The Small Business Corporation (SB Corporation) participated in the Environmental and Social (E&S) Stakeholder Engagement Consultation for the SME COMPETE+ Project on 13 April 2026 at the World Bank LuzVi Conference Room in BGC, Taguig. The activity formed part of the project preparation process and supported meaningful stakeholder engagement, transparency, and responsible implementation.

SB Corporation’s participation was led by President and Chief Executive Officer Robert A. Bastillo, together with members of the Management Committee, including Senior Vice President Angelito B. Acupan, Senior Vice President Lourdes M. Baula, Vice President Corazon M. Dimayuga, and other key officers and Regional Lending Group Heads.

Project and Consultation Overview

The SME COMPETE+ Project aims to enhance the competitiveness and global integration of Philippine small and medium enterprises (SMEs) by supporting investment financing, quality certification, market linkages, and firm-level upgrading. Through advisory support, matching grants, loan financing, and related interventions, the project seeks to help SMEs meet international quality standards, access domestic and global value chains, and contribute to inclusive economic growth.

As a World Bank-supported initiative, the SME COMPETE+ Project is required to comply with the World Bank Environmental and Social Framework (ESF). The consultation provided a venue to present and discuss key E&S instruments, including the Environmental and Social Commitment Plan (ESCP), Stakeholder Engagement Plan (SEP), and Environmental and Social Management System (ESMS).
Stakeholders were briefed on the project components, implementation arrangements, target beneficiaries, relevant Environmental and Social Standards (ESSs), E&S risk screening, stakeholder engagement approaches, the grievance redress mechanism (GRM), and the roles and capacity needs of implementing partners and participating institutions.

SB Corporation ESMS Presentation

SB Corporation presented its ESMS for lending operations as a framework for identifying, assessing, managing, and monitoring E&S risks associated with supported financing activities. The system applies a risk-based approach and is anchored on applicable Philippine laws and regulations, as well as World Bank E&S requirements.

The ESMS covers due diligence, risk categorization, exclusion screening, compliance monitoring, incident reporting, stakeholder engagement, and grievance handling. It supports continuous risk management throughout the loan lifecycle, from screening and appraisal to closing, monitoring, and corrective action, as necessary.

For public reference, the full SB Corporation ESMS is posted on the SB Corporation website and may be accessed here: SB Corporation ESMS.

Financial Institutions Breakout Consultation

A key part of SB Corporation’s participation was the breakout consultation session with participating financial institutions, facilitated by President and Chief Executive Officer Robert A. Bastillo. The session gathered inputs from financial institutions (FIs) and financial sector organizations that attended in person or online, and provided a venue to share existing practices, implementation gaps, and support needs in relation to E&S screening.

Participating Financial Institutions and Organizations

Ilocos Consolidated Cooperative Bank	SouthBank, Inc.
LOLC Bank Philippines Inc.	Maybank Philippines, Inc.
Gateway Rural Bank Incorporated	Silahis Bank, Inc. (A Rural Bank)
New Rural Bank of San Leonardo (NE) Inc.	First Consolidated Bank
Mactan Rural Bank (Lapu-Lapu City) Inc.	First Integrity Bank, Inc.
Cooperative Bank of Palawan	Rural Bankers Association of the Philippines

Discussion Highlights

The breakout discussion highlighted current practices, implementation gaps, and support needs in relation to E&S screening. Participants noted that three FIs are already implementing environmental risk screening, while two have existing policies that are not yet fully implemented. FIs also shared that they explain to clients why screening is required, and that existing tools are generally simple, such as closed-ended questionnaires, tick-box forms, or one- to two-page templates.

Key considerations raised during the discussion included the need to strengthen personnel knowledge on screening and analysis of results; capacitate clients, particularly in the countryside; address perceptions of additional compliance costs; develop practical approaches for agriculture-based clients; include labor compliance in screening tools; and explore incentives, training, consultancy support, and awareness-raising to encourage sustained adoption of E&S screening.

Despite the identified challenges, participating FIs expressed willingness to adopt environmental and social management screening, provided that appropriate technical support and capacity-building measures are made available.

Stakeholder Participation and Next Steps

The consultation brought together representatives from government, industry, financial institutions, private sector stakeholders, conformity assessment bodies, women-led enterprises, youth entrepreneurs, Indigenous Peoples, micro, small, and medium enterprises (MSMEs), and other groups, including those from underserved areas.

Inputs gathered during the activity will help strengthen the finalization of the project’s E&S instruments and support more inclusive, responsive, and accountable project implementation.

Institutional Commitment

Through its participation in the SME COMPETE+ Project, SB Corporation reaffirms its commitment to responsible financing, environmental and social risk management, stakeholder engagement, and the sustainable growth of Philippine SMEs.

This publication forms part of SB Corporation’s documentation of stakeholder engagement activities under the SME COMPETE+ Project, including the ESMS breakout consultation with participating financial institutions and SB Corporation’s continuing role in supporting the project’s E&S safeguards requirements.