Page 10 - AsiaElec Week 19 2022
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AsiaElec COAL AsiaElec
IFC found to have broken
ESG policies with coal
investment in Philippines
PHILIPPINES THE IFC has found that it broke its own envi- caused as communities “are still experiencing
ronmental and social policies by backing coal the same pollution and the corporations have
projects in the Philippines. been treated with impunity.”
The Compliance Advisor Ombudsman PMCJ represents local residents and activists
(CAO) of the International Finance Corpora- who fear the projects will cause severe environ-
tion (IFC), the private lending arm of the World mental, social and human rights problems.
Bank, said made the damning decision after a Since the investment took place before 2019,
2017 complaint by the Philippine Movement for the IFC announced that it would no longer invest
Climate Justice (PMCJ), an umbrella group of in banks that did not have a plan to divest from
Philippines civil society organisations. coal.
The CAO called on the IFC to provide rem- In 2020, RCBC said that it would stop financ-
edy for the “significant adverse social, environ- ing coal plants, becoming the first in the Philip-
mental and climate impacts of its investments, pines and only the fourth bank in Southeast Asia
and to reform its financial intermediary lending to phase out funding for fossil fuel.
practices to prevent future harm.” Meanwhile, Withdraw from Coal found six
Janine Ferretti, CAO director-general said it Philippine banks had provided financial support
will give the IFC nine months to produce a “more for new coal projects despite some having ruled
detailed assessment of the adverse impacts of the it out.
coal-fired power plants on community health The report found that UnionBank, BDO,
and the environment.” China Bank, Metrobank, Security Bank and
The group complained that the IFC had RCBC were all involved in supporting bonds
funded at least 10 new coal-fired power plants in sold for AboitizPower.
the country between 2011 and 2019. The utility is the most significant new coal
In particular, PMCJ claimed that the IFC had project developer in the country, building
given a local bank, Rizal Commercial Banking GNPower’s 1336 MW Dinginin and 690 MW
Corporation (RCBC), US$228mn to invest in Mariveles plants.
coal projects, despite failing to meet the IFC’s The report, which reviewed the activities of
social and environmental performance stand- 16 financial institutions, found there were no
ards and climate commitments. direct coal loans, but support was channelled
Aaron Pedrosa, PMCJ’s legal advisor, said through underwriting and selling bonds to com-
the IFC should pay reparations for the damage panies developing projects.
P10 www. NEWSBASE .com Week 19 11•May•2022
