Insider Spotlight
Moody’s has rated the company’s Sustainable Finance Framework as the best and only one of its kind in the region, granting it a “very good” SQS2 score—the second-highest level on its sustainability quality scale.
The assessment followed a Second Party Opinion covering the framework from financing structure to actual decarbonization measures.
Why it matters
The recognition signals growing investor confidence in Philippine-led green industrialization, particularly in sectors traditionally viewed as carbon-intensive.
Steel production is among the largest global emitters, and credible transition frameworks are increasingly critical for access to capital.
SteelAsia, the country’s largest steel manufacturer, has aligned its expansion with renewable energy use, modern production technologies and water recycling systems in new plants.
The company is also shifting toward recycling-based steelmaking, a strategy designed to reduce both emissions and import dependence on carbon-heavy steel products.
CEO Benjamin Yao said in a press statement on Feb. 11, 2026: “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.”
By the numbers
DNV of Norway verified that SteelAsia’s Calaca plant operates with a carbon footprint nearly 90 percent lower than the global average for traditional steelmaking, positioning it among the world’s greenest steel facilities.
The company is building 3 million metric tons per year of new green steel capacity, a move expected to significantly reduce the Philippines’ reliance on imported rebar and other products produced with higher emissions profiles.
The framework
Moody’s highlighted SteelAsia’s governance structure, including board-level oversight, a dedicated Sustainable Finance Committee, ISO-certified operations, annual project eligibility reviews, and impact reporting backed by independent assurance. ING advised the company on the design and alignment of the framework.
The big picture
As global lenders tighten sustainability standards, transparent lifecycle carbon accounting and verified reporting are becoming prerequisites for industrial financing.
SteelAsia’s approach demonstrates how emerging-market manufacturers can align capital raising with measurable decarbonization—potentially reshaping how Southeast Asia funds its next wave of industrial growth. —Vanessa Hidalgo | Ed: Corrie S. Narisma
