German award body cites Landbank for innovations

STATe-run Land Bank of the Philippines (Landbank) was presented with a Certificate of Merit for “Best Innovation in Financial Services” in this year’s Karlsruhe Sustainable Finance Awards, held in Karlsruhe, Germany last Sept. 30, 2020. This is the eigth consecutive year that Landbank has received the honor since 2013.

Landbank was cited for its successful implementation of the “enhanced environmental and Social Safeguards Relative to Credit Delivery,” an innovative initiative for conducting environmental and social due diligence for all bank-financed projects and accounts. This is to ensure compliance with applicable environmental and social laws and regulations, which in turn minimizes credit risks.

The policy enhancement covers identification, assessment, mitigation; monitoring of environmental, climate change; and social risks, aspects and impact as well as economic, environmental and social benefits of projects financed by Landbank.

Deputy Consul General emil Fernandez of the Philippine Consulate General in Frankfurt received the award on behalf of Landbank.

Landbank’s award-winning Administrative Order no. 26 (enhanced environmental and Social Safeguards

Relative to Credit Delivery) expands the Bank’s environmental Due Diligence system, which previously only conducted environmental impact assessments for every project that the Bank finances — from loan packaging up until the loan is fully paid — coupled with an environmental risk rating.

All bank-financed projects are vetted as to its potential environmental impacts, provided recommendations for possible environmental management and measured and monitored for compliance.