| LANDBANK, An Advocate of Environmental Protection |
| Written by Nenita Veran | |
| Thursday, 19 February 2004 | |
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The Land Bank of the Philippines was one of the first few financial institutions which heeded the global call for sustainable development. As early as 1991, it was required by World Bank to include compliance to environmental rules and regulations as part of its loan evaluation process for projects funded by the Countryside Loan Fund I (CLF I) Program. LANDBANK administers the World Bank (WB)-funded CLF program for onlending to participating financial institutions which in turn onlend to countryside enterprises, mostly SMEs. LANDBANK started beefing up the technical capability of its account officers through environmental trainings, as well as close networking and coordination with the Department of Environment and Natural Resources (DENR). LANDBANK’s strong partnership with the DENR paved the way for the formulation of necessary policies and guidelines. These are crucial for a more efficient review of projects with environmental requirements. It also facilitated the release of environmental clearances from DENR-Environmental Management Bureau (EMB). In 1994, LANDBANK became the first bank in the country to have set up an Environmental Unit. This move was made to further strengthen LANDBANK’s capability to integrate environmental concerns in the evaluation of projects funded by the CLF and other special financing programs. After CLF I, LANDBANK moved on to face bigger challenges in environmental protection by acting as co-implementing agency and financial agent for the WB-Philippine Ozone Depleting Substances Phaseout Investment Project. The DENR-EMB served as the lead implementor. Since then, LANDBANK has implemented various multilateral and bilateral agency-assisted re-lending programs, including cleaner production activities geared towards environmental protection. In 1997, LANDBANK and two other local financial institutions signed the United Nations Environmental Programme Statement of Financial Initiatives on Environment and Sustainable Development. The Statement promotes environmental responsibility among banks and financial institutions through the integration of management policies on sustainable development and environmental protection. This affirms LANDBANK’s strong belief that the banking sector is an active player in the protection of the environment. LANDBANK does not only finance environmental projects via its various funding programs. It also provides technical services and environmental trainings to its personnel, participating financial institutions and sub-borrowers under the CLF and other special programs. LANDBANK is currently developing an Environmental Management System in its new headquarters in Manila and plans to secure ISO 14001 certification before the end of 2003. LANDBANK also implements in-house environmental programs similar to cleaner production initiatives of the manufacturing, industrial and service sectors. Since 1997, LANDBANK has been implementing its anti-smoke belching campaign program to reduce air pollution brought about by indiscriminate smoke belching vehicles. A comprehensive solid waste management program was likewise launched in 1999. It is envisioned that through environmental trainings, seminar and fora, information on financing environmental projects would be widely disseminated. LANDBANK is optimistic that private enterprises and participating banks will actively access the available financing windows for said projects and activities. By: Nenita Veran 1st Vice-President The Land Bank of the Philippines |