How Philippine Banks can convince Clients to Submit ESG Scope 3 Emissions Using ESG Tracking Tools?
- Yen Roxas
- Jan 22
- 3 min read
As sustainability and ESG compliance take center stage in the Philippines, banks are playing a pivotal role in driving environmental responsibility across industries. While many businesses are now addressing their direct emissions (Scope 1) and indirect energy-related emissions (Scope 2), Scope 3 emissions—which encompass value chain activities—remain a significant challenge due to their complexity and lack of visibility.
Scope 3 emissions include indirect emissions from sources such as supply chain operations, business travel, transportation, purchased goods and services, waste management, and even the end-use of sold products.
However, accurate tracking and reporting of these emissions are crucial for businesses to achieve sustainability goals and regulatory compliance.
To encourage clients to submit their Scope 3 emissions data, Philippine banks can leverage ESG tracking tools while emphasizing key value propositions:
1. Demonstrating Financial Incentives and Benefits
Banks can highlight how proper ESG tracking can unlock financial opportunities:
Green Financing Eligibility: Businesses with clear Scope 3 data can access sustainability-linked loans, green bonds, and other preferential financing options.
Cost Efficiency: Identifying inefficiencies in the supply chain helps reduce operational costs through better resource utilization and sustainable sourcing.
Investor Appeal: ESG-compliant businesses attract impact investors and gain access to broader investment opportunities.
How the ESG Tracking Tool Helps:
Provides data-backed insights for banks to assess ESG-linked loan eligibility.
Offers cost-saving strategies by identifying high-emission suppliers or processes.
2. Simplifying Compliance with Regulatory and Global Standards
With increasing ESG reporting requirements from the Philippine SEC, BSP and alignment with global frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) and the GHG Protocol, businesses must submit accurate emissions data to stay compliant.
How the ESG Tracking Tool Helps:
Automates data collection from suppliers and stakeholders, reducing the administrative burden.
Ensures compliance with local and international regulations, reducing regulatory risks.
Generates ready-to-submit reports for SEC, BSP and other governing bodies.
3. Strengthening Supplier Relationships and Reputation
Encouraging businesses to track Scope 3 emissions fosters better relationships with suppliers and enhances brand credibility in the market. Banks can position ESG compliance as a tool for businesses to future-proof their operations.
How the ESG Tracking Tool Helps:
Facilitates supplier engagement through automated data-sharing features.
Provides benchmarking insights to compare performance against industry peers.
Builds transparency and trust among stakeholders by tracking sustainability commitments.
4. Offering Technical Assistance and Capacity Building
One of the major barriers businesses face in Scope 3 tracking is a lack of technical know-how. Banks can support clients by providing ESG capacity-building initiatives and access to ESG tracking tools with user-friendly interfaces.
How the ESG Tracking Tool Helps:
Provides intuitive dashboards and step-by-step guidance for data input.
Includes training modules to educate internal teams and supply chain partners.
Enables banks to offer advisory services backed by accurate data insights.
5. Highlighting Competitive Advantage in the Market
Banks can position ESG compliance as a strategic differentiator. Companies that actively track and manage their Scope 3 emissions are seen as responsible and forward-thinking, gaining a competitive edge in local and international markets.
How the ESG Tracking Tool Helps:
Provides visual insights and reports to showcase sustainability performance.
Helps businesses achieve sustainability certifications such as ISO 14001 or Carbon Neutral Certifications.
Demonstrates leadership in ESG compliance, attracting customers and partners who prioritize sustainability.
The Road Ahead
For Philippine banks, encouraging clients to submit Scope 3 emissions data is not just about compliance but about unlocking value, ensuring long-term sustainability, and driving business growth. By leveraging ESG tracking tools and offering financial and strategic incentives, banks can empower their clients to embark on a meaningful sustainability journey while achieving their own ESG targets.
Let’s build a greener and more responsible financial ecosystem in the Philippines, one emission at a time.
