, Mainit, Surigao del Norte in the Mindanao region. As regular
customers themselves, the mothers were familiar with the Cash
Agad service works at partner stores. They eventually approached
BDO in exploring the viability of having Cash Agad as a business upon
learning that an agent generates extra income from the service fees.
The women pooled their resources and founded the Siana Golden
Mothers Association which was accredited as a Cash Agad partner
agent and now operates a remittance and photocopy center. From
being financial assistance beneficiaries to Cash Agad customers to
women partner agents, the group have become empowered women
entrepreneurs. Cash Agad became an opportunity for them to enrich
their lives towards a future of financial stability.

Cash Management
BDO Cash Management Services (CMS) provides financial services and
strategies to help emerging start-ups, large-scale businesses, and P17 trillion
organizations effectively manage their cash flow, liquidity, and financial CMS Transactions Processed
resources. These services include managing cash balances, analyzing and
forecasting cash flow, optimizing working capital, and ensuring efficient
cash utilization. While BDO CMS is deeply committed to enable clients
136 million
CMS Transaction
to achieve their goals, the Bank is equally committed to promoting
Volume
sustainable business practices among its clients. Among the green
banking solutions that CMS offers are paperless statements, electronic
record-keeping, and electronic payments that reduce the need for
physical cash and checks, which require paper, ink, and transportation.
27% billion
CMS Deals Growth
By reducing paper usage and promoting digital alternatives, businesses
can reduce their carbon footprint and contribute to environmental
conservation efforts.

Optimal cash management through efficient cash handling practices also

helps businesses minimize the excess cash on hand, reduces the need for
physical storage, and lessens security risks associated with moving large
amounts of cash. For cash services, BDO CMS often partners with armored
car services to provide secure transportation for cash. Armored vehicles
are equipped with advanced security systems, including GPS tracking,
surveillance cameras, and bulletproof exteriors. Trained professionals
ensure the safe transfer of cash between locations. The Bank also provides
Corporate Deposit Machines typically located in the clients’ facilities. These
depositories are designed to provide maximum security against theft
and include features such as controlled access, vaults with multi-layered
security systems, and video surveillance.

On the digital front, BDO Business Online Banking (BOB), the online cash
management portal of BDO, enables businesses to transfer funds and
receive payments electronically. This minimizes opportunities for theft or
loss related to cash handling. BOB uses multiple authentication and strong
encryption technology to protect sensitive financial data. It ensures that
payment information remains secure and reduces the risk of unauthorized
access. Regular data backups and robust disaster recovery measures are
also in place. These serve as protection against loss of financial data due
54
to technical failures, natural disasters, or cyber-attacks. Critical financial
information is well-designed to be retrievable, reducing the risk of
irretrievable or lost cash.

CMS’ digital payment solutions also play a crucial role in promoting

financial inclusion and improving access to financial services. By enabling
mobile wallets, online payment platforms, and electronic fund transfers,
start-ups and small scale businesses are able to access financial
transactions digitally, even without traditional banking services. This
technology bridges the gap and provides convenient access to financial
services for those in geographically or economically disadvantaged areas,
where physical access to banks or financial institutions may be limited.

BDO Cash Management Services process a total transaction volume

of 136 million, with a value of P17.4 trillion, for both collections and
payments. The Bank implements around 56,000 deals per year, an
equivalent 33% growth in estimated annual revenue. Total client
base is more than 123 thousand, with 84% coming from small and
medium enterprises.

CASE STUDY:
GrowSari: Transforming the Ubiquitous
Sari-sari Store
GrowSari is a B2B ordering and store solution platform for the
Philippines’ over one million sari-sari stores (mom-and-pop stores
or MSMEs). GrowSari equips the sari-sari stores with both the
infrastructure and tools they need to transform themselves from
simple outlets of fast moving consumer goods to comprehensive
service hubs for the nation’s grassroots communities.

GrowSari started in 2016 as an ordering platform that services sari-sari

stores in three cities. Today, GrowSari powers the management,
growth, and analytics infrastructure across 24 key cities in more
than 400 municipalities in the Philippines. In addition to providing
affordable and on-demand inventory, it also enables store owners to
buy now and pay later through ELista effectively overcoming cash flow
constraints and empowering store owners to keep their shelves well-
stocked and grow their businesses without financial strain. GrowSari
has also integrated multiple micro services such as telco load, bills
payment, e-commerce, Wi-Fi, and other e-services. These micro
services allow store owners to maximize their capital in one wallet and
easily expand their business.

GrowSari has been a BDO Cash Management client since 2018. Last year,
the Electronic Payment Facility via Application Programming Interface
(API) was enabled with GrowSari’s platform. This straight-through digital
payment aligns with BDO CMS’ objective to support clients in increasing
business security and addressing operational concerns when customers
pay in cash. Furthermore, with the E-Payment Facility, the settlement
and payment consolidation are done more efficiently, translating to
faster sales fulfillment and revenue growth for GrowSari.

The Electronic Payment Facility is meant to augment the existing

payment channels that the Bank made available to GrowSari, namely
over-the-counter (OTC) in all BDO branches and regular fund transfer
via BDO Personal Online Banking (POB). BDO CMS also provides
55
 Deposit Pick-up services to GrowSari to collect and consolidate cash
payments made by sari-sari stores from various GrowSari warehouses.
“GrowSari aims to empower and transform one million sari-sari
stores through technology by providing them affordable products,
E-businesses and financial assistance. We are happy that our
partnership with BDO Cash Management Services enables us to do
this by providing not just collection and payment services, but more
importantly determining the best structure of payments and accounts
to optimize our cash flow and working capital,” says Joseph Dultra Jr.,
Treasury Head of GrowSari.

Leasing for increased resilience: BDO Finance

As the leasing and financing arm of the BDO Group, BDO Finance
Corporation (BDOFC) provides financing alternatives not offered by BDO
Unibank through various products such as finance leases, mortgage
loans, factoring, installment papers purchase, floor stock financing, and
amortized commercial loans. Through leasing and amortized commercial
loans, BDOFC is able to finance its customers’ capital equipment
requirements at affordable terms.

With leasing, customers are able to acquire the equipment they need
without worrying about budget constraints. For example, companies
in the construction industry are able to immediately mobilize new
equipment for infrastructure and real estate development projects.
BDOFC also continues to support its customers in the transport sector
in the replacement of old vehicles and trucks with new, more energy
and fuel-efficient units that will help reduce carbon emissions. Leasing
enables trucking and logistics companies to modernize and expand their
fleet to accommodate growing demands in the etransport sector and
ecommerce. Companies engaged in specialized industries such as plastic
recycling and waste disposal are likewise supported through leasing of
plants and heavy machinery.

BDOFC’s working capital lines such as factoring, which enables

companies to obtain immediate cash by selling local trade receivables
to BDO. This enables supporting the funding requirements of both large,
medium, and small companies even in the absence of hard collaterals,
allowing underserved markets to avail of credit facilities to support
their growth.

BDOFC is one with BDO in understanding and anticipating the customers’

evolving needs and in developing relevant products and services that will
answer and address these requirements.

CASE STUDY:
Solar Rooftop installations
In 2023, BDOFC launched a pilot Leasing Program for Solar Rooftop
installations to the officers of the BDO Group. This program aims to
not only promote sustainability within the BDO community, but also
resilience and preparedness in the face of increasing power costs
and the looming energy crisis. With this program, BDOFC is able to
highlight the importance of renewable energy and how using solar
power can provide savings in electricity bills, and contribute any
excess power generated to the grid for other people’s consumption.

56
 Immediately after its launch through the Bank’s E-Newsgram, BDOFC
received overwhelming inquiries on the program from bank officers,
some coming from as far as Mindanao. Buoyed by the response,
BDOFC will develop a similar solar leasing program for commercial
and retail clients this 2024. BDOFC shall also continue to pursue and
partner with more vendors to be able to reach a bigger market and
accelerate growth in various industries.

Financial Inclusion
Serving the Unbanked: BDO Network Bank
At a public gathering, BSP Governor Eli M. Remolona Jr. went on record for
his expectations for 70% of adults in the country to have a bank account
by end of 2023. This goal hopes to bring down the number of unbanked
Filipino adults to 30% from the 44% cited in the BSP’s latest financial
inclusion survey in 2021.

As the country’s largest community bank and a subsidiary of BDO Unibank

targeted for the micro, small, and medium enterprise (MSME) segment,
BDO Network Bank (BDONB) contributes to this national target through its
continuous network expansion across the Philippine archipelago and its
wide range of banking products that includes loans, deposits, remittances,
micro-insurance, bills payments and other banking services.

In 2023, BDONB branch expansion was at a total of 506 branches and

loan offices, up by 12% compared to last year. To enable easy financial 16%
access to its clients, BDONB accounts are able to use the BDO Group’s Growth in Volume
combined 5,514 teller machines nationwide (ATMs, Cash Accept Machines,
Universal Teller Machines, and Self-Service Teller Machines) around the
country, along with the 9,764 Cash Agad Merchants among MSMEs.
92%
Coverage of
BDONB has also deployed Field Tellers, bank personnel who make the
Provinces
rounds of MSME clients unable to leave their stores to attend to their
Nationwide
banking needs. Field Tellers provide secure account withdrawals and
deposits which extends the reach of branches.

BDONB is physically present in easily accessible locations and works on

extended banking hours to cater to more clients. Following the phygital
strategy of the parent bank, BDONB also complements its branches
with its digital presence in social media and its own website. BDONB
has a low minimum initial deposit to encourage more people to open
accounts and to save. It also offers micro-insurance that provides
hospitalization allowance for beneficiaries from age 18 to 80 years old. For
the micro-insurance it has a compounded annual growth rate of 28%. The
average age of insured clients is 41 years, with females at 59% of the total.

In 2023, BDONB was present in 92% of total provinces in the country,

with the goal of covering 95% of the provinces in the next year. The loan
products of the Bank are not just for the sake of lending, but also capital
buildup to help clients improve their lives, and for the communities to
accelerate economic growth. BDONB values its clients, understands
their needs, and strengthens relationships with them through ease of
access via physical and virtual presence. As a result, BDONB posted a 16%
increase in volume from the previous year.

57
 Consumers and Entrepreneurs

Finding ways to drive financial access:

BDO Network Bank and Cash Agad

BDO Presence
Cash Agad Agents 9,764 agents

BDO Network Bank 393 branches

Poverty Incidence in the Philippines

0% 51%
Reference: 2023 Preliminary Poverty
Statistics, Philippine Statistics Authority

MSME Financing
Development of the MSME market segment is important for BDONB.
MSME Teams not only sell loans, but also advise their clients on how
30%
Loan Booking Growth
to improve and expand their businesses, reinforce the importance of
savings and financial literacy, and connect them to the Bank to help
them manage their finances well. With this approach, MSME loan
bookings grew by 30% from 2022 figures, with female clients accounting
68%
Female availees of
for 68% of the total bookings. BDONB’s expanded offices resulted in 6% MSME loan
increase in the number of offices offering MSME loans.

Salary Loans for Government Employees 79%

Female availees of
In 2023, teachers in Mindanao accounted for 43% of the total salary loan Salary Loan
releases of the Bank. Loan balance grew by 32%. Loan releases for 2023
matched the releases in 2022. The Customer Base of BDONB grew by
over 22% as it continues to expand to more rural areas nationwide, with
salary loans reach up by 34%. Personnel servicing this segment increased
by 8% allowing for more people to serve financial needs of government
employees. The Bank has also determined that 79% of its total active
clients for Salary Loans are female.

58
Other Support Services for Clients
The Bank believes in further empowering its clients by organizing Financial Literacy discussions to
help them manage their money and to use their loan wisely whether it be in schools, government
offices or for public market vendors. The Bank has also run over 25 Negosyante Days which helps
businessmen and entrepreneurs to avail of financial literacy talks. BDONB also works closely with
the Department of Education by annually supporting its Brigada Eskwela (School Brigade) and
Balik-Eskwela (Back to School) programs where bank employees distribute school supplies to
beneficiary schools. BDONB also works closely with both the BDO Foundation for the schools and
the SM Foundation as partner in Medical and Dental missions to areas that need health service
support. The Bank also works closely with SM Supermalls, as a venue to reach more clients and
showcase its products to entrepreneurs during Sunday Market at the malls.

Negosyante Days
BDO Network Bank provides opportunities for its clients to meet during what they call as
Negosyante Days, where everyone can all learn about financial literacy and the new products
and services that may be availed through BDONB. During one of the Negosyante Days, a junkshop
owner met a rag maker who can supply retazos or rags for the junkshop’s use. In another
Negosyante Day, a poultry raiser met an ihaw-ihaw (grilled food) business owner and initiated talks
to supply meat. Through BDONB’s value added programs for its clients, the Bank is able to connect
and bring value to business owners.

Customer Focus: BDONB Personalized Services

▪ BDONB tapped a Cash Agad Partner from Ilocos Sur to be the first touchpoint of borrowers for
loan inquiry, computations, and applications. This channel helps teachers in the remote areas
of the country to have access to loan facilities offered by BDONB. The program adds additional
revenue to accredited Cash Agad partners and help improve value proposition and stickiness of the
relationship with the Bank. The Cash Agad Partner was grateful to be a BDONB Loan Partner as it
gives her additional income from service fees she collects from loan referrals. Other active partners
are in Calatagan, Batangas, Caramoan and Garchitorena, Camarines Sur, and San Jacinto and San
Pascual, Masbate
▪ Sevilla Sobaida is a Principal of LR Sebastian Elementary School, Cotabato City, and a long-time
borrower at BDONB. Late last year, her house in Cotabato was completely burned down in a fire
accident and her family was sent to a temporary evacuation area. To provide for her family’s basic
necessities, she applied for a salary loan with BDONB. She was very thankful for the quick and
timely loan processing and the personalized service from BDONB’s account officers, which included
fetching her from the evacuation center and back for her loan application. It was a big relief for her
that BDONB is always there in time of need.
▪ The St. Elizabeth Community Development Program, Inc. (SECDEP), a microfinance
non-government organization, has been a BDONB depositor for nearly 10 years. As of
September 2023, SECDEP had 10,000 clients dispersed across its nine provincial branches,
but depositing collections have never been a challenge. SECDEP partnered with BDONB
because it is reputable and well-established in the communities where they operate. In
addition, financial transactions such as deposits and loans are also easier to release because
they can be accessed through internet banking at any time and from any location, while
clients may obtain their loan proceeds with convenience through ATMs. Apart from that, they
are grateful to BDONB for supporting their special events, such as the annual Medical and
Dental Missions, which are aimed at the customers they serve. SECDEP General Manager
Luzviminda Carado, expressed her gratitude to BDONB for the unwavering support and service
and for being always there.

59
 Building relationships with Overseas
Filipinos and families: BDO Remit
BDO Remit continued its efforts to scale up its services and relationships
with Overseas Filipinos (OFs) and their families by expanding its grassroots 4%
marketing to the provinces of Bataan, Palawan, Leyte and Samar, notably Growth in Total Remittance
increasing its reach to a total of 35 provinces across the country in 2023. Transaction Count
This expansion, in partnership with BDONB, strategically enhanced access
to remittance services in provincial and far-flung areas. 2%
Growth in Total Remittance
Widening customer reach Transaction Volume
BDO Remit focused its efforts on enhancing the financial inclusion of
OFs and their beneficiaries through an expanded partnership with SM
Supermalls, particularly in provincial areas where their families are
5,769
Domestic and International
often located. Year 2023 marked the full resumption of BDO Remit’s
Financial Literacy
participation in SM’s 3-Day Sale, mall openings and local festivals.
Lessons Conducted
In December, BDO Remit and SM Supermalls held their 12th Pamaskong
Handog holiday celebration that showcased exciting in-mall activities,
special performances from actor and long-time endorser Piolo Pascual
238,701
Domestic and International
with some of the country’s up-and-coming artists, and exclusive
Financial Literacy
discounts from affiliates under the SM Group. Since 2012, BDO Remit
Lesson Participant
committed to make OFs and their families feel valued and appreciated
through its events and year-round offers exclusive for BDO Kabayan and
BDO Network Bank Kabayan Savings account holders. In the provinces,
major events at key OF hometowns are also opportunities for BDO Remit
to join as OF families’ have strong affinity to festivities. Among these
events were the Panagbenga flower festival in Baguio, the Dinagyang
cultural and religious festival in Iloilo, and the MassKarra Festival
merrymaking in Bacolod. These initiatives allowed BDO Remit to set
up information booths inside the malls providing an additional channel
to address customer inquiries as a direct response to the need for
accessible and convenient banking.

Increasing access to financial services through

partnerships
While BDO Remit intensified its partnership with SM, it likewise extended
the synergy of the two institutions to include government and non-
government partners in its efforts. In honor of the economic contributions
of the OFs and to promote their families’ welfare, BDO Remit joined
the nationwide celebrations of Migrant Workers’ Day with the Overseas
Workers Welfare Administration (OWWA) and the Department of Migrant
Workers (DMW) in June. Celebrations were held at various SM Supermalls
particularly in North EDSA, Tuguegarao, Bacolod, Iloilo, Puerto Princesa,
and Davao, along with other locations in Baguio, Cavite, Camarines Sur
and Pampanga.

Sharing the same goal of empowering families with financial education,

BDO Remit widened its network by partnering with the Catholic Bishops
Conference of the Philippines (CBCP). BDO Remit joined CBCP in its own
celebration of Migrant Workers Day in 2023, which served as an additional
channel to reach new clients.

60
OF families have been the main beneficiaries in the following initiatives of BDO Remit in
the Philippines:

▪ School supplies donation to the children in Bacolod whose parents lost their jobs due to the
pandemic, in partnership with the OFW Negros Occidental Federation, Inc. (ONOFI).
▪ Stress management workshops for Filipinos who are about to leave the country to help in their
mental and emotional preparation for culture change and life in their country of assignment,
together with OWWA and partner recruitment agencies.
▪ Financial literacy seminars for the wives of seafarers, working with a religious organization.
▪ Employment opportunities at BDO for OWWA scholars and interns, with some of them hired
on-the-spot during OWWA’s 41st Anniversary Job Fair.
Overseas, BDO Remit intensified its efforts to reach more Filipinos in Italy by partnering with various
remittance partners and transforming their locations into OF hubs where BDO bankers can attend
to client inquiries on Kabayan Savings and other BDO products and services. BDO Remit likewise
held a series of community caravans and financial literacy talks in collaboration with key Filipino
groups and NGOs in the United Arab Emirates. In Japan, BDO participated in the Philippine Expo,
a 3-day major event that served as an avenue for OFs, remittance partners and the Philippine
embassy to gather and re-establish rapport for the first time since the pandemic. BDO Remit also
conducted several Post-Arrival Orientation Seminars (PAOS) for newly-arrived Filipinos in Japan to
guide them on their finances and employment rights.

Moving past challenges in a changing market

Adapting to clients’ evolving financial behaviors in the post-pandemic landscape was a challenge
that BDO Remit addressed by proactively enhancing its client offerings. This involved introducing
a diversified portfolio of products, including loans and insurance options, tailored to the specific
needs of Kabayan account holders and their families. By broadening the range of financial services,
BDO Remit provided its clients with more tools to manage their finances effectively and gave more
value to their relationship with the Bank. These strategic cross-selling efforts fostered greater
financial security and empowerment among clients.

61
 Empowering Women as Consumers
and Entrepreneurs

Bank accounts Access to credit Investment plans

opened through card facility availed
online account by women
application 60%
57%
61%
of Credit Cards Issued
of Easy Investment Plans

Individual loans availed by women

49% 50% 48%

of Home Loans of First-time of Auto Loans
Home Loaners

55% 55% 48%

of Mortgage Loans of Car Leases of Personal Loans

79% 63% 41%

of Salary Loans of Micro/ of Outstanding
Small/Medium SME Loans by sole
Enterprise Loans proprietors for
Consumer Banking
Group

Individual insurance availed by women

59% 59% 47%

of Ordinary of Variable of Accident Insurance
Life Insurance Life Insurance

63% 59%
of Health Insurance of Total Insured Lives

62
 Local Shop

Strengthening
Business Resilience
We consciously manage our environmental and social impacts
through good governance that sustains superior business
performance anchored on accountability, transparency, integrity,
and fairness. We develop BDO bankers with a sustainable
mindset who thrive on finding ways to innovate, find solutions
to sustainability challenges, and live up to the Bank’s
sustainability commitments.

63
 Economic Impact
BDO has solidified its position as the nation’s leading full-service bank, dedicated to meeting
the diverse banking needs of every Filipino. The Bank reinforced its business franchise through
continued market expansion especially in underserved areas, broadening financial inclusion. The
Bank also continues to enhance its digital capabilities to provide customers with easy and seamless
24/7 access to the Bank’s products and services. With a nationwide network offering a wide range
of financial products and services, BDO supports the country’s economic growth, allowing it to
generate and distribute economic value.

Economic Value Relief Table

BDO’s direct economic value generated (DEVG) increased by 24% year-on-year to P262 billion in
2023 on the back of sustained economic growth and improved consumer and business activities.
The 2023 performance, the strongest growth since the pandemic in 2020, lifted the Bank’s DEVG
five-year compounded growth rate to 12%.

The Bank distributed 78% of the economic value it generated, or P205 billion, 24% higher than the
previous year. Of the direct economic value distributed, P48 billion was for the wages and benefits
to BDO’s over 41,000 employees, fueling consumer spending and supporting the overall economy. In
addition, other operating expenses increased by 25% to P94 billion.

Total tax payments amounted to P38 billion, contributing to the government’s tax revenues to
stimulate economic growth. Meanwhile, total community investments more than doubled to
P216 million on the efforts of BDO Foundation, the corporate social responsibility arm of BDO, to
boost financial education programs, relief operations in disaster-stricken communities, and the
rehabilitation and rebuilding of rural healthcare delivery systems.

Economic Value Table

Figures in %

2023 36% 18% 9% 14% 22% P 262B

2022 36% 21% 8% 13% 22%

P 212B

2021 38% 23% 7% 12% 20% P 182B

2020 38% 22% 8% 18% 14% P 166B

2019 36% 19% 8% 16% 21% P 182B

2018 38% 21% 7% 15% 18%

P 148B

2017 39% 22% 7% 14% 18%

P 126B

2016 36% 23% 7% 13% 21%

P 106B

2015 31% 24% 12% 14% 19% P 89B

Operating costs Payments to government

Employee wages and benefits Economic value retained
Payments to providers of capital Economic value generated

64
Good Governance to Create a Sustainable Future
Corporate governance in BDO is about effective oversight, strict compliance with regulations, and
sustainable value creation to promote the best interest of its various stakeholders.

BDO Unibank, Inc. affirms its deep commitment to the highest standards of corporate governance
practice firmly anchored on the principles of accountability, fairness, integrity, transparency, and
performance consistently applied throughout the institution. BDO’s market reputation has been
built on the solid foundation of an ethical corporate culture and responsible business conduct,
underpinned by a well-structured and effective system of governance.

BDO complies with the Securities & Exchange Commission (SEC) Code of Corporate Governance
for Publicly-Listed Companies and with the Enhanced Corporate Governance Guidelines for Bangko
Sentral ng Pilipinas (BSP)-Supervised Financial Institutions. It follows relevant international best
practices of corporate governance issued by globally recognized standards-setting bodies such as
the Organisation for Economic Co-operation and Development (OECD) and the ASEAN Corporate
Governance Scorecard (ACGS) which serve as essential points of reference.

The Bank, as a financial institution, recognizes the importance of addressing climate change and
supporting the country’s transition towards a low carbon economy. Through its Board and Senior
Management, BDO is committed to advancing its sustainability commitments and achieving
strategic resilience by consistently incorporating sustainability in the way it conducts business.
The Board, being the highest governance body, plays a crucial role in ensuring that sustainability
is embedded in the Bank’s compliance, corporate governance, and risk management frameworks.
The Board sets the tone at the top by promoting an enterprise-wide culture that continually fosters
environmentally and socially responsible business decisions. The Bank endeavors to contribute
to the country’s sustained growth by financing economic activities that nurture the environment,
empower Filipino consumers, and promote the best interest of the Bank’s various stakeholders.
Consistent with the UN SDGs, the UN Global Compact, and the government’s Sustainable Finance
Roadmap, the Bank constantly strives to create lasting, net positive impact through delivery of
various banking products and services that are sustainable, inclusive, equitable, environment-
friendly, and socially relevant.

65
 Our Board of Directors and
Governance Structure
Responsibility for good governance lies ultimately with the Board. It is BOARD COMPOSITION
responsible for providing effective leadership and overall direction to
foster the long-term success of the Bank. It oversees the business affairs
of the Bank, reviews the strategic plans and performance targets, financial
plans and budgets, key operational initiatives, capital expenditures,
acquisitions and divestments, annual and interim financial statements,
and corporate governance practices. It also periodically reviews the Bank’s Teresita T. Nestor V.
corporate mission and vision and ensures their continuous alignment with Sy Tan
the Bank’s strategic plans. It oversees management performance, the
enterprise risk management, internal control systems, financial reporting
and compliance, related party transactions, continuing director education,
and succession plans for the Board, the President and Chief Executive
Officer (CEO), and senior management. It considers sustainability issues
related to the environment, social, and governance factors as part of its Dioscoro I. George T.
sustainable banking practices. Ramos Barcelon

Board Composition 2-9, 2-11

The Board is composed of eleven (11) members and aided by five (5)
advisors. It is led by a Non-Executive Chairperson with six (6) Independent
Directors, three (3) Non-Executive Directors, and one (1) Executive Director
Estela P. Vipul
who is the President and CEO.
Bernabe Bhagat
The present composition of the Board exceeds the minimum regulatory
standards which require that independent and non-executive directors
account for the majority. Independent and Non-Executive Directors of
the Bank comprise 91% (10 of 11) of the Board. With six (6) of 11 Board
seats occupied by independent directors, the Bank goes beyond the 1/3
minimum requirement of the BSP and the SEC. Franklin M. Vicente S.
Drilon Pérez, Jr.
Independent directors chair eight (8) of nine (9) Board-level Committees,
namely Risk Management, Board Audit, Corporate Governance, Related
Party Transactions, IT Steering, Nominations, Compensation, and Trust.
This provides independent, objective, and balanced judgment on
significant corporate matters and ensures that key issues and strategies
are objectively reviewed, constructively challenged, thoroughly discussed
Jones M. Josefina N.
and rigorously examined.
Castro, Jr. Tan
The Board advisors are considered as integral parts of the Board whose
views are considered by the Board. Their opinions and recommendations
are taken into consideration by the Board members. The presence of
a female Board advisor provides an independent view of the Bank and
complements the three (3) female non-executive directors in the Board,
one of whom is an independent director. Walter C.
Wassmer
On October 25, 2023, former Senator Franklin M. Drilon was appointed
Independent Director to fill in the vacancy due to the untimely demise of
former Vice Chairperson Mr. Jesus A. Jacinto.

For more details, see BDO 2023 Annual Report.

66
Screening of Directors Board Snapshot
The Board is responsible for the screening of new directors through the
Nominations Committee. It leads the process of identifying and evaluating DIRECTOR INDEPENDENCE
the nominees for directors. Using the Bank’s Board Diversity Policy as 6 Independent Directors
primary reference, the Nominations Committee evaluates the balance,
skills, knowledge and experience of the existing Board membership and 4 Non-Executive Directors
the requirements of the Bank before the Annual Stockholders’ Meeting.
The result of the evaluation determines the role and key attributes an 1 Executive Director
incoming director should have. The Nominations Committee receives
recommendations for potential candidates and uses, to the extent
possible, external search firms or external databases (i.e., Institute of DIRECTOR DIVERSITY
Corporate Directors List of Members) in selecting the pool of candidates
for the new members of the Board as done with the election of one 3 Females
(1) new independent director in 2023. The Nominations Committee
recommends the most suitable candidate to the Board for appointment 2 International
or election as director.

For reelection of incumbent directors, the Nominations Committee DIRECTOR AGE

also considers the results of the most recent annual evaluation of the
performance of the Board and Board-level Committees facilitated by 5 60-69
an independent third-party evaluator, attendance record in meetings,
participation in Board activities and overall contribution to the functioning 6 70+
of the Board.

Board Diversity 405-1 BOARD SKILL DIVERSITY

11 Banking and Finance
The Bank’s Board Diversity sets out approaches to promote diversity (including Treasury)
in membership of the Board of Directors of BDO Unibank, Inc. (BDO).
The Bank recognizes that diversity in skills, experience, gender, sexual 11 Corporate Governance
orientation or preference, age, education, race, religion, business and Strategic Planning, and
other related expertise among its directors will foster critical discussion Business Strategy
and promote balanced decision by the Board. It views diversity as an
essential element in maintaining strong corporate governance through a 11 Risk Management
strong and effective Board.
2 Legal/Compliance
The Board commits to continually promote and observe diversity
in its membership. As a whole, the Board, through its members, 2 Sustainability
should possess all of the necessary skills, experience and functional (including sustainable finance)
expertise to oversee the strategic direction of the Bank. In determining
the optimum composition of the Board and in filling vacancies, the 2 Information Technology
Nominations Committee should consider all aspects of diversity in its (such as cybersecurity and
Diversity Policy in order to maintain an appropriate balance of skills, disruptive/digital technology,
among others)
background, experience, and knowledge in the Board composition, as
well as the important role of women with appropriate and relevant skills
and experience.

In evaluating the suitability of an individual board member and promoting

diversity in the composition of the Board, the Nominations Committee
annually reviews the Board and Board-level Committee composition to
ensure appropriate balance of skills, competencies, experience in its
membership, and diversity to assure alignment with the new regulations.
The Committee recommends to the Board of Directors the slate of
candidates nominated by the stockholders for election to the Board of
Directors during the Bank’s annual stockholders’ meeting. The Committee

67
 takes into account the relevant qualifications of every candidate nominated for election, with
competence and integrity as the primary factors.

The present members of the Board have extensive experiences in banking, credit management,
investment management, accounting and finance, insurance, legal management, business
management, strategy formulation, bank regulations including anti-money laundering, information
technology, sustainability, and risk management, both globally and locally. More than half of the
board members have significant international education and/or work experiences, which bring
global perspectives to the board.

In 2023, an independent director, with extensive experience in the private and public sectors,
including in the legal field, joined the Board, thus further enhancing diversity in the Bank’s Board.

Considering the growth, complexity and scope of the Bank’s business, the Board believes that its
current size and composition provide sufficient diversity among its directors and enable it to bring
about effective leadership and maintain strong corporate governance.

Selection and Appointment of Senior Executive Management

The Board is also responsible for approving the selection and appointment of a competent executive
management led by the President and CEO including the heads of units who exercise control
functions i.e. Chief Compliance Officer, Chief Risk Officer, and Chief Internal Auditor. Fit and proper
standards are applied in the selection of key officers and utmost consideration is given to their
integrity, technical expertise, and banking industry experience.

Review of Bank’s Mission, Vision, and Strategic Plans 2-16

The Board, being the highest governance body, is responsible for approving and updating the Bank’s
mission, vision, objectives and strategies on a continuing basis and in overseeing management’s
implementation thereof, taking into account the Bank’s long-term financial interests, its level of
risk tolerance, and ability to manage risks effectively. It is actively engaged in the affairs of the
Bank, keeps up with material changes in the Bank’s business and regulatory environment and
ensures that the Bank has beneficial influence on the economy. The Board similarly oversees
the implementation of policies governing major areas of the Bank’s operations and holds special
meetings to discuss strategic matters and critical concerns.

During the year, the Board approved, reviewed, and oversaw the Bank’s financial budget and capital
funding, business targets and strategies, quarterly declaration of dividends, and the release of the
2022 audited financial statements within 58 days from year end.

Its oversight functions include the review of operational and financial performance of senior
management and work of the various committees in accordance with their Terms of Reference.

The Board also discussed macroeconomic outlook including the impact of the global inflation. In
2023, it approved the merger of the Bank with SM Keppel Land, Inc., with BDO as surviving entity.

Sustainability Initiatives
The Board also oversaw matters related to sustainability. It approved the Bank’s Environmental
and Social Risk Management System (ESRMS) which guides BDO bankers to identify, assess,
and manage E&S risks and opportunities associated with the Bank’s credit, investments and
administrative operations. The Board also approved the additional categories for the green, social,
and blue finance and a new category on orange/gender financing in the Bank’s Sustainable Finance
Framework to broaden the projects eligible for sustainable finance. The Head of the Sustainability
Office regularly reports on Sustainability Updates in the Corporate Governance Committee
meetings, and also reports to the Risk Management Committee on E&S risk management and
opportunities (four updates).

68
The Bank’s Blue Bond issuance in May 2022 helped the Bank expand its
Sustainable Finance Framework to include projects supporting the country’s
blue economy, while establishing a new asset class in the Philippine debt
market. In the Blue Bond Impact Report released in December 2023, the
proceeds from the issuance have been allocated to two water management
companies for water conservation and one waste management company for
water reuse and recycling, preventing the direct flow of wastewater to rivers
and other bodies of water that eventually lead to the ocean.

The Corporate Governance Committee noted various sustainability updates,

including progress on the 2022 BDO Sustainability Report, the Environmental,
Social, and Governance (ESG) Dashboard, and the Environmental and Social
Risk Management System (ESRMS). Other updates were on the benchmarking
results related to TIME World’s Best Companies 2023, and Brand Finance
ranking for the Philippines and the financial sector as well as local and
international recognitions: The Retail Banker International Asia Trailblazer Award
2023, Asian Banking & Finance Whole Banking Awards 2023, Asia Corporate
Excellence & Sustainability (ACES) Awards 2023, The Asset ESG Corporate
Awards 2022 & 2023, and Qorus-Accenture Banking Innovation Awards 2023.

Improving Board Effectiveness 2-18

Board Performance
A yearly self-assessment is conducted focusing on the performance of the
Board, directors, Committees and senior management, through the Corporate
Governance Committee. The assessment is facilitated by an external firm
annually, more than the regulatory requirement of every three (3) years. The
performance evaluation process begins with sending out customized Board
Evaluation Questionnaires to each director and advisor who are required to
complete them and explain the rationale of their response. The results are
independently tabulated and assessed by the external facilitator.

The Bank engaged Isla Lipana & Co./PwC Philippines (PwC) anew as external
facilitator for the Bank’s 2022 Board Effectiveness Evaluation (BEE). The results
of the director and board advisor assessment show that the Board has healthy
and positive dynamics, indicating that the Board works well as a group. The
Board is also diverse in terms of expertise, experience and perspectives
especially with the addition of a new independent director, which is key
for a well-governed bank. The results further indicate strong oversight and
engagement by the Board with senior management.

The Chairperson, Vice-Chairperson, Lead Independent Director, and the

President and CEO also demonstrated strong leadership in their respective
roles. The Board-level Committees, on the other hand, generally exhibited high
level of engagement with and oversight of senior management. Evaluation
results also demonstrate strong leadership by the Board-level Committee
chairpersons. The inclusion of global trends in banking technology and
generative artificial intelligence as topics for the annual corporate governance
training held on August 2, 2023 addressed the recommendation of PwC
to consider continuous training programs that address emerging trends in
disruptive technology/digitalization and cybersecurity threats.

In 2023, the Corporate Governance Committee endorsed to the Board the

continuous engagement of an external facilitator for its yearly self-assessment.
To the Committee, engaging an independent party every year, rather than
69
 every three years as recommended by the Securities and Exchange
Commission, provides more governance inputs to the Board and allows
comparability and continuity. The Bank reappointed PwC as external
facilitator for the 2023 Board Effectiveness Evaluation (BEE). PwC will
facilitate a peer and self-evaluation process on the Board, Board-level
Committees, and individual directors, with additional insights from
selected senior management officers.

Continuing Education for Directors and

Senior Management
The continuing education program for directors is an ongoing process
to ensure the enhancement of their skills and knowledge. Every year,
all directors and key officers are given updates and briefings, and are
required to attend a corporate governance seminar on appropriate topics
to ensure that they are continuously informed of the developments in the
business and regulatory environments, including emerging opportunities
and risks in the banking industry.

Directors of BDO Unibank complied with the annual corporate governance

training requirement of four (4) hours in 2023. All incumbent directors of
BDO Unibank, along with members of senior management, attended its
in-house corporate governance seminar held on August 2, 2023. Gartner,
Inc. provided insights on global trends in banking technology and how
BDO is fairing against these trends. They emphasized the importance of
understanding the needs of customers through contextual engagement,
as well as the increasing adoption of the “phygital (physical and digital)
strategy” and generative artificial intelligence (Al) in enhancing customer
experience, which are aligned with BDO’s strategic plans. On the other
hand, Boston Consulting Group (BCG) shared their insights about
Generative Al and its disruptive impact in businesses. They examined
risks posed by generative Al and highlighted the crucial role of people in
transforming the business.

Apart from the in-house corporate governance training, the following

external training programs were also attended by other directors:
Anti-Money Laundering Council (AMLC) Registration and Reporting
Guidelines (ARRG) Course; Institute of Corporate Directors’ ASEAN
Corporate Governance Scorecard (ACGS) for Publicly Listed Companies,
Raging 2023 Technology, and the Maharlika Investment Fund: Its
Impact on the Philippine Business Landscape; 10th Annual Securities
and Exchange Commission – Philippine Stock Exchange Corporate
Governance Forum; and SGV & Co.’s Corporate Governance Seminar.
Some members of the senior management also received external training
on corporate governance, internal audit quality assurance, reinsurance
and reinsurance brokerage operations, and signature verification, in
addition to the regulatory/mandatory online courses available in the
Bank’s eLearning portal.

Chairperson of the Board

The Chairperson is primarily responsible for leading the Board and
ensuring its effectiveness. She provides leadership to the Board, fosters
constructive relationships between directors, promotes an open
environment for critical discussions and constructive debate on key
issues and strategic matters, and ensures that the Board of Directors
exercises strong oversight over the Bank’s business and performance of
70
 senior management. She takes a lead role in ensuring that the Board provides effective governance
of the Bank and continues to operate at a very high standard of independence with the full support
of the Directors.

Independent and Non-Executive Directors’ Meeting

Regular meetings are held by Independent and Non-Executive Directors (INED) with the heads of
the control functions (i.e. Chief Risk Officer, Chief Compliance Officer, and Chief Internal Auditor) as
well as the external auditor, without the presence of management or any bank executive, to discuss
various matters or issues outside the Board Audit Committee and Risk Management Committee
meetings. The INED also meet with the heads of business and operating units to understand further
and engage in deeper discussions with the Bank management. The meetings are chaired by the
Lead Independent Director.

In 2023, the INED conducted three (3) sessions and the results of these sessions were discussed
with the Bank’s Executive Directors in three (3) separate sessions. The INED also asked for the
presentation by the Bank’s IT Group, particularly by the Chief Information Officer, updates on the
Bank’s NextGen IT Project and modernization of IT back-end systems and on creating a seamless
customer experience, harnessing data via Application Programming Interfaces (APIs) and Generative
Artificial Intelligence (AI), data governance, and cybersecurity.

Board Committees
The Board has established nine (9) committees to help in discharging its duties and responsibilities.
These committees derive their authority from and report directly to the Board. Their mandates and
scopes of responsibility are set forth in their respective Terms of Reference, which are subjected to
annual review and may be updated or changed in order to meet the Board’s needs or for regulatory
compliance. The number and membership composition of committees may be increased or decreased
by the Board as it deems appropriate, consistent with applicable laws or regulations specifically on
the majority membership and chairmanship of independent directors in various committees. As of
December 31, 2023, eight (8) of nine (9) board-level committees are chaired by Independent Directors.

The Board of Directors

▪ Responsibility for good governance lies with the Board.
▪ It is responsible for providing effective Leadership and overall direction to foster the Long-term success of the Bank.
▪ It oversees the business affairs of the Bank, reviews the strategic plans and performance targets, financial plans and
budgets, key operational initiatives, capital expenditures, acquisitions and divestments, annual and interim financial
statements, and corporate governance practices.
▪ It oversees management performance, the enterprise risk management, internal control systems, financial reporting
and compliance, related party transactions, continuing director education, and succession plans for the Board and CEO.
▪ It considers sustainability issues related to the environment and social factors as part of its sustainable banking practices.

Executive Committee Board Audit Committee

▪ Exercises oversight over the Bank’s sustainability program. ▪ Oversees the financial reporting process, system of
▪ Exercises power of the Board in the management and internal control and risk management systems, internal
direction of the affairs of the Bank. and external audit functions, and compliance with
governance policies, applicable laws and regulations.
▪ Acts as main approving body for loans, credits, advances
or commitments and property-related proposals. ▪ Reviews the integrity of the reporting process to ensure
the accuracy and reliability of financial statements
▪ Reviews and recommends for Board approval credit
and compliance with financial reporting standards and
and investment proposals beyond its authority; major
disclosure requirements set for publicly-listed companies.
credit policies and amendments, including delegation
of credit approval limits; establishment of branch/ ▪ Monitors and evaluates the adequacy, soundness and
extension offices and domestic/foreign subsidiaries; and effectiveness of the Bank’s established internal control
amendments to the Bank’s Articles of Incorporation and/ and risk management systems, policies and procedures
or By-Laws. including implementation across all units of the Bank.

71
 Corporate Governance Committee Trust Committee
▪ Oversees the Sustainability initiatives of the Bank, ▪ Reviews and approves transactions between trust and/
particularly key processes, standards and strategies or fiduciary accounts, accepts and closes trust and
designed to manage environmental and social impact other fiduciary accounts, and approves the investment,
and governance. reinvestment and disposition of funds or property.
▪ Assists the Board in formulating the governance policies ▪ Evaluates trust and other fiduciary accounts at least
and overseeing the implementation of the governance once a year.
practices of the Bank as well as its subsidiaries and ▪ Reviews Trust and Investment Group’s overall
affiliates. performance, profile of funds and assets under
▪ Conducts annual performance evaluation of the Board of its management, industry position, and the risk
Directors, its committees, executive management, peer management reports.
evaluation of directors, and conducts a self-evaluation of ▪ Approves offering of new products and services,
its performance. establishment and renewal of lines and limits
▪ Oversees the continuing education program for directors with financial institutions, and investment outlets
and key officers and proposes relevant training for them. and counterparties.
▪ Recommends a suitable induction and orientation
process for new directors.

Risk Management Committee

▪ Responsible for the oversight of the enterprise risk management program, including the environmental and social risk
management, of the Bank.
▪ Responsible for approving risk appetite levels, risk management policies, risk tolerance Limits and approves the
appropriate strategies for managing and controlling risk exposures, including preventing and/or minimizing impact of
losses if risk becomes real.
▪ Oversees the implementation and review of the risk management plan including the system of limits of discretionary
authority delegated by the Board of Directors to management under its purview and ensures that immediate corrective
actions when limits are breached.
▪ Responsible for evaluating the continued relevance, comprehensiveness and effectiveness of the risk
management framework.

Nominations Committee Compensation Committee

▪ Reviews and approves the interlocking positions of Directors in other entities ▪ Provides oversight on directors’
and ensure its compliance with the Bank’s Interlocking Policy. compensation and remuneration
▪ Leads process of identifying candidates for election and appointment of of senior management and
directors and all other positions requiring appointment of the Board of Directors, other key personnel, ensuring
giving full consideration to succession planning and the leadership needs that the compensation scheme
of the Group. In particular, this process includes the profiling of the skills is consistent with the Bank’s
and competencies of the currently serving directors, the gaps in skills and culture and strategy, effectively
competencies identified and the search for candidates who are aligned with the aligned with prudent risk
Bank’s directions to fill the gaps. It then makes appropriate recommendations to taking and commensurate
the Board. with corporate and
individual performance.
▪ Makes recommendations to the Board on the composition and chairmanship of
the various committees. ▪ Ensures consistency of the
compensation policies and
▪ Reviews structure, size and composition of the Board, including the balance of
practices across the Group.
skills, knowledge and experience and the independence of the non-executive
Directors, and makes recommendations to Board with regard to any changes.

72
Information Technology Steering Committee Related Party Transactions
▪ Provides oversight and governance over the Bank’s IT functions, Committee
including approvals of information technology-related policies and ▪ Assists the Board in its oversight of the
practices of the Bank and applicable guidelines. conduct of all Related Party Transactions
▪ Informs the Board of both internal and external IT-related (RPTs) to protect the interests of the Bank
developments and activities, potential challenges and risks, progress vs. and its stakeholders.
strategic objectives. ▪ Ensures proper disclosure of all approved
▪ Approves and endorses to the Board IT-related best practices, strategic RPTs in accordance with applicable
plans, policies and procedures. legal and regulatory requirements and
confirmation by majority vote at the
▪ Responsible for understanding, managing and mitigating technology
Annual Stockholders’ meeting of the
risks that confront the Bank and its subsidiaries, ensuring that the risks
Bank’s significant transactions with
are properly managed and mitigated, and monitoring of IT performance
related parties.
including status of major IT projects and issues.

Further information regarding BDO’s Board and Board-level Committees can be found in the Annual
Report and at www.bdo.com.ph.

Independent Control Functions

Compliance
BDO’s Compliance Group, through the Chief Compliance Officer (CCO), oversees the design of the
Bank’s compliance system and the overall compliance framework executed through a Compliance
Program, and promotes their effective implementation. BDO Compliance Group reports to and is under
the direct supervision of the Board Audit Committee. It is responsible for overseeing, coordinating,
monitoring and ensuring compliance of the Bank with existing laws, rules and regulations through the
implementation of the overall compliance system and program in accordance with the requirements
of the BSP and other regulatory agencies, including but not limited to the identification and control of
compliance risks, prudential reporting obligations as well as compliance training.

BDO’s Compliance System forms the processes, people, policies and other components that, as
an integral unit, ultimately drive the Bank’s initiatives to conform to industry laws, regulations and
standards. With the increasing regulatory focus on sustainability and resilience, the Sustainability
Office and the Regulatory Compliance Department which both report to the Compliance Group also
keep abreast on regulatory issuances and mandates from regulators pertaining to sustainability
and sustainable finance, among others. In line with the Bank’s initiatives is its commitment to
ensure that activities of the Bank and its personnel are conducted in accordance with all applicable
banking laws and regulations and industry standards, and this commitment to compliance serves
to protect the Bank and its stakeholders. BDO’s Compliance Group, as provided in its Charter,
conducts independent compliance tests and reports to the Board Audit Committee any significant
compliance issues or breaches.

The Anti-Money Laundering Department (AMLD) under the Compliance Group, together with
the Anti-Money Laundering Committee (AMLCom), focuses on the enforcement of the Bank’s
Anti-Money Laundering (AML) Counter-Terrorist Financing (CTF) Program, and Combating
Proliferation Financing (CPF), in accordance with the Anti-Money Laundering Law as amended;
Terrorism Financing Prevention and Suppression Act, and Anti-Terrorism Act (ATA) and their
respective Implementing Rules and Regulations (IRRs). The Bank also adheres with BSP and
Anti-Money Laundering Council (AMLC) Rules, Regulations and Directives. The AML Program of
the Bank is articulated in the Bank’s Board-approved Money Laundering and Terrorist Financing
Prevention Program (MTPP) Manual, which covers AML/CTF/CPF policies and information such
as: (i) customer on-boarding, (ii) customer risk assessment and due diligence, (iii) handling and
monitoring of clients and their transactions, (iv) Covered and Suspicious transactions reporting,
(v) record-keeping, (vi) AML/CTF training (vii) AML System and technology platforms, and (viii)
Institutional Risk Assessment. AMLD likewise oversees the investigation of suspicious transactions
under the auspices of the AMLCom that is comprised of select key senior officers of the Bank.

73
 The Compliance Group and its compliance program endeavors to protect the Bank’s franchise,
manage compliance risks and simultaneously supports the business goals and growth of the
institution by providing appropriate compliance insights and regulatory guidance to safeguard the
Bank and its stakeholders.

Internal Audit 2-24, 403-8

The Internal Audit Function covers the entire Group including foreign and local subsidiaries and
offices. It adheres to the principles required by the ISPPIA (International Standard for the Professional
Practice of Internal Auditing), COSO Internal Control Integrated Framework, COBIT (Control Objectives
for Information and Related Technology), the Internal Audit Definition and Code of Ethics.
It provides assurance and a systematic, disciplined approach to evaluate and improve effectiveness
of risk management, internal control, and governance processes. On sustainability-related matters,
the Internal Audit Function performs review on BDO Group’s adherence to BDO Sustainable Finance
Framework, regulatory issuances, and regulatory reporting requirements.
The Internal Audit provides assurance and a systematic discipline approach as required from
best practices and global standards applied to the entire BDO Group including foreign and local
subsidiaries and offices. It provides value to senior management and governing bodies as source of
independent advice by keeping abreast of relevant changes and updates in regulations and Group’s
sustainability initiatives in compliance with but not limited to the following:

▪ BSP Circular No. 1085 series of 2020 - Sustainable Finance Framework

▪ BSP Circular No. 1128 series of 2021 - Environmental and Social Risk Management Framework
▪ BSP Circular No. 1149 series of 2022 - Guidelines on the Integration of Sustainability Principles in
Investment Activities of Banks
▪ SEC Memorandum Circular No. 4 series of 2019 - Sustainability Reporting Guidelines for Publicly-
Listed Companies
▪ Global Reporting Initiative (GRI) Sustainability Reporting Standards

Internal Audit reports to the Board of Directors through the Board Audit Committee (BAC) of the
parent bank and respective subsidiaries. It seeks BAC approval for the annual audit plan, provides
updates on accomplishments, reports results of audit conducted, and tracks resolution of audit
findings. In its year-end closing report, Internal Audit attests to the fulfillment of its mandated
responsibilities and provides overall assurance on the effectiveness of internal control, risk
management, and governance processes.

Compliance with the SEC Code of Corporate Governance

Publicly-listed companies are advised to disclose in their Annual Report the company’s compliance
with the Code of Corporate Governance and where there is non-compliance, to identify and explain
the reason for such issue. We confirm that as of December 31, 2023, the Bank has substantially
complied with the recommendations of the Code except for the following:
1 Policy on retirement age of directors, and
2 Disclosure of executive remuneration on an individual basis. For a more detailed discussion on the
matter, please refer to the BDO Annual Report.

Corporate Policies and Practices

BDO Code of Conduct and Business Ethics
As a financial institution, BDO believes that practicing right conduct and ethical behavior inspires
and strengthens the confidence of all our stakeholders. The BDO Code of Conduct and Business
Ethics (the Code) outlines the principles and policies that govern the activities of the Bank and sets
forth the rules of conduct in the workplace and the standards of behavior of its directors, officers
and employees in their activities and relationship with external stakeholders.
The Bank upholds the virtues of honesty and integrity among its employees and instills a sense
of commitment toward duty and responsibility. All employees are expected to observe discipline
74
in attending to their jobs and in interacting with co-workers. Supervisors
and managers are expected to foster self-discipline and serve as role 99.6%
models to their subordinates. Bank officers are expected to intelligently Employees who
and consistently apply the accepted principles of people management. have taken the
All cases/violations must be reported. Failure to do so either by oversight or Code of Conduct
deliberate cover up is subject to appropriate disciplinary action. The Human and Business Ethics
Resources Group is responsible for overseeing the implementation of the Training in the past
Code across the BDO Group. It receives reports of violations and activates two years
the process for undertaking a confidential investigation. As necessary,
it may endorse the handling of the investigation to the Cases Review
Secretariat for the appropriate action and recommendation.
The Board Audit Committee, at its discretion, may periodically report the
Code of Conduct and Business Ethics cases to the Board of Directors.
The Compliance Office will address lapses in compliance with regulatory
requirements arising from the administrative cases due to the violation of
this Code.

Internal Fraud, Breach of the Code, or other

Unethical/Illegal Activities 205-1
BDO believes that the key to long-term sustainability and success largely
depends on having a good name and solid reputation in the industry.
Any director or employee who becomes aware of any violations of law,
regulations, or policies should report the same to appropriate authorities,
with protection from reprisal and discrimination. Reporting of violations
should be done in good faith and without malice. This is embodied
in the BDO Policy of Disclosure of Sensitive/Confidential Matters to
management that governs the policies and procedures in the handling of
whistleblower cases.

Acceptance/Solicitation of Gifts, Bribery,

Corruption, and Anti-Competitive Behavior 205-1,
205-2, 205-3, 206-1, 415-1

The Bank has zero tolerance for the solicitation and acceptance, directly or
indirectly, of any gift (including entertainment services or activities), gratuity,
commission or any form of payment from clients, business partners,
suppliers and third-party service providers in connection to a service that
may, in any way, influence the Director’s, Officer’s or employee’s decision-
making in exchange for any unnecessary favorable treatment. Likewise,
BDO commits to comply with anti-corruption and bribery laws in all
jurisdictions where it operates.
In 2023, there were four minor instances of cash abstraction (internal
fraud) involving Bank employees who were then dismissed from
employment from the Bank, consistent with the existing labor laws.
The Bank filed legal cases against the erring employees to demonstrate
its zero-tolerance policy on fraud. Also in the same year, there were no
public legal case involving bribery and corruption brought against BDO and
its employees.
BDO prohibits making any political donations to prevent any attempt to
encourage favorable treatment of BDO and/or its directors and employees.
The Bank reaffirms that it adheres to the no political contributions policy.
BDO is not involved in any anti-competitive behavior and has no violations
of existing anti-trust and monopoly laws. No legal actions, pending or
completed, pertaining to anti-competitive and anti-trust behavior were
filed against the Bank.
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 Anti-Money Laundering, Counter-Terrorist Financing, and
Counter-Proliferation Financing 2-23
BDO’s Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), and Counter-Proliferation
Financing (CPF) compliance programs are approved by its Board of Directors. The Board Audit
Committee and the Board of Directors receive monthly reports on AML compliance and monitoring
from the Anti-Money Laundering Department (AMLD) of the Compliance Group. AML concerns are
escalated to the AML Committee, a management group whose main duty is to oversee the Bank and
its affiliates’ effective and correct compliance with anti-money laundering laws and the Bank’s AML/
CTF/CPF program. The AML Committee, which consists of representatives from Compliance, Corporate
Governance, Legal, Branch Banking, and HO Senior Officer, meets every three months or more
frequently as needed.

The AMLD is in charge of ensuring that the Bank’s Anti-Money Laundering, Terrorist Financing and
Proliferation Financing Prevention Program (MTPP) is implemented correctly and efficiently. This
involves using a risk-based approach to implement KYC policies and procedures, record retention
policies, a system for promptly capturing and reporting covered transactions, investigating suspicious
alerts and reporting as necessary, and creating and conducting specialized training.

The dedicated Compliance Units in specific business areas, such as Trust, Remittance, and Global
Operations, as well as Unit Compliance Coordinators in various Head Office units and branches, are
also under the supervision of the AMLD. Through each Compliance Officer, it also oversees the AML
compliance of its domestic and foreign businesses.

BDO’s local and international branches and subsidiaries are subject to Philippine AML laws,
rules and regulations and its overseas foreign branches and subsidiaries abide by AML
jurisdiction-specific requirements. The AML/CTF/CPF policies and practices are audited by an
independent third-party annually.

AML Risk Assessment

BDO risk assessment determines risk classification to assess the AML/ Financial crime risk by
looking into the country, products, business activity or industry, client’s profile, delivery channels,
ownership structure and affiliation.

The Bank does not engage with shell companies/businesses and virtual exchange companies. The
same rule applies to Financial Action Task Force (FATF) and Office of Foreign Assets Control (OFAC)
sanctioned nations unless additional due diligence reveals that the customer, even if they are citizens
of a sanctioned nation, is not on the list of nations with which no business should be conducted.
Such nationals are nevertheless regarded as high risk and are subject to annual enhanced due
diligence (EDD). The Bank’s policy outlines a list of high-risk clients and industries as well as foreign
and domestic geographic locations that have been designated as such based on a sanction list.

Additionally, the Bank conducts a bi-annual enterprise-wide risk assessment.

The Bank has a “one-touch” KYC policy which eliminates repetitive KYC process for clients with
multiple transactions with various business units within the BDO Group.

BDO categorizes its clients based on the overall risk they pose who undergo the corresponding
Customer Due Diligence (CDD). For clients who pose normal risk, average due diligence is carried
out, while EDD is used for clients who pose higher AML risk.

BDO complies with targeted financial sanctions laws, regulations and directives of the OFAC, FATF,
and United Nations Security Council (UNSC) and those issued by the Bangko Sentral ng Pilipinas
and the Anti-Money Laundering Council, and the Bank performs watchlist name-screening on all its
customers against the watchlists issued by these regulatory bodies/agencies.

BDO actively monitors unusual and potentially suspicious activity which results in alerts on
potential money laundering transactions. For possible suspicious transaction reporting, alerts
are reviewed and investigated by the concerned business unit/branch of account, as well as by a
dedicated team in the AMLD. BDO protects the confidentiality of Suspicious Transaction Report
(STR) filings and any other information that could lead to the discovery of an STR.
76
AML Training
BDO offers customized face-to-face AML training to frontliners and
relationship managers in order to communicate significant policies, new laws, 40,902
and regulations. All bank employees are required to complete e-learning Employees Trained
courses with exams after completing training every two years. The training
includes identification and reporting of transactions that must be reported
to government authorities, examples of different types of money laundering 26
involving the Bank’s products and services, and internal policies to prevent Bespoke (Face to
money laundering for employees who are relevant to reporting. Face) Training
After the lifting of the Covid-19 lockdown in the Philippines, face-to-face
trainings resumed and for the year 2023 alone, at least 26 customized
classroom-type trainings have been conducted by AMLD which increased
8
Courses Available
AML engagement and awareness within the Bank.
in e-Learning Module
(AML 101-108)
Anti-Online Sexual Abuse and Exploitation of Children
Aligned with its Human Rights Policy to protect and respect human rights
in the workplace, the Bank has recognized the increasing risk posed
by online sexual abuse and exploitation of children (OSAEC) and has
implemented measures and controls to mitigate risks arising from this
crime. It has reinforced an ongoing monitoring process in its alert scenario
parameters under its transaction monitoring system to effectively detect
human trafficking and child exploitation activities. The Bank’s screening
process has been strengthened by including the customers involved
in suspicious transaction reports in its Negative List Database System
(NLDS) and this has been articulated in the Bank’s MTPP. Moreover, the
Bank has defined appropriate turn-around time for alerts disposition and
improved procedures on alerts investigation and review to ensure timely
resolutions and the quality of investigation.

The Bank has developed training specific to OSAEC with AMLA 109 –
Combating Online Sexual Exploitation of Children (OSEC). The training is
required for client-facing personnel to ensure awareness of the ML/TF
risk exposure from OSAEC and related activities and appropriate AML/
CFT controls which they need to comply with to address or mitigate risks
arising from this crime.

Tax Governance 207-1, 207-2, 207-3

BDO has a full compliance tax strategy and transparency policy in all the
territories where it engages in business. BDO commits to contribute to
the nation building of the territories, through the timely payment of taxes
due on the Bank’s income, products, and services to their respective
government. BDO recognizes that the timely tax payment enables
governments to finance a sustainable economic, environment, and
socially responsible nation. This in turn leads to job creation and demand
for the services and products of the Bank.

The BDO Comptrollership Group is responsible for the timely payment

of the correct taxes due to the government, and reports directly to the
BDO President and CEO. The organization has implementing units that are
responsible for the timely payment of taxes on the different transactions of
the organization and a Tax Compliance Unit that provides advisory services
and announcements on the latest tax regulations that need to be complied
with. The implementing units are subject to internal and external audits.

BDO engages its stakeholders on concerns related to tax in various forms.

The Bank maintains formal communications to the tax authority on a
need requirement basis. BDO also engages the tax authority through
the Bankers’ Association of the Philippines for industry-related issues.
77
 The Bank discloses adverse material tax findings and material claims for tax refunds, if any, in its
Audited Financial Statements and before the Philippine Stock Exchange.
The Bank’s tax jurisdictions where the entities included in the organization’s audited consolidated
financial statements, or in the financial information filed on public record, are resident for tax
purposes in the Philippines, Hong Kong, Singapore and other parts of the world (United States of
America, Japan, Canada, the Netherlands, and the United Kingdom).

Country-by-country Reporting 207-4

BDO Unibank, Inc. and Subsidiaries

Geographical Segment Reporting
As of December 31, 2023
(in Php millions)
The Group
Hong Kong
Branch and Rest
Singapore Hong Kong of the
Philippines 1/ Branch 2/ Subsidiary 3/ World 4/ Total
Net Interest Income 184,613 1,045 849 (120) 186,387
Fee and commission income 47,375 221 136 167 47,899
Other non-interest income 35,860 5 124 129 36,118
Total Income 267,848 1,271 1,109 176 270,404
Total Expenses 155,810 325 419 273 156,827
Impairment Losses 16,052 81 263 — 16,396
Profit before Tax 95,986 865 427 (97) 97,181
Income tax expense 23,262 150 208 1 23,621
Net Profit 72,724 715 219 (98) 73,560

Attributable to:
Shareholders of the Parent Bank 72,575 715 219 (98) 73,411
Non-controlling Interests 149 — — — 149
72,724 715 219 (98) 73,560

Total assets before goodwill and intangibles 4,373,222 50,840 40,198 2,042 4,466,302
Goodwill and intangibles 11,356 3 — — 11,359
Total Assets 4,384,578 50,843 40,198 2,042 4,477,661

Non-current assets 2,706,142 25,629 21,254 1,658 2,754,683

1/
Net profit reported under Parent Bank (excluding BDO Hong Kong and Singapore Branches) and Subsidiaries operating in
the Philippines
2/
Net profit reported under the Singapore Branch
3/
Net profit reported by the Hong Kong Branch and the Hong Kong Subsidiary
4/
Net profit reported by the foreign subsidiaries in United Kingdom, USA, Canada, Japan and the Netherlands

Building Trust on Technology 418-1

The World Economic Forum Global Risk Report 2023 identified widespread cybercrime and cyber
insecurity risks as the 8th risk in a 2-year and 10-year scenario of global risks that exacerbate
social inequality. BDO recognizes that trust must go hand-in-hand with technology development
and takes strong steps in ensuring the safety and security of data and information entrusted by
its customers in the Bank, while educating customers on scams and building confidence on the
Bank’s platforms.

Data Privacy and Protection

To ensure strict compliance with the Data Privacy Act, BDO follows its Data Privacy Management
Program (DPMP) that lays down the rules on governance, information processing activities, data
protection measures, breach management, third-party management, inquiry and complaints
78
handling, among others. It serves as the framework for protecting the data privacy rights of the
Bank’s data subjects and ensuring compliance with the National Privacy Commission’s (NPC) Five
Pillars of Data Privacy Accountability and Compliance.
1. Appointment of Data Protection Officer (DPO). The Bank appointed a Data Protection Officer
(DPO) whose registration was renewed with the NPC last September 2023.
2. Conduct of Privacy Impact Assessment (PIA). PIA is a requirement for all new and existing
programs, projects, processes or measures that have privacy impact. All business units of the
Bank are required to perform and update their privacy impact assessments annually.
3. Privacy Management Program and Privacy Manual. The Bank’s DPMP serves as a reference for
all units of the Bank in complying with the Data Privacy Act of 2012. It has been further enhanced
to intensify its data protection provisions in March 2023.
4. Implement Data Privacy and Protection Measures. BDO, in its commitment to data privacy
and protection, adheres to the general principles, Transparency, Legitimate purpose, and
Proportionality, in processing personal and sensitive personal information of its customers in all
phases of the data life cycle.
▪ Transparency. The Bank provides its customers clear and concise privacy provisions incorporated
in its bank forms/documents, such as, the BDO Group Data Privacy Statement and the BDO
Group Data Privacy Consent, to ensure that they are well-informed on the purposes of data
processing, the parties involved, and the rights of individuals.
▪ Legitimate Purpose. All data processing activities of the Bank are aligned with the declared
purposes communicated to its customers whether it is for loan availment, branch banking
transactions, regulatory compliance requirements, and/or any other services or transactions
requested, allowed, or authorized by them.
▪ Proportionality. The Bank only processes personal data that are relevant, adequate, and
not excessive to the declared and specified purposes in its commitment and dedication to
respecting the rights of individuals and limiting data processing to what is only essential.
Likewise, a regular Compliance Officer for Privacy (COP) data privacy forum is being conducted by
the DPO to teach all COPs the step-by-step framework in resolving any privacy issue / concern
referred to them by their respective business units, review the DPA principles and breach reporting
procedures, apprise them with new and relevant NPC circulars and decisions.
5. Exercise of Breach Reporting Procedures. To increase awareness on NPC’s breach reporting
procedures, the DPO conducts trainings on the following topics, among others: (a) mandatory
conditions of reportable data breaches, (b) things to do when there is breach, and (c) the data
breach reporting procedure.
The Risk Management Committee (RMC) is also regularly updated with respect to the progress of the
Bank’s compliance to the Data Privacy Act.

Cybersecurity
BDO Unibank, Inc. is committed to safeguarding its clients’ information and assets entrusted to it.
Cybersecurity is a top priority at BDO and is an essential part of its business to help clients achieve
their financial goals. As part of this commitment, BDO continues to invest in cybersecurity and fraud
management technologies to give its clients the confidence that they would expect from the largest
bank in the Philippines.
BDO strongly supports the Bangko Sentral ng Pilipinas (BSP) in its mandate to keep abreast with the
adoption of technologies that will strengthen the BSP framework for risk supervision. The Bank commits
to provide accurate and timely information to BSP for a responsive and effective banking supervision.
The cybersecurity program of BDO, based on the Information Security Strategic Plan, serves as
the roadmap in enabling the business and provides assurance that its direction and intent are
reflected in the cybersecurity posture of BDO. It utilizes a structured approach following international
standards and industry best practices such as ISO 27001 and NIST Cybersecurity Framework in
implementing its cybersecurity program.
Recognizing the significant role of BDO in the development of the country, and that it is a key target
for both nation-state and independent threat actors, BDO supports the cybersecurity initiatives
of the Philippines in protecting critical infrastructure by making BDO cyber-resilient and raising
awareness on the importance of cybersecurity amongst its clients.
79
 Employee Profile
Male     Female
Employee Count New Hires Employee Separations
2023 2023 2023

41,647 5,391 3,712

2023 2023 2023
10,316 31,331 1,361 4,030 1,016 2,696

2022 2022 2022

9,836 29,487 1,306 2,467 1,050 2,260

Leave Availments
Parental Leave (out of total availments) Vacation Leave Sick Leave

2023 92% 73%

2023 2023
2% 98% 91% 79%

2022 93% 81%

2022 2022
2% 98% 95% 88%

Training and Development Skills Upgrade

Average Training HoursPer Employee By Gender Officership Development Program (ODP)

38 33
2023 2022
2023
32 41
2023
130 962

2022 Management Development Program (MDP)

27 34
2023
Sustainability Training Hours Transition Assistance Programs 193 364
2023 2023
Relationship Manager Training
22,172 50 Program (RMTP)

2023 2023 2023

7,691 14,481 23 27 3 16

99.6%
Anti-Corruption Training
99.6%
Code of Conduct and Business
86%
Occupational Health and
Ethics Training Safety Training

100% 44% 59%

Female Senior Officers
Return to Work Rate(after Parental Employees covered by Collective
Leave) Bargaining Agreement

100%
Remain to be employed
99%
Senior Officers hired from
Ratio of standard entry level wage
compared to local minimum wage
Male 1.1 : 1
12 months after return to work local community Female 1.1 : 1
from Parental Leave
Workers who are
Employee Functions not employees
Janitorial services Security personnel
STEM-Related Revenue-Generating
IT
450
Engineering
29
Sales
25,775
1,942 5,189
1,076 210 6,150
100%
Percentage of security personnel
that received formal training on
occupational health and safety

80
 By Location Occupational Health and Safety
Luzon Visayas Mindanao Abroad Male     Female

Incidents of work-related ill-health

Employee Count
2023 1,067
2023 2022
2,529

32,466 30,636 Fatality as a result of work-related injury

4,180 3,888 2023 0

0

4,887 4,680 Lost-time injury (hours)

114
2023 0
119 47

New Hires Safe man hours

Based on 1 million hours worked
2023 2022 2023 13,440,000

4,153 2,702 51,840,000

651 517
Total hours worked
Based on 1 million hours worked
2023 13,447,000

559 526 51,867,000

28 28
2023

37 Number of safety drills

conducted for the year

By Level
2023 Gender Diversity Employee Appraisal Employee Appraisal

Male Female
2,891
Male Female
100%
100%
Of Total Eligible Employees
17,071 100%
4,019 100% Rank and File
8,741 100%
Junior Management:
2,608 100% First line managers or supervisors
4,386 100%
Middle Management:
798 100% Managerial roles below senior
1,133 100% management
Senior Management:
Average Training Hours New Hires Assistant Vice President and up

2023 2022 Male Female

40 310
Promotions
37 2,912 Male     Female
37 632
30 755
2023 1,371
39 332 6,689
27 297
2022 1,462
33 87
24 66 7,271

By Age Group By Type

Employee Count New Hires Employee Separations
Voluntary     Involuntary
2023 2023 2023
Employee Separations
14,229 24,206 3,212 3,982 1,366 43 1,575
2023 1,872 265 2022
3,283
<30 30-50 >50 <30 30-50 50> <30 42930-50 50>

Employee Separations Employee Separations

2023 2023 3,283 2022 3,009
366 43 1,575 1,872 265 429 301

0 50> <30 30-50 >50

81
 Human Capital Development 201-1,202-2,

401-1,401-3,404-1,404-2,404-3,405-2

A human-centered culture and organization:

BDO Human Resources
We Find Ways is at the heart of BDO’s culture of service, excellence, and
innovation and a key factor in achieving BDO’s objective to grow a “can
lead” workforce that adopts a sustainability mind-set and thrives with
innovative thinking and a customer-focused attitude.

BDO’s C-O-R-E values are well aligned with the Bank’s goal to develop
leaders in the sustainability movement:

▪ Customer-focused. Everything each BDO banker does is in the service

of the customer’s financial objectives and interests. This redefines the
Bank’s role beyond simply being a provider of financial services, to a
driver of financial inclusion. The Bank reaches out to current clients and
the large number of unbanked and underserved Filipinos, and partners
with them to fulfill their aspirations towards a more sustainable future.
▪ Out-of-the-box Thinking. Every BDO banker is encouraged to challenge
conventional banking practices, beliefs, and processes for a better way
to achieve the clients’ objectives, without compromising quality, ethics,
or good governance. As the country’s largest bank, innovation and
ideation are born out of the Bank’s drive to think differently and from
diverse perspectives.
▪ Right Attitude. All BDO bankers are encouraged to go the extra
mile to meet the client’s objectives. This is demonstrated in every
BDO banker’s commitment to excellent customer service and strong
customer relationships. Incorporated in BDO’s human resource trainings
is the development of values such as integrity, team spirit, hard work,
and service. Complementing BDO’s commitment to build long-term
relationships with customers is the bank’s efficient business processes
and user-friendly digital tools.
▪ Excellent Execution. As the largest full-service financial institution
in the Philippines, BDO is committed to doing it right, on time, and
according to expectations each and every day.

Driving Equal Opportunity Employment

BDO is committed to promote a work environment that fosters diversity,
equity, and inclusion, where everyone receives fair and equal treatment,
equal rights and opportunities regardless of gender, ethnicity, race, age,
religion, sexual orientation, and disability, and are valued for their unique
contributions to BDO’s success. The Bank ensures that employment
practices and policies are in compliance with labor laws, regulations, and
standards in countries where it operates. BDO seeks the best talents who
are selected, engaged, compensated, and promoted, as the case may be,
based on merit and performance.

82
Labor Relations 2-30

In 2023, BDO concluded the negotiation of economic benefits for the covered members of the
Bank’s Union, which shall take effect from 2024 to 2025. Out of the Bank’s total population, 44%
are Union members. The negotiating panel, which is composed of male and female representatives
from Management and the Labor Union, agreed to come up with package that is mutually beneficial
to the employees and to the Bank in strengthening industrial relations, peace, and harmony.

Promoting Employee Health and Well-being 403-6

As bank operations fully transitioned out of pandemic conditions, BDO HR continued to prioritize
employees’ health and well-being. The Bank’s dedicated online mental wellness platform marked
its second year with a sustained bank-wide information campaign. The program continues to
provide counseling and peer support services to employees who are faced with work-related
struggles or personal challenges, not necessarily related to the pandemic.

Monthly health and wellness sessions focusing on various health topics were conducted to
promote a culture of appreciation for overall physical and mental wellness. Activities that were
implemented to cater to various employee groups included:

▪ Access to Flu and Cervical Cancer vaccination at preferred pricing for employees and
family members
▪ On-premise bloodletting activity to leverage on employee donor’s health benefits in the blood
donation process
▪ ‘Stretch and Flex’, a 3–5-minute break for employees to avert work-related physical strain

Sustaining a Safe Work Environment 403-1, 403-2, 403-2, 403-4. 403-5. 403-6, 403-7, 403-8,
403-9, 403-9

BDO’s Health and Safety Policy provides for a safe and healthy work environment for employees
and mandates the identification, assessment, and mitigation of health and safety hazards in
the workplace. The policy covers a wide range of workplace safety aspects, such as the Bank’s
strategies for Emergency Preparedness to ensure readiness for any unforeseen circumstances that
could interfere with daily operations. The policy also includes instructions for safety orientations
for new hires to set expectations on the necessary safety procedures. The Bank performs regular
safety checks and upkeep of the Bank’s facilities and reviews specific guidelines on electrical safety
and building safety.

Safety Officers, along with emergency response teams and fire marshals, are assigned at BDO
facilities to ensure smooth implementation of safety protocols in case of emergencies. At the
same time, communication is maintained with the Facilities Engineer, HR Officer, and Business
Unit (BU) Heads which allows for the discussion and resolution of any health and safety concerns
within the BU.

83
 BDO has a Hazard Identification Risk Assessment and Control (HIRAC)
framework in place to identify work-related hazards and assess their risks,
in compliance with the Occupational Safety and Health Law, also known
as Republic Act 11058, which mandates the conduct of risk assessments
in the workplace. Safety Officers accredited by the Department of
Labor and Employment (DOLE) primarily identify these hazards through
risk assessments and regular safety inspections at least twice a year.
Members of the evacuation team, fire marshal, facilities engineers, and
security guards are also involved in identifying hazards. They continuously
monitor workplace safety and promptly report any identified hazards
to the Safety Officers. The Health and Safety Committee, composed of
senior officers from different business and support groups, i.e. Human
Resources, Branch Banking Group, Consumer Banking Group, Security
and Investigation Department, Procurement and Supply Management
Department, Risk Management Group and the employees’ labor union),
meets regularly to monitor the implementation progress of Occupational
Safety and Health (OSH) programs and address OSH issues. The DOLE
and BSP routinely audit the OSH programs of the Bank.

Nurturing Learning and Development

Sustainability Capacity-building
BDO HR created and launched the Sustainability at BDO e-course in
2023 to promote a sustainability mindset among employees and engage
8,347
Employees
employees as responsible corporate stewards. The 12-minute e-course
Trained on
was made part of the mandatory onboarding courses for new hires.
Sustainability
The BDO Sustainability Office conducted several capacity-building
sessions among employees across the BUs, subsidiaries, and affiliates in
2023. The overall objective was to generate awareness, understanding, 22,172
and action on the Bank’s Sustainability Framework, the Board-approved Hours Spent on
Environmental & Social Risk Management System (ESRMS), and the Sustainability Trainings
importance of auditable data in sustainability reporting. HR Training
helped track the attendance and feedback from all participants, mostly
from Metro Manila and Luzon offices and branches. In 2024, the
Sustainability Office will conduct similar sessions for employees in the
Visayas and Mindanao regions.

In partnership with the International Finance Corporation, the

Sustainability Office also arranged for special trainings for key business
units and subsidiaries on Green Finance for Small and Medium
Enterprises (SMEs), Transition Finance, and Impact Investing. To know
more about the partnership, see the section on Pursuing Partnerships for
Impact in this report.

84
Capability-Building in Environmental, Social, and Governance
(ESG) and Sustainability

ED
P

UC
UI

Using a Building
Blocks approach,

AT E
EQ

build on existing
Provide the
skills and knowledge
necessary tools,
of everyone in the
systems and
organization on ESG
resources to
topics, technologies,
implement solutions
and innovation to
that enable
inspire ideation
sustainability in
and action
everything we do

Integrate sustainability principles in

corporate governance, risk
management, strategy, and
operations for all our businesses

EMBED

Business Upskilling
Throughout the year, business skills training courses continued to be a priority across the
Bank’s different business units. Employees are equipped with the latest trends in the market
through relevant and updated external training programs aligned to their roles. Trainings on
products, services, systems and processes form part of the overall learning solution. These are
complemented by courses and programs on wealth management, credit, and sales management.

BDO also successfully delivered flagship programs on communication, problem-solving, and critical
thinking. Consultative selling and sales workshops were part of the learning offerings to enable client-
facing learners the necessary skills to offer appropriate financial solutions to our clients. BDO also built
leadership programs to develop our next generation leaders and designed development programs for
our employees who aspired to transfer to roles they would also like to grow their career in.

A key challenge in learning is in reaching the widely geographically distributed BDO workforce. This
was addressed by a mix of learning modes made available for employees. Face-to-face trainings
for relevant courses were preferred and organized in areas nearer the employee work areas for
convenience and a smaller carbon footprint. At the same time, the Bank provided options for virtual
training and on-demand training through the iLearnHub courses.

Overall, these learning solutions are aligned with BDO’s We Find Ways culture and continue to
empower employees to effectively perform their respective roles in supporting the business and
responding to customers’ need.

85
 Driving Talent Development
The Bank continues to implement its cycle of Talent Development
Programs such as the Officers Development Program for junior officers 557
and the Management Development Program for mid-managerial levels. Participants
Targeted career development programs were launched for specialized Management
skills and professional enhancements such as the Career Accelerator Development Program
Program to fast-track staff development, Relationship Manager Training
Program to prepare for full-fledged relationship management role, and
Branch Management Training Program for potential Branch Officers.
1,092
Participants Officer
These programs enable employee skills enhancement, foster career Development Program
growth, contribute to employee engagement and retention, and support
succession planning by identifying high-potential employees and
preparing them for leadership roles. By nurturing talent from within, 19
business units are enabled with a pipeline of qualified employees ready Participants
to take on higher responsibilities, thus, sustaining inherent institutional Relationship Manager
knowledge and work culture synergy while reducing “new hire” Training Program
adaptability risks as well as external recruitment costs.

Improving the Employee Experience through

Digital Transformation
To keep in step with the digital transformation across the enterprise,
BDO continues its digitization of internal human resource processes
aimed at increasing operational efficiency and creating a better
employee experience:

▪ Provision of electronic copies of BIR Form 2316 (Certificate of

Compensation Payment or Income Tax Withheld) provided secure
and ready access to Bureau of Internal Revenue (BIR) Form 2316 and
paperless transaction for approximately 19,000 BDO staff employees.
Encryption ensured confidentiality and averted data privacy risk.
Process-wise, approximately 15 mandays were avoided that were
previously spent on preparation, sorting, and release of hard copy BIR
forms to employees and individual scanning for submission as required
by the BIR.
▪ Online employee exit feedback for resigning employees reduced the
need for printing paper forms and minimized the use of transportation
with fuel consumption when delivering these forms to different BDO
locations. Manpower hours allocated for these activities were also
shortened leading to more efficient and real time release/submission
of forms.
▪ Enhanced job application experience featured improved data collection
in the Career Website and allowed for greater ease and convenience in
the application process via:
▪ Ease in navigating for targeted job roles in the career website
▪ Online completion of applicant’s basic information
At the back-end, once hired, the candidate’s data is pushed to the BDO
database, allowing for less encoding time.

▪ Online nomination for career development programs provided ease and

convenience for People Leaders with nominees in their respective teams,
reduced paper usage and related ancillary services such as mail and
courier expenses, and brought efficiencies in encoding time and resource.

86
Performing to Sustainability Commitments
To support BDO’s commitment to the achievement of its sustainability
goals, BDO HR worked with the Sustainability Office to incorporate three
(3) Behavioral Norms statements as part of the performance assessment
of all employees in 2023. Employees were rated not only on the
achievement of deliverables, but also on their adherence to the Bank’s
sustainability principles and embedding its value in the organization
through the work that they do. A series of communications were
cascaded bank-wide to create further awareness and will be reinforced in
2024 through a mandatory e-Learning course for all employees.

Clearly stating behavioral norms aligned to the Bank’s sustainability

commitments in individual performance met strong positive response
from employees. It resulted in a significant increase in employee interest,
participation in, and championship of the Bank’s sustainability initiatives.
It also resulted in great demand and attendance in sustainability trainings
and briefings, as well as volunteer activities nationwide through the BDO
Employee Volunteer Program (EVP).

Employee Volunteer Program

BDO HR, the Sustainability Office, and the BDO Foundation, supported
by the Marketing Communications Group, continued to work closely
together for the implementation of the BDO EVP to promote employee
engagement and involvement in BDO’s corporate citizenship initiatives.
The program committed to pursue initiatives in the areas of poverty
and hunger, the environment, education, financial inclusion, and human
rights. The EVP is championed by the BDO Board whose members also
approved the sustainability focus areas for the volunteer opportunities.
For more details on the EVP, see the section on Pursuing Partnerships for
Impact in this report.

CASE STUDY:
BDO Job Fair in partnership with OWWA
BDO HR and BDO Remit partnered with the Overseas Workers Welfare
Administration (OWWA) for a one-day job fair for OWWA’s scholars
and interns as part of OWWA’s culminating activities in celebration
of its 41st anniversary in 2023. The event also supported OWWA’s
commitment to provide access to education up to employment for
its scholars who are children of Overseas Filipino Workers. BDO is the
largest provider of remittance services for overseas Filipinos. The event
served as an opportunity for the scholars and interns to match their
knowledge and skills to open positions at BDO.

Among the scholars and trainees who were successfully hired for
a banking role was OWWA scholar Joshua Glenn. He related how
he listened to speakers from OWWA and BDO as they shared their
insights on life after graduation, employment in the Philippines, and
opportunities made accessible by the job fair partnership.

Joshua graduated as a Magna Cum Laude from the University of the

Philippines, the country’s state university, with a degree of Bachelor
of Science in Electronics Engineering. With his impressive academic
credentials, Joshua Glenn was hired as IT Security Architect at BDO.
He felt fortunate to be working at the largest bank in the Philippines
in a role that is perfectly aligned with his career aspirations as an
engineering graduate.

87
 He advised other OWWA scholars to “learn to take initiative in
opportunities. regardless of whether they guarantee success. Taking
initiative is why our loved ones become OFWs and step out of their
comfort zones for their families. I believe this applies not only to
employment but also to seeking value, learning new skills, and
bolstering advocacies, all contributing to a meaningful life.”

Michelle Rabino was an OWWA intern and a graduating student whose

goal was to get a job immediately after graduation. She is now building
her career as a Marketing Assistant for BDO Network Bank. Michelle
finds that working in the banking industry is not easy, but appreciates
that BDO provides various trainings and seminars that help employees
improve their personal and professional lives.

“I could not contain the happiness that my family and I felt when
the HR personnel of BDO told me that I passed the assessment
and got accepted for a role at BDO, one of the companies that I’ve
always wished to work for. I will be forever grateful to OWWA for the
opportunity to be part of the BDO family,” she related.

“The job opportunity from BDO helps me build my confidence as a

career woman. I was once a full-time housewife and a stay-at-home
mom before I entered the corporate world, and luckily, BDO accepted
me and trusted my abilities. I am able to help my husband with all our
expenses, and we can now save enough for the future. I have become
more generous to my family and somehow capable enough to help other
people who are in need. Thanks to BDO, an employer who is generous
enough to provide the best benefits an employee could ever ask for,
the competitive compensation packages, comprehensive benefits, and
the people I worked with contributed a lot to my positive and fulfilling
employment. I am truly blessed, and I know I could be a blessing.”

Environmental Impact
Energy and Emissions 302-1,302-2,302-3,303-4,303-5

BDO recognizes that its facilities require a significant amount of energy to

meet the Bank’s operational requirements. This may result in increasing
costs, operational inefficiencies, and heightened carbon emissions if not
managed properly. In 2023, the Bank implemented a comprehensive
approach aimed at the well-rounded energy management of its operational
footprint. The BDO Central Operations Group’s Facilities and Procurement
units implemented a two-pronged approach to energy: managing
consumption and shifting to cleaner energy sources.

BDO conducted an energy audit of nine of its largest offices in various

regions in the country. While the energy audit in compliance with the
Department of Energy’s (DOE) Energy Efficiency and Conservation Act or
Republic Act 11285, it also aligned with the Bank’s sustainability initiatives to
identify a baseline for BDO’s electricity usage. The energy audit facilitated
the development of strategies and action plans in the short, medium, and
long-term to improve the Bank’s energy efficiency. The findings from the
audit also highlighted opportunities for significant reductions in the Bank’s
energy usage.

88
To reduce electricity consumption, BDO continued to roll out its best practices in more facilities
and branches nationwide, such as retrofitting with energy-efficient lighting and equipment,
optimizing air-conditioning and heating systems, and encouraging employees to conserve energy
through awareness campaigns.

The Bank is in the process of creating a bank-wide Energy Policy to set guidelines for energy-efficient
practices across its facilities, and identify and monitor energy performance indicators over time.

In terms of shifting to cleaner energy sources, BDO consumed 10,728 megawatt hours (MWh) of
electricity sourced from renewable energy, representing 10.8% of its energy sourcing from five of
its largest buildings with the highest energy consumption. Majority of this energy was derived from
a geothermal energy source. The success of this pilot initiative will pave the way for the Bank to
expand and scale the approach to other BDO buildings in the coming years.

Managing Our Resources

Out of 1,686 branches audited Out of 147 buildings surveyed

1,424 or 84% 85% 14%

are installed with inverter air- use modernized use a combination of
conditioners air-conditioning system conventional and modernized
(e.g. inverter air-conditioners, air-conditioning system
variable-frequency drives)

1%
are installed with conventional
air-conditioners

Out of 1,686 branches audited Out of 147 buildings surveyed

1,576 or 93% 60% 38%

fully use LED lighting fully use LED lighting use a combination of LED
lighting and conventional

2% lighting

fully use conventional lighting

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 CASE STUDY:
Energy Efficiency Upgrade
Investing in air-conditioning system in Data Centers

P14 million
The air-conditioning system for one of the BDO Data Centers had
cooling equipment and back-up air-conditioners that were over
15 years old and near their end-of-life. Their efficiency had significantly Investment for New
decreased over time and maintenance costs have started to escalate. Air-Conditioning Units
Recognizing the need for an upgrade, BDO initiated an energy
efficiency project amounting to P14 million in the fourth quarter of
2022 that was completed in the third quarter of 2023. With new units P4.8 million
installed, the improvement was immediate and substantial. Required Savings from
energy output dropped from 205.8 kW in 2022 to 152 kW in 2023. energy-efficient technology
Looking ahead, we anticipate further energy efficiency gains and
significant reductions in maintenance costs.

Converting fluorescent light bulbs to LED

Replacing conventional fluorescent bulbs with more energy-efficient
LED lights in the parking areas of the BDO Corporate Center Ortigas
P412,000
Investment for
led to substantial energy savings. The retrofit took five months to
LED Bulbs
complete and resulted in a decrease of 15,564 kWh in consumption.
This translated into savings of P129,153 in 2023, compared to the same
five-month period in 2022. The total cost of the retrofit was over
P412,000, which will be offset by the energy savings over time.

CASE STUDY:

Retrofitting for a Retro Building

BDO Dasmariñas - Binondo Building in Manila is one of the oldest BDO
facilities which has seen significant reductions in energy consumption 4.9%
through retrofitting of LED lights and the modernization of its Decrease in
elevators. Energy Consumption

In 2018, the building consumed an average of 144,993 kWh per month,

among the top five BDO buildings with the highest consumption. P800,000
Recognizing the urgent need for electricity reduction, the Bank’s Savings from
Facilities Unit started to retrofit the building’s lighting system with Energy-efficient Technology
LEDs in 2019. This modification led to a considerable drop in the
monthly energy usage to an average of 137,867 kWh, marking a 4.9%
decrease from the previous year. There was also substantial cost
savings of over P800,000 compared to the previous year’s expenditure.
The following year, its traditional elevators were replaced with smart
elevators, which further lowered the monthly average in 2021 to 131,000
kWh. This represented a significant 10% reduction in energy usage over
time, when measured against 2018 figures, and generated substantial
cost savings of P1,970,000 compared to 2019’s electricity expenses.

These case studies show that the Bank actively finds ways to improve
energy efficiency in BDO facilities. Through these initiatives, the Bank
not only made the BDO Dasmariñas - Binondo Building more energy-
efficient, but also provided a remarkable example for other offices
to follow.

90
Water Consumption, Discharge,
and Effluents 303-1, 303-2, 303-3, 303-4, 303-5
BDO recycled 96 million liters of water in 2023, an increase from the
previous year’s 65.1 million liters. BDO Corporate Center Ortigas, which is 96
equipped with a state-of-the-art rainwater and condensate harvesting
facility, leads the way among the Bank’s buildings in water recycling for
million liters
Amount of Water Recycled
office use. There is an increase in recycled water utilization which is
attributed to improvements in water pump system, resulting in higher
utilization rate of non-potable water.

BDO buildings are installed with septic tanks and sewage treatment
facilities to process and filter wastewater before discharge. Some
buildings are also connected to external services that collect and treat
wastewater before it is released into lakes or freshwater outlets. The
Bank also engages third-party services to siphon its septic tanks annually.

Fuel Consumption
Diesel consumption is driven by generators in each of the Bank’s
branches and corporate offices, on standby as emergency power supply
source to ensure that power remains ready and reliable for branch
operations. In order to avoid downtime, generators that run on diesel are
regularly run and tested as part of preventive maintenance. The Bank’s
LPG consumption comes from the supply provided to the tenants in the
cafeteria that provide food to the Bank’s employees. Shuttle service to
and from BDO corporate offices in Ortigas and Makati are provided to
encourage personnel carpooling instead of individual bank car to save on
rising cost of fuel and minimize carbon footprint.

Materials and Waste 301-1,301-2,301-3, 306-1,306-2, 306-3,306-

4,306-5

BDO’s Waste Management Technical Working Group (TWG) continuously

implements circularity measures to minimize waste across its operations
and throughout its value chain—effectively managing significant waste-
related impacts. This commitment is demonstrated through a variety of
initiatives aimed at reducing waste generation and promoting resource
conservation. These initiatives prioritize waste prevention, reuse, recycling,
and composting over landfill disposal. The Bank ensures compliance with
local waste management laws, rules, and regulations, and promotes a
culture of environmental responsibility among its employees. Efficient
and cost-effective waste management practices are implemented to
further this commitment.

The Bank strictly adheres to the Republic Act No. 9003, also known as the
Ecological Solid Waste Management Act of 2000, which mandates waste
segregation, collection, and disposal at the source. The Bank’s waste
management initiatives, such as the BDO Waste Busterrr campaign,
are designed to educate employees about the importance of waste
segregation and encourage them to reduce, reuse, and recycle waste
both at work and at home.

BDO ensures that the treatment and disposal of hazardous waste are
aligned with RA 6969 by contracting only with DENR-accredited haulers.

91
 The Bank’s janitorial service provider collects non-hazardous waste for segregation in our materials
recovery facility. Collected waste is turned over to the appropriate and accredited haulers by the
Bank’s janitorial service provider. Hazardous waste produced and collected by the Bank include
used oil of generators, busted lights, and e-waste. They are kept safe in a storage area for hauling by
third-party vendors accredited by DENR.

Recyclable waste is turned over to an accredited hauler. Third-party vendors recycle the paper,
issue certificates on the amount recycled, and plant trees on behalf of the Bank, in exchange for
the collected waste. Third-party vendors convert carton and paper waste to bond papers or seed
papers, while plastic and other packaging waste are converted to different types of products such
as clothes hangers, pallets, furniture, trash bins, trays, among others.

The Bank ensures reliability through collection of waste, waste-related data, and waste monitoring
and tracking that is conducted by engineers, technicians, housekeeping, security, and a third-
party recycler.

Managing Internal Consumption

The Bank also works with its suppliers to manage their environmental footprint. BDO has
conducted an internal assessment of the materials that the Bank consumes in its operations,
papers and toners/cartridges. On the supply side, BDO has lease arrangements on printers where
BDO pay only for the use of new/remanufactured toners/cartridges, where empty toners/cartridges
are pulled-out by supplier for refill and reuse.

BDO has also implemented the DigiCur project. This has resulted to a 15% decrease in volume of
paper bank-wide consumption for 2023 versus 2022.

On the demand side, the procurement office started the digitization of requisition in 2008 using
Electronic Forms Management System (eForms) and purchase order processing via Electronic
Purchase Order and Delivery System (EPODS). The eForms is for internal clients to submit their
requests for purchase. The system consolidates and creates purchase orders per supplier for
items/services with standard unit cost. Suppliers are able to view and service orders in EPODS as
well as create billing statement for requests completely served. Through the system, the Bank has
reduced the use of hardcopy general requisition form, purchase order, and invoices. The suppliers
are now required and able to bill multiple served requests in one invoice. The Bank has also
reduced the transportation demand for suppliers who can view and process their invoice online.

92
Circularity in Operations
The Bank promotes circularity through refurbishing or repairing our assets to reuse them for the
same or different purpose. The Bank redistributes its reusable Furniture, Fixtures, and Equipment
(FFEs) or other resources, where feasible, to prolong the lifespan of our assets and avoid purchasing
new assets.

1,186,299.88 kg of paper 317 units of open type 4,634 requests of 16,502 IT

recycled through paper shelves and 12 units of items, 22,764 FFE items,
mill with P4,142,859.79 whiteboard from DigiCur 10,327 consumable items
income and 135 trees Project at BDO North Tower processed disposal through
planted, with Certificate of were recycled/re-allocated to accredited service provider for
Tree Growing, in behalf of BDO various branches recycling, re-use and re-sale

463 units of various 450 units from Unibank and 4,224 acrylic desk dividers
accessories from BDO 230 units from Subsidiaries from branches and Head
buildings and warehouse, IT FFE – various computer Office were converted to
such as lights, glass doors, sets, printer, laptop, IP phone, trays and accessory boxes
counters, panelboard were headsets, scanners, LFD which were either sold
refurbished, repaired or monitor, mobile phones, to employees or sent as
cleaned and re-allocated to switches, tablets, and institutional gifts to clients.
different BDO buildings webcam were re-allocated/ Proceeds from the sales are
re-issued given to the BDO Foundation
for the rehabilitation and
reconstruction of schools and
rural health units.

34 units of ATM enclosure and

23 units of CDM enclosure were refurbished and re-allocated to offsite and within BDO branches ATMs
214 sets of workstations were reused

93
 Partnership with BDO Foundation
FFEs in good working condition are donated to BDO Foundation’s
beneficiaries.

▪ 253 non-IT FFEs including various chairs, tables, sofa and cabinets were
donated to various Regional Health Centers project of BDO Foundation.
▪ 503 non-IT FFE and IT equipment combined items donated to various
Health Centers and schools.
▪ 1,000 Acrylic Dividers from Branches were donated to local
Cooperatives thru BDO Foundation to be re-produced to other
product/items.
▪ A percentage of the sale of every BDO Exclusive item is donated to the
BDO Foundation for the construction of classrooms nationwide.

CASE STUDY:

Waste Busterrr: Reduce, Reuse, Recycle

The BDO Waste Busterrr campaign, launched in the fourth quarter
of 2022, is a testament to the Bank’s commitment to environmental P2.2 million
stewardship. In the second phase of the project, BDO expanded the Investment in
scope of the campaign to include 22 buildings. This expansion was Waste Management
a significant step forward in the commitment to sustainability and
demonstrated BDO’s dedication to making a positive impact on a
larger scale. Since the launch of this project, the Bank has invested
26 facilities
Nationwide Implementing
over P2.2 million and now span across 26 facilities in Luzon, Visayas, Waste Busterrr: Reduce,
and Mindanao. Reuse, Recycle Waste
The Bank’s Facilities Unit is responsible for the day-to-day waste Management Program
management activities. This team oversees the operations of waste
management within the Bank’s facilities, ensuring that procedures
for waste handling and disposal comply with local, regional, and
national laws. They coordinate waste collection and disposal, ensuring
proper segregation and handling of waste per type. DENR-accredited
third-party service providers are engaged for waste collection and
disposal, and periodic audits are conducted to ensure correct
waste segregation. This information is collected and reported to the
Sustainability Office as necessary.

The Bank measures its performance through data analysis and

strategic meetings that assess the strengths, weakness, opportunities,
and threats in the implementation of the program. The Facilities Unit
also reviews operations to identify opportunities for waste reduction
at the source. Properly labelled and color-coded waste bins are made
accessible in some pantry areas and common areas within the Bank’s
facilities to create an enabling environment for the employees to
observe proper recycling.

94
The Bank enjoins its employees in the effort to segregate waste
at source. Non-hazardous waste generated in the workplace is
segregated and disposed of through the Bank’s accredited third-party
service providers of waste management. The three types of wastes
are (i) recyclable dry papers; (ii) recyclable plastics, metals, and glass;
and (iii) non-recyclables including food waste and soiled packaging.
Designated trash bins for recyclables and non-recyclables are placed
in common areas, while trash bins for hazardous and infectious waste
are placed in restrooms. Trash bins provided in personal workstations
are intended only for recyclable dry paper waste.

The Waste Busterrr campaign encourages employees to become

champions of waste management by reducing, reusing, and recycling 7,702
waste both at work and at home. Through multimedia communication
channels, employees have been able to share their tips and best employees
practices, fostering a sense of community and shared responsibility
Trained on Proper
towards the environment. The campaign also includes mandatory
Waste Management
e-learning videos for all employees located at select buildings and
branches, further emphasizing the Bank’s commitment to building
a culture of sustainability. Since its inception, the Campaign has
trained 7,702 employees on proper waste management through its
e-learning course.

By promoting waste management best practices, the Waste

Busterrr campaign contributes to these goals by promoting
eco-friendly solutions.

By year-end 2023, the Bank was able to collect 7,143 kilograms of

recyclable waste across all included facilities.

95
 Recycle Right
The TWG worked with the Marketing Communications Group to include a recycle right series.
The program aims not only to teach its employees to reuse, reduce, and recycle, but also to
recycle in the correct manner to lessen waste directed to disposal.

CASE STORY:
X-Trash Challenge
Another significant initiative that underscores BDO’s commitment to waste management is its
participation in the X-Trash Challenge. This competition, sponsored by the Philippine Business
for Social Progress (PBSP) and Basic Environmental Services Technology (BEST), brings together
various Philippine companies in a collective effort to reduce waste. The challenge involves
collecting recyclable materials such as paper, plastic, and metal wastes. BDO has been a proud
participant in the X-Trash Challenge since 2021, consistently achieving podium finishes each year.

In 2023, the initiative resulted in the collection of 10,519.34 kilograms of recyclables, which
were exchanged for 30,798.64 environmental points. BDO plans to donate these points to a
worthy cause. In previous years, the winnings from the challenge have been used to support
underprivileged families. In 2021, BDO partnered with Samahan ng Nagkakaisang Pamilya ng
Pantawid (SNPP) to purchase food packs and groceries for priority families in Cavite, Makati,
and Muntinlupa cities. In 2022, BDO collaborated with the Addition Hills Integrated School
in Mandaluyong City, using the proceeds to purchase food packs for priority families in
Metro Manila.

Overall, the BDO Waste Busterrr Program, X-Trash Challenge and recycling initiative are more
than just a waste management initiative. This reflects the Bank’s commitment to sustainability,
financial inclusion, and environmental stewardship. BDO is not only influencing employees to
rethink their waste in the office but also the waste at home by bringing them in the drop-off
areas. BDO holistic materials and waste management contributes to the achievement of national
economic goals in waste reduction and sets a benchmark for other organizations in the industry.

96
BDO Resource Consumption 2-4
Fuel Consumption (in liters)
2023 2022 2021

469,633 164,941 63,620

424,832 31,057 13,744 131,119 21,344 12,434 44 43,437 20,020 163

Diesel Gasoline LPG Refrigerants

Electricity Consumption (in ‘000 kWh)

2023 2022 2021

94,900 100,323 98,117

48,818 46,082 51,448 48,875 46,528 51,589

Branches Offices

84,215 10,685 83,426 3,703

Non-renewable Renewable

Energy Intensity Carbon Intensity Water Consumption (in ‘000 cu.m.)

(in total electricity consumption, (in tonnes C0 2e/A1 million in revenue)
MW / total employee count)
0.51 0.47
1,021.2
0.37 0.37 0.34 2023 373.9 647.3
0.27
2022 358.3 472.6 830.9
2021 2022 2023 2021 2022 2023
Calculated as: Total electricity Calculated as: Total CO 2e emission /
2021 339.1 275.2 934.6
consumption / revenue in millions revenue in millions Branches Offices
Recycled Water (in cu.m.) Water Discharge (in cu.m.)*
2023 95,984 2023 390,182
371,299
0 50 100 150 200 250 300 350 400

2022 65,125 2022

2021 58,623 *Water discharge monitored is only for offices

Non-hazardous Waste (in kg)

2023 2022

624,884 320,927
607,503 7,143 10,238 295,706 2,492 22,729
0 62500 125000 187500 250000 312500 375000 437500 500000

Wastes directed to disposal Wastes diverted from disposal Wastes diverted from disposal (recycled)
(recycled) through BDO’s MRF through X-Trash

Hazardous Waste (in kg) Fuel Consumption of Tenants (in liters)

2023 2023 2022
14,677 1,000 1,506
12,410 2,267
0 400 800 1200
0 1600
400 800 1200 1600

Wastes directed to disposal Diesel

Wastes diverted from disposal (recycled)
through accredited waste collectors

Electricity Consumption of Tenants (in ‘000 kwh)

2023 2022
3,294 4,033
1,655 1,639 4,033

Renewable Non-renewable

GHG Emissions (in tonnes CO 2e)

2023 2022 2021

70,638 74,867 70,715

1,237 66,784 2,617 500 71,488 2,879 430 70,285

Scope 1 Scope 2 Scope 3

The overall emissions reported above includes Dominion Holdings’ fuel, electricity, and water, as well as its greenhouse gas emissions.

97
 Breakdown of BDO Emissions for Scope 1, 2, 3

Luzon Visayas Mindanao Abroad Total

Within BDO
Fuel Consumption (liters)
Diesel
Generator sets 108,969 16,932 15,147 - 141,048
Transport vehicles 212,501 4,257 67,026 - 283,784
Gasoline 2,177 7,736 21,144 - 31,057
Heating and Cooking: LPG 13,744 - - - 13,744

Scope 1 emission (in metric tonnes)

CO2 887.5 74.3 268 - 1,229.8
CH4 3.3 0.3 1 - 4.6
N2O 1.9 0.2 0.6 - 2.6
Total CO2e 890.2 77.8 277.1 - 1,237

Electricity consumption (MW)

From non-renewables 67,731,713 5,546,619 6,354,129 155,999 79,788,460
From renewables 10,685,175 - - - 10,685,175

Scope 2 emission (in metric tonnes)

CO2 57,324.7 4,233.8 5,141.9 83.7 66,784.1
CH4 - - - - -
N2O - - - -
Total CO2e 57,324.7 4,233.8 5,141.9 83.7 66,784.1

Outside BDO
Fuel and electricity consumption and waste disposed
Diesel (liters)
Generator sets 1,000 - - - 1,000
Electricity (MW)
From non-renewables 1,638,964 - - - 1,638,964
From renewables 1,654,852 - - - 1,654,852
Non-hazardous waste (kg)
Directed to disposal 600,648 4,260 2,595 - 607,503
Diverted from disposal 15,581 578 1,222 - 17,381

Scope 3 emission (in metric tonnes)

CO2 2,611.7 3.2 2.1 - 2,617.0
CH4 0.01 - - - 0.01
N2O 0.01 - - - 0.01
Total CO2e 2,611.7 3.2 2.1 - 2,617.0

98
Consumer Protection Practices 416-1
BDO’s financial consumer protection framework is anchored on disclosure and transparency,
protection of client information, fair treatment, effective recourse, and protection of consumer
assets against fraud and misuse. The framework ensures that consumer protection practices are
embedded in BDO’s operations and considered in the development and implementation of the
Bank’s products and services.

Customer Experience Philosophy

At BDO, we proudly embrace a We Find Ways mindset, weaving it into the fabric of our Customer
Experience Philosophy. This principle amplifies our commitment to foster a banking experience that
goes beyond mere transactions, offering diverse products, and providing personalized services to
customers through deep understanding of their financial goals and life circumstances.

Board and Management Oversight on Customer Concerns

The Board is primarily responsible in maintaining an effective oversight on the Bank’s consumer
protection policies and programs. Senior management implements the Board-approved strategies
and ensures that control mechanisms are in place. The governance and oversight functions are
reinforced by the various roles that own, manage, oversee, or provide independent assurance over
Consumer Protection activities such as:

▪ Senior Management: Senior Management ensures that the approved Consumer Protection
policies and procedures are clearly documented, properly understood, and consistently
implemented across all levels and business units.
▪ Compliance and Internal Audit: The Compliance Office and Internal Audit, both of which take their
authority from the Board’s Audit Committee, support the BOD in overseeing the Bank’s adherence
to the Consumer Protection policies as well as in ensuring the effectiveness of its application/
implementation across all financial product and service offerings.
▪ Operational Risk Management Unit (ORMU): ORMU is responsible for assisting management in
embedding the operational risk culture, awareness, framework, and implementation throughout the
Bank. Top complaint drivers and subsequent corrective/preventive actions are reported to the Board
on a quarterly basis to ensure that Consumer Protection related risks and/or concerns are mitigated,
Consumer Protection standards and requirements are complied with, and other material developments
that will impact the Bank’s consumers are disclosed.

99
 Enforcement and Monitoring of the Customer Assistance
Management System (CAMS) 2-25
BDO enforces and monitors the Consumer Assistance Management System or CAMS through a
combination of established policies, streamlined processes, and dedicated teams. This system
aims to deliver customer satisfaction through compliance with regulations.

▪ Internal policies: Consumer Protection policies are outlined in the CAMS Manual. These policies
define how consumer assistance is managed, including complaint resolution procedures,
escalation protocols, and customer communication standards.
▪ Dedicated Teams: The Bank has specialized teams, such as Customer Service and complaint
resolution or service fulfillment teams, responsible for implementing and overseeing CAMS. These
teams handle consumer inquiries, requests, and complaints, working in coordination with one
another to address issues properly, promptly, and efficiently.
▪ Monitoring and Reporting: A tracking system is in place to record and monitor client interactions,
complaints, and resolutions. This allows the Bank to identify trends, measure service level
performance, and address emerging issues. Regular reports help management assess the
effectiveness of CAMS.
▪ Continuous Improvement: BDO regularly reviews and updates CAMS based on feedback, changing
regulations, and industry best practices. Continuous improvement ensures that the system
remains relevant and effective in meeting customer needs and addressing concerns.

Process for Handling of Customer Concerns 2-25

BDO prioritizes efficient customer concern resolution. Upon receipt of a complaint, the Bank’s
frontliners acknowledge and record the concern. If the issue can be addressed at point of
contact, immediate resolution is provided to the client. Otherwise, the concern is endorsed to
the appropriate unit for investigation. Once the root of the problem is identified, the team works
to find a suitable resolution which may involve refunds, corrections, and/or explanations. Clear
communication and transparency are crucial throughout the process, ensuring customers feel
heard and satisfied with the resolution.

Training for Customer Assistance 2-25

BDO employees, particularly the frontliners are required to take the Financial Consumer Protection
eLearning course to familiarize themselves with the concept of CAMS, its procedures, customer
service standards, and relevant regulatory requirements. The training material is anchored on
the Consumer Protection Standards of Conduct which sets the expected behavior from Bank
employees when dealing with customers.

Listening to Customers’ Needs 2-25,2-26

In order to deliver exceptional banking services, we collect and utilize valuable inputs from
customers, understanding their needs, and continuously improving their overall experience. We have
a robust and comprehensive engagement and feedback mechanism, employing multiple channels
to ensure that the voice of the customer resonates throughout our operations.

▪ Multi-faceted Customer Service: Our dedicated customer service teams, which may be
reached via call, email, and social media private messaging, have been pivotal in addressing
any product, process, or system-related inquiries and providing timely resolution to concerns.
The direct communication channels allow us to promptly respond to concerns and offer
personalized support.
▪ Branch-level Interaction: Physical branches serve as touchpoints for direct engagement. This
brick and mortar approach allows us to establish deeper relations with the public at large and
strengthens our understanding of a locale’s wants, needs, and concerns.

100
▪ Website: The Bank’s web page offers a secure messaging system where
clients can provide feedback, report issues, and seek customer service
support. Please visit https://www.bdo.com.ph/contact-us.
▪ Social Media Engagement: Active monitoring of social media platforms
enable us to promptly address customer concerns. Our commitment
to social media listening reflects our agility in responding to emerging
trends and issues within the digital landscape.

Customer Contact Center 2-26

In compliance with the BSP Circular 1160, particularly under the Protection
of Client Information standard, and in support of the Bank’s Data Privacy
policy, BDO’s Customer Contact Center (CCC) sees to it that any and
all customer-related data are obtained, stored, and used only and
specifically to carry out its function of effectively assisting customers with
timely responses and appropriate solutions to their queries or concerns.

To this end, the Customer Contact Center strictly adheres to the

Bank’s physical, organizational, and technical controls to maintain the
confidentiality, integrity, and availability of personal data. CCC has been
closely involved in the Bank’s aggressive push for modernization not only
of its systems, but processes as well. In doing so, the Customer Contact
Center recognizes that the shift to digitalization comes with certain risks
especially with the threat of data leaks or hacks. Close coordination and
cooperation among the CCC, Cybersecurity, and Fraud Management is
constantly strengthened to protect customer information and prevent
unauthorized access.

BDO has included security-related spiels in the Contact Center protocols

so our Customer Service Officers can seamlessly incorporate advice
regarding protecting personal details, such as passwords and account
information, into their conversations.

CCC also takes the opportunity during verification processes to remind

clients about the importance of keeping their information secure by
briefly explaining the verification steps and advising against sharing of
sensitive details to random/unknown/suspicious individuals.

In 2023, Customer Assistance Management System logged some 8 million

customer cases of which only 7% were problem-related in nature. Majority
of the cases were inquiries at 4.9 million and requests at 2.9 million.

CASE STUDY:

#BDOStopScam Customer
Awareness Campaign
Scam cases have been rising in recent years. The surge in online
scams globally underlines the need for continuous public awareness
campaigns and fraud prevention education to equip account holders
with knowledge against ever-evolving scam tactics.

Scams can be persuasive because scammers can exploit on the

reality that for many customers, the concept of an online Personal
Identification Number or PIN is new and customers have a tendency
to believe official-looking online advisories. Scammers bank on either

101
 voice, email, or SMS channels to trick customers into sharing sensitive
account information such as their PIN.

Under the premise that uninformed customers are more susceptible

to be victims of scams, customer communication is considered a
critical tool to risk management. BDO Fraud Management under the
Consumer Banking Group created an anti-scam campaign which
hopes to bring across the following important key points:
1. The importance of watching out for the red flags that indicate a
scam and keeping themselves updated on the latest scam tactics
2. The importance of staying vigilant — scams target all individuals,
regardless of their age, education, or profession
3. Enabling customer to proactively report these scams to
immediately address possible new types of attacks

The BDO StopScam campaign aims to inform customers with a

savings and/or current account, a credit card, and a frequent user
of online banking as they are the ones who are most commonly
victimized by scammers via different forms of phishing, a type of
cyberattack that tries to trick people into revealing their personal or
financial information or installing malware that acquires personal
information such as PINs or passwords.

BDO Fraud Management’s awareness campaign strategy is to reach

the customer through multimedia channels to ensure vast coverage
in pushing anti-fraud key messages across. Examples of channels
used are SMS, email, Viber, social media, complimented by the use
of traditional media through radio and newspapers. The top 3 key
messages are:
1. Do not click links
2. Do not share your password and username
3. Do not share your OTP or One Time PIN

In 2023, the campaign sent anti-fraud advisories to an estimated

9.5 million customers and only encountered 1% fraud incidents
compared to last year. The results show the effectiveness of the
campaign among the Bank’s customers. At the same time, the
campaign promotes confidence in using BDO’s online platforms.

Supply Chain and Approach to

Procurement 204-1,408-1, 409-1,414-1,414-2
BDO sources 97% of its supplies from a local supply chain. The Bank
follows a Manual on General Procurement Guidelines that establishes
the policies on procurement of products and services and provides a
framework of efficient, consistent, transparent, and compliant purchasing
practices across its Business Units (BU). The Bank accreditation process
for its suppliers starts with verifying legitimacy through government
standards and certifications. After confirming compliance, the Bank
assesses the suppliers’ capability to provide the required items or
services. In addition to standard regulatory requirements, certifications
such as hazardous waste disposal registration, compliance with

102
Department of Labor and Employment (DOLE) regulations, and proof of payment of wages and
statutory benefits for custodial services are necessary. Billing or invoices from service providers
involved in labor cases may be partially or wholly suspended by the Bank until the issues
are resolved.

Vendor Engagement
Following the Board approval of the ESRMS, the Bank started to assess the environmental and
social maturity of the top 20% of BDO vendors based on spend and company size. The Supply
Chain Technical Working Group (TWG) released a survey on sector-related E&S risks of the identified
vendors. The survey results showed varying levels of awareness and action on E&S matters, with
majority at the initial stages of their sustainability journey. In 2024, BDO will implement its 3Es
approach to capacity-building: Educate, Embed, and Empower its vendors to help them manage
their E&S risk. The Supply Chain TWG also aims to finalize its draft Supply Chain Ethical Code, for
senior management review in 2024.

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 Pursuing Partnerships
for Impact
We value collaboration and partnerships where we can make
best use of our expertise and resources to scale collective
impact. We engage with our stakeholders to ensure that we
bring everyone along in our sustainability journey.

104
Scaling and Mainstreaming Financial Inclusion:
BDO Foundation
Guided by BDO’s We Find Ways philosophy and a strong sense of corporate citizenship, BDO
Foundation marked 2023 as its 5th year driving financial inclusion in the service of Filipinos. In 2023,
the corporate social responsibility arm of BDO Unibank expanded its implementation of major
initiatives in financial education in various communities, mindful of its commitment to sustainable
development and nation-building.

Partnerships with Government Agencies

In line with its financial inclusion advocacy and the National Strategy for Financial Inclusion of the
Bangko Sentral ng Pilipinas (BSP), BDO Foundation continued to implement financial education
programs in partnership with the BSP and other government agencies:

Partners Achievements in 2023

Agricultural Credit Policy ▪ Development of KITA Mo Na! financial education game and
Council (ACPC) trainer’s manual
▪ Conduct of train-the-trainers sessions
Armed Forces of the ▪ Publication and turn-over of trainer’s manual to the AFP and BSP
Philippines (AFP)
Bureau of Fire Protection (BFP) ▪ Development of the BFP Trainer’s Manual
Bureau of Fisheries and ▪ Conduct of training sessions for beneficiaries using Fish N’ LEarn
Aquatic Resources (BFAR) financial education game kits and BFAR Trainer’s Manual
Civil Service Commission (CSC) ▪ Roll-out of the program through training of trainers sessions conducted
by the Civil Service Institute
Department of Education ▪ Conduct of writeshops (writing workshops) by the BSP and DepEd’s
(DepEd) Bureau of Curriculum Development
▪ Integration of financial literacy concepts into the teaching of
Mathematics, Science, Araling Panlipunan (Social Studies),
Entrepreneurship, and other subjects
Department of Migrant ▪ Conduct of Pre-Departure Orientation Seminars for migrant workers
Workers (DMW) / as part of the Pinansyal na Talino at Kaalaman or PiTaKa program on
Overseas Workers Welfare financial knowledge and awareness
Administration (OWWA)
Department of Trade ▪ Pre-production of three financial education videos for micro, small, and
and Industry (DTI) medium enterprises (MSMEs)
Philippine National Police (PNP) ▪ Development of modules and the PNP Trainer’s Manual
Technical Education and ▪ Development of online learning modules for technical-vocational
Skills Development Authority (tech-voc) students
(TESDA)
Securities & Exchange ▪ Development of program that promotes financial literacy, investor
Commission (SEC) protection, and scam prevention

Technical working groups composed of BDO Foundation managers, officers of BSP’s Economic and
Financial Learning Office, and representatives from partner government agencies worked closely to
implement the programs and integrate financial education into the existing initiatives of government
agencies for the economic well-being of their respective target audiences.

The lessons covered topics such as saving, budgeting and financial planning, avoiding scams,
debt management, entrepreneurship, insurance, and retirement planning. Beneficiaries included
students, teachers and non-teaching personnel, Overseas Filipino Workers (OFWs), government
workers, armed forces personnel, police personnel, firefighters, fisherfolks, farmers, technical-
vocational learners, and micro, small, and medium-sized enterprises (MSMEs).
105
 BDO Foundation

Relief Operations Classrooms Built

Beneficiaries to date 63 in Elementary schools
805,261 families 60 in High schools
2023 beneficiaries 4 in College
43,500 families

Tech-Voc
Blood Center Training Facilities
1,328 Population 1,006 Beneficiaries per year
covered
6 Classrooms built
3 Workshops built

School Buildings Built

19 Elementary schools Beneficiaries per Year
15 High schools 15,800 Elementary students
1 College 16,788 High school students
1,589 College students

Handog sa 'Yo ng Rural Health Units (RHUs)

BDO Foundation 160 Rehabilitated RHUs to date
Food Assistance 29 Rehabilitated RHUs in 2023
Beneficiaries to date 7,831,373 Population covered
99,900 families to date
2023 beneficiaries 861,791 Population covered
in 2023
30,000 families

Financial Education
Beneficiaries to date 2023 beneficiaries
5,630,262 Students 1,680,262 Students
112,892 Teachers and Non-teaching Personnel 33,892 Teachers and Non-teaching Personnel
994,699 Overseas Filipino Workers (OFWs) 3,197 Civil Servants
7,844 Civil Servants 30,793 Armed Forces
37,468 Armed Forces 4,367 Fisherfolks
7,278 Fisherfolks 60 Farmers
60 Farmers 199,413 Members of the General Public
199,413 Members of the General Public 26 Financial education videos developed

106
Online Financial Education Course
To make financial education accessible to more people, BDO Foundation
and BSP signed a memorandum of agreement for the development of
a free online course on personal finance. The project is in line with the
BSP’s thrust to promote broad, convenient, and informed access to
high-quality financial services among Filipinos through financial education
partnership programs.

Nine interactive modules, each one 20 to 30 minutes long, will cover

lessons on financial planning, saving and budgeting, debt management,
9
Interactive modules
basics of investing, fraud and scam prevention, financial consumer
on financial
protection, digital financial literacy, Personal Equity and Retirement
literacy topics
Account (PERA), and relevant economic indicators. The modules will
teach financial literacy lessons through videos, interactive activities,
and end-of-session assessments. Slated for release in early 2024, the
modules will initially be uploaded on the online learning platforms of BDO
and the BSP. Eventually, the learning resources will be made available on
demand to partners, stakeholders, beneficiaries, and the public. Users
will be able to access the financial education e-learning modules using
personal computers, laptops, and mobile devices.

Based on an agreement signed by BDO Foundation, TESDA, and BSP in

2023, TESDA will be the first partner to use the modules. The course will
be uploaded on the TESDA Online Learning Program and required for
technical-vocational learners.

BDO Foundation and BSP hope to change the financial education

landscape by making learning digital, borderless, and accessible to all
Filipinos whether they are in the country or abroad. Through the financial
education e-learning modules, the partners hope to cultivate a financially
healthy and economically empowered citizenry that can actively
contribute to nation-building.

BDO Foundation also participated in the BSP Financial Education

Stakeholders Congress, where the financial education e-learning modules
were launched. The Fin-Ed Congress also marked the ceremonial turn-
over of the AFP Financial Education Trainer’s Manual and featured a
learning session on financial education best practices by the Foundation
and its partners.

For all these collaborative activities, BSP Governor Dr. Eli Remolona
Jr. and BSP Deputy Governor Bernadette Romulo-Puyat presented a
certificate of appreciation to the Foundation at the Outstanding BSP
Stakeholders Appreciation Ceremonies in December 2023. BSP lauded
the Foundation for working with stakeholders to institutionalize financial
education in capacity building programs, uplift the economic well-being
of the public, and improve the financial literacy of the Filipino citizenry.

Recognition for Fisherfolk Program

For developing and implementing the financial education program for
fisherfolk, BDO Foundation earned international recognition conferred at
virtual and in-person ceremonies by the Asian Banking & Finance (ABF)
Retail Banking Awards, Asiamoney Banking Awards, and Asia Responsible
Enterprise Awards. Locally, the initiative was also awarded by the League
of Corporate Foundations (LCF) CSR Guild Awards.

107
 The award-giving bodies acknowledged BDO Foundation for its efforts to
help improve the financial literacy, productivity, and income-generating
capability of fishers all over the country. They also cited the Foundation
for its contributions to the creation of Fish N’ LEarn, a gamified teaching
tool designed to make financial literacy lessons engaging for the target
beneficiaries. Co-developed by BDO Foundation, BFAR, USAID Fish Right,
and BSP, the training intervention covers lessons on the conservation
of marine resources, saving, budgeting and financial planning,
entrepreneurship, insurance, and debt management.

The initiative helps fishers and their families break the cycle of poverty
and supports the Department of Agriculture’s goal to attain a food-secure
and resilient Philippines with empowered and prosperous farmers
and fisherfolk.

Private Sector and LGU Partnerships

In 2023, BDO Foundation also organized several financial literacy sessions
for various beneficiaries, in collaboration with non-governmental
organizations as well as public and private sector partners:

Partners Beneficiaries

Asia Pacific College College students

Association of Foundations NGO professionals
Don Bosco One TVET (integration into curriculum) Technical-vocational learners
Empower and Transform and DepEd Teachers and non-teaching personnel
Empower and Transform De La Salle University student athletes
Iloilo City government and Uswag Negosyo Academy Iloilo market vendors
Iloilo City government Public Employment Service PESO trainers
Office (PESO)
National University College students and faculty
Iloilo City government Local Government Unit (LGU) trainers

To help empower Filipino educators and learners, BDO Foundation,

in partnership with Huawei Philippines and the Knowledge Channel
Foundation, launched a new set of educational videos designed to make
the study of Mathematics more engaging, interesting, and interactive
for Grade One students. In support of Knowledge Channel’s MathDali
initiative, the Foundation and Huawei funded the development of the
five curriculum-based videos on early numeracy. Knowledge Channel
produced the learning resources in consultation with the DepEd. The
videos will be made available for viewing on the channel’s on-air, online,
and offline platforms.

Knowledge Channel is a non-profit organization that aims to

improve the quality of education in the Philippines through media
and technology. Huawei is the global leader in information and
communications technology infrastructure and smart devices. BDO
Foundation has previously partnered with both organizations for other
education-related initiatives.

108
Training Program for MSMEs and Persons with Disabilities
In 2023, BDO Foundation signed a memorandum of agreement with
LINK Center for the Deaf for a training program aimed at enhancing
the capabilities of MSMEs. The training will help aspiring and existing
micro-entrepreneurs—including persons with disabilities—pursue business
ventures that are responsive to current social and economic challenges.

Funded by BDO Foundation, the program will cover eight modules on

business planning, marketing strategies, financial management, customer 8
relations, and other aspects of operating successful small businesses. modules for MSMEs
The Foundation will also sponsor a series of train-the-trainers sessions and persons
for interested implementing partners such as local governments, NGOs, with disabilities
church groups, and other institutions serving the MSME sector.

LINK is a non-governmental organization that supports the holistic

development of people who are deaf, by providing sign language
training, teacher enhancement, educational support, and enterprise
development programs.

Disaster Response
BDO leverages its resources towards building better in the aftermath
of a disaster through relief, rehabilitation, and recovery of
disaster-stricken communities.

Increasing adaptation of
communities: Rehabilitating RHUs
and building classrooms
▪ 2 New Learning Facilities
▪ 38 Learning Facilities Constructed since 2012
▪ 29 Newly Rehabilitated Rural Health Units
▪ 1 60 Rural Health Units Rehabilitated
since 2012

Health and Education Facilities

Rehabilitated and Built
Rural health units

Classrooms

Combined Risk to Geophysical Disasters

Very High Low

High Very Low

Medium

109
 Rehabilitation of Rural Health Units
BDO Foundation achieved another major milestone as it rehabilitated
its 160th rural health unit (RHU) in 2023 to help improve the health and
well-being of Filipinos in disadvantaged communities. The Foundation’s
previous record was at 131 RHUs in 2022.

As in previous years, the Foundation renovated health centers, particularly

their exteriors, layout and interior design, lobbies and waiting areas,
offices, birthing clinics, consultation rooms, treatment rooms, and
pharmacies. Using available space, it built breastfeeding stations for
nursing mothers, play areas for children, and waiting lounges for senior
citizens. It installed new signages, furniture, and fixtures to help health
workers accommodate more patients in environments conducive to good
health and well-being. The improvement of facilities empowers doctors,
nurses, and midwives to provide quality primary healthcare services more
often and more efficiently to their constituents. The initiative benefits
mothers, infants and children, persons with disabilities, senior citizens,
and indigenous peoples living in remote areas.

BDO Unibank and BDO Network bank branch officers also recommended
health centers in need of assistance. The initiative was backed by the
Department of Health (DOH), local government leaders, and health
officers, who provided guidance on the renovation of RHUs. Through the
rehabilitation program, BDO Foundation helped health centers receive high
assessment scores in healthcare delivery from the DOH and accreditation
from PhilHealth, the country’s national health insurance provider. The
Foundation helped improve the healthcare delivery system in the country,
one of the goals under the Philippine Health Agenda.

Construction of a Blood Center

BDO Foundation also constructed a facility that serves blood donors and
patients. The Philippine Red Cross (PRC) Agusan del Norte - Butuan City
Chapter Blood Center supports the mission of the PRC as well as the
International Red Cross and Red Crescent Movement to provide life-
saving services for Filipinos in vulnerable situations. The blood center
benefits patients in Agusan del Norte and neighboring provinces in the
Caraga Administrative Region in Mindanao who need safe, adequate, and
high-quality blood and blood products. Funded by BDO Foundation and
contributions from BDO employees, the construction of the building
provided for basic equipment, furniture, and fixtures.

Construction of School Buildings

BDO Foundation and the Philippine Geothermal Production Company
(PGPC), another company under the SM Group, completed the
construction of a three-classroom school building in Baybay Elementary
School in Catarman, Northern Samar. The partnership with PGPC
addressed the shortage of classrooms and provided teachers and
students a conducive learning environment. PGPC is a pioneering
geothermal energy company that provides clean, reliable, and renewable
energy. BDO Foundation previously collaborated with PGPC for the
construction of school buildings in Northern Samar and Albay provinces
as part of post-Super Typhoon Yolanda (international name: Haiyan)
rebuilding efforts in 2014 and 2015.
110
The project in Catarman supported the partners’ shared advocacy to
aid communities affected by disasters. In recent years, the municipality
was also severely affected by Super Typhoon Odette and other disasters.
Supportive of the DepEd’s Adopt-A-School program, the construction
of the building in Baybay Elementary School included the provision of
blackboards, tables, chairs, and electric fans.

A similar structure was built for students in Cebu. In support of Don

Bosco’s mission to educate, evangelize, and capacitate Filipino youth,
BDO Foundation constructed a training facility for the Don Bosco
Technical Vocational Education and Training (TVET) Center in Balamban,
Cebu province. Senior high school students now use the facility with
its new furniture, tools, and equipment to learn technical-vocational
livelihood skills through classroom instruction and workshops. The
Balamban facility is the third built by BDO Foundation for Don Bosco,
after similar facilities were constructed in 2019 and 2021 respectively, in
Mati City, Davao Oriental and Dumangas, Iloilo. Don Bosco’s TVET Centers
educate out-of-school youth and prepare them for gainful employment in
the Philippines and abroad.

Relief Operations
BDO Foundation continued to mount relief operations for Filipinos in
provinces placed under a state of calamity, mobilizing volunteers for
the immediate distribution of relief goods or hygiene kits in affected
communities. In the spirit of bayanihan or community volunteerism,
employee volunteers visited evacuation sites and distributed packs
containing food, rice, and drinking water to families displaced by
typhoons, earthquakes, volcanic eruptions, fire, and an oil spill incident.

The disaster response efforts were made possible by partners, which

included parishes, diocesan social action centers, non-governmental
organizations, local government units, the military, and the police. The
relief operations were also supported by BDO Unibank and BDO Network
Bank branch employees, who helped BDO Foundation assess emergency
situations in affected areas and coordinate logistics. Backed by the BDO
Unibank community and its partners, the Foundation has effectively
reached out to disaster-affected Filipinos in their time of need.

A Vegetable Garden for Food Security

Building better includes long-term initiatives to help communities
address basic needs such as food security and hunger. BDO Foundation
and East-West Seed Foundation (EWSF) successfully established a
vegetable garden as a livelihood opportunity in a community in Lian,
Batangas through a partnership project. Project Gulayamanan is a clever
play on the Filipino words for gulay (vegetable) and yaman (wealth) to best
describe its goals to provide additional food supply to the community and
promote wealth through the cultivation of vegetables. EWSF is a non-
governmental organization that empowers disadvantaged farmers and
promotes proper nutrition through improved vegetable consumption.

111
 In 2023, BDO Foundation and EWSF, in partnership with the local
government unit, celebrated the graduation of 50 residents, who
successfully completed nine training sessions on vegetable gardening.
The graduation also served as a harvest festival, which gave the farmers
an opportunity to market and sell their first full harvest. Prior to their
graduation, the beneficiaries learned lessons on how to manage their
earnings through a financial literacy training session conducted by BDO
employee volunteers.

Christmas Gift-Giving Program

For the fourth consecutive year, BDO Foundation provided
food assistance for communities all over the country through its
Christmas gift-giving initiative dubbed Handog sa ‘Yo ng BDO Foundation.
It distributed food packs to help poor families celebrate the season. The
Foundation tapped previous partner non-governmental organizations
(NGOs) Caritas Philippines and Tanging Yaman Foundation. In 2023, the
Foundation engaged two additional NGOs, Ako Ang Saklay and Ako Bakwit,
to include more beneficiary communities.

BDO Foundation has previously partnered with Ako ang Saklay for relief
operations in areas affected by the Marawi Siege in 2017, earthquakes
in various parts of Mindanao in 2019, and Typhoon Karding in 2022. A
Catholic organization, Ako ang Saklay cares for the sick and provides aid
for differently abled individuals and disaster survivors. It also organizes
outreach missions to indigenous peoples.

Ako Bakwit, on the other hand, promotes the rights and welfare of
internally displaced persons in the country. During the pandemic, Ako
Bakwit helped BDO Foundation distribute food assistance to beneficiary
families in Metro Manila and the province of Rizal.

112
 Gift giving and relief operations
16.4% or 4.51 million families experienced poverty.

22.4% or 25.24 million Filipinos' per capita income is not sufficient

to meet their basic food and non-food needs.

Through gift giving and relief operations, the Bank helps to

provide access to basic services such as food and medical
care. By 2023, BDO Foundation has given food packages to
99,900 low-income families during its gift giving and
805,261 families through relief operations.

Reference: 2023 Preliminary Poverty Statistics,

Philippine Statistics Authority

Gift Giving

Relief Operations

Poverty Incidence in
the Philippines

0% 51%

Promoting A Sustainability
Mindset: BDO Employee
Volunteer Program
Employee Volunteer Program Map

Milestones in 2023:

86 volunteer activities nationwide

1,263 volunteers nationwide

4,402 total volunteer hours

Education

Environment

Financial Inclusion

Poverty and Hunger

113
 In 2022, BDO launched its Employee Volunteer Program (EVP) to
promote a sustainability mindset and engage employees as sustainability
advocates in BDO’s sustainability commitments and initiatives. The EVP
Core Team is led by the Human Resources (HR), the Sustainability Office
(SO), and BDO Foundation, supported by the Marketing Communications
Group (MCG), and championed by the Corporate Governance Committee
which has oversight on employee engagement in sustainability.

These activities contributed to the achievement of the Sustainable

Development Goals (SDGs) and specific targets in the areas of poverty,
hunger, the environment, education, and financial inclusion, all
underpinned by protection and respect for human rights. The EVP gives all
BDO employees nationwide opportunities to champion the SDGs and give
back to the community by contributing their time, effort, and skills in the
volunteer events of BDO Foundation and external partner organizations,
which have existing volunteer activities aligned with the EVP SDG themes.

Poverty and Hunger. BDO Foundation started the Handog sa ‘Yo ng BDO
Foundation in 2020 as part of efforts to aid economically disadvantaged
communities during the Christmas season. In the program’s 2023 run,
a total of 531 BDO volunteers present in 69 sites nationwide helped in
distributing Christmas food packs to 30,000 indigent families, families
from indigenous communities, and families of persons with disabilities.

The distribution sites were in Aklan, Batangas, Benguet, Bulacan, Cagayan,

Camarines Sur, Cavite, Cebu, Cotabato, Davao del Sur, Eastern Samar,
Iloilo, Isabela, La Union, Laguna, Lanao del Sur, Leyte, Maguindanao
del Norte, Metro Manila, Misamis Oriental, Negros Occidental, Negros
Oriental, Nueva Ecija, Pampanga, Pangasinan, Rizal, Sultan Kudarat, Tarlac,
Zambales, and Zamboanga del Norte.

Environment. BDO employee volunteers joined a two-day clean-up of the

Las Piñas–Parañaque Critical Habitat and Ecotourism Area (LPPCHEA), a
protected area that is home to 41 species of migratory birds and one of
the few remaining mangrove forests in Metro Manila.

The employees collected waste along LPPCHEA’s southwest portion

called Long Island. This activity aimed to raise awareness among BDO
employees on proper waste management with the hope of saving and
preserving critical areas like LPPCHEA. Based on a 2021 study conducted
by Meijer et al1, the Philippines accounts for 36% of the total plastic
dumped into the ocean, making it the largest contributor to plastic
pollution in the ocean globally. This activity was an opportunity for BDO
volunteers to act firsthand on the issue of plastic pollution.

Volunteers were provided an orientation on the different kinds of waste

that could be found along coasts and instructions on the segregation and
collection methods. The collective efforts of 300 BDO employees resulted
in the collection of more than 2,200 kilograms of waste from the coast,
which were then segregated and disposed properly through the local
government unit.

1
Meijer, et al. Science Advances. 30 April 2021. More than 1000 rivers account for 80% of
global riverine plastic emissions into the ocean. Available at <https://www.science.org/
doi/10.1126/sciadv.aaz5803>

114
In September, 150 BDO employees joined the reforestation of the La Mesa
Watershed through seed germination and tree planting activities in
partnership with officers of ABS-CBN Foundation Bantay Kalikasan. BDO
adopted one hectare of forest, where 50 volunteers planted 400 White
Lauan trees. The other volunteers participated in seed germination and
planted 500 seedlings of Makaasim tree in preparation for the planting
season which will begin in June 2024.

At the same event, BDO employee volunteers participated in an

environmental awareness lecture facilitated by officers of ABS-CBN
Foundation Bantay Kalikasan. The lecture focused on the importance of
the La Mesa Watershed since it supplies water to Metro Manila residents
and serves as the “Green Lung of Metro Manila,” absorbing three to five
percent of the city’s carbon emissions.

Education. BDO participated in the Department of Education’s (DepEd)

Brigada Eskwela 2023, a nationwide school maintenance program,
which encourages local governments, communities, businesses,
non-governmental organizations, and individuals to help in the
public school clean-up before the opening of classes. A total of 163
employee volunteers consisting of BDO employees, senior officers,
and one independent Board director volunteered their time and skills
at Commonwealth Elementary School. This particular public school is
considered as one of the most populous elementary schools in Southeast
Asia, with an average enrollment of eight thousand students annually.

Conducted two weeks before the official start of the school year, Brigada
Eskwela allowed the volunteers to help parents and teachers of the
school’s incoming 900 Grade Two students prepare for the school
year. Volunteers painted and cleaned 10 classroom walls, ceilings,
tables, and chairs, while others were at the Gulayan sa Paaralan for
vegetable gardening of eggplants and chili pepper seedlings. BDO also
donated laptops, computer tables, televisions, and projector screens to
Commonwealth Elementary School.

Financial inclusion. A total of 125 BDO employee volunteers served as

financial literacy trainers for 1,599 participants of 13 financial literacy
sessions conducted nationwide throughout the year. Participants were
taught the basic concepts of saving, budgeting, and financial planning as
well as the benefits of safekeeping their money in a bank account.

Participants of the financial literacy sessions included junior high school

students, senior high school students, students currently undergoing
their on-the-job training (OJT), students of alternative learning system
(ALS), teachers, and non-teaching staff, farmers, and members of
marginalized families.

In order to conduct the 86 volunteer activities throughout the year,

BDO strategically partnered with key organizations and institutions and
identified volunteer opportunities aligned with the EVP themes.

In 2023, BDO partnered with the following organizations and ensured

diversity among the beneficiaries of its volunteer activities:

▪ ABS-CBN Foundation, a non-profit organization that aims to improve

the lives of disadvantaged Filipino families in the Philippines and
globally. It is the public service arm of The Filipino Channel (TFC) and
oversees all corporate social responsibility activities of ABS-CBN, one of
the country’s biggest media conglomerates
115
 ▪ Ako Ang Saklay Inc., a non-profit organization dedicated to empowering
and developing women, youth, and persons with disabilities
▪ Ako Bakwit Inc., a non-government organization that works towards
promoting and protecting the rights and welfare of internally
displaced persons
▪ Caritas Philippines, the humanitarian, development, and advocacy
arm of the Catholic Church in the Philippines
▪ Department of Education, the national government agency
responsible for ensuring access to, promoting equity in, and improving
the quality of basic education
▪ Don Bosco One TVET, the technical-vocational center of the Salesian
Society of St. John Bosco in the Philippines
▪ East-West Seed Foundation Philippines, the corporate social
responsibility arm of East-West Seed Philippines, dedicated to
empowering Filipino farmers with good seeds and greater knowledge
▪ Tanging Yaman Foundation, a non-profit organization that links
donors with various beneficiaries among the most underprivileged in
the Philippines
▪ Upskills+ Foundation Inc., a non-profit organization working
with communities, families, and individuals who are informal
settlers experiencing extreme poverty and high unemployment in
the Philippines
▪ World Wide Fund for Nature – Philippines, the national organization
of the World Wide Fund (WWF) network that focuses on improving the
lives of Filipinos by addressing climate change, promoting sustainable
livelihood programs, and conserving the country’s marine and
land habitats

As proof of strong demand for volunteer opportunities, the Bank

currently holds the record of full online registration for multiple events
nationwide, merely 20 minutes after its announcement. As the demand
for volunteer opportunities for employees continues to grow, the Bank
looks forward to expand its advocacy with its current partners and to
enlist more organizations to be part of the initiative in the coming years.

Stakeholder Communication
Campaign 2-29
BDO implemented a comprehensive communication plan to generate
awareness and understanding on how the Bank’s sustainability initiatives
help stimulate economic growth, protect the environment, build
better communities in the aftermath of disasters, and create positive
environmental and social impact in the country.

Key themes for sustainability stories focused on the following:

▪ Sustainability bond issuances

▪ Sustainable finance projects
▪ Corporate social responsibility activities
▪ Recognitions on sustainability and ESG
▪ Partnerships to advance sustainability initiatives

116
Sustainability stories from BDO, its clients, partners, and stakeholders were
shared with traditional media (including national broadsheets, tabloids,
and provincial publications), foreign publications, online news sites, and
bloggers to reach each channel’s respective audiences who are considered
the Bank’s target market segments. The stories were also widely shared on
BDO’s own social media accounts on LinkedIn and Facebook.

Through regular updates on the Bank’s sustainability initiatives via

The Wayfinder, the internal newsletter and call for volunteers via the
eNewsgram emailer, employees were encouraged to get more involved in
the Bank’s sustainability efforts through volunteerism.

BDO seeks to inspire more organizations to adopt sustainability as a way

of life. The Bank’s executives and representatives from its Sustainability
Office participated in various conferences, summits, and roundtable
discussions as thought leaders in ESG and sustainability pioneer in the
financial industry namely:

▪ Eco-Business’ Unlocking capital for sustainability (UCFS) Philippine

forum on “Mobilizing Climate Finance from the 4Ps – Public, Private,
and Philanthropic Partnerships”
▪ UCFS Singapore summit on “Enabling an Equitable Transition”
▪ Asia Corporate Excellence & Sustainability (ACES) Summit in Kuala
Lumpur, Malaysia
▪ Risk ASEAN forum “Integrating ESG into Business Models” in
Bangkok, Thailand
▪ German-Philippine Chamber of Commerce and Industry’s plenary
session on “Sustainability Efforts of German and Philippine Companies”
▪ Risk ASEAN forum “Finding opportunities in uncertainty” in
Bangkok, Thailand
▪ Asian Forum on Entrepreneurship for Society (AFES) “Moving to a
Greener, Resilient Fintech”
▪ 2nd World Clean Energy Philippines Conference Expo 2023 “Facilitating
a Just Energy Transition”
▪ Philippines Renewable Energy Summit “Financing Renewable Energy
Projects in the Philippines”
▪ BusinessWorld’s Economic Forum “The Digital Future: Accelerating
Business and Sustainability”
▪ CNN PH’s Women’s Summit “Role of Gender Equality towards
Economic Development
▪ Brand Finance ASEAN webinar “BDO’s Approach to Sustainability”

Through these engagements, BDO was able to further advocate its Energy
Transition Finance Statement and its sustainability plans, initiatives, and
desired impact as reflected in its Sustainability Report.

117
 Sustainability Engagements
and Partnerships
Eco-Business Unlocking Capital for
Sustainability (Singapore)
Transition Finance
At the Unlocking Capital for Sustainability (UCFS) 2023 Forum held in
Singapore, Atty. Federico Tancongco, Senior Vice President and Chief
Compliance Officer of BDO Unibank said that BDO will support its
customers’ transition to reduced carbon emissions by providing access
to capital so they may invest in innovative technologies or adapt their
business to renewable energy alternatives. BDO will also provide access to
capital to communities negatively affected by the transition to low carbon.

“We are not talking about a future with climate crisis. We are in a
climate crisis.”

Federico P. Tancongco
Senior Vice President and
Chief Compliance Officer

Eco-Business Unlocking Capital for

Sustainability (Philippines)
Climate Finance
BDO was part of the plenary, Mobilising climate finance for the Philippines
– the role of the 4Ps. The panel discussed how we can create capital
while addressing underlying impediments to decarbonising the Philippine
economy and the reforms to be implemented in capital markets to
ensure that long-term socioeconomic and ecological progress is fully
reflected in pricing.

The panel convened decision-makers to discuss the ways that

equity and justice can be embedded into the country’s transition to
a greener and more resilient economy through public, private, and
philanthropic partnerships.

Asia Transition Finance Study Group

Transition Finance
BDO is a member of The Asian Transition Finance (ATF) Study Group, a
private-led initiative whose core participants are banks with operations in
Asia. The ATF Study Group was set up in recognition of the important role
that transition finance (TF) will play in helping Asian economies address
challenges as they move toward net-zero emissions. Its goal is to create
practical recommendations to supplement existing frameworks, including
global standards and taxonomies, when financial institutions (FIs) consider
and assess TF cases, as well as to understand challenges and explore
potential enablers to transition finance.

118
In 2023, the ATF published its Annual Report 2023 which describes certain
advancements in the seven support measures. The Study Group mentions
more granular enablers are needed to accelerate transition finance and
that making progress in these would merit a coherent collaboration
among all stakeholders, especially public authorities, TF receivers, and FIs.

The Study Group will continue with more focus on collaboration with
public authorities and TF receivers to deliver FI’s views on enablers
that supported by experiences as TF practitioners, as well as on peer
learnings to bring deeper understanding and practical knowledge about
various transition finance guidelines, countries’ policies including national
taxonomies, and the development of TFFs by FIs.

The Asia Transition Finance Annual Report 2023 is available here:

https://www.bdo.com.ph/sites/default/files/Final_ATFSG_Annual_
Report_2023.pdf

Brand Finance
Sustainability Brand Value
BDO Unibank has been recognized as the 27th most valuable ASEAN brand
and the 9th most valuable brand within the region’s banking sector. Closer
to home, the Bank ranked second overall among the top 10 Strongest
and top 10 Most Valuable brands in the country. BDO ranked as the Most
Valuable Brand in the Philippine banking sector, with a 49% increase
in brand value at US$2.2 billion from 2022 figures. BDO’s Sustainability
brand value ranked third in the country and was valued at US$175 million.
This represents 8% of the Bank’s overall brand value, as an indicator of
consumer preference for brands most committed to sustainability.

In Brand Finance’s first-ever ASEAN Webinar held in October 2023, Marla

Garin-Alvarez shared BDO’s pursuit of finding the right solutions for its
customers by actively catering and anticipating their unique needs and
living up to the Bank’s We Find Ways philosophy.

International Finance Corporation Pilot Testing

for the Alliance for Green Commercial Banks
Transition Finance, Green Finance for M/SMEs
The Alliance for Green Commercial Banks is led by the International
Finance Corporation (IFC) as its Secretariat, with the Hong Kong Monetary
Institute Authority (HKMA) Alliance Asia Chapter, and currently supported
by five cornerstone member banks (Citi, Credit Agricole, Bank of China,
and Standard Chartered Bank). BDO Unibank partnered with the IFC for a
pilot test of the Alliance’s membership framework, which aims to “support
commercial banks become green finance leaders and accelerate the
green transformation of the banking and finance industry.”

In 2023, BDO and IFC successfully completed three workshops for

285 senior- and mid-level management on the topics of Green Finance
for M/SMEs, and Transition Finance. With the IFC providing its top experts
on the topics, the capacity-building activities provide valuable insights on
how the Bank can evolve its sustainable finance offerings. It also supports
BDO’s 3Es Approach to capacity-building to Educate, Equip, and Embed
sustainability principles in everything that the Bank does.
119
 CNN Philippines
Women Empowerment
The Philippines has made progress in promoting gender equality
and women’s economic empowerment, but more work is needed in
opportunities and support for women. While more women are able to
pay for major purchases and women-owned micro, small, and medium
enterprises (MSMEs) are on the rise, they continue to face significant
challenges in accessing financing, technologies, and markets that will
allow them to invest in and venture into entrepreneurship.

At the CNN Philippines’ #EmbraceEquity Women’s Summit, BDO Vice

President and Head of Sustainability Office Marla Garin-Alvarez shared
insights on how women consumers and entrepreneurs drive the growth of
MSMEs in the Philippines.

While women are represented in the workforce and leadership in

most industries and companies, there is still a gap in terms of wealth
accumulation from the work they do. Women need both financial
services and non-financial services such as financial literacy in banking,
investments, inheritance, and property ownership to help them
build wealth.

BDO recognizes that greater collaboration between the government,

financial institutions, and the private sector should be established
to create a more enabling environment for women consumers and
entrepreneurs. This includes providing access to finance, mentoring,
training, and networking opportunities that will help women consumers
be more financially independent and women entrepreneurs to start or
to scale their businesses. This supports BDO’s financial inclusion goals,
specific to empowering women as consumers and entrepreneurs.

“We need to ensure that women are able to explore opportunities for
them to contribute to the economy. We are proud that we support
women as consumers and as entrepreneurs through products and
services offered by BDO.”

Marla Garin-Alvarez
Vice President and Head, Sustainability Office

A.S.P.N. Ano Sa Palagay N’yo?

Climate and Sustainability
In partnership with the Net 25 Network’s Ano Sa Palagay N’yo? (What
do you think?) talk show, BDO co-designed a series of episodes that
talk about Climate Change and Sustainability in layman’s terms on
television. The episodes included discussions with various expert guests
on the impact of climate change in the Philippines, the initiatives of the
private sector, the efforts of the government, and the role of finance in
addressing issues.

120
HARIBON Foundation
Green Finance
BDO and the HARIBON Foundation for the Conservation of Natural
Resources Inc. formed a partnership to reforest protected areas and
empower grassroots communities in 2023. Apart from enjoying more
affordable loan rates, clients who avail of BDO’s special financing program
for Electric Vehicles and Hybrid Electric Vehicles, and even regular
vehicles will also get to promote a greener environment through BDO’s
Adopt-A-Tree Program. With the Adopt-A-Tree program, BDO donated
one native tree seedling to the HARIBON Foundation’s Forests for Life
movement for every successful reserved BDO car loan application until
August 31, 2023. Each seedling donated to the Forest for Life movement
also provides training and additional income to HARIBON partner farmers
and rural communities who contribute to maintaining reforestation areas.
Applications were submitted at BDO branches or online via the BDO
website. Adopt-A-Tree customers have the option to participate in tree
planting activities at tree planting sites. HARIBON monitors the sites to
ensure the survival of the trees planted.

“Given the increasing environmental challenges that the world is

currently facing, it’s a crucial time to take action and get more
involved in conservation and sustainability efforts no matter how
small or big it is.”

Bremel Peter R. Guiao

First Vice President
Consumer Banking Group Auto Loan Head

Smart Recycle
Responsible Waste Management
BDO recognizes the importance of working with its supply chain in its
environmental and social programs. Prior to the launch of the second
phase of the Waste Busterrr program, the Bank extended its capability-
building to its contracted service providers that deploy housekeeping
personnel in BDO facilities nationwide.

In partnership with Smart Recycle, the Bank’s vendor recycling partner,

BDO completed two trainings for 12 vendors. The training was conducted
both in person and online for vendors in other parts of the country, to
enable the Bank’s housekeeping partners to adopt waste recycling in
their operations.

121
 GRI Content Index
BDO Unibank, Inc. has reported in accordance with the GRI Standards for the period January 1 to
December 31, 2023.

For the Content Index – Essentials Service, GRI Services reviewed that the GRI content index has
been presented in a way consistent with the requirements for reporting in accordance with the GRI
Standards, and that the information in the index is clearly presented and accessible to the stakeholders.

Page Number(s), Direct Answer,

GRI Standard Disclosure URLs, or Reason for omission
GRI 1: Foundation 2021
General Disclosures
GRI 2: General The organization and its reporting practices
Disclosures 2021
2-1 Organizational details 2, 4-5
2-2 Entities included in the organization’s 2
sustainability reporting
2-3 Reporting period, frequency and contact point 2, 130
2-4 Restatements of information No restatements of information for the
reporting period
2-5 External assurance No external assurance
Activities and workers
2-6 Activities, value chain and other 4-5, 8-9, 18-62, 64-103, 105-121
business relationships
2-7 Employees 8-9, 82-88, 122-127
2-8 Workers who are not employees 80
Governance
2-9 Governance structure and composition 65-74
2-10 Nomination and selection of the highest 67, 82
governance body
2-11 Chair of the highest governance body 70
2-12 Role of the highest governance body in 71-74
overseeing the management of impacts
2-13 Delegation of responsibility for managing impacts 12-13, 68-69, 71-72
2-14 Role of the highest governance body in 12-13, 68-69, 71
sustainability reporting
2-15 Conflicts of interest 72
2-16 Communication of critical concerns 68
2-17 Collective knowledge of the highest 70
governance body
2-18 Evaluation of the performance of the highest 69
governance body
2-19 Remuneration policies See 2023 BDO Annual Report, page 29
2-20 Process to determine remuneration 72
2-21 Annual total compensation ratio We do not disclose this matter due to
confidentiality constraints which only
allows for disclosure of consolidated
compensation of the top five Officers
with the highest compensation.
Strategy, policies and practices
2-22 Statement on sustainable development strategy 6-7
2-23 Policy commitments 8-11, 18-26
2-24 Embedding policy commitments 12-16, 122-127
2-25 Processes to remediate negative impacts 99-102
2-26 Mechanisms for seeking advice and raising concerns 101
2-27 Compliance with laws and regulations We do not disclose this matter due to
confidentiality constraints.
2-28 Membership associations 128
Stakeholder engagement
2-29 Approach to stakeholder engagement 16, 116-121
2-30 Collective bargaining agreements 80

122
Material Topics
Page Number(s), Direct Answer
GRI Standard Disclosure and/or URLs
GRI 3: Material Topics Disclosures on material topics
2021 3-1 Process to determine material topics 13-15
3-2 List of material topics 14-15
Data Security and Customer Privacy
GRI 3: Material Topics 3-3 Management of material topics 99-103
2021
GRI 418: Customer 418-1 Substantiated complaints concerning breaches of customer 101
Privacy 2016 privacy and losses of customer data
Employee Health & Safety
GRI 3: Material Topics 3-3 Management of material topics 82-88
2021
GRI 403: Occupational 403-1 Occupational health and safety 83-84
Health and Safety management system
2018
403-2 Hazard identification, risk assessment, 83-84
and incident investigation
403-3 Occupational health services 83-84
403-4 Worker participation, consultation, and communication on 83-84
occupational health and safety
403-5 Worker training on occupational health and safety 83-84, 80
403-6 Promotion of worker health 83-84, 80
403-7 Prevention and mitigation of occupational health and safety 83-84
impacts directly linked by business relationships
403-8 Workers covered by an occupational health and safety 83-84
management system
403-9 Work-related injuries 90
403-10 Work-related ill health 90
Customer Welfare
GRI 3: Material Topics 3-3 Management of material topics 78-79, 100-102
2021
GRI 416: Customer 416-1 Assessment of the health and safety impacts of product 78-79, 100-102
Health and Safety and service categories
2016
416-2 Incidents of non-compliance concerning the health and No incidents of non-compliance
safety impacts of products and services concerning the health and
safety impacts of products and
services reported.
Systemic Risk Management
GRI 3: Material Topics 3-3 Management of material topics 18-26, 65, 73-79
2021
GRI 201: Economic 201-1 Direct economic value generated and distributed 64
Performance 2016
201-2 Financial implications and other risks and opportunities due 18-26
to climate change
201-3 Defined benefit plan obligations and We do not disclose this matter due
other retirement plans to confidentiality constraints and
competitive information issues related
to talent acquisition.
201-4 Financial assistance received from government No financial assistance received from
the government
GRI 205: Anti- 205-1 Operations assessed for risks related to corruption 75-76
corruption 2016
205-2 Communication and training about anti-corruption policies 74-77
and procedures
205-3 Confirmed incidents of corruption and actions taken 75
GRI 207: Tax 2019 207-1 Approach to tax 77-78
207-2 Tax governance, control, and risk management 77-78
207-3 Stakeholder engagement and management of concerns 77-78
related to tax
207-4 Country-by-country reporting 78
GRI 408: Child Labor 408-1 Operations and suppliers at significant risk for incidents of Information Unavailable. Information on
2016 child labor suppliers at significant risk for incidents
of child labor was not provided to the
Bank during the reporting period. The
Bank will engage closely with suppliers
for this information in 2024.
GRI 409: Forced or 409-1 Operations and suppliers at significant risk for incidents of Information Unavailable. Information
Compulsory Labor forced or compulsory labor on suppliers at significant risk on
2016 forced and compulsory labor was
not provided to the Bank during
the reporting period. The Bank will
engage closely with suppliers for this
information in 2024.
123
 Page Number(s), Direct Answer
GRI Standard Disclosure and/or URLs
Business Ethics
GRI 3: Material Topics 3-3 Management of material topics 12-16, 18-26, 74-77, 99-102
2021
GRI 2: General 2-22 Statement on sustainable development strategy 6-7
Disclosures 2021
2-23 Policy commitments 8-11, 18-26
2-24 Embedding policy commitments 12-16, 122-127
2-25 Processes to remediate negative impacts 99-102
2-26 Mechanisms for seeking advice and raising concerns 101
GRI 206: 206-1 Legal actions for anti-competitive behavior, 75
Anti-competitive anti-trust, and monopoly practices
Behavior 2016
Labor Practice
GRI 3: Material Topics 3-3 Management of material topics 82-88
2021
GRI 202: Market 202-1 Ratios of standard entry level wage by gender compared to 80
Presence 2016 local minimum wage
202-2 Proportion of senior management hired from the 80
local community
GRI 401: Employment 401-1 New employee hires and employee turnover 80-81
2016
401-2 Benefits provided to full-time employees that are We do not disclose this matter due
not provided to temporary or part-time employees to confidentiality constraints and
competitive information issues related
to talent acquisition.
401-3 Parental leave 80
GRI 402: Labor/ 402-1 Minimum notice periods regarding The Bank follows the minimum notice
Management Relations operational changes period of one (1) month for operational
2016 changes legally mandated by the
Department of Labor and Employment.
GRI 404: Training and 404-1 Average hours of training per year per employee 80-81
Education 2016
404-2 Programs for upgrading employee skills and transition 80, 85-86
assistance programs
404-3 Percentage of employees receiving regular performance and 81
career development reviews
Diversity & Inclusion
GRI 3: Material Topics 3-3 Management of material topics 66-68, 82
2021
GRI 405: Diversity and 405-1 Diversity of governance bodies and employees 66-68, 80-81
Equal Opportunity
2016
405-2 Ratio of basic salary and remuneration of 80
women to men
Access & Affordability
GRI 3: Material Topics 3-3 Management of material topics 17-62, 63-103, 104-121
2021
GRI 2: General 2-6 Activities, value chain and other 48-62
Disclosures 2021 business relationships
Physical Impact of Climate Change
GRI 3: Material Topics 3-3 Management of material topics 18-26
2021
GRI 201: Economic 201-2 Financial implications and other risks and opportunities due 18-26
Performance 2016 to climate change
Financing Sustainable Development
GRI 3: Material Topics 3-3 Management of material topics 26-34, 110-111
2021
GRI 2: General 2-6 Activities, value chain and other business relationships 8-9, 122-127
Disclosures 2021
GRI 203: Indirect 203-1 Infrastructure investments and services supported 8-9, 30-34, 106, 110-111
Economic Impacts
2016
Selling Practices and Product Labeling, Product Design and Lifecycle Management
GRI 3: Material Topics 3-3 Management of material topics 91-92, 99-102
2021
GRI 417: Marketing 417-1 Requirements for product and service information 91-92, 102
and Labeling 2016 and labeling
417-2 Incidents of non-compliance concerning product No incidents of non-compliance during
and service information and labeling the reporting period covered
417-3 Incidents of non-compliance concerning No incidents of non-compliance during
marketing communications the reporting period covered
Management of Legal and Regulatory Environment
GRI 3: Material Topics 3-3 Management of material topics 73-79, 99-102
2021

124
 Page Number(s), Direct Answer
GRI Standard Disclosure and/or URLs
GRI 205: Anti- 205-1 Operations assessed for risks related to corruption 75-76
corruption 2016 205-2 Communication and training about anti-corruption policies 74-77
and procedures
205-3 Confirmed incidents of corruption and actions taken 75
GRI 206: Anti- 206-1 Legal actions for anti-competitive behavior, 75
competitive Behavior anti-trust, and monopoly practices
2016
GRI 207: Tax 2019 207-1 Approach to tax 77-78
207-2 Tax governance, control, and risk management 77-78
207-3 Stakeholder engagement and management of concerns 77-78
related to tax
207-4 Country-by-country reporting 78
GRI 415: Public Policy 415-1 Political contributions 75
2016
GRI 418: Customer 418-1 Substantiated complaints concerning breaches of customer 101
Privacy 2016 privacy and losses of customer data
Direct Economic Value Generated
GRI 3: Material Topics 3-3 Management of material topics 18-26, 65, 73-79
2021
GRI 201: Economic 201-1 Direct economic value generated and distributed 64
Performance 2016
201-2 Financial implications and other risks and opportunities due 18-26
to climate change
201-3 Defined benefit plan obligations and We do not disclose this matter due
other retirement plans to confidentiality constraints and
competitive information issues related
to talent acquisition.
201-4 Financial assistance received from government No financial assistance received from
the government
Executive Responsibility in ESG
GRI 3: Material Topics 3-3 Management of material topics 12-13, 71-72
2021
GRI 2: General 2-13 Delegation of responsibility for managing impacts 12-13, 71-72
Disclosures 2021
2-14 Role of the highest governance body in 12-13, 71-72
sustainability reporting
Human Rights
GRI 3: Material Topics 3-3 Management of material topics 26-34, 105-121
2021
GRI 203: Indirect 203-1 Infrastructure investments and services supported 8-9, 30-34, 106, 110-111
Economic Impacts
2016
203-2 Significant indirect economic impacts 8-9, 48, 53, 57-58, 62
GRI 410: Security 410-1 Security personnel trained in human rights policies Information Unavailable. Information
Practices 2016 or procedures on security personnel trained in
human rights policies or procedures
were not provided to the Bank during
the reporting period. The Bank will
engage closely with Security Personnel
providers for this information in 2024.
GRI 411: Rights of 411-1 Incidents of violations involving rights of No incidents of violations involving
Indigenous Peoples indigenous peoples rights of indigenous peoples’ rights
2016 during the reporting period.
GRI 413: Local 413-1 Operations with local community engagement, impact 105-116
Communities 2016 assessments, and development programs
413-2 Operations with significant actual and potential negative No significant actual and potential
impacts on local communities negative impacts during the reporting
period covered
Supply Chain Management
GRI 3: Material Topics 3-3 Management of material topics 103
2021
GRI 204: Procurement 204-1 Proportion of spending on local suppliers 103
Practices 2016
GRI 308: Supplier 308-1 New suppliers that were screened using 103
Environmental environmental criteria
Assessment 2016
308-2 Negative environmental impacts in the supply chain and Information Unavailable. BDO did not
actions taken have sufficient data collection systems
in place to collect the relevant data
during the reporting period.

125
 Page Number(s), Direct Answer
GRI Standard Disclosure and/or URLs
GRI 406: Non- 406-1 Incidents of discrimination and corrective actions taken Zero incidents of discrimination and
discrimination 2016 corrective actions taken during the
reporting period.
GRI 407: Freedom 407-1 Operations and suppliers in which the right to freedom of Information Unavailable. BDO did not
of Association and association and collective bargaining may be at risk have sufficient data collection systems
Collective Bargaining in place to collect the relevant data
2016 during the reporting period.
GRI 414: Supplier 414-1 New suppliers that were screened using social criteria 103
Social Assessment
2016
414-2 Negative social impacts in the supply chain 103
and actions taken
Waste Management
GRI 3: Material Topics 3-3 Management of material topics 91-97
2021
GRI 301: Materials 301-1 Materials used by weight or volume 91-92
2016
301-2 Recycled input materials used 93-95
301-3 Reclaimed products and their packaging materials 91-96
GRI 306: Waste 2020 306-1 Waste generation and significant waste-related impacts 91-96
306-2 Management of significant waste-related impacts 91-96
306-3 Waste generated 97
306-4 Waste diverted from disposal 97
306-5 Waste directed to disposal 97
Water and Wastewater
GRI 3: Material Topics 3-3 Management of material topics 91
2021
GRI 303: Water and 303-1 Interactions with water as a shared resource 91
Effluents 2018
303-2 Management of water discharge-related impacts 91
303-3 Water withdrawal 97
303-4 Water discharge 97
303-5 Water consumption 97
Energy Management
GRI 3: Material Topics 3-3 Management of material topics 88-91
2021
GRI 302: Energy 302-1 Energy consumption within the organization 97
2016
302-2 Energy consumption outside of the organization 97
302-3 Energy intensity 97
302-4 Reduction of energy consumption 89-91
302-5 Reductions in energy requirements of products 89-91
and services
GHG Emissions
GRI 3: Material Topics 3-3 Management of material topics 88-98
2021
GRI 305: Emissions 305-1 Direct (Scope 1) GHG emissions 97-98
2016
305-2 Energy indirect (Scope 2) GHG emissions 97-98
305-3 Other indirect (Scope 3) GHG emissions 97-98
305-4 GHG emissions intensity 97-98
305-5 Reduction of GHG emissions 88-98
305-6 Emissions of ozone-depleting substances (ODS) 98
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other 98
significant air emissions

126
Supporting the
UN Sustainable
Development Goals
Product Sustainability Strategy
Mainstreaming Sustainable Banking

Target Section, page

1.3 Implement social protection systems ● Sustainable Finance

Equal rights to ownership, basic services, ʴ Supporting Evolving Consumer Preferences:

1.4 Consumer Banking
technology and economic resources
ɒ Auto Loan, Home Loan, SME Loan, Personal
4.6 Universal literacy and numeracy
Loan, Cards Issuing, page 35-37
Equal rights to economic resources, property ʴ Investments
5.7
ownership and financial services
ɒ Financial wellness by turning savers to
Diversify, innovate and upgrade for economic investors: BDO Trust and investments,
8.2
productivity
page 38
Promote policies to support job creation and ʴ Insurance
8.3
growing enterprises
ɒ Leaving a lasting legacy for future
Universal access to banking, insurance and generations: BDO Life, page 44
8.10
financial services
ɒ De-risking business and individual activities:
Increase the access of small-scale industrial
BDO Insure, page 47
9.3 and other enterprises to financial services and
markets ● Financial Services Reach and Value
Support domestic technology development ʴ Establishing frontline client relationships: BDO
9.b
and industrial diversification Branch Banking, page 48
Promote universal social, economic and ʴ Ensuring availability of cash: BDO Cash
10.2
political inclusion Services, page 50
Reduce transaction costs for ɒ BDO and the Cash Service Alliance, page 51
10.c
migrant remittances
ʴ Facilitating transactions through digital banking:
11.1 Safe and affordable housing BDO Digital, page 51
ɒ Facilitating access and inclusion: BDO
11.2 Affordable and sustainable transport systems Digital (BDO Online, BDO Pay, BDO Pay
Account, BDO Checkout), page 48-52
12.5 Substantially reduce waste generation
ɒ Cash Agad Agency Banking, page 53
Promote universal understanding of ɒ Cash Management, page 54
12.8
sustainable lifestyles
ɒ Leasing for increased resilience: BDO
17.3 Mobilize additional financial resources
Finance, page 56
for developing countries from multiple
sources (remittances) ● Building relationships with Overseas Filipinos
and families
ʴ Widening customer reach, page 60
ʴ Increasing access to financial services through
partnerships, page 60
ʴ Moving past challenges in a changing market,
page 61 127
 Pursuing Partnerships for Impact

Increase financial resources to conserve and ● Sustainability Engagements and Partnerships

15.A sustainably use ecosystem and biodiversity
ʴ HARIBON Foundation, Green Finance, page 121

Sustainability Contribution Strategy

Mainstreaming Sustainable Banking

Target Section, page

1.a Mobilize resources to implement policies to ● Managing Climate Change and Other
end poverty Environmental and Social Risks and
Opportunities, page 18
1.4 Equal rights to ownership, basic services, ʴ Identifying climate-related Risks, page 18
technology and economic resources
ʴ Key Focus Areas, page 20
1.5, Build resilience to environmental, economic ● E&S Risk Assessment, page 24
11.5, and social disasters
13.1 ● Sustainable Finance
ʴ Financial Instruments for Sustainability
2.1 Universal access to safe and nutritious food ɒ Blue Bond Impact Report, page 27
2.2 Double the agricultural productivity and ɒ ASEAN Sustainability Bond Impact Report,
incomes of small-scale food producers page 27
ʴ Lending
4.4 Increase the number of youth and adults with
relevant skills for employment, decent jobs ɒ Pioneering sustainable energy financing:
and entrepreneurship BDO Institutional Banking, page 28
ɒ Economic, Environment, and Social Impact,
4.6 Ensure universal literacy and numeracy page 30
4.7 Ensure education for sustainable development ▪ Green Finance, page 31
and global citizenship ▪ Social Finance, page 31
▪ Coal Exposure, page 31
5.7 Equal rights to economic resources, property
ownership and financial services ɒ BDO Sustainable Energy Finance Projects,
page 32
6.1 Achieve universal and equitable access to ʴ Investments
safe and affordable drinking water for all
ɒ Managing Wealth for Future Generations:
6.3 Improve water quality, wastewater treatment BDO Private Bank, page 40
and safe reuse ɒ Investing in ESG: BDO Treasury, page 41

6.4 Increase water-use efficiency and ensure ʴ Underwriting

freshwater supplies ɒ Financing Sustainability through the Capital
Markets: BDO Capital, page 42
6.7 Expand water and sanitation support to
developing countries ʴ Financial Services Reach and Value
ɒ Serving the Unbanked: BDO Network Bank,
7.1 Ensure universal access to affordable, reliable page 57
and modern energy services
ɒ Building relationships with Overseas
7.2 Increase global percentage of renewable energy Filipinos and families, page 59
● Empowering Women as Consumers and
7.3 Double the improvement in energy efficiency Entrepreneurs
ʴ Individual loans availed by women, page 62
7.4 Expand infrastructure and upgrade technology
for supplying modern and sustainable ʴ Individual insurance availed by women,
energy services page 62

8.2 Diversify, innovate and upgrade for

economic productivity

128
8.3 Promote policies that support decent job
creation, entrepreneurship, creativity and
innovation, and formalization and growth of
MSMEs, including through access to financial
services

8.10 Universal access to banking, insurance and

financial services

9.1 Develop sustainable, resilient and

inclusive infrastructure

9.3 Increase access to financial services

and markets

9.8 Universal access to information and

communications technology

10.2 Promote universal social, economic and

political inclusion

11.1 Safe and affordable housing

11.2 Affordable and sustainable transport systems

12.5 Substantially reduce waste generation

13.3 Build knowledge and capacity to meet

climate change

14.1 Reduce marine pollution

14.4 Sustainable fishing

14.9 Support small scale fishers

17.1 Strengthen domestic resource mobilization to

improve domestic capacity for tax and other
revenue collection

Strengthening Business Resilience

4.6 Universal literacy and numeracy ● Environmental Impact

4.a Build and upgrade inclusive and safe schools ʴ Energy and Emissions, page 88
ʴ Water Consumption, Discharge, and Effluents,
6.3 Improve water quality, wastewater treatment
and safe reuse page 90
ʴ Materials and Waste
6.4 Increase water-use efficiency and ensure
freshwater supplies ɒ Managing internal consumption, page 92
ɒ Circularity in operations, page 93
7.2 Increase global percentage of renewable energy
ɒ Partnership with BDO Foundation, page 94
7.3 Double the improvement in energy efficiency
ʴ Case Study: Waste Busterrr: Reduce,
8.2 Diversify, innovate and upgrade for Reuse, Recycle, page 94
economic productivity
ʴ Case Story: X-Trash Challenge, page 96
ɒ BDO Resource Consumption, page 97
9.1 Develop sustainable, resilient and
inclusive infrastructure ɒ Breakdown of BDO Emissions for Scope 1,
2, 3, page 98
12.5 Substantially reduce waste generation

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 Pursuing Partnerships for Impact

5.7 Equal rights to economic resources, property ● Stakeholder Communication Campaign, page 116
ownership and financial services
● Sustainability Engagements and Partnerships
7.2 Increase global percentage of renewable energy ʴ Brand Finance: Sustainability Brand Value,
7.3 Double the improvement in energy efficiency page 117
ʴ CNN Philippines: Women Empowerment,
8.2 Diversify, innovate and upgrade for
page 119
economic productivity
ʴ A.S.P.N. Ano Sa Palagay N’yo?: Climate and
13.3 Build knowledge and capacity to meet Sustainability, page 119
climate change
ʴ Smart Recycle: Responsible Waste
Management, page 120

Human Capital Sustainability Strategy

Strengthening Business Resilience

Target Section, page

1.3 Implement social protection systems ● Employee Profile
1.4 Equal rights to ownership, basic services, ʴ Employee Count, New Hires, Leave
technology and economic resources Availments, Training and Development,
3.4 Reduce mortality from non-communicable Skills Upgrade, Employee Functions, Gender
diseases and promote mental health Diversity by location, level, age group,
Occupational Health and Safety, page 80-81
3.8 Achieve universal health coverage
● Human Capital Development
4.4 Increase the number of youth and adults with
relevant skills for financial success ʴ A human-centered culture and organization:
BDO Human Resources, page 82
4.6 Universal literacy and numeracy
ʴ Driving Equal Opportunity Employment
4.7 Ensure education for sustainable development
and global citizenship ɒ Labor Relations, page 83
8.3 Promote policies to support job creation and ɒ Promoting Employee Health and
growing enterprises Well-being, page 83
8.5 Achieve full and productive employment and ɒ Sustaining a Safe Work Environment, page 84
decent work for all ʴ Nurturing Learning and Development,
8.8 Protect labor rights and promote safe working ɒ Sustainability Capacity-building, page 84
environments
ʴ Capability-Building in Environmental, Social,
10.2 Promote universal social, economic and and Governance (ESG) and Sustainability
political inclusion
ɒ Business Upskilling, page 85
10.4 Adopt fiscal and social policies that
promote equality ɒ Driving Talent Development, page 86

14.1 Reduce marine pollution ʴ Improving the Employee Experience through

Digital Transformation, page 86
15.2 Restore degraded forests and substantially
increase afforestation and reforestation ʴ Performing to Sustainability Commitments,
page 87
ʴ Employee Volunteer Program, page 87

Pursuing Partnerships for Impact

4.7 Ensure education for sustainable development ʴ Promoting Sustainability Mindset Through
and global citizenship Employee Volunteerism, page 113
17.16 Enhance the global partnership for sustainable
development

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Disaster Response Strategy
Strengthening Business Resilience

Target Section, page

1.5, Build resilience to environmental, economic ● Sustaining a Safe Work Environment, page 83
11.5, and social disasters
13.1

Pursuing Partnerships for Impact

1.4 Equal rights to ownership, basic services, ● Scaling and Mainstreaming Financial Inclusion:
technology and economic resources BDO Foundation, page 83
1.5, Build resilience to environmental, economic ʴ Partnerships with Government Agencies
11.5, and social disasters
13.1 ɒ Online Financial Education Course, page 105
ɒ Recognitions for Fisherfolk Program,
2.3 Double the productivity and incomes of
small-scale food producers page 107

3.1 Reduce maternal mortality ʴ Private Sector and LGU Partnerships, page 108
ɒ Training Program for MSMEs and Persons
3.2 End preventable deaths under 5 years of age
with Disabilities, page 109
3.3 Fight communicable diseases
ʴ Disaster Response
3.4 Reduce mortality from non-communicable ʴ Increasing adaptation of communities:
diseases and promote mental health
Rehabilitating RHUs and building classrooms
4.3 Equal access to affordable technical, map, page 109
vocational and higher education
ʴ Rehabilitation of Rural Health Units, page 110
4.4 Increase the number of people with relevant
skills for financial success ʴ Construction of a Blood Center, page 110
ʴ Construction of School Buildings, page 110
4.6 Universal literacy and numeracy
ʴ Relief Operations, page 111
4.a Build and upgrade inclusive and safe schools
ʴ A Vegetable Garden for Food Security, page 111
9.3 Increase access to financial services and
markets ʴ Christmas Gift-Giving Program, page 112

10.2 Promote universal social, economic and ɒ Gift giving and relief operations map,
political inclusion page 113
14.1 Reduce marine pollution ɒ Employee Volunteer Program Map, page 113

15.2 Restore degraded forests and substantially

increase afforestation and reforestation
16.6 Develop effective, accountable and transparent
institutions
17.16 Enhance the global partnership for sustainable
development

131
 Governance-based Sustainability Strategy
Strengthening Business Resilience

Target Section, page

5.5 Ensure full participation in leadership and ● Economic Impact, page 64
decision-making
● Good Governance to Create a Sustainable
16.2 Protect children from abuse, exploitation, Future, page 65
trafficking and violence
● Our Board of Directors and Governance
16.3 Promote the rule of law and ensure equal Structure
access to justice
ʴ Board Composition, Screening of Directors,
16.4 Combat organized crime and illicit financial Board Diversity, Selection and Appointment
and arms flows
of Senior Executive Management, Review of
16.5 Substantially reduce corruption and bribery Bank’s Mission, Vision, and Strategic Plans,
16.6 Develop effective, accountable and Sustainability Initiatives, page 66-68
transparent institutions ● Improving Board Effectiveness
16.7 Ensure responsive, inclusive and ʴ Board Performance, Continuing Education
representative decision-making for Directors, Chairperson of the Board,
17.1 Mobilize resources to improve domestic Independent and Non-Executive Directors’
revenue collection Meeting, Board Committees, The Board of
17.16 Enhance the global partnership for Directors, page 69-73
sustainable development ● Independent Control Functions
ʴ Compliance, page 73
ʴ Internal Audit, page 74
ʴ Compliance with the SEC Code of Corporate
Governance, page 74
● Corporate Policies and Practices
ʴ BDO Code of Conduct and Business Ethics,
page 74
ʴ Internal Fraud, Breach of the Code, or other
Unethical/Illegal Activities, page 75
ʴ Acceptance/Solicitation of Gifts, Bribery,
Corruption, and Anti-Competitive Behavior,
page 75
ʴ Anti-Money Laundering, Counter-Terrorist
Financing, and Proliferation Financing (AML
Risk Assessment, AML Training, Anti-Online
Sexual Abuse and Exploitation of Children,
page 76-77
ʴ Tax Governance (including Country-by-
country reporting), page 77
ʴ Building Trust on Technology (Data Privacy
and Protection, Cybersecurity), page 78-79
● Consumer Protection Practices
ʴ Board and Management Oversight on
Customer Concerns, Enforcement and
Monitoring of the Customer Assistance
Management System (CAMS), Customer
Experience Philosophy, Process for Handling
of Customer Concerns, Training for Customer
Assistance, Listening to Customers Needs,
Customer Contact Center, page 99-102
● Supply Chain and Approach to Procurement,
page 102
ʴ Vendor Engagement, page 103
132
Memberships in
Associations
ACI Philippines the Financial French Chamber of Nordic Chamber of Commerce
Markets Association Inc. Commerce in the Philippines - of the Philippines, Inc.
Le Club Inc.
Association of Bank People Management
Compliance Officers, Inc. Fund Managers Association of Association of the
the Phils., Inc. (FMAP) Philippines, Inc.
Association of Bank
Remittance Officers, Inc. German-Philippine Chamber Philippine Association of
of Commerce & Industry Inc. National Advertisers, Inc.
Association of Credit
Executives in the Tourism Information Systems Audit Philippine Association of
Industry Inc. and Control Association, Inc. Stock Transfer and Registry
(ISACA) Agencies, Inc.
Association of Philippine
Correspondent Bank Institute of Internal Auditors Philippine Chamber of
Officers, Inc. Philippines, Inc. Commerce & Industry, Inc.

Australian - New Zealand International Monetary Philippine Payments

Chamber of Commerce Conference Management, Inc.
Phils., Inc.
IT & Business Process Singapore Philippines
Bank Marketing Association Association of the Association Inc.
of the Phils. Philippines, Inc.
Spanish Chamber of
Bank Security Management Italian Chamber of Commerce Commerce in the Philippines
Association of the Philippines in the Philippines, Inc.
Incorporated The American Chamber of
Japanese Chamber of Commerce of the Philippines,
Bankers Association of the Commerce and Industry of Inc. (AMCHAM Philippines)
Philippines Cebu, Inc.
The Canadian Chamber
Bankers Institute of the Korean Chamber of of Commerce of the
Philippines, Inc. Commerce Philippines Philippines, Inc.
(KCCP) Inc.
British Chamber of Commerce The Japanese Association
of the Philippines, Inc. Makati Business Club, Inc. Manila Inc.

Clearing Officers Club, Inc. Malaysia Chamber of The Japanese Chamber of

Commerce and Industries Commerce and Industry of the
Credit Card Association of the Philippines, Inc. Philippines, Inc.
Philippines, Inc.
Management Association The Philippines-Japan
Dutch Chamber of Commerce of the Philippines Society, Inc.
in the Philippines, Inc.
Money Market Association of Trust Officers Association of
Employers Confederation the Philippines, Inc. (MART) the Philippines, Inc.
of the Phils.
National Association
Financial Executives Institute of Securities Broker
of the Philippines Salesmen, Inc.

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 Sustainability and ESG
Awards and Recognition
Platinum Award 3G Best Corporate Best Corporate and
(2010–2023) Governance Framework Institutional Adviser –
The Asset ESG Corporate Award, BDO Unibank Domestic
Awards 2022 (2006–2023)
3G Social Empowerment
Top Sustainability Advocates Award, BDO Foundation The Asset Triple A Sustainable
in Asia Global Good Governance Finance Awards 2024
(2021–2023) Awards 2023 Best Loan Adviser –
Asia Corporate Excellence & Domestic
Sustainability Awards (ACES) 2023 Four Golden Arrows
(2015–2023)
ASEAN Corporate Governance
ESG Category – Bronze Award Scorecard (ACGS)
The Asset Triple A Sustainable
Qorus Reinvention Awards Finance Awards 2024
2023 Golden Arrow Awards
APAC 2023 Best Equity Deal
Best Advance in
Financial Inclusion Initiative (Joint issue manager, joint lead
Sustainability Practices underwriter, and bookrunner for
of the Year – Philippines Retail Banker International Asia
Asian Banking & Finance Retail ACEN Corporation’s PHP25 billion
Trailblazer Awards 2023 Preferred Shares)
Banking Awards 2023
Telecom Acquisition Deal The Asset Triple A Sustainable
Philippines Domestic Health Finance Awards 2024
of the Year
& Wellness Bank of the Year (Frontier Towers Associates Best Corporate Bond
Philippines Domestic Philippines PHP50 billion (Joint issue manager, joint lead
Sustainable Finance Debt Facilities; Sole lender: underwriter, and joint bookrunner
Initiative of the Year BDO Unibank) for SM Prime Holdings, Inc.’s
Asian Banking & Wholesale The Asset Triple A Sustainable PHP33 billion Bonds)
Banking Awards 2023 Infrastructure Awards 2023 The Asset Triple A Sustainable
Asset Management Company Finance Awards 2024
Social Empowerment
Category – BDO Foundation of the Year, Philippines Best Acquisition Financing
(Financial Education Program (BDO Trust) (Joint issue manager, joint lead
for Fisherfolk in the Philippines) (2018–2023) underwriter, and joint bookrunner
13th Asia Responsible Enterprise The Asset Triple A Sustainable for Aboitiz Equity Ventures Inc.’s
Awards (AREA) Investing Awards for Institutional PHP17.45 billion Bonds)
Investor, ETF and Asset Servicing The Asset Triple A Sustainable
BDO Unibank, Asian Finance Awards 2024
Providers 2023
Excellence awardee
(2011–2023) BDO Capital & Best Gender Equality Bond
Corporate Governance Asia 13th (Joint mandated lead arranger
Investment Corporation
Asian Excellence Award 2023 and bookrunner for ASA
Project Finance House Philippines Foundation, Inc.’s
Best Investor Relations PHP5 billion Corporate Notes)
Company (Philippines) of the Year
(2015, 2017–2021, 2023)
The Asset Triple A Sustainable
awardee The Asset Triple A Sustainable Finance Awards 2024
(2011–2023) Infrastructure Awards 2023 Best Sustainability-
Corporate Governance Asia 13th
Asian Excellence Award 2023 Green Project of the Year Linked Loan – Storage and
(Sole issue manager for Arthaland Packaging
Best Corporate Corporation’s PHP3 billion (Mandated lead arranger and
Communications awardee Green Bond) bookrunner for Goodpack’s
(2014–2015, 2017–2023) The Asset Triple A Sustainable USD790 million Sustainability
Corporate Governance Asia Infrastructure Awards 2023 Linked Loan)
13th Asian Excellence Award 2023 The Asset Triple A Sustainable
Telecom Acquisition Deal Finance Awards 2024
Asia's Best CSR awardee of the Year
(2020–2023) (Mandated lead arranger for
Corporate Governance Asia Frontier Towers Associates
13th Asian Excellence Award 2023 Philippines’ PHP50 billion
Debt Facilities)
The Asset Triple A Sustainable
Infrastructure Awards 2023

134
 Contact Information 2-3

COMPANY HEADQUARTERS

BDO Unibank, Inc.

BDO Corporate Center
7899 Makati Avenue
Makati City 0726
Philippines
Trunkline: +63 (2) 8840-7000
Website: www.bdo.com.ph

INVESTOR AND SUSTAINABILITY INQUIRIES

BDO Unibank, Inc. welcomes inquiries from
analysts, investors, and the financial community.

BDO Investor Relations and Planning

31/F BDO Towers Valero
8741 Paseo de Roxas
Salcedo Village
Makati City 1226
Philippines
Telephone: +63 (2) 8840-7000
local 36069
The 2023 Sustainability Report can
Email: irandcorplan@bdo.com.ph
be viewed and downloaded online at
www.bdo.com.ph/sustainability-report. BDO Sustainable Finance
10/F BDO Towers Valero
The 2023 Annual Report and the
8741 Paseo de Roxas Avenue
Financial Supplements can be
Salcedo Village
viewed and downloaded online at
Makati City 1226
www.bdo.com.ph/annual-report.
Philippines
Telephone: +63 (2) 8840-7000
local 34567
Email: bdo-sf@bdo.com.ph

BDO Unibank is regulated by BDO Sustainability Office

the Bangko Sentral ng Pilipinas. 35/F BDO Corporate Center Ortigas
https://www.bsp.gov.ph 12 ADB Avenue
For concerns, please visit any Ortigas Center
BDO branch nearest you, or Mandaluyong City 1554
contact us through our 24x7 hotline Philippines
+63 (2) 8631-8000 or email us Telephone: +63 (2) 8688-1288 local 34803
via callcenter@bdo.com.ph. Email: sustainability@bdo.com.ph

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