The International Finance Corporation (IFC), a member of the World Bank Group, has called on the Philippine private sector to intensify efforts in disaster risk reduction (DRR) and resilience building.
“People talk about DRR here; the government has a lot to say about DRR, but the private sector, for some reason, is quite silent about this,” Angelo Tan, IFC’s country lead for the Philippines, pointed out in his acceptance speech at the Manila Bulletin Sustainability Forum 2024.
Tan stressed the importance of the Building Resilience Index (BRI) in quantifying potential losses. He called for greater efforts in retrofitting infrastructure to not only boost efficiency but also enhance disaster preparedness.
“It’s hard to appreciate probable maximum loss, the concept that we measure with BRI, because it’s based on the probability that a disaster will happen and that you will spend money on repairing your buildings. But we know that we’re number one in terms of disaster risk, so we need to work on it,” Tan said.
Prior to this call to action, the MB Sustainability Forum 2024 honored IFC for its contributions to private sector-driven sustainability in developing countries, including the Philippines.
In his speech, Tan emphasized the Philippines’ global leadership in net-zero buildings, ranking second globally under the EDGE Zero Carbon standard. He recognized major corporations in the country such as Ayala Land, Filinvest, and RLC Residences for their investments in green infrastructure, retrofitting malls, and building EDGE-certified properties. EDGE is a certification system that promotes resource-efficient green building practices.
Tan reiterated the IFC’s support for Ayala Corporation and Ayala Land through a $250 million sustainability-linked loan.
According to Tan, this funding is being used by Ayala Corp. “to retrofit their shopping malls to become net-zero shopping centers.” He added that this effort acknowledges the importance of malls in the Philippines, where there’s a rich mall culture.
Tan reported that this year, the Philippines achieved a milestone by certifying 1 million square meters of green building space under EDGE, contributing significantly to the 1.2 million square meters certified across all systems. However, he asserted that greater efforts are needed to enhance disaster resilience in the country, as it is frequently exposed to natural calamities.
“It’s easy to look at ways to retrofit our buildings to become more efficient because we realize operational savings. But let’s now bring that conversation to resilience, and maybe through resilience, we can be number one as well,” Tan urged the private sector.
He expressed optimism that this year will focus on resilience, with several upcoming announcements and partnerships.
IFC is the world’s largest development institution focused on boosting private sector growth and opportunities in over 100 emerging markets. IFC reported a record $56 billion commitment this year to support private companies and financial institutions in developing countries, aiming to reduce poverty and promote sustainability.