Companies to invest in more ESG, ‘green’ projects – ICCP

SEVERAL companies are expected to invest in more “green” projects and environmental, social and governance (ESG) programs, according to financial services entity Investment & Capital Corporation of the Philippines (ICCP).

“There is a desire for banks and funds to support projects that are ESG responsive and slowly a premium on these kinds of projects is emerging as the correlation between sustainable governance and risk mitigation becomes evident,” ICCP President and Chief Executive Officer Valentino S. Bagatsing said in a statement.

ESG practices have become more prevalent in recent years due to their medium- to long-term payoffs and risk management.

“The aspiration is for ESG practices to eventually be embedded into the corporate and societal DNA,” Mr. Bagatsing said.

“That way it evolves into the default standard of behavior where the stewardship aspect of any endeavor is considered,” he added.

ICCP expects more investments into these programs as it saw a large number of institutions wishing to invest in ESG projects as the country is vulnerable to impacts of climate change and “sub-optimal governance.”

The company has previously delved into green projects. It served as the sole issue coordinator, joint issue manager, and lead underwriter for the P1.61-billion initial public offering of Alternergy Holdings Corp.

It was also a participating underwriter for Citicore Energy REIT’s P6.4-billion offering and sole underwriter for Haus Talk, Inc.’s P750-million listing on the small, medium, and emerging board of the Philippine Stock Exchange.

“ICCP is focused on remaining responsive to the times and on gearing its financial expertise towards projects with a deeper development footprint,” the company said. — Adrian H. Halili