Rating agency Moody’s rated SteelAsia Manufacturing Corp.’s Sustainable Finance Framework, from finance to actual de-carbonization measures, as the best and only one in the region.
The country’s largest steel manufacturer, following the vision of its CEO, Benjamin Yao, has been using the most modern and efficient production equipment, renewable energy, and recycling rain water in its new plants, among other measures, to protect the environment while locally producing for now rebars that are largely imported.
Yao said: “This rating from Moody’s validates SteelAsia’s strategy to build a globally competitive, low-carbon steel industry in the Philippines. And as we build the country’s mother of all industries, we also want to show that responsible industrialization, green initiative, and economic growth can go hand in hand.”
Moody’s “very good” SQS2 rating came following its Second Party Opinion of SteelAsia’s Sustainable Finance Framework, the second-highest level on Moody’s sustainability quality scale.
ING advised SteelAsia on the design and alignment of its framework.
DNV of Norway verified SteelAsia’s Calaca plant’s carbon footprint at nearly 90 percent lower than the global average for traditional steelmaking, making it one of the greenest steel companies in the world.
SteelAsia’s decarbonization strategy is anchored on recycling-based steelmaking powered by renewable energy. It is building three million metric tons per year of new green steel capacity that will reduce Philippine reliance on steel imports that are produced with a large carbon footprint.
The rating also underscores the importance of transparent sustainability governance, lifecycle carbon accounting, and independent assurance in advancing credible de-carbonization across heavy industry, an approach increasingly shaping global industrial standards and financing frameworks.
Moody’s highlighted SteelAsia’s governance structure, including board-level oversight, its dedicated Sustainable Finance Committee, ISO-certified operations, annual project eligibility reviews, and commitment to impact reporting with independent assurance.
