UK banks claim to stand for responsibility, stability, and foresighted business practices. But what if that reputation is endangered by investments in environmental destruction and the climate crisis?

HSBC and Standard Chartered are leading financiers of the Philippine conglomerate San Miguel.  The group, through its energy arm San Miguel Global Power, already operates 8 out of 35 gas-fired power plants in the Philippines. It plans 8 more, alone or with corporate partners. This makes San Miguel the largest gas expansionist in the country and in Southeast Asia as a whole.

The San Miguel group's enormous expansion plans for gas-fired power plants & LNG terminals are blocking the energy transition in the Philippines although comprehensive studies demonstrate the country’s huge potential for renewable energies.

HSBC is one of the largest fossil fuel investors in Europe. It holds bonds in the Philippine conglomerate San Miguel worth $81.9 million. Standard Chartered is one of the largest fossil fuel financiers in Europe. In 2024, it was one of only four European banks that supported San Miguel, providing a total of $352 million in loans and underwriting. This makes Standard Chartered the company’s largest European financier.

Photo: Alvin Simon for ProtectVIP

The Verde Island Passage (VIP) in the Philippines is often referred to as the “Amazon of the Oceans” due to its unparalleled biodiversity. It is home to approximately 1,736 fish species, with nearly 60% of all known coastal fish species found in this region. The VIP is also teeming with over 300 species of coral, rocky canyons, and thousands of other marine creatures. More than 2 million people depend on this ecosystem for their livelihoods in fishing and tourism.

San Miguel is trying to turn this highly sensitive ecosystem into a fossil gas hub. 2 out of the 8 planned power plants are to be constructed along the Verde Island Passage. The power plants will be operated with LNG, which also involves the planned construction of numerous LNG terminals on the coast.

San Miguel Corporation: A History of Destruction

Oil spill February 2023: A tanker rented by San Miguel and filled with 800,000 liters of oil, capsized off the coast of Oriental Mindoro – one of the five provinces in the biodiverse and highly sensitive Verde Island Passage. The oil spill contaminated coral reefs, mangrove forests and fisheries. It destroyed the livelihoods of thousands of people who depend on fishing. Many of those affected fell ill due to the toxic residues, and thousands of fishermen were plunged into poverty. The Center for Energy, Ecology, and Development (CEED) has estimated the damage to the ecosystem and the surrounding coastal communities at around $740 million.

Oil spill July 2024: 18 months later another oil spill occurred, and the same San Miguel subsidiary was involved. Once again, around 1.4 million liters of oil contaminated coastlines and fishing grounds, threatening biodiversity and local livelihoods.

Photo: Alvin Simon for ProtectVIP

Local fisherfolk communities, supported by global organizations, are rising up to challenge the expansion of fossil fuel-based energy projects in the Philippines.

Photo: Alvin Simon for ProtectVIP

Activists from around the world have rallied around this cause with a shared goal: pressure financial institutions to divest from companies like San Miguel, which are driving gas expansion projects in the Verde Island Passage. Last year, representatives of the ProtectVIP Network, traveled to England to protest at the HSBC AGM. This year, we are coming back – and you can join our fight!