BDO-2019-Sustainability Report PDF

About the Report 102-54
This report is BDO Unibank, Inc.’s (BDO) second Sustainability Report

outlining the Bank’s economic, environmental, social, and governance
performance from January to December 2019. It is a substantiation of
BDO’s commitment to the United Nations Sustainable Development
Goals (SDGs), the principles of the United Nations Global Compact
(UNGC), and the Greenhouse Gas (GHG) Protocol. This report has been
prepared in accordance with the GRI Standards: Core option. It has
completed the GRI Materiality Disclosures Service, which confirms
that the GRI content index (see pages 60 to 63) is clearly presented
and the references for Disclosures 102-40 to 102-49 align with
appropriate sections in the body of the report.
2019 SUSTAINABILITY REPORT
Table of Contents
06 BDO’s Footprint
08 Message from the Chairperson
10 Message from the President and Chief Executive Officer
12 BDO’s Path in Creating Shared Value
14 Supporting the United Nations Sustainable

Development Goals
16 Banking on Sustainability
16 Sustainability Philosophy, Leadership Team,

Reporting Process
18 Sustainability Framework
19 Materiality and Stakeholder Engagement
21 Economic Impact
22 Sustainability Strategies and Performance
23 Product Sustainability Strategy
32 Sustainability Contribution Strategy
44 Human Capital Sustainability Strategy
49 Disaster Response Sustainability Strategy
54 Governance-Based Sustainability Strategy
60 GRI Content Index
64 Membership in Associations and Awards

Corporate Mission
To be the preferred bank in every market we serve.
Corporate Vision
To be the leading Philippine bank and financial services company
that empowers customers to achieve their goals and aspirations,
combining our entrepreneurial spirit, international perspective,
and intense customer focus to deliver a personalized banking
experience that is easy, straightforward, and convenient, while
taking pride in building long-term relationships and finding better
ways to deliver offerings of the highest standard.
Core Values
Commitment to Customers
We are committed to delivering products and services that
surpass customer expectations in value and every aspect of
customer service, while remaining prudent and trustworthy
stewards of their wealth.
Commitment to a Dynamic and Efficient Organization

We are committed to creating an organization that is flexible,
responds to change, and encourages innovation and creativity;
we are committed to the process of continuous improvement in
everything we do.
Commitment to Employees
We are committed to our employees’ growth and development
and we will nurture them in an environment where excellence,
integrity, teamwork, professionalism, and performance are valued
above all else.
Commitment to Shareholders
We are committed to providing our shareholders with superior
returns over the long term.
BDO’s Footprint
BDO is a full-service universal bank in the Philippines.

It provides a complete array of industry-leading
products and services including Lending (corporate and
consumer), Deposit-taking, Foreign Exchange, Brokering,
127
Trust and Investments, Credit Cards, Corporate Cash New Branches and
Management and Remittances in the Philippines. Banking Offices
Through its local subsidiaries, the Bank offers Investment
Banking, Private Banking, Leasing and Finance, Rural
Banking, Life Insurance, Insurance Brokerage and Stock 1,436
Brokerage services. Total Branches and
Banking Offices
BDO’s institutional strengths and value-added products
and services hold the key to its successful business
4,466
relationships with customers. On the front line, its
branches remain at the forefront of setting high standards
as a sales and service-oriented, customer-focused force. Automated Teller
BDO has the largest distribution network with over 1,400 Machines (ATMs)
operating branches and more than 4,400 ATMs nationwide.
Through selective acquisitions and organic growth,

BDO has positioned itself for increased balance sheet 562
strength and continuing expansion into new markets. As Cash Deposit Machines
of December 31, 2019, BDO is the country’s largest bank in
terms of total resources, customer loans, deposits, assets
under management and capital, as well as branch and ATM
network nationwide.
Over
BDO is a member of the SM Group, one of the country’s P3 trillion
largest and most successful conglomerates with (US$63 billion)
businesses spanning retail, mall operations, property Total Resources
development (residential, commercial, hotels and resorts),
and financial services. Although part of a conglomerate,
BDO’s day-to-day operations are handled by a team of
professional managers and bank officers. Further, the Bank
P44.2 billion
(US$873 million)
has one of the industry’s strongest Board of Directors, Net Income
composed of professionals with extensive experience in
various fields that include banking and finance, accounting,
law, and business.
P692.3 billion P158.8 billion
(US$13.7 billion) (US$3.15 billion)
Market Capitalization Total Sustainable Finance Funded
to Date
P183.0 billion
(US$3.6 billion)
Direct Economic Value
Generated
P2.2 trillion
(US$43.6 billion)
Gross Customer Loans
P2.5 trillion
(US$49.1 billion)
Deposit Liabilities
P370.6 billion
(US$7.3 billion)
Capital Base
Closing Rate: US$1 = P53.635

MESSAGE FROM THE
CHAIRPERSON
“The target to achieve global goals requires

a strategic shift in the banking industry’s
orientation on risks and opportunities.
Sustainable finance requires environmental,
social and governance (ESG) factors in
valuating investments.”
09
Dear Stakeholders,
Message from the Chairperson

The global push towards sustainable On our road to climate resilience, the
development brings a rising expectation for construction of critical infrastructure and
corporates to adopt an integrated approach to the installation of renewable energy sources
business. At BDO, we have long recognized the are vital in facilitating a shift to low-impact
importance of this. Our business and priorities industries. We support targeted investments
are aligned to help drive holistic social and in national infrastructure projects such
economic inclusion wherever we operate. as airports and road networks which are
requisites to accelerate economic trade
The Philippines maintained steady economic and activities.
growth this year, even amidst rising global
uncertainties, with private consumption as Furthermore, we close the financing gap
the main driver along with business sector for sustainable projects, serving as the
expansion and public sector investments for leader in sustainable finance, as we strive
the future. towards a healthy balance between optimal
development and environmental protection.
To continue this long-term development and
also ensure it results in inclusive growth,
Financing a Sustainable Future
financial institutions must play a critical role
both in supporting customers and in shaping The target to achieve global goals requires
investments, while prioritizing the values of a strategic shift in the banking industry’s
sustainability in the decision-making process. orientation on risks and opportunities.
Sustainable finance requires environmental,
Facilitating Inclusive Growth social and governance (ESG) factors in
valuating investments.
As the largest bank in the country, we optimize
BDO’s network and influence in promoting The Philippine Development Plan (PDP) 2017-
responsible investments which facilitate 2022 outlined by the National Economic and
financial inclusion, climate resilience, and Development Authority (NEDA) articulates
sustained economic growth. the country’s core development priorities of
enhancing social fabric, inequality reducing
A strong foundation for inclusive economies transformation, and increasing growth
is having a robust banking system which can potentials. The achievement of these
provide multiple platforms that encourage pillars is essential in attaining a resilient
consistent banking transactions and integrate Filipino society and a globally-competitive
unbanked segments into the financial system. Philippine economy.
We continue to invest in expanding our Through this journey, we are firm in our
physical and digital networks, augmenting our commitment to transform both our
consumer loan portfolios, promoting wealth society and economy while involving all
management and pioneering ground-breaking our stakeholders in the financial value
banking products such as Cash Agad to serve chain to create a more equitable and
remote areas of the country. sustainable future.
We recognize the value that small and
medium enterprises (SMEs) bring to a
Yours truly,
developing economy like the Philippines.
We encourage entrepreneurs to grow their
businesses with us while we challenge
ourselves to provide services that expedite
their lines for their capital needs, offer banking Teresita T. Sy
convenience, simplify financial management Chairperson
and nurture long-term partnerships.
MESSAGE FROM THE
PRESIDENT AND CHIEF

EXECUTIVE OFFICER
“The Bank’s Sustainability Framework does

not only serve as a guidepost in achieving
our commitment, but reflects how we intend
do business.”
Dear Stakeholders,
11
Every year, we move closer to our objective of We recognize that the vulnerability of Filipinos
aligning our sustainability goals with our way of is deeper than just our country’s susceptibility
Message from the President and Chief Executive Officer

doing business. Sustainability is not about the to the effects of climate change. This is the
activity, but the mindset. Sustainability should reason why we leverage resources towards our
be part and parcel of how we do business; Disaster Response Sustainability Strategy.
it should be part of our consciousness in BDO Foundation is geared to provide relief
everything we do. operations, as well as build health units,
school buildings, and resettlement homes in
Consequently, the Bank’s Sustainability predominantly rural areas.
Framework does not only serve as a
guidepost in achieving our commitment, We uphold a Governance-Based
but reflects how we intend do business. We Sustainability Strategy, and consistently
are proud to showcase our progress and protect the interest of all our stakeholders by
share our journey to being a responsible evolving our corporate governance practices
corporate steward. to support the requirements of the changing
business landscape, and complying with new
As part of our Product Sustainability regulations and aligning with international best
Strategy, we create products and services practices. We are proud to have received three
that anticipate the evolving needs of our Golden Arrows from the Institute of Corporate
customers, as well as expand the breadth Directors (ICD) during the ASEAN Corporate
of our offerings to new markets, particularly Governance Scorecard (ACGS) Golden Arrow
the underserved segments of our society. We Recognition ceremonies.
supported the aspirations of our underserved
customers through financial inclusion, More recently, we saw the impact of COVID-19
protection products, and MSME loans. Through on the global economy and financial
BDO Foundation, we also drive financial markets. As an institution, we have designed
literacy and financial inclusion programs for and adjusted our operations to withstand
the underprivileged and underserved sectors challenging situations such as this. As an
of society. essential industry, we remain committed to
support the economy during this difficult time
Our Sustainable Contribution Strategy while ensuring we maintain a safe working
allows us to perform a critical role in the environment and remain mindful of the health
national development agenda – accelerating of our employees.
sustainable financing in support of projects
aligned with the pillars of the Philippine We take this opportunity to thank our
Development Plan. We have been a consistent customers, communities, regulators, and
supporter of infrastructure and renewable partners for their continued trust and
energy projects. support. We also thank our Board of Directors,
officers, and employees for their efforts and
Aligned with our Human Capital Sustainability contributions towards creating a sustainable
Strategy, we not only continue to focus on the future for BDO, the customers we serve, and
growth and development of our employees, the community we are part of.
but also drive a culture of excellence in the
workplace. Our programs nurture a “can-lead” Sincerely,
workforce that help propel our sustainability
strategies within our organization and within
the communities we operate in as well. Nestor V. Tan
President and Chief Executive Officer
BDO’s Path in Creating
Shared Value
Creates
Creates
jobsjobs
38,510
38,510Employees
Employees
60%
60%
of Senior
of Senior
Officers
Officers
are women
are women
1616
Average
Average
number
number
of of
employees
employees
in a in
local
a local
branch
branch
3939
Women
Women
in top
in top
management
management
positions
positions
Finances
Finances
friendly
environment-
friendly
environment-
solutions
solutions
3,922,454
3,922,454 tonnes64,858,598
tonnes 64,858,598
Carbon
Carbon
dioxide
dioxide
avoided
avoided
per year
per year Equivalent
Equivalent
tree tree
seedlings
seedlings
2,168
2,168
MWMW 832,801
832,801
grown
grown
overover
10 years
10 years
TotalTotal
energy
installed
energy
installed
capacity
renewable
capacity
renewable
Equivalent
Equivalent
passenger
passenger
vehicles
vehicles P158.8
P158.8
billion
billion
taken
taken
off roads
off roads
yearly
yearly TotalTotal
sustainable
sustainable
finance
finance
funded
funded
to date
to date
4545 Renewable
Renewable
energy
energy
projects
projects
funded
funded
to date
to date
Promotes
Promotes
community
community
development
development
8383RuralRural
health
health
unitsunits
rehabilitated
rehabilitated
3434
School
School
buildings
buildings
withwith
124 classrooms
124 classrooms
4.94.9
million
million 33,358
33,358 constructed
constructed
TotalTotal
project
project
beneficiaries
beneficiaries
to date
to date Student-beneficiaries
Student-beneficiaries
to date
to date
13
BDO’s Path in Creating Shared Value

Fosters banking habits
265,851 1,436 2 million

Insurance policy 562 17.8
Total new checking
owners Branches
and banking 4,466 Cash and savings accounts
offices Automated Deposit

Teller Machines Machines
million in 2019
Customers
(ATMs)
Supports consumer expenditure
17% 5-year CAGR* in auto financing Accelerates

Helps businesses grow 17% 5-year CAGR* in home financing economic growth
10% 5-year CAGR* in credit cards
P51.5 billion 2.5 million Credit cards
P28.7 billion
Outstanding SME loans Taxes paid in 2019
P12.4 billion
576 Facilitates infrastructure development Loans disbursed in the past 5 years
for airports
Resettlement homes
P32.1 billion
built
Loans disbursed in the past 5 years P17.6 billion
for national projects Loans disbursed in the past 5 years
for road networks
* Compound Annual Growth Rate

Supporting the
United Nations Sustainable
Development Goals
1 NO 2 ZERO 3 GOOD 4 QUALITY

POVERTY HUNGER HEALTH AND EDUCATION
WELL-BEING
P28.7 billion 20,000 83 124
in government Smallholder farmers Rural health units Classrooms built
taxes in 2019 trained by BDO- rehabilitated Target 4.1: By 2030,
financed agriculture ensure that all girls and
Target 1.1: By 2030, Target 3.3: By 2030, end
eradicate extreme initiatives the epidemics of AIDS, boys complete free,
poverty for all people tuberculosis, malaria equitable and quality
Target 2.1: By 2030, primary and secondary
everywhere, currently and neglected tropical
end hunger and ensure education leading
measured as people diseases and combat
access by all people, in to relevant effective
living on less than hepatitis, water-borne
particular the poor and learning outcomes.
US$1.25 a day. diseases and other
people in vulnerable
communicable diseases.
situations, including
infants, to safe,
nutritious and sufficient
food all year round.
5 GENDER 6 CLEAN 7 AFFORDABLE 8 DECENT

EQUALITY WATER AND AND CLEAN WORK AND
SANITATION ENERGY ECONOMIC
GROWTH
60% 60 million 2,168 MW 48%
of BDO leaders Liters of water recycled Total Installed of employees part
are women by BDO Corporate Renewable Energy of Collective Bargaining
Center Ortigas in 2019 Capacity funded Agreement
Target 5.5: Ensure
women’s full and by BDO
Target 6.4: By 2030, Target 8.5: By 2030,
effective participation substantially increase achieve full and
Target 7.2: By 2030,
and equal opportunities water-use efficiency across productive employment
increase substantially
for leadership at all all sectors and ensure and decent work for
the share of renewable
levels of decision- sustainable withdrawals all women and men,
energy in the global
making in political, and supply of freshwater including for young
energy mix.
economic and to address water scarcity people and persons
public life. and substantially with disabilities, and
reduce the number of equal pay for work of
people suffering from equal value.
water scarcity.
9 INDUSTRY, 10 REDUCED 11 SUSTAINABLE 15
INNOVATION AND INEQUALITIES CITIES AND
INFRASTRUCTURE COMMUNITIES
Supporting the United Nations Sustainable Development Goals

P158.8 billion P17.67 billion 9
Total Sustainable Finance Funding released for Housing projects with
projects funded to date teachers in Mindanao 576
Target 9.4: By 2030, upgrade Target 10.2: By 2030, empower resettlement homes built
infrastructure and retrofit industries and promote the social,
economic and political inclusion Target 11.3: By 2030, enhance
to make them sustainable, inclusive and sustainable
with increased resource-use of all, irrespective of age,
sex, disability, race, ethnicity, urbanization and capacity for
efficiency and greater adoption participatory, integrated and
of clean and environmentally origin, religion or economic or
other status. sustainable human settlement
sound technologies and industrial planning and management in all
processes, with all countries taking countries.
action in accordance with their
respective capabilities.
12 RESPONSIBLE 13 CLIMATE 14 LIFE BELOW

CONSUMPTION ACTION WATER
AND PRODUCTION
Publication of 2019 3,922,454 P20.3 million
BDO Sustainability Report Tonnes of carbon dioxide Funds raised for World Wide
Target 12.6: Encourage mitigated by funded Renewable Fund for Nature (WWF) through
companies, especially large Energy projects yearly ATM donations to date
and transnational companies, Target 13.2: Integrate climate Target 14.2: By 2020, sustainably
to adopt sustainable practices change measures into national manage and protect marine and
and to integrate sustainability policies, strategies and planning. coastal ecosystems to avoid
information into their significant adverse impacts,
reporting cycle. including by strengthening
their resilience, and
take action for their
restoration in order to
achieve healthy and
productive oceans.
15 LIFE ON LAND 16 PEACE, JUSTICE 17 PARTNERSHIPS

AND STRONG FOR THE GOALS
INSTITUTIONS
5,000 Platinum Award for The New partnerships with the
Farmers no longer dependent Asset’s 2019 ESG Corporate Department of Education,
on slash-and-burn farming Awards. BDO ranks among the Overseas Workers Welfare
in Palawan country’s Top 20 publicly listed Administration, Civil Service
Commission, and the Armed
Target 15.2: By 2020, promote the companies scoring highest in
Forces of the Philippines
implementation of sustainable corporate governance based
to institutionalize financial
management of all types of on the ASEAN Corporate
forests, halt deforestation, restore education among teachers,
Governance Scorecard students, overseas workers,
degraded forests and substantially
increase afforestation and Target 16.6: Develop effective, civil servants, and soldiers
reforestation globally. accountable and transparent
institutions at all levels. Target 17.16: Enhance the global
partnership for sustainable
development, complemented by
multi-stakeholder partnerships
that mobilize and share
knowledge, expertise, technology
and financial resources, to support
the achievement of the
Sustainable Development
Goals in all countries, in
particular developing
countries.
Banking on Sustainability
BDO Sustainability Philosophy

We seek to achieve strategic resilience by incorporating
sustainability in the way we do business. We aim to embed
sustainability principles when making decisions, assessing
relationships, and creating products.
Alignment with the United Nations

Global Compact Principles
BDO supports the principles of the United Nations Global Compact. The Bank upholds:
▪▪ Corporate governance
▪▪ Climate-friendly solutions and opportunities for business
▪▪ Access to clean, renewable, and reliable energy sources and services
▪▪ The adoption of instruments that help quantify, manage, and report the carbon footprint of
our businesses
▪▪ The responsibility to protect the dignity of every person and uphold human rights
▪▪ The recognition of the role of women in achieving economic growth and poverty reduction
▪▪ The elimination of all forms of forced, compulsory, and child labor
17
Banking on Sustainability
BDO’s commitment to sustainability is fostered at the Board level. It anchors its sustainable
development strategy to the United Nations Sustainable Development Goals (SDGs).
BDO’s Sustainability Leadership Team “Since the release

of our maiden
Executive Committee
Teresita T. Sy Antonio N. Cotoco Sustainability
Board Oversight Jesus A. Jacinto, Jr. Guia C. Lim
Nestor V. Tan Edmundo S. Soriano Report in 2018, we
Josefina N. Tan
have kept true to
Vicente S. Pérez, Jr.
Independent Director the 17 Sustainable
Mario A. Deriquito
President
Development Goals
Advisors BDO Foundation outlined by the
Kristin Koleen D. Palaganas
Vice President United Nations.
Corporate Affairs and Sustainability Group
SM Investments Corporation
We are constantly
Policy Development Group Heads, Subsidiary Presidents, and CEOs striving to infuse
Federico P. Tancongco sustainability,
Senior Vice President
Implementation Chief Compliance Officer inclusion, and
Team Lead Maria Carmela M. Guerrero
First Vice President
equity into
Chief Sustainability Officer our corporate
Compliance Office
culture, products,
Investor Relations and Corporate
Support Units
Planning Group and services.”
Marketing Communications Group
Nestor V. Tan
President and
Chief Executive Officer
Reporting Process 102-46
Steps Taken Capacity Materiality Data Management
1 2 3 4
Building Assessment Gathering Review
GRI Standards Review of operations and Collection of Validation and

training and management approaches, stories and data acceptance of
workshops identification of key impact based on identified material topics and
across the value chain and material topics reported information
performance indicators
GRI Reporting Stakeholder Materiality, Sustainability Stakeholder Stakeholder

Principles Inclusiveness Context, Stakeholder Inclusiveness and Inclusiveness and
Applied and Sustainability Inclusiveness, and Completeness Completeness
Context Completeness
BDO Sustainability
Framework
The Bank’s Sustainability Framework defines the

strategies that serve as guideposts in its journey
towards sustainability.
Product Sustainability Strategy

We create products and services which anticipate
the evolving needs of our customers and support
sustainable development goals.
We develop our capabilities to understand our

customers and reach the underserved markets with
relevant products and services that meet their unique
needs and ways of doing business.
Sustainability Contribution Strategy
We support the achievement of national economic
goals through financial inclusion and impact financing
in infrastructure, eco-friendly solutions, green facilities,
and disaster resilience initiatives.

Human Capital Sustainability Strategy
We develop leaders in the sustainability movement.
We aim to grow a “can lead” workforce that adopts
a sustainability mind-set and thrives with innovative
thinking and customer-focused attitude.
Disaster Response Sustainability Strategy
We leverage our resources towards the relief,
rehabilitation, and recovery of disaster-
stricken communities.

Governance-Based Sustainability Strategy
We continuously enhance our corporate governance
framework to sustain superior business performance
anchored on the principles of accountability,
transparency, integrity, and fairness, together with
our partners.
Materiality 102-46, 102-47 19
Material Topic Topic Boundary
Economic Performance Within BDO
BDO Sustainability Framework

How BDO delivers sustainable returns to its shareholders and attains and with key
consistent market growth stakeholders
Banking Network and Access

How BDO’s wide reach and online services provide convenient and reliable
access to its customers
Innovative Customer-Focused Products and Services
How BDO innovates to meet the needs of its customers and unbanked
members of society
Development of Commercial Banking Products and Services
How BDO provides a full range of banking products and services to help grow
and expand businesses
Development of Investment Banking Products and Services Within BDO and
How BDO provides access to capital and anticipates clients’ funding with customers
requirements thereby helping address the private sector’s need for
capitalization
Development of Wealth Management and Advisory Products
How BDO meets its fiduciary obligations and helps promote financial wellness
and literacy to its customers
Development of Insurance Services
How BDO helps its clients achieve financial security and peace of mind by
offering accessible insurance solutions to protect their assets and productive
capacity
Green Financing
How BDO provides financing in eco-friendly solutions and green facilities to
promote clean energy Within BDO and
with partners and
Financing for Developmental Projects customers
How BDO facilitates funding to large-scale development projects that support
national economic growth
MSME Financing Within BDO and
How BDO creates financial products to help micro, small, and medium with partners,
enterprises grow customers, and
regulators
Employee Integrity and Development
How BDO develops a “can lead” mind-set able to innovate and maintain a
customer-focused attitude
Within BDO
Employee Development and Training
How BDO retains and develops employees, recognizes achievements, and
provides long-term professional growth
Community Involvement Within BDO
How BDO uplifts the lives of its communities through social development and and with host
disaster resilience programs communities
Regulatory and Legal Compliance Within BDO and

How BDO complies with legal requirements and other relevant regulatory bodies with regulators
Corporate Governance and Business Ethics

How BDO operates on principles of accountability, transparency, integrity, Within BDO
and fairness
Customer Rights, Privacy, and Welfare Within BDO and
How BDO protects the information of its customers, complies with the Data with regulators
Privacy Act, and protects the welfare of its customers and customers
20
Materiality Matrix We monitor our progress on the material
issues which are most relevant to our
stakeholders, measuring our impact to the
HIGH economy, the environment and society.
BDO Sustainability Framework
Our performance on the top three material

issues raised are discussed in this report.
Key Themes
Customer Rights, Privacy, and Welfare
Regulatory and Legal Compliance

Decisions and Assessments
Inﬂuence on Stakeholder
Corporate Governance and Business Ethics

Innovative Customer-Focused
Products and Services
Banking Network and Access
Employee Development and Training
Employee Integrity Development
Green Financing
Economic Performance
Community Involvement
Micro, Small and Medium Enterprises
(MSME) Financing
Development of Commercial
Banking Products and Services
Impact on the economy, society, and the environment HIGH Financing for Developmental Projects
Development of Investment Banking
Products and Services
Development of Wealth Management
and Advisory Products
Development of Insurance Services
Stakeholder Engagement 102-40, 102-42, 102-43, 102-44

Stakeholder Group Relevance Channels of Engagement Relevant Topics Our Commitment
Shareholder or ▪▪ Providers of resources ▪▪ Annual Stockholders’ ▪▪ Economic Performance ▪▪ Provide transparent and
Investor essential to BDO’s Meeting timely disclosures
goal to deliver ▪▪ Investor meetings
results, enhanced
economic returns, and
shared value
Employee ▪▪ Proponent of BDO’s ▪▪ Face-to-face meetings ▪▪ Employee Integrity ▪▪ Roll out leadership
vision, mission, and ▪▪ Annual performance and Development development programs,
objectives appraisals awards, and recognition
for employees
Customer ▪▪ Patrons of BDO’s ▪▪ Customer touchpoints ▪▪ Banking Network ▪▪ Constantly monitor and
or Client products and services ▪▪ Regular visits and and Access upgrade systems and
briefings ▪▪ Customer Rights, provide timely feedback
Privacy, and Welfare to customer concerns
Creditor ▪▪ Source of assets ▪▪ Regular correspondence ▪▪ Corporate Governance ▪▪ Meet contractual
that support and updates and Business Ethics obligations
BDO’s business ▪▪ Financing for
Developmental Projects
Service Provider ▪▪ Suppliers and service ▪▪ Vendor ▪▪ Corporate Governance ▪▪ Uphold policy on
or Supplier providers vital to BDO accreditation process and Business Ethics supplier accreditation
▪▪ Regular correspondence
Regulator or ▪▪ Driver of regulations ▪▪ Formal and informal ▪▪ Regulatory and Legal ▪▪ Comply with applicable
Policy Maker and policies that aid correspondence Compliance laws and regulations,
BDO in achieving ▪▪ Regular audit ▪▪ Corporate Governance provide regulators with
its goals and Business Ethics timely disclosures,
and ensure quality of
financial reports
Community ▪▪ Partners in community ▪▪ Community engagement ▪▪ Community ▪▪ Engage host
Beneficiary development and local dialogues Involvement communities in
economic growth ▪▪ Meetings for program ▪▪ Banking Network the design and
implementation and Access implementation of
social development
programs
Analyst or Research ▪▪ Partners in accurate ▪▪ Analysts’ briefings ▪▪ Economic Performance ▪▪ Provide transparent
Organization reporting, upholding ▪▪ Media events ▪▪ Innovative Customer- and timely disclosures
and Media transparency Focused Products and updates
and integrity and Services
Economic Impact
Through the years, BDO has strengthened its position as the country’s leading
full-service bank with capabilities to serve every Filipino’s banking needs. The
Bank continues to expand its business franchise through sustained branch
expansion focused on provincial areas, as well as increased market coverage to
cover the unbanked and underserved segments of the population in support of
financial inclusion. These initiatives have allowed BDO to increase the economic
value it generates, boosting economic activity in the country.
Economic Value Table Brief

BDO’s direct economic value generated grew from P89 billion in 2015 to P183 billion in 2019, for
a CAGR* of 20%. A large share of the economic value distributed in 2019 was accounted for by
wages and benefits, totalling P35 billion, benefitting the Bank’s more than 38,000 employees
and supporting their professional and personal development. The Bank concurrently increased
its payments to the government from P12 billion in 2015 to P29 billion in 2019, duly contributing
its share in nation-building. Further, payments to suppliers and third-party service providers
(embedded in other operating costs) generate positive social and economic contribution to the
communities where these businesses operate.
Economic Value Table

Figures in %
2019 36% 19% 8% 16% 21% 183
2018 38% 21% 7% 15% 18% 147
2017 39% 22% 7% 14% 18% 126
2016 36% 23% 7% 13% 21% 106
2015 31% 24% 12% 14% 19% 89
Operating costs Payments to government

Employee wages and beneﬁts Economic value retained
Payments to providers of capital Economic value generated
* Compound Annual Growth Rate

Sustainability Strategies
and Performance
Product Sustainability Strategy 23
Sustainability Strategies and Performance

Photo by Joel Escala, BDO employee
We create products and services which anticipate the evolving needs of our customers and
support sustainable development goals.
We develop our capabilities to understand our customers and reach the underserved markets
with relevant products and services that meet their unique needs and ways of doing business.
BDO makes banking easier to help Filipinos reach their aspirations. We listen closely to our
clients to constantly develop our capabilities and better reach underserved markets, offering
relevant products and services which meet their unique business needs.
To achieve this, the Bank introduced innovative practices such as extended banking days and
hours to meet the needs of business owners and entrepreneurs, lowered minimum initial
deposits to encourage more people to engage in banking transactions, offered affordable and
flexible consumer loan packages to support consumer spending, established bank branches in
malls for customer convenience, and promoted digital and mobile banking to save paper while
making bank transactions faster and more convenient.
But more work needs to be done. Despite making great strides with such innovations, 49% of
Filipinos remain unbanked. BDO continues to take a creative and out-of-the-box approach to
champion financial inclusion and serve this untapped segment.
24
Financial Inclusion for Smallholder Farmers:

Escaping the Loan of Death
BDO’s Sustainable Finance promotes financial inclusion by funding and supporting
agricultural value chains. The Bank works with agribusiness companies in close contact
with farmers, cooperatives, and indigenous people to create positive environmental, social
and economic impacts.
One of its beneficiaries is Julhadi Titté, who toiled for decades to pay off a debt he had
little to do with.
He’s not alone. Thousands of farmers in Palawan and other Philippine provinces are
trapped in a cycle called patay-sangla, Tagalog for the loan of death.
Through this system, smallholder farmers borrow money from traders at around P100,000
(US$2,000) per hectare, usually for unexpected medical emergencies. Traders then lend
money in exchange for farm produce – essentially taking over the land and whatever crops
its original farm owners can grow seasonally. The cycle ends only when farmers pay off the
principal amount completely, an uphill battle which can take years.
Julhadi’s family was indentured for three generations, mere caretakers of the land they
once owned.
Today, Julhadi brings his two kids to school in a brand-new tricycle, has renovated his
home, and has gotten clean water access thanks to the better income provided by
Cardinal Agri Products, Inc. (CAPI), financed by BDO. CAPI is a diversified agribusiness
enterprise which aims to uplift Filipino farming communities while offering responsibly
grown, fully traceable, and 100% organic products to a global client base. CAPI offers
Farmer program such as Emergency Loans, Mortgage Loans, Pre-harvest Cash Advances,
Harvest Insurance, and even free specially formulated organic fertilizer.
Moreover, the program directly stops deforestation, as former slash-and-burn or kaingin

farmers earn more than enough to stop illegally cutting down and burning lowland and
mountain forests.
From working as indentured servants for below minimum wage, almost 5,000 farmers
across 6 municipalities in the Philippines now have better incomes and access to
government benefits such as social security systems, health insurance, and home
development mutual funds.
Julhadi is lucky, but thousands of Filipino farmers are still working to pay off their versions
of the loan of death. BDO aims to change this paradigm by championing agriculture value
chain finance, empowering farmers while boosting rural growth which is both sustainable
and inclusive.
25

Reaching the Underserved Markets* Cash Agad
through Cash Agad 8,206
Partner agents
Philippine Landscape nationwide
With the Philippines being the world’s second-largest
archipelago next to Indonesia, accessibility to products 21.9 million
and services remain a cause for inequality in remote Transactions and
parts of the country. Around 43% live in the Visayas and counting
Mindanao while more than half are in NCR and Luzon.
At the periphery, mobility is a challenge with inadequate Present in
road networks, transportation services, and commercial 81%
development. Thriving in these areas are micro enterprises of 1,488 municipalities
like ‘sari-sari’ stores.
P94.1 billion
BDO Innovation Total cash withdrawn and
counting
Harnessing the Bank’s ‘can-do’ mindset, it focused on
optimizing available platforms to introduce the habit of
banking to the communities in the farthest regions of
the country. Launched in 2014, Cash Agad is a mobile
banking solution which allows debit and prepaid
cardholders to perform banking transactions through
the use of point-of-sale (POS) terminals deployed to
the BDO’s partner agents. This innovation also raises
entrepreneurship capacities of local micro businesses 108 million
such as ‘sari-sari’ stores, pawnshops, local grocery stores Filipinos
and other similar establishments, by serving as accredited
partner agents.
52.8 million
Unbanked Filipinos
10.8 million
Underserved Filipinos
* An Underserved market is one where there are few providers who are delivering
solutions to that market’s set of known gaps.
26
Enhancing Customer Service 3+ million

through Digital Banking Registered online banking
users in 2019
We enhance customer convenience by expanding our
mobile and digital banking services. A growing range of 63 million
banking transactions may be done online which indirectly Digital transactions
saves time and resources. For our bank operations, processed in 2019
there has been a significant decrease in the use of
paper for receipts and documents, which is in line with
39%
Growth in transaction
BDO’s initiative to implement environmentally-friendly
volume from previous year
alternatives to our value chain.
P125 billion
Total bills paid in 2019
12 million
Bills paid online in 2019
351
Remittance partners
2.4 million
BDO Kabayan Savings
account holders
22
Providing Excellent BDO Experience International offices
for Overseas Filipino Workers

2.2 million
BDO caters to the unique needs of Overseas Filipino Overseas Filipino Workers
Workers (OFWs), enabling them to establish long-
term financial security beyond the culmination of their
overseas contracts. 200
Countries with OFW presence
Through the BDO Kabayan Savings Account, OFWs enjoy
OFW regional origin
seamless transactions for their families. Moreover, the
Bank provides complementing financial literacy and 10% NCR
management orientations to help OFWs build sound
financial habits like saving, investing in insurance and
56% Balance Luzon
understanding various platforms for investments. The 16% Visayas
Bank also organizes Pre-Departure Orientation Seminars 18% Mindanao
and Post-Arrival Orientation Seminars.
27

Empowering the Filipino Consumer
To help accelerate economic activity and augment the financial capabilities of the middle
market, BDO modified various standard bank products to give customers more flexible options.
The Bank forged tie-ups with car dealerships, home developers, and retail stores to offer
competitive rates and faster service.
17% 33,200
5-year CAGR in auto financing First-time car buyers who availed of
BDO services
17% 17,800
5-year CAGR in home financing First-time home owners who availed of
BDO services
2.5 million 26,800

Credit cards Retail partners in 0% schemes
Compound Annual Growth Rate (CAGR)
Cultivating the Culture of Responsible Investing

Environmental, Social, and Governance
As the global approach to investing focuses more on sustainability, BDO strives to raise the
same consciousness for the Philippine market. In 2015, the Bank launched the country’s first
ESG-themed Unit Investment Trust Fund (UITF) which substantially invests in listed companies
with good Environmental, Social, and Governance (ESG) practices.
P10,000 677 P79 million

Minimum investment Investors Assets Under Management
Impact Investor Award for Subscribes to the International Finance

pioneering this fund Corporation guidelines for ESG
28
Focusing on Financial Inclusion
BDO is deeply committed to promoting financial inclusion.

The Bank helps Filipinos increase their savings through a
string of high-impact partnerships.
29

Making Their Sacrifices Count:
Financial Education for OFWs
“When I’m tired and lonely, one thought tides me through – my family,” shares Airagrace
Lactaoen, who works as a nurse in the United Arab Emirates. Like millions of Overseas
Filipino Workers (OFWs), Airagrace wants a better life for her family back in the Philippines.
But despite years of working abroad, 60% of OFW families are still mired in poverty, due
mainly to poor financial habits.
To address this, BDO Foundation launched a financial education program for OFWs in
partnership with the Overseas Workers Welfare Administration (OWWA) and Bangko Sentral
ng Pilipinas (BSP). As part of the program, the partners developed financial education
videos and training modules for OFWs and their families.
The Bank helps conduct mandatory Pre-Departure and Post-Arrival Orientation Seminars
(PDOS and PAOS) nationwide, sharing financial literacy tips while offering convenient
savings platforms like BDO’s Kabayan Savings Account, for OFWs like Airagrace to help
realize their dreams when they return.
“I have no idea if I’ll be able to work abroad again, so I want to do it right. As an OFW and
BDO Kabayan Savings Account holder, I want to know where each centavo I remit goes,
because I have sacrificed a lot. But my plan doesn’t end abroad, because when I return
after 2 or 3 years, I can finally start my dream of being a businesswoman.”
By embedding financial literacy and entrepreneurship into the lives of over 2.3 million
OFWs and their families, BDO ensures that their sacrifices count.
30
Embedding Financial Education in the 16

K to 12 Curriculum Financial education videos
with discussion guides
produced
Philippine Landscape
According to a study by Standard and Poor’s, the Philippines 600,000
registered a low adult financial literacy rate of 25%, lower Students engaged by
than the global average of 33%. This gap is indicative of the BDO Foundation
vulnerability of millions of Filipinos during times of calamities,
emergencies, and other untoward incidents. It also leads to 12,000
poor budget management and prioritization. Teachers engaged by
BDO Foundation
BDO Innovation
Through BDO Foundation, the corporate social responsibility
500
OWWA trainers on
arm of BDO Unibank, the Bank has taken a systemic approach
financial literacy
in addressing the root-cause of this problem. In partnership
with the Bangko Sentral ng Pilipinas (BSP) and the Department
of Education (DepEd), BDO launched the largest financial
education program in the country by strengthening the financial
literacy component of the K to 12 public school curriculum.
Moreover, BDO has taken a creative approach in the design

of the teaching materials and methods, utilizing the power of
music and audio-visual presentations.
BDO Foundation, DepEd and BSP developed 10 financial

education videos and discussion guides for teachers,
non-teaching personnel, and students. The modules and
materials developed under the partnership are now part of
DepEd’s regular learning resources uploaded on its online
learning portal.
31

Embedding the Discipline of Financial Management for
Armed Forces Personnel
Philippine Landscape
The Armed Forces of the Philippines (AFP) is comprised of 140,000 men and women in uniform.
Due to the hazardous nature of their occupation and unfaltering service to the Filipino nation,
these devoted servicemen and women have a vulnerability risk rate. While public insurance and
pension funds are in place, many of these public servants support extended families.
BDO Foundation, the AFP and Bangko Sentral ng Pilipinas (BSP) launched a financial education
program to help the armed forces make sound financial decisions and ultimately achieve
financial independence. The partners developed financial education videos and training modules
for soldiers and their families as well as the civilian personnel of the AFP.
BDO Innovation
Through BDO Foundation, the Bank’s corporate social responsibility arm, the Bank takes a
systemic approach in closing this socio-economic gap. BDO has deployed 40 trainers to
help incorporate financial literacy and management in various training programs of the AFP.
Furthermore, in partnership with the Civil Service Commission, the Bank is working to enhance
the financial literacy levels of government personnel in various public offices.
32 Sustainability Contribution Strategy

We support the achievement of national economic goals through financial

inclusion and impact financing in infrastructure, eco-friendly solutions, green
facilities, and disaster resilience initiatives.
BDO supports the transition to clean and renewable sources of energy

while promoting efficiency in farming, manufacturing, transportation, and
other sectors. The Bank funds climate-smart infrastructure to promote
sustainable development.
33

Planting the Seeds of Hope:

A Focus on Agribusiness
Our farmers, despite working ceaselessly to feed us, sometimes don’t have enough to eat.
This is because 34% of the country’s 11 million farmers live below the poverty line. Many
earn just enough to survive or worse, to pay off ever-growing debts.
To improve yields and bottom-lines of farmers, there is a need to embrace and promote
innovative farming practices. These advancements can alleviate poverty, provide income
for more than just subsistence, and instill better hopes for a brighter future.
BDO’s Sustainable Finance work cuts across different industries and pays particular
attention to this largely unsung sector. Fully aligned with BDO’s strategic objectives in
Sustainable Finance in the smart agricultural sector is BDO’s financing for East-West Seed
Company, Inc., a vegetable seed production and distribution company.
The company promotes innovative and sustainable agriculture by providing high-quality

vegetable seeds to smallholder farmers in 5 countries including the Philippines. Farmers
are trained to make organic mixes to enhance soil health, while embracing climate-smart
technologies like drip irrigation, which uses 90% less water than conventional systems.
Enhanced efficiency increases farmer profits.
Over 15,000 Philippine smallholder farmers underwent East-West Seed Company’s

Seed Knowledge Transfer training in 2019, 65% of them women. Through this and other
sustainable finance initiatives, our farmers can finally reap the rewards of their labor.
34
Reducing Travel Time and

Carbon Emissions
Efficient roadways are the veins of strong economic growth.
Metro Manila is the center of the nation’s economic, social, 141.69 km
and political developments while serving as a hub to connect Road network development
northern and southern Luzon. However, the continued
influx of people coupled with economic growth has created 15 minutes
transportation challenges, slowing down the passage of people Travel time from Balintawak
and goods. The construction of road networks in strategic to Buendia courtesy
locations has therefore been identified as a priority. of MMSS-3
BDO advanced the construction of the 18.3-kilometer Metro

Manila Skyway Stage 3 (MMSS-3) aimed at connecting 2 of
P15.3 billion
Financing facilitated
the country’s busiest gateways, the South Luzon Expressway
(SLEX) and the North Luzon Expressway (NLEX). The objective
of the project is to decongest Metro Manila and stimulate 2.56 billion
the growth of trade and industry in southern, central, and Vehicles served
northern Luzon, necessary to support an anticipated upturn
in the logistics industry and the growth of import and export 15,234 tonnes
businesses. The new road greatly benefits Metro Manila’s Carbon emissions
residents as travel time from Balintawak to Buendia can be annually reduced through
reduced from 2 hours to just 15 minutes, curbing traffic while efficient roadways
reducing carbon emissions.
BDO is the lead facilitator of the P11.5-billion development of

an 88.5-kilometer road from Tarlac to La Union, augmenting
and effectively lengthening NLEX. The Tarlac-Pangasinan-La
Union Expressway (TPLEX) now serves as a vital link to the
northernmost provinces of the Philippines.
Connecting the provinces of Cavite and Laguna south of

Metro Manila is the new Cavite-Laguna Expressway (CALAX),
a 47-kilometer long highway which connects CAVITEx with
SLEX. It is expected to ease traffic for both Cavite and
Laguna, reducing both travel time and GHG emissions, while
stimulating business through faster and more fluid access.
35

Accelerating Sustainable Development
BDO is leading in instituting sustainable finance in the
Philippine banking industry and is a pioneer in issuing Green
Bonds. Sustainable Finance is financing and investing in
business activities which integrate environmental, social, and
governance considerations. It catalyzes economic growth
while protecting the environment and uplifting the lives of the
underserved segment.
From 2018 to 2019, BDO’s Sustainable Finance Desk greatly

expanded its scope from financing renewable energy projects
to financing and promoting all forms of sustainable practices
such as energy efficiency, climate-smart agriculture, green
infrastructure, clean transportation, pollution control,
sustainable natural resource management and land use,
eco-efficient technologies, sustainable water and waste water
management, terrestrial and aquatic biodiversity conservation,
climate change adaptation, affordable housing, efficient
manufacturing, access to essential services, employment
generation, and food security.
BDO Sustainable Finance is leading renewable energy

development, financing a running total of 2,168 MW
of renewable energy. This has provided electricity for
1,944,479 families while reducing GHG emissions by 3,922,454
tonnes, equivalent to removing 832,801 passenger vehicles off
the road for a year or growing 64,858,598 tree seedlings over a
10-year period.
Scaling up Clean Energy

Situated along the Pacific typhoon belt, the Philippines
remains one of the nations most vulnerable to climate change.
With impacts ranging from extreme weather events such
as super-typhoons and sustained droughts, climate change
has become a daily reality that millions of Filipinos must
contend with.
36
In the context of sustainable development and efforts to

address environmental concerns, BDO serves as one of
the pioneers in instituting sustainable energy finance in
partnership with the International Finance Corporation (IFC)
as an effective approach to harnessing clean energy. BDO’s
IFC-invested Green Bond was the first in the country and the
region, providing US$150 million to fund renewable energy
projects while establishing a foundation for other financial
institutions to issue their own green bonds.
Sustainable Finance strategies to address environmental

concerns include:
▪▪ Reinforcing current Social and Environmental Management

System (SEMS) Policy in lending operations
▪▪ Integrating environmental risk management in
responsible finance
▪▪ Accelerating low carbon energy through Green Finance
based on the Bank’s Sustainable Finance framework
Renewable Energy Projects and

Installed Capacity
158 MW 1,189 MW 421 MW
338 MW 62 MW
2,168 MW Total capacity funded

37

Environmental and Social Impacts
The Sustainable Finance Desk of the Institutional Banking
Group is capacitating lending and credit officers by conducting
various trainings such as Sustainable Finance, Environmental
Risk Management, Sustainable Energy Finance 101, and
plant visits.
1,944,479
Families served
P158.8 billion
Total Sustainable Finance
funded to date
45
Renewable energy projects
funded to date
3,922,454 tonnes
Carbon dioxide avoided
per year
832,801
Equivalent passenger vehicles
taken off roads yearly
64,858,598
Equivalent tree seedlings
grown over 10 years
38
Solar
Installed Capacity Disbursed Loan Amount Net Energy Generation Gross Energy Generation
(MWh/year) (MWh/year)
338 MW P10.3 billion
389,441 473,496
Value of energy generation GHG avoidance per year GHG avoidance per year
per year based on Net based on Gross
(in tonnes CO2e) (in tonnes CO2e)
P1.9 billion
172,549 209,791
Equivalent passenger Equivalent tree seedlings No. of households/families
vehicles off the road grown for 10 years (average of 6 persons per
per year family) supplied by RE
3,468,936
44,542 88,428
Photo by Rodel Diaz
Wind
62 MW P2.8 billion
171,142 180,149
P838.7 million
75,828 79,818
Equivalent passenger vehicles Equivalent tree seedlings No. of households/
off the road per year grown for 10 years families (average of
6 persons per family)
16,947 1,319,816 supplied by RE
38,861
39

Hydro
1,176,435 1,307,150
P5.8 billion
476,616 529,574
Equivalent passenger vehicles Equivalent tree seedlings No. of households/

off the road per year grown for 10 years families (average of
6 persons per family)
112,437 8,756,609 supplied by RE
267,129
Photo Credit: Sunwest Water
and Electric Company
Biomass
977,949 1,161,471
P4.8 billion
396,202 470,554

vehicles off the road grown for 10 years (average of 6 persons per
per year family) supplied by RE
7,780,703
99,906 222,059
No. of farmers supported
158,251 Photo Credit: Isabela Biomass

Energy Corporation
40
Geothermal
1,189 MW P4.3 billion
5,848,520 6,498,356
P28.7 billion
2,369,446 2,632,717
vehicles off the road per year grown for 10 years (average of 6 persons per
family) supplied by RE
558,969 43,532,534
1,328,002
BDO Sustainable Energy Finance Project Map
1 37.5 MW of 150 MW Wind Power Plant RE Project MW Capacity 20 MWe Rice Husk-Fired Power Plant 6
(Burgos, Ilocos Norte) Bioethanol N/A (Alicia, Isabela) 41

Biomass 158
1 6.8 MWp Solar PV Power Plant Geothermal 1,189 19 MWe Cogeneration Plant

7
(Burgos, Ilocos Norte) Hydro 421 (San Mariano, Isabela)
Solar 338
1 70 MW RoR Hydro Electric Plant Wind 62 15 MWe Biomass-Fired Power Plant 8
(Alilem, Ilocos Sur) Total MW 2,168 (Burgos, Isabela)
2 140 MW Hydro Electric Plant

(Benguet) 12 MWe Rice Husk-Fired Power Plant Phase 1 9
(San Jose City, Nueva Ecija)
3 31.8 MW Several RoR Hydro Projects

(Benguet) 1
1 12 MWe Rice Husk-Fired Power Plant Phase 2 10
4 19 MW Several RoR Hydro Projects

(Benguet) 12 MWe Biomass-Fired Power Plant 11
(Llanera, Nueva Ecija)
2 100 MWp Solar Farm

(Tarlac City, Tarlac) 8
7 6 MWe Biomass-Fired Power Plant 12
1 6
3
1 2 MWe Biogas-Fed Power Plant 2 4
(Tarlac City, Tarlac)

132 MW Hydroelectric Power Plant 6
(Nueva Ecija - Pangasinan)

6 10 9 12
2 12 MWe Biomass-Fired Power Plant 11
(Orani, Bataan) 2 1
0.32 MWe Rice Husk-Fired Cogeneration Plant 13
(Sta. Maria, Bulacan)

3 0.3 MWp Solar Rooftop 13
2
(Ortigas Center, Pasig City)
3 2 24 MW of 54 MW Wind Power Plant 2
(Pililla, Rizal)
4 63.29 MWp Solar PV Farm
(Calatagan, Batangas) 4 9
7
8 1.8 MW Mini-Hydro Project 7
(Buhi, Camarines Sur)

5 8 MW RoR Hydro Electric Plant
(Bugasong, Antique [Villasiga]) 3
9
2.1 MW RoR Mini Hydro Plant 8
(San Miguel, Catanduanes [Solong])

3 7 MWe Biomass-Fired Power Plant
(Brooke’s Point, Palawan)
1.5 MW RoR Mini Hydro Plant 9
9 (Obi, Catanduanes [Hitoma])
1 192.5 MW Geothermal Power Plant
(Valencia, Negros Oriental)
5
4
5.2 MWp Solar Rooftop 9
2 49 MW Geothermal Plant
5
(Ormoc and Sorsogon)
5
(Nasulo, Negros Oriental) 4
1 6
2 140 MW Geothermal Power Plant 3
1 14.12 Million liters per year, as per DOE (Manito, Albay)

(Talisay City, Negros Occidental)
1
2
112.5 MW Geothermal Power Plant 4
2 30 Million liters per year, 3 10

(Tongonan, Leyte)
as per DOE
(Negros Occidental)
588.4 MW Geothermal Power Plant 5
4 20 MW Turbogenerator (Tongonan, Leyte)
(Silay City, Negros Occidental) 11
12.9 MW of 25.8 MW RoR Mini Hydro Electric Plant 10

5 133 MWp Solar Facility 8
(Jabonga, Agusan del Norte)
(Cadiz City, Negros Occidental)
7
5 6 1.6 MW Mini-Hydroelectric Plant 11
6 0.325 MWp Solar Rooftop (M. Fortich, Bukidnon)
10
(Bacolod) 14
7 0.5 Solar PV 106 MW Mindanao Power Project 6
(Zamboanga City) (Kidapawan, North Cotabato)
8 0.32 MWp Solar Rooftop 28.59 MWp Solar PV Power Plant 10
(Zamboanga del Sur) (Digos, Davao del Sur)
5 15 MWe Biomass-Fired Power Plant 6 MWe Biomass-Fired Power Plant 14
(Sultan Kudarat, Maguindanao) (Surallah, South Cotabato)

42
BDO Sustainable Corporate Initiatives

130%
More efficient energy usage
compared to similarly
occupied buildings
22%
of construction materials
used had recycled content
67%
of construction materials
sourced locally
60 million
Liters of water recycled and
used in 2019
88%
Less dependent on external
water sources compared to
older buildings
Photo by Giancarlo S. Valera, BDO Camera Club
Equipped with state-of-the-art rainwater and condensate harvesting facilities, sensor-triggered

cooling systems and energy-efficient lighting, the BDO Corporate Center Ortigas (CCO) earned
a certification on Leadership in Energy and Environmental Design (LEED) in 2017, making
it the first high-rise office-commercial building in the Philippines to achieve a LEED Gold
Certification under the “New Construction Category.” Various sustainable methods were used in
its construction, such as concrete partially made from recycled materials, double-glazed glass
walls which let light in while keeping heat out, plus automated monitoring and control systems.
CCO also has its own sewage treatment facility.
43

BDO Resource Consumption3
Water Consumption Fuel Consumption
1,000 50,000
(In ‘000 cu. m)
(In liters)
20,000
Total Total The same consciousness
800 40,000
825.4 51,911 is practiced across
458.6
429
2019 2019 BDO offices nationwide,

600 30,000
21,113
31,911
incorporating
400 760.9 20,000
33,044 environment-friendly
2018 2018 designs and programs
366.8
331.9
200 10,000 to achieve eco-efficient

11,931
operations. BDO is
0 0 committed to measuring
2018 2019 2018 2019
its resource consumption
Corporate Offices Diesel
and managing its carbon
Branches LPG
footprint through its
continued growth as the
Electricity Consumption GHG Emissions1,2 country’s largest bank.
100,000 75,000
(In MWh)
(In tonnes CO2e)

53,737
70,550
Total Total
53,508
66,483
80,000 60,000
98,648 70,667
60,000 2019 45,000 2019
40,000 92,928 30,000 66,549

44,911
2018 2018
39,420
20,000 15,000
118
66
0 0
2018 2019 2018 2019
Corporate Offices Scope 1 Emissions
Branches Scope 2 Emissions
(1)
Calculated following the operational control approach of the Greenhouse Gas Protocol. Moreover, Scope 2 emissions
were computed using the 2015-2017 National Grid Emission Factors provided by the Department of Energy.
(2)
Scope 1 emissions were based on the fuel consumption of the company, while scope 2 emissions were based on
the purchased electricity of the company.
(3)
The 2018 baseline data were updated to reflect improvements in data gathering methodology for the fuel, electricity,
and water consumption of the company's offices and branches. 102-48
Human Capital Sustainability Strategy
44

We develop leaders in the sustainability movement. We aim to grow a “can lead”

workforce that adopts a sustainability mind-set and thrives with innovative
thinking and customer-focused attitude.
Employee Profile 45
By Gender

Employee Count New Hires Employee Separations
2018 2019 2018 2019 2018 2019
Male 8,539 9,133 1,291 1,390 533 795
Female 27,848 29,377 4,015 3,921 2,098 2,380
TOTAL 36,387 38,510 5,306 5,311 2,631 3,175
By Age
Employee Count New Hires Employee Separations
2018 2019 2018 2019 2018 2019
<30 17,189 17,710 4,141 4,033 1,701 1,948
30-50 17,230 18,656 1,132 1,251 783 1,026
>50 1,968 2,144 33 27 147 201
Hiring Rate 14% Turnover Rate 8%
Employee Count By Region Employee Count By Employment Status
Abroad
Mindanao 89 Probationary
4,151
Visayas
2,068
60%
3,417 Female Senior
2018 Luzon
2018 Regular
Officers
28,730 34,319
102-41
Abroad
48%
Mindanao 107 Probationary Covered by
4,411 2,143 Collective
Visayas Bargaining
3,653
2019 Luzon 2019 Regular
30,339 36,367
Average Training Hours
Per By Gender By Rank

Employee Male Female Rank-and-File Junior Officers Senior Officers
2018 46.1 57.0 57.7 68.4 67.3 49.2
2019 50.9 42.1 53.7 56.7 45.6 37.4
Performance Assessment
% over Total By Gender By Rank

Eligible Employees Male Female Rank-and-File Junior Officers Senior Officers
2018 99% 99% 99% 97% 100% 100%
2019 99% 99% 99% 99% 99% 97%
46
Providing Equal Opportunity

BDO is committed to fair employment practices without
undue prejudice to race, gender, ethnic origin, religion, age, or
sexual orientation. Employees are treated with respect, dignity,
and fairness.
The Bank ensures that employment practices and policies

are in compliance with labor laws, regulations, and standards
in the countries where it operates. Employees are selected,
engaged, compensated, and promoted, as the case may be,
based on the merits of qualification and performance.
Employee Rights and Welfare

BDO is committed to promoting the physical, social, and
mental well-being of its employees. It maintains a positive,
harmonious, and professional work environment with due
importance accorded to the occupational health and safety of
employees and related external parties.
The Bank abides by all regulations defined by the Department

of Labor and Employment (DOLE), including health and
safety standards for its employees. BDO completed the
DOLE inspection and was found compliant with both the
General Labor Standards and the Occupational Health and
Safety Standards.
BDO supports the rights of its employees to participate

in a Collective Bargaining Agreement (CBA). It enjoys a
constructive relationship with its duly recognized employee
representative group.
BDO is an apolitical and non-partisan organization. It

partners with government agencies and associations as a
co-champion in the promotion of social development and
environmental sustainability.
Employee Training and Development

BDO pursues an empowering work environment for its
employees to demonstrate their full capability and talents. All
BDO bankers receive a variety of training opportunities such
as the Officer Development Program, Manager Development
Program, and other targeted training programs.
47

Employee Assessment and
Professional Advancement
Every year, all BDO bankers undergo an assessment process
which encourages open communication between supervisors
and team members. The Bank prioritizes internal candidates
for opportunities within the organization, including job rotation,
to develop the skills necessary for a well-rounded banker.
BDO strives to build long-term relationships with its

employees. It offers career development options and provides
multiple training opportunities to properly equip its team
members for professional advancement.
Cultivating the “Can Lead” Culture of

Excellence and Innovation
The capacity of BDO to innovate and anticipate
transformations in the banking industry stems from its
people’s passion for excellence and innovation. At the core is
BDO’s commitment to its customers – to provide them only
with the highest level of customer service.
This is summed up in BDO’s service philosophy of “We

Find Ways.”
Customer-Focused
Everything each BDO banker does must have the customer’s
objective and interest in mind. It redefines the Bank’s role 6,695
beyond simply providing financial services to fulfilling the Recipients of the Circle of
objectives of the customers. Excellence Award since 2014
Out-of-the-Box Thinking
Every BDO banker is encouraged to challenge conventional
banking practices, beliefs, and processes if there is a better
way to achieve the client’s objectives, without compromising
quality, ethics, or good governance.
48
Right Attitude
All BDO bankers are encouraged to go the extra mile to
meet the client’s objectives. This is demonstrated in every
BDO banker’s customer service attitude. Incorporated in
BDO’s human resource trainings is the development of
values such as integrity, team spirit, hard work, and service.
Complementing BDO’s commitment to build long-term
relationships with its customers is the Bank’s efficient
business processes and seamless digital tools.
Excellent Execution
As the largest full-service financial institution in the
Philippines, BDO is committed to doing it right, on time, and
1,236
Recipients of the Product
according to expectations each and every day.
Excellence Award since 2014
Fostering the Spirit of Volunteerism,

Social Responsibility, and
Environmental Consciousness
The spirit of volunteerism and social responsibility is alive in 9
each BDO banker. Working together, the BDO team has raised Multi-purpose centers built
funds and has built multi-purpose halls all over the country to to date
promote community spirit and unity.
P19 million
Total funds donated by BDO
Group employees to date
947
BDO volunteers mobilized
in 2019
8,404
BDO volunteers mobilized
to date
P104 million
Total funds raised in 2019
from various sources
Disaster Response 49
Sustainability Strategy

We leverage our resources towards the relief, rehabilitation, and recovery of

disaster-stricken communities.
50
Disaster Response
48 Relief operations in 2019
288 Relief operations conducted to date
RELIEF
69,082 Families served in 2019 OPERATIONS
540,281 Families served to date
Rural Health Units
14 Rural health units

rehabilitated in 2019
83 Rural health units rehabilitated
to date
453,776 Beneficiaries in 2019
4.9 million Beneficiaries to
date
School Buildings
8 Classrooms constructed in 2019

124 Classrooms constructed to date
2 School buildings constructed in 2019
34 School buildings constructed to date
701 Student beneficiaries in 2019
33,358 Student beneficiaries to date
Resettlement Homes
60 Housing units completed in 2019

9 Housing resettlement projects to date
576 Housing units and families
benefited
51

Case Study | Building Better with Cash Agad
Roqayyah Mambuay, an entrepreneur from Marawi, managed her own
ROQ Business Center, offering printing and photocopying services.
The people of Marawi, mostly Maranao traders and craftsmen, helped
rebuild the communities. By being a Cash Agad partner, she is able to
provide out-of-the-box banking transactions to the community, while
expanding her own store income. With her stable business, Roqayyah
has taken classes on bread production as another possible source of
livelihood for her and her family.
BDO promotes financial inclusion to disaster-stricken communities to

hasten individual and community socio-economic recovery.
52
BDO pursues its corporate citizenship initiatives through BDO

Foundation, the Bank’s corporate social responsibility arm.
Backed by the BDO community, the Foundation develops
and implements programs designed to address the needs
of the underprivileged and underserved members of society.
Its advocacies fall under 2 pillars: disaster response, which
includes relief, rehabilitation, and reconstruction programs;
and financial inclusion.
Relief Operations
In line with its disaster response advocacy, BDO Foundation
mounted relief operations in provinces placed under state of
calamity, mobilizing volunteers from BDO and BDO Network
Bank branches all over the country to distribute relief goods
containing food, rice, and drinking water. In areas inaccessible
to volunteers, the Foundation’s partner NGOs generously
extended assistance. In 2019, the Foundation mobilized
947 BDO volunteers for 48 relief operations, benefiting
69,082 families.
Rehabilitation of Rural Health Units

BDO Foundation continued to rehabilitate rural health units
across the country through the support of BDO and BDO
Network Bank branches. The initiative helps improve the
healthcare delivery system in the country, one of the goals
under the Philippine Health Agenda. It keeps with UN SDG
3, ensuring healthy lives and promoting the well-being of
people of all ages. In 2019, the Foundation completed the
rehabilitation of 14 rural health units, benefiting a combined
catchment population of 453,776 individuals.
Construction of School Buildings

In 2019, BDO Foundation constructed 2 school buildings in
Lake Lanao National High School and Harat Medina Central
Elementary School in Marawi City. The new classrooms
enabled the schools to accept students displaced by
the Marawi siege. An estimated 701 students stand to
initially benefit from the initiative, which forms part of BDO
53

Foundation’s contribution to the efforts of DepEd, a member
agency of Task Force Bangon Marawi, to rehabilitate public
schools in the wake of recent conflict. Through these projects,
the Foundation supports DepEd’s Adopt-a-School program
while addressing the need for more classrooms in the country.
In 2019, BDO Foundation constructed a 2-storey technical-

vocational facility at the Don Bosco Training Center in Mati
City, Davao Oriental. The facility now serves as a workshop
where students can learn technical-vocational skills. Around
560 disadvantaged and out-of-school youth in Mindanao stand
to benefit from the project in the next 3 years. The corporate
citizenship initiative is in line with UN SDG 8, promoting
sustained economic growth, full and productive employment,
and decent work conditions for all people.
Center for Survivors of Abuse

BDO Foundation completed the construction of the Cameleon
Negros Center in 2019. Located in Silay City, Negros Occidental,
the center is a facility where abused girls can undergo therapy,
study, and receive proper counselling. The center initially
accommodated 20 beneficiaries but will continue to accept
more survivors of abuse.
Resettlement Homes
In 2019, BDO Foundation and UN-Habitat built 60 resettlement
homes for families displaced by Typhoon Yolanda. Located
in Tacloban City, the housing units were turned over to
members of the Villa de Tacloban Homeowners Association,
the beneficiaries of the project. BDO Foundation and UN-
Habitat have built a total of 100 houses for the project, the first
40 being turned over in 2018. With new homes, these families
stand ready to rise from the rubble of the strongest typhoon
ever recorded.
54 Governance-Based
Sustainability Strategy
We continuously enhance our corporate governance framework to sustain

superior business performance anchored on the principles of accountability,
transparency, integrity, and fairness, together with our partners.
55

Good Governance for a Board Snapshot
Sustainable Future
DIRECTOR DIVERSITY
Corporate governance in BDO is about effective oversight,
strict compliance with regulations, and sustainable 2 Females
value creation to promote the best interest of its
various stakeholders. 2 International
The Bank continually enhances its corporate governance
framework to sustain superior business performance
anchored on the principles of fairness, integrity, transparency,
DIRECTOR AGE
accountability, and performance. These principles are
consistently applied throughout the institution to support 1 50-59
our corporate objective of delivering long-term value. BDO’s
strong reputation is built on a culture of ethics and responsible
4 60-69
business conduct, underpinned by a well-structured and
effective system of governance.
6 70+
Our Board of Directors
The diversity in skills, experience, gender, sexual orientation or
preference, age, education, race, business, and other related SKILLS, EXPERIENCE &
experiences is one of the key contributors to our successful BACKGROUND
Board oversight. We view this wide range of experiences and
7 Bankers
backgrounds as an essential element in maintaining strategic
guidance and perspective for our growing business.
2 Lawyers
Board Structure
2 Entrepreneurs
The Board is composed of 11 members aided by 3 advisors.
The members of the Board are all professionals with expertise
in banking, accounting and finance, law, merchandise
marketing, strategy formulation, bank regulations, information
technology, sustainability, and risk management. It is led by
a Non-Executive Chairperson with 6 Independent Directors,
2 Non-Executive Directors, and 2 Executive Directors who
are the Vice Chairman and the President & CEO. Independent
Directors comprise the majority (54.50%) members of the
Board, thus exceeding the requirement of the Securities
and Exchange Commission (SEC) and the Bangko Sentral ng
Pilipinas (BSP). Non-Executive Directors including Independent
Directors now comprise 82% of Board, more than the
requirement of the BSP of at least majority of the Board. This
provides independent and objective judgment on significant
corporate matters and ensures that key issues and strategies
are objectively reviewed, constructively challenged, thoroughly
discussed, and rigorously examined.
56
Board Committees
The Board has established nine (9) committees to help in discharging
its duties and responsibilities. These committees derive their authority
from and report directly to the Board. Their mandates and scopes
of responsibility are set forth in their respective Terms of Reference,
which are subjected to annual review and may be updated or changed
in order to meet the Board’s needs or for regulatory compliance.
The number and membership composition of committees may
be increased or decreased by the Board as it deems appropriate,
consistent with applicable laws or regulations specifically on the
majority membership and chairmanship of independent directors
in various committees. As of December 31, 2019, eight of the nine
board-level committees are chaired by independent directors.
These cover Risk Management, Board Audit, Corporate Governance,
Trust, Related Party Transactions, Information Technology Steering,
Nominations, and Compensation.
THE BOARD OF DIRECTORS 57
▪▪ Responsibility for good governance lies with the Board.
▪▪ It is responsible for providing effective leadership and overall direction to foster the long-term success of the Bank.

▪▪ It oversees the business affairs of the Bank, reviews the strategic plans and performance targets, financial plans and
budgets, key operational initiatives, capital expenditures, acquisitions and divestments, annual and interim financial
statements, and corporate governance practices.
▪▪ It oversees management performance, enterprise risk management framework, internal control systems, financial reporting
and compliance, related party transactions, continuing director education, and succession plans for the Board and CEO.
▪▪ It considers sustainability issues related to the environment and social factors as part of its sustainable banking practices.
Executive Committee Board Audit Committee

▪▪ Exercises power of the Board in the management and ▪▪ Oversees financial reporting process, system of
direction of the affairs of the Bank. internal control and risk management systems, internal
▪▪ Acts as main approving body for loans, credits, advances and external audit functions, plus compliance with
or commitments and property-related proposals. governance policies, applicable laws and regulations.
▪▪ Reviews and recommends for Board approval major ▪▪ Reviews integrity of the reporting process to ensure
credit policies. accuracy and reliability of financial statements and
compliance with financial reporting standards.
▪▪ Monitors and evaluates adequacy, soundness and
Trust Committee effectiveness of the Bank’s established internal control
▪▪ Reviews and approves transactions between trust and risk management systems, policies and procedures.
and/or fiduciary accounts, accepts and closes trust and
other fiduciary accounts, and approves the investment,
reinvestment and disposition of funds or property. Corporate Governance Committee
▪▪ Evaluates trust and other fiduciary accounts at least ▪▪ Assists the Board in formulating governance policies
once a year. and overseeing implementation of governance practices
▪▪ Reviews Trust and Investment Group’s overall of the Bank as well as its subsidiaries and affiliates.
performance, profile of funds and assets under ▪▪ Conducts annual performance evaluation of Board of
its management, industry position, and the risk Directors, its committees, executive management, peer
management reports. evaluation of directors, and conducts a self-evaluation
▪▪ Approves offering of new products and services, of its performance.
establishment and renewal of lines and limits with financial ▪▪ Oversees continuing education program for directors
institutions, and investment outlets and counterparties. and key officers and proposes relevant training.
Risk Management Committee Nominations Committee

▪▪ Responsible for development and oversight of risk ▪▪ Leads process of identifying candidates for election
management program of the Bank. and appointment of directors and all other positions
▪▪ Responsible for approving risk appetite levels, policies, requiring appointment of the Board of Directors, giving full
risk tolerance limits. Defines appropriate strategies consideration to succession planning and the leadership
for identifying, quantifying, managing and controlling needs of the Group. In particular, this process includes the
risk exposures including preventing and/or minimizing profiling of the skills and competencies of the currently
impact of losses. serving directors, the gaps in skills and competencies
▪▪ Oversees implementation and review of the risk identified and the search for candidates who are aligned
with the Bank’s directions to fill the gaps. It then makes
management plan on an enterprise-wide basis including
appropriate recommendations to the Board.
the system of limits of discretionary authority delegated
▪▪ Makes recommendations to the Board on the composition
by the Board of Directors to management and ensures
immediate corrective actions when limits are breached. and chairmanship of the various committees.
▪▪ Responsible for evaluating the continued relevance, ▪▪ Reviews structure, size and composition of the
comprehensiveness and effectiveness of risk Board, including the balance of skills, knowledge and
management framework. experience and the independence of the non-executive
▪▪ Works with Audit Committee in certifying in the Annual Directors, and makes recommendations to Board with
regard to any changes.
Report the adequacy of the Bank’s internal control and
risk management systems.
Compensation Committee
Information Technology Steering Committee ▪▪ Provides oversight on directors’ compensation and
▪▪ Provides oversight and governance over the Bank’s remuneration of senior management and other key
IT functions, including approvals of information personnel, ensuring that compensation scheme is
technology-related policies and practices of the Bank consistent with the Bank’s culture and strategy, effectively
and applicable guidelines. aligned with prudent risk taking and commensurate with
corporate and individual performance.
▪▪ Informs the Board of both internal and external
▪▪ Ensures consistency of compensation policies and
IT-related developments and activities, potential
challenges and risks, progress vs. strategic objectives. practices across the Group.
▪▪ Approves and endorses to the Board IT-related best
practices, strategic plans, policies and procedures. Related Party Transactions Committee
▪▪ Responsible for understanding, managing and mitigating ▪▪ Assists the Board in its oversight of the conduct of
technology risks that confront the Bank and its all Related Party Transactions (RPTs) to protect the
subsidiaries, ensuring that the risks are properly managed interests of the Bank and its stakeholders.
and mitigated, and monitoring of IT performance including ▪▪ Ensures proper disclosure of all approved RPTs in
status of major IT projects and issues. accordance with applicable legal and regulatory
requirements and confirmation by majority vote at the
Further information regarding BDO’s Board and Committees Annual Stockholders’ meeting the Bank’s significant
can be found in the Annual Report and at www.bdo.com.ph. transactions with related parties.
58
Corporate Policies
CODE OF ETHICS
The BDO Code of Ethics is the ethical standards of the Company’s

officers and employees in all their activities. It outlines the principles
and policies that govern the activities of the institution and sets forth
the rules of conduct in the workplace and the standards of behavior of
its directors, officers, and employees in their activities and relationship
with external stakeholders.
DATA PRIVACY
BDO implements strict compliance with data privacy and protection

laws. All personal data including sensitive and confidential information
obtained in the course of employment, directorship, engagement of
services, or other work or business-related relationship with BDO
shall not be divulged unless authorized in accordance with internal
and regulatory requirements, and shall not be used for any personal
or financial gain. This is in compliance with the applicable information
security risk policies of BDO and the data privacy and protection laws.
INTERNAL FRAUD, BREACH OF THE CODE, OR OTHER UNETHICAL /

ILLEGAL ACTIVITIES
BDO believes that the key to long-term sustainability and success

largely depends on having a good name and solid reputation in
the industry. Any director or employee who becomes aware of
any violations of law, regulations, or policies should report the
same to appropriate authorities, with protection from reprisal and
discrimination. Reporting of violations should be done in good faith
and without malice. This is embodied in the BDO Policy of Disclosure
of Sensitive / Confidential Matters to Management that governs the
policies and procedures in the handling of whistle blower cases.
59

ACCEPTANCE / SOLICITATION OF GIFTS, BRIBERY,
AND CORRUPTION
Employees, suppliers, partners, and other third parties must avoid

giving or receiving gifts or entertainment if these might improperly
influence the recipient’s decision-making or might be perceived
to do so. They must not also offer or take any form of illegal or
improper payment.
ANTI-MONEY LAUNDERING AND COUNTER TERRORIST FINANCING
The Bank seeks to prevent money laundering, combat terrorist

financing, and stop the flow of illicit funds by detecting and reporting
money laundering and terrorist financing red flags, and establishing
policies and guidelines as articulated in a Board-approved Money
Laundering and Terrorist Financing Prevention Program Manual
(MTPP) aligned with Philippine anti-money laundering laws and
BSP regulations, with which frontliners and responsible bank
officers comply.
GRI Materiality Disclosures
GRI Content Service Mark
Index
For the Materiality Disclosures Service, GRI Services reviewed that the GRI content index is
clearly presented and the references for Disclosures 102-40 to 102-49 align with appropriate
sections in the body of the report.
Page Number(s), Direct Reason for

GRI Standard Disclosure Answer and/or URLs Omission
GRI 101: Foundation 2016
General Disclosures
GRI 102: Organizational Profile
General
Disclosures 2016
102-1 Name of the organization 2, 3
102-2 Activities, brands, products, 6-7, 23-31, 32-41
and services
102-3 Location of headquarters 69
102-4 Location of operations 6-7
102-5 Ownership and legal form 6-7
102-6 Markets served 6-7, 12-13, 14-15
102-7 Scale of the organization 6-7, 12-13
102-8 Information on employees and 45
other workers
102-9 Supply chain 58-59
102-10 Significant changes to the organization None to report
and its supply chain
102-11 Precautionary principle or approach 32-41
102-12 External initiatives 14-15
102-13 Membership in associations 64
102-22 Composition of the highest 54-57
governance body and its committees
102-23 Chair of the highest governance body 8-9, 55
Strategy
102-14 Statement from senior 8-11
decision-maker
Ethics and Integrity
102-16 Values, principles, standards, and 5, 58-59
norms of behavior
Governance
102-18 Governance structure 55-57
Stakeholder Engagement
102-40 List of stakeholder groups 20
102-41 Collective bargaining agreements 45
102-42 Identifying and selecting stakeholders 20
102-43 Approach to stakeholder engagement 20
102-44 Key topics and concerns raised 20
61
GRI Content Index

Reporting Practice
102-45 Entities included in the consolidated BDO Unibank, Inc.
financial statements (parent) and
Subsidiaries
102-46 Defining report content and topic 17, 19
boundaries
102-47 List of material topics 19
102-48 Restatements of information 43
102-49 Changes in reporting None
102-50 Reporting period Inside front cover
102-51 Date of most recent report Inside front cover
102-52 Reporting cycle Annual
102-53 Contact point for questions regarding 69
the report
102-54 Claims of reporting in accordance Inside front cover
with the GRI Standards
102-55 GRI Content Index 60-63
102-56 External assurance No external assurance
Material Topics

Economic Performance
GRI 103: 103-1 Explanation of the material topic and 19
Management its boundary
Approach 2016 103-2 The management approach and its 16-20
components
103-3 Evaluation of the management 17
approach
GRI 201: 201-1 Direct economic value generated 21
Economic and distributed
Performance 2016
Indirect Economic Impacts
components
103-3 Evaluation of the 17
management approach
GRI 203: 203-1 Infrastructure investments and 32-41, 49-53
Indirect Economic services supported
Impacts 2016 203-2 Significant indirect economic impacts 28-30, 49-53
62
GRI Content Index

Energy
components
approach
GRI 302: 302-1 Energy consumption within 43
Energy 2016 the organization
Water
components
approach
GRI 303: 303-1 Water withdrawal by source 43
Water 2016 303-5 Water consumption 43
Emissions
GRI 103: 103-1 Explanation of the material 19
Management topic and its boundary
components
approach
GRI 305: 305-1 Direct (Scope 1) GHG emissions 43
Emissions 2016 305-2 Energy indirect (Scope 2) GHG 43
emissions
Employment
components
approach
GRI 401: 401-1 New employee hires and employee 45
Employment 2016 turnover
63
GRI Content Index

Training and Education
components
approach
GRI 404: 404-1 Average hours of training per year 45
Training and per employee
Education 2016 404-2 Programs for upgrading employee 46-48
skills and transition assistance
programs
Local Communities
components
approach
GRI 413: 413-1 Operations with local community 49-53
Local Communities engagement, impact assessments,
2016 and development programs
G4 Sector Disclosures: Financial Services

Disclosure Answer and/or URLs Omission
Product Responsibility
Product Portfolio G4-DMA Disclosure of management approach 16-20
FS7 Monetary value of products and 23-31, 32-41
services designed to deliver a specific
social benefit for each business line
broken down by purpose
FS8 Monetary value of products and 37-41
services designed to deliver a specific
environmental benefit for each
business line broken down by purpose
Active Ownership G4-DMA Disclosure of management approach 16-20
FS10 Percentage and number of companies 34-35, 37-41
held in the institution’s portfolio with
which the reporting organization has
interacted on environmental or social
issues
Membership
in Associations
ACI Philippines Institute of Internal Auditors Philippines, Inc.
Association of Bank Compliance Officers Israel Chamber of Commerce of the Philippines

(ABCOMP)
IT & Business Process Association of
Association of Bank Remittance Officers, Inc. the Philippines
Association of Certified Fraud Examiners - Italian Chamber of Commerce in the Philippines

Philippines Chapter (Camera di Commercio Italiana nelle Filippine Inc.)
Association of Credit Executives in the Tourism Korean Chamber of Commerce Philippines

Industry, Inc.
Makati Business Club
Association of Philippine Correspondent
Malaysia Chamber of Commerce and Industries
Bank Officers
Philippines, Inc.
Australian - New Zealand Chamber of Commerce
Management Association of the Philippines
Philippines, Inc.
Money Market Association of the Philippines
Bank Marketing Association of the Philippines
National Association of Securities Brokers
Bank Security Management Association
Salesmen, Inc. (NASBI)
Bankers Association of the Philippines
Nordic Chamber of Commerce of the Philippines
Bankers Institute of the Philippines, Inc.
People Management Association of the Philippines
British Chamber of Commerce of the
Phil. Association of National Advertisers
Philippines, Inc.
Phil. Chamber of Commerce & Industry, Inc.
Clearing Officers Club, Inc.
Philippine Association of Stock Transfer and
Credit Card Association of the Philippines
Registry Agencies, Inc.
Dutch Chamber of Commerce in the
Philippine Institute of Certified Public
Philippines, Inc.
Accountants
Employers Confederation of the Philippines
Philippine Payments Management, Inc.
Financial Executives Institute of the Philippines
Singapore Philippines Association
(FINEX)
The American Chamber of Commerce of
French Chamber of Commerce and Industry in
the Philippines
the Philippines
The Canadian Chamber of Commerce of
Fund Managers Association of the Phils., Inc.
the Philippines
(FMAP)
The Japanese Association Manila, Inc.
German Club
The Japanese Chamber of Commerce and
German-Philippine Chamber of Commerce &
Industry of Cebu, Inc.
Industry, Inc.
The Japanese Chamber of Commerce and
Healthcare Information Management Association
Industry of the Philippines, Inc.
of the Philippines, Inc.
The Philippine-Japan Society, Inc.
Hotel and Restaurant Association of Baguio
Trust Officers Association of the Philippines (TOAP)
Information Systems Audit and Control
Association (ISACA)
BDO Awards
BEST BANK BDO Capital, Top Arranger Investors’ Choice for
Primary Issues (Corporate Bonds – Philippines)
BDO UNIBANK, INC.
The Asset Triple A Benchmark Research
Bank of the Year, Philippines Awards 2019
(2013, 2017, 2019)
Best Corporate and Institutional Adviser in
The Banker Bank of the Year Awards 2019
the Philippines
Best Bank in the Philippines (2015–2019)
(2007–2008, 2013–2015, 2017–2019)
Euromoney Awards for Excellence 2019 Best Equity Adviser in the Philippines
(2017–2019)
Best Bank in the Philippines
(2010–2019) Best Loan Adviser in the Philippines
FinanceAsia 2019 Country Awards (2017–2019)
The Asset Triple A Country Awards 2019
Best Bank in the Philippines
(2014–2017, 2019) Project Finance House of the Year, Philippines
Global Finance Best Bank Awards (2018–2019)
The Asset Triple A Asia Infrastructure Awards 2019
Best Domestic Bank
(2011, 2014–2019) Best Project Finance Deal in Southeast Asia
Asiamoney Best Bank Awards for 2019
(MPCALA Holdings, Inc.’s
Best Domestic Bank in the Philippines PhP24.2 billion Toll Road Financing)
(2011, 2013–2019) Alpha Southeast Asia 13th Annual Best Deal &
The Asset Triple A Country Awards 2019 Solution Awards 2019
Strongest Bank in the Philippines Best LCY Sovereign Bond and Best Retail Bond
(2018–2019) Offering in Southeast Asia for 2019
The Asian Banker Strongest Banks By Balance (Republic of the Philippines via Bureau of the
Sheet List 2019 Treasury’s PhP236 billion or US$4.63 billion Retail
Treasury Bonds)
BEST INVESTMENT BANK Alpha Southeast Asia 13th Annual Best Deal &
BDO CAPITAL & INVESTMENT Solution Awards 2019
CORPORATION
Best Green Bond – Corporate
Best Investment Bank in the Philippines (AC Energy Finance International US$410M Multi-
(2013–2014, 2017–2019) tenor CBI Certified Bond)
Global Finance World’s Best Bank Awards The Asset Triple A Country Awards 2019
Corporate & Investment Bank of the Year – Best Follow-on Offering
Philippines (San Miguel Food Beverage PhP39.2 billion
(2018–2019) Follow-on Offering)
Asian Banking & Finance Corporate & Investment The Asset Triple A Country Awards 2019
Banking Awards 2019
66
BDO Awards
PPP Deal of the Year, Philippines BDO Private Bank, Top Investment House –
(MPCALA Holdings PhP24.2 billion Project Private Bank
Finance Facility) The Asset Triple A Benchmark Research
The Asset Triple A Asia Infrastructure Awards 2019 Awards 2019
Transport Deal of the Year – Philippines, Best Philippine Private Bank
Highly Commended Wealth Briefing Asia
(Cavitex Infrastructure Corporation PhP16.2 billion Greater China Awards for Banking Excellence 2019
Term Loan Facility)
The Asset Triple A Asia Infrastructure Awards 2019 PRODUCTS & SERVICES
Best Cash Management Bank
BEST PRIVATE BANK
(2008–2009, 2015–2019)
BDO PRIVATE BANK Alpha Southeast Asia
Best Private Bank in the Philippines 13th Annual Best Financial Institution Awards
Asiamoney Best Bank Awards 2019 Best Cash Management Bank in the Philippines
Best Private Wealth Management Bank (2011, 2014–2019)
in the Philippines The Asian Banker Transaction Banking
(2008–2019) Awards 2019
Alpha Southeast Asia 13th Financial Institution Best Cash Management House
Awards 2019
7th Annual Corporate Treasurer Awards 2018
Best Private Bank – Philippines
BDO: Philippines Market Leader (Asian Banks
(2015–2019)
only) as voted by corporates, Rank #1
Asian Private Banker Awards for Distinction 2019
2019 Asiamoney Cash Management Survey
Best Private Bank in the Philippines
Domestic Cash Management Bank Of The Year
#1 Asset Management
(2014–2016, 2018–2019)
(2015–2019)
Asian Banking & Finance Wholesale
Euromoney Private Banking Survey 2019
Banking Awards 2019
Best Private Bank in the Philippines
BDO Nomura Securities, Inc.: Online Securities
(2008–2019)
Platform of the Year – Philippines
FinanceAsia 2019 Country Awards Asian Banking & Finance
Best Private Bank in the Philippines Retail Banking Awards 2019
(2015–2019) Best Overall Asset and Fund Manager
Global Finance Best Private Bank Awards 2019
Best Asset Manager (Equity & Fixed
Best Private Bank, Philippines Income Funds)
(2010–2019)
Best Fund with the optimal sharpe ratio
The Asset Triple A Private Banking, Wealth
Alpha Southeast Asia Fund Management
Management, Investment and ETF
Awards 2019
Awards 2019
67
BDO Awards
Asset Management Company of the Year, Onshore Fund House of the Year in
Philippines the Philippines
(2018–2019) (2016–2019)
The Asset Triple A Servicing, Institutional Investor Asian Investor Asset Management Awards 2019
and Insurance Awards 2019
Transport Deal of the Year – Philippines, Highly
Best Wealth Manager, Philippines Commended Lender: BDO Unibank
The Asset Triple A Private Banking, Wealth (Cavitex Infrastructure Corporation PhP16.2 billion
Management, Investment and ETF Loan Facility)
Awards 2019 The Asset Triple A Asia Infrastructure Awards 2019
Best Investment Management Company, Philippines Capital Markets Deal
Philippines (BDO Unibank’s PhP35 billion 6.42% bond
(2016–2019) due 2020)
World Finance Investment Management Awards IFR Asia Awards 2019
Best Bank for Real Estate Services Overall Best Local Currency Bond
Category, Philippines (BDO Unibank 35 Billion Pesos Fixed Rate Bond)
Best Bank for Loan Finance Category, The Asset Triple A Country Awards 2019
Philippines
Euromoney Real Estate Survey 2019 SUSTAINABILITY AND ESG
(ENVIRONMENTAL, SOCIAL,
Best FX Bank for Structured Hedging Solutions GOVERNANCE)
& Proprietary Trading Ideas
Industry Champion of the Year
Best Corporate Treasury Sales &
Asia Corporate Excellence
Structuring Team
& Sustainability (ACES) Awards 2019
Alpha Southeast Asia FX & Treasury Awards 2019
BDO Foundation: Corporate Social
Best Foreign Exchange Provider Responsibility Program of the Year (Gold
(2017–2019) Award) for the Financial Education Program for
Global Finance Best Foreign Exchange
Public Schools in the Philippines
Providers 2019
(2017–2019)
Best Innovation in Retail Banking, Philippines Asian Banking & Finance Retail Banking
International Banker 2019 Awards Awards 2019
BDO Unibank, Top Investment House in Local BDO Foundation: Outstanding Financial
Currency Bonds, Philippines Education Partner Award
The Asset Triple A Benchmark Research 2019 Awards for Stakeholders of the Bangko
Awards 2019 Sentral ng Pilipinas
Best Service Provider Trade Finance in BDO Foundation: Financial Education Program
the Philippines for Public Schools in the Philippines
(2011, 2015, 2019) (2017–2019)
The Asset Triple A Treasury, Trade, Supply Chain & Enterprise Asia’s Asia Responsible
Risk Management Awards 2019 Enterprise Awards (AREA) 2019
68
BDO Awards
Best of Asia Awardee: BDO Asian Corporate Director of the Year awardee:
(2005-2019) Teresita T. Sy-Coson, Chairperson
Corporate Governance Asia 15th Asian ESG (2008–2019)
Awards 2019 15th Asian ESG Awards 2019: Best of Asia
BDO Unibank, Asian Excellence awardee Asian Corporate Director of the Year awardee:
(2011–2019) Nestor V. Tan, President & CEO
Corporate Governance Asia (2008–2019)
9th Asian Excellence Award 2019 15th Asian ESG Awards 2019: Best of Asia
Best IR Company (Philippines) Asia’s Best CEO, Investor Relations:

(2011–2019) Teresita Sy-Coson, Chairperson
Corporate Governance Asia (2013–2019)
9th Asian Excellence Award 2019 Corporate Governance Asia 9th Asian Excellence
Award 2019
Best Corporate Communications
(2014–2015, 2017–2019) Asia’s Best CEO, Investor Relations:
Corporate Governance Asia Nestor V. Tan, President & CEO
9th Asian Excellence Award 2019 (2011–2012, 2016–2019)
Corporate Governance Asia 9th Asian Excellence
Platinum Award
Award 2019
(2010–2019)
The Asset Corporate Awards 2019 Best Investor Relations Professional
(Philippines): Luis S. Reyes, Jr.
INDIVIDUAL RECOGNITION (2011–2019)
Corporate Governance Asia 9th Asian Excellence
Nestor V. Tan, Banking CEO of the Year in Asia Award 2019
International Banker 2019 Awards
Nestor V. Tan, MAP Management Man of the
Year 2019
Management Association of the Philippines (MAP)
Contact Information
COMPANY HEADQUARTERS
BDO Unibank, Inc.

BDO Corporate Center, 7899 Makati Avenue
Makati City 0726, Philippines
+63 (2) 8840-7000
www.bdo.com.ph
INVESTOR AND SUSTAINABILITY INQUIRIES
BDO Unibank, Inc. welcomes inquiries from

analysts, investors, and the financial community.
BDO Investor Relations and Corporate Planning

4/F South Tower, BDO Corporate Center
7899 Makati Avenue, Makati City 0726, Philippines
Telephone: +63 (2) 8840-7000
locals 36069, 34809, 33581
E-mail: irandcorplan@bdo.com.ph
BDO Compliance Office - Sustainability Unit

14/F North Tower, BDO Corporate Center
7899 Makati Avenue, Makati City 0726, Philippines
Telephone: +63 (2) 8840-7000 local 35315
E-mail: sustainability@bdo.com.ph
COVER
Three Women with Plants
Anita Magsaysay-Ho, oil on canvas, 1979
From the BDO Art Collection

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About the Report 102-54

This report is BDO Unibank, Inc.’s (BDO) second Sustainability Report

08 Message from the Chairperson

10 Message from the President and Chief Executive Officer

12 BDO’s Path in Creating Shared Value

14 Supporting the United Nations Sustainable

16 Sustainability Philosophy, Leadership Team,

19 Materiality and Stakeholder Engagement

22 Sustainability Strategies and Performance

23 Product Sustainability Strategy

32 Sustainability Contribution Strategy

44 Human Capital Sustainability Strategy

49 Disaster Response Sustainability Strategy

54 Governance-Based Sustainability Strategy

60 GRI Content Index

64 Membership in Associations and Awards

Commitment to a Dynamic and Efficient Organization

BDO is a full-service universal bank in the Philippines.

Through selective acquisitions and organic growth,

Closing Rate: US$1 = P53.635

“The target to achieve global goals requires

Message from the Chairperson

PRESIDENT AND CHIEF

“The Bank’s Sustainability Framework does

Message from the President and Chief Executive Officer

BDO’s Path in Creating Shared Value

265,851 1,436 2 million

offices Automated Deposit

Supports consumer expenditure

17% 5-year CAGR* in auto financing Accelerates

* Compound Annual Growth Rate

1 NO 2 ZERO 3 GOOD 4 QUALITY

5 GENDER 6 CLEAN 7 AFFORDABLE 8 DECENT

Supporting the United Nations Sustainable Development Goals

12 RESPONSIBLE 13 CLIMATE 14 LIFE BELOW

15 LIFE ON LAND 16 PEACE, JUSTICE 17 PARTNERSHIPS

BDO Sustainability Philosophy

Alignment with the United Nations

BDO’s Sustainability Leadership Team “Since the release

GRI Standards Review of operations and Collection of Validation and

GRI Reporting Stakeholder Materiality, Sustainability Stakeholder Stakeholder

The Bank’s Sustainability Framework defines the

Product Sustainability Strategy

We develop our capabilities to understand our

BDO Sustainability Framework

Banking Network and Access

Regulatory and Legal Compliance Within BDO and

Corporate Governance and Business Ethics

Our performance on the top three material

Customer Rights, Privacy, and Welfare

Regulatory and Legal Compliance

Corporate Governance and Business Ethics

Employee Development and Training

Employee Integrity Development

Stakeholder Engagement 102-40, 102-42, 102-43, 102-44

Economic Value Table Brief

Economic Value Table

2019 36% 19% 8% 16% 21% 183

2018 38% 21% 7% 15% 18% 147

2017 39% 22% 7% 14% 18% 126

2016 36% 23% 7% 13% 21% 106

2015 31% 24% 12% 14% 19% 89

1 NO 2 ZERO 3 GOOD 4 QUALITY

5 GENDER 6 CLEAN 7 AFFORDABLE 8 DECENT

12 RESPONSIBLE 13 CLIMATE 14 LIFE BELOW

15 LIFE ON LAND 16 PEACE, JUSTICE 17 PARTNERSHIPS