LANDBANK wins Green Leadership Award for Environmental Due Diligence
THE LAND Bank of the Philippines bagged the coveted Green Leadership award for its Environmental Due Diligence (EDD) system at the 5th Asia Responsible Entrepreneurship Awards (AREA), in ceremonies held last June 19 at the Banyan Tree Hotel in Macau SAR, China.
The Land Bank of the Philippines bagged the coveted Green Leadership award for its Environmental Due Diligence (EDD) system at the 5th Asia Responsible Entrepreneurship Awards (AREA), in ceremonies held last June 19 at the Banyan Tree Hotel in Macau SAR, China.
The Green Leadership award is given to institutions that “believe in the larger responsibility for recognizing the impact of running their business to the environment and seeks to reduce and reverse the impact”.
“This award is an affirmation of LANDBANK’s continuing and concerted effort to embed sustainable development and environmental protection in our corporate strategy and business processes,” said LANDBANK President and CEO Gilda E. Pico.
Under the EDD system, LANDBANK conducts environmental impact assessment and monitoring as a requirement in financing projects. This was initiated 20 years ago as part of a requirement for World Bank-assisted projects. Ten years later, in 2004, LANBANK institutionalized the system, which is now being implemented in 41 lending centers across the country, covering all LANBANK-financed projects—regardless of the amount.
Unlike other Philippine banks that implement EDD on a selective basis, LANDBANK integrated environmental due diligence in its credit delivery operations to ensure that loan clients’ projects comply with environmental laws and regulations.
LANDBANK also established an Environmental Program and Management Department (EPMD) which conducts the assessments of projects and provides the Bank’s lending units with an Environmental Assessment Report as a guide for the evaluation and approval of loan proposals.
A continuing commitment
“While it is a true honor to be in the league of internationally-acclaimed exemplars in responsible entrepreneurship, we also welcome this as a challenge to further expand our green initiatives and reaffirm our commitment to promoting sustainable and inclusive growth,” Pico added.
By being a champion of environmental protection, LANDBANK eventually influenced its clients to be more environmentally conscious. Out of the 472 projects of clients assessed from 2011 to 2014, 83 percent or 391 projects have implemented at least one environ- mental program or initiative.
In recognition of clients’ efforts in environmental protection and responsible operations, LANDBANK also gives special awards to clients with outstanding environmental practices.
Various recognitions
Prior to the Green Leadership Award, LANDBANK has also reaped various recognitions from local and international organizations for its EDD implementation.
In 2008, LANDBANK was conferred a Development Award by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) under its Environment Category. The Bankers Institute of the Philippines (BAIP) also recognized LANDBANK as Green Bank Champion in 2013.
The EDD system also won other environmental awards for LANDBANK such as the Sustainable Business Award conferred by the Global Initiatives and Price Waterhouse Cooper Philippines; the Outstanding Business Sustainability Achievement Award from the Global Sustainable Finance Network; the Excellence in Economy and Ecology Award from the Philippine Chamber of Commerce and Industry (PCCI); and the accreditation of three Clean Development Mechanism Program of Activities by the United Nations Framework Convention on Climate Change (UNFCCC).
To further improve the implementation of the EDD, LANDBANK plans to incorporate its Climate Change Vulnerability Assessment (CCVA) in the system. With the CCVA, LANDBANK will be able to assess the potential impact of climate change on financed projects in order to identify and plan appropriate adaptation measures.