PNB Corporate Sustainability

Philippine National Bank (PNB) is a private Filipino, universal bank with global presence committed to provide relevant financial solutions to customers anywhere in the world. It is committed to generate value through a strategy focused on safe and sustainable growth.

The capacity of the Bank to grow and sustain business is contingent upon the quality of its human capital, the condition of its physical resources, the viability of its businesses, and the Bank’s relationship with its customers, employees, shareholders, regulators, suppliers / vendors, outsourced personnel, third-party service providers, and external communities.

The Bank believes that Sustainability starts from within by respecting human rights, cultivating an inclusive and collaborative work culture, helping all employees regardless of gender and background to gain equal access to relevant training and opportunities to develop skills and capabilities needed to succeed and improve their well-being. Through this Policy, the Bank commits to educate and engage its employees, leading them to align with PNB’s thrust on Sustainability. The Bank aims for its employees to embrace sustainability principles not only at work but also in their own personal lives as well.

Our corporate governance framework supports these sustainability commitments which earned the Bank recognitions from the Institute of Corporate Directors (ICD) and the Securities and Exchange Commission (SEC) on our governance practices and initiatives.

Recognizing the Bank’s essential role in helping shape the environment and the social landscapes, we believe that our Bank’s Sustainability footprint should also extend to our products and services as well as to financing or supporting the businesses and activities of our customers. As such, the Bank commits to fund or support projects and activities that will contribute to the achievement of the United Nations Sustainable Development Goals (SDGs).

The Bank will not support or involve itself in any business or activity that is illegal and which might cause harm, directly or indirectly, to people and the environment.

On the other hand, the Bank will subject to enhanced due diligence and close monitoring high-risk businesses and activities that are considered to have harmful effects or negative impacts on the society and the environment. The Bank will continue to support these businesses or activities provided they have the necessary government approvals and permits, passed the ESG screening of the Bank, and submitted their mitigation action plans to address environmental and social risks.

In addition, the Bank expects its customers, vendors / suppliers, and third-party service providers to improve their business practices by identifying and managing their own environmental and social risks and impacts, adopting good industry standards and practices, and contributing positively to the environment and the society. The Bank commits to educate its customers, vendors / suppliers, and third-party service providers on PNB’s Sustainability Policy.

To promote social inclusion and gender equality, the Bank will support and make available socially inclusive and gender-sensitive financial solutions. The Bank will do this by integrating social inclusion and gender lens in lending to or financing businesses; financing or refinancing projects that aim to improve social inclusion and gender equality; and by supporting CSR initiatives and activities that promote and improve social inclusion and gender equality.

Our economic, social, and environmental responsibility includes complying with all legal requirements. This Policy applies to all activities of PNB, including events, sponsorships, and engagements that the Bank supports. The Bank’s employees, outsourced personnel, vendors / suppliers, and third-party service providers shall uphold the principles under this Policy to the fullest extent possible within prevailing budgets. Employees are encouraged to inform the Bank’s Management about potential barriers that might hinder the growth of the organization’s people and its business.

1. Economic
   1. Revenue growth, profitability, and business continuity of the Bank.
   2. Engagement in Sustainable Financing Transactions, which will finance or refinance projects and expenditures that will have a positive environmental and social impact and likewise support the Bank’s growth objectives.
   3. Financial wellness and long-term value for customers, employees, and shareholders.
2. Environmental
   1. Efficient use and management of our resources.
   2. Reduced environmental footprint of the Bank, our employees, customers, outsourced personnel, vendors / suppliers, and third-party service providers.
   3. Support for business and activities with positive impact to the environment.
   4. Support for customers to manage their environmental risks and impacts.
3. Social
   1. Succession planning through capability-building, leadership development, and strategic talent acquisition.
   2. Enhanced productivity, self-sufficiency, and quality of life for our employees by providing the right competencies and access to learning opportunities and wellness programs.
   3. Development of an empowering and inclusive culture where our employees, customers, and stakeholders are treated fairly and given equal opportunities.
   4. Support for businesses, projects, or activities that promote and improve social inclusion and gender equality among internal and external stakeholders.
   5. Positive contribution to communities through employee volunteerism and other initiatives imbuing responsible corporate citizenship.
   6. Financial inclusion for communities through sustainable products and services.
4. Governance
   1. Compliance with all applicable laws, rules, and regulations that govern our business.
   2. Alignment with local and international best practices and standards such as, but not limited to, FATF International Standards on anti-money laundering and combating the financing of terrorism, UN Sustainable Development Goals, and UN Global Compact.
   3. Transparency and accountability in all areas of our operations.
   4. An effective Environmental and Social Risk Management System (ESRMS) across all business functions and operations of the Bank.

We commit to do the following:

1. For our employees, we will:
   • Provide a safe, respectful, and collaborative work environment that cultivates personal and professional growth.
   • Educate them on our Sustainability Policy and encourage and inspire them to contribute positively to their respective communities.
   • Provide them access to various skills development and learning programs relevant to their existing functions and target roles for enhanced productivity.
   • Provide equal opportunities for candidates to be hired, without biases, based on their skills and competencies.
   • Provide equal opportunities for employees to be promoted based on performance, potentials, and aspirations, regardless of gender and background.
   • Eliminate biases, whether conscious or unconscious, towards certain groups or individuals and ensure that decisions are rendered objectively and fairly.
   • Promote diversity, inclusion and gender equality in the employment experience and in the workplace.
2. For our customers and communities, we will:
   • Ensure the continuity of our business through strategic succession planning.
   • Support businesses and initiatives that foster and enable economic and inclusive growth, environmental protection, social development, and nation-building.
   • Raise awareness on sustainability and the Bank’s sustainability thrusts through various information dissemination channels.
   • Promote financial wellness and create value through tailor-fit and sustainable products and services.
   • Provide or make available social inclusion and gender-sensitive financial solutions, as well as support initiatives and activities that promote and improve social inclusion and gender equality
3. For our shareholders and regulators, we will:
   • Adhere to all applicable laws, rules, and regulations governing our scope of business and areas of operations.
   • Align with international best practices and standards such as, but not limited to the FATF International Standards on anti-money laundering and combating the financing of terrorism, UN Sustainable Development Goals, and UN Global Compact.
   • Be transparent and accountable in all areas of our operations.
   • Integrate sustainability principles in our enterprise risk management system.
   • Report the progress and milestones of our Sustainability initiatives to the Board of Directors at least quarterly.
   • Review and, if necessary, update the PNB Sustainability Policy annually.
4. For our vendors / suppliers, outsourced personnel, and third-party service providers, we will:
   • Educate and ensure adherence to the Bank’s sustainability policy and standards.
5. For our environment, we will:
   • Reduce the environmental impact of our operations through efficient use and management of natural and man-made resources.
   • Adapt eco-friendly technologies.
   • Support businesses and projects that are compliant with environmental laws and regulations and contribute to the protection and conservation of the environment through sustainable financing and strategic partnerships.
   • Partner with our employees, customers, vendors / suppliers, and third-party service providers to push forward the sustainability agenda.