BPI commits to bankroll on ‘green’ buildings amidst reservations from developers due to high cost

BPI commits to bankroll on ‘green’ buildings amidst reservations from developers due to high cost

BPI commits to bankroll on ‘green’ buildings amidst reservations from developers due to high cost
By Monsi A. Serrano

Amidst all reservations from other developers to embrace and support “green” developments, Ayala Corporation’s Bank of the Philippine Islands (BPI) took the plunge by committing to bankroll on environment friendly and sustainable development.

While a lot of developers see this endeavor as impractical. tall order, and costly, the BPI looks at the the long-term benefits for their business and for the entire society and the future of the next generation.

Not many people know that way back 2008, the BPI has helped more than 300 companies, including property developers from embarking more environment-friendly but cost-efficient projects via BPI’s Sustainable Energy Finance (SEF) Program and they take pride that it has disbursed P52.6 billion for energy efficiency, renewable energy, and climate resiliency projects as of the end of 2018. And 20% of the funds were earmarked for Green Building projects.

Jo Ann B. Eala, head of sustainable energy finance and specialized lending of BPI said, “The green building initiatives of the private sector was a product of the law environment law that needs to be complied with. But more than the fact that it is the law, it is also high time to do our share and make this a strong business consideration for different project owners who build or construct new buildings, to contribute to preserving our environment apart from the fact that if you do not comply with the law, you will not be able to get a building permit.”

CHALLENGES TO FACE

Given the fact that not all companies are keen to embrace the green initiative taken by BPI, this does not stop them from continuing their mission to pursue this endeavor and will continue to educate stakeholders and businessmen on the deeper understanding of the purpose of green projects given the financial impact to those who would embark on this.

Eala revealed, “Certainly there was resistance because of the perceived cost without fully understanding the long term benefits. Just like any businessman, the bottomline is always the primordial concern. Therefore, if they are not aware of how much they are going to gain also in terms of profitability then it becomes really difficult”.

To show that they put their money where their mouth is and to set as an example, BPI’s head office in Makati City which has, 30-year old chillers were replaced and this resulted into an  annual savings of about 990 megawatt hour (MWh) and in terms of peso value it is around P12 million since 2012. Apart from that, it was able to avoid emission of greenhouse gases (GHG) at 431 total carbon dioxode (tCO2) per year.

Eala concluded, “What we hope to do, knowing that there is so much potential in the business sector, is to educate first and encourage more and more private sector participation in sustainable initiatives. This as a whole is mobilizing and boosting private sector participation in protecting the environment but making sure as it is done, it is done in a very successful, well-studied way so that the project will definitely yield the results expected… and will encourage the business sector to continue and make it a sustainable venture.”

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