2025 isn’t playing around.
By March alone, PAGASA logged 34 straight days of extreme heat, while NDRRMC reported ₱8.2B in flood damage in the first half of the year. Filipinos are feeling climate risk right in their wallets—and more people now want investments that protect both their money and the planet.

Here’s the good news:

You don’t need ₱100,000. With just ₱1,000 a month, you can already invest in clean energy, electric jeepneys, sustainable infrastructure—and your own retirement.

Welcome to Micro-ESG investing.

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Micro-ESG investing refers to:
BSP-registered UITFs or mutual funds with:

• Minimum investment of ₱5,000 or below, and
  
  
• At least 80% allocation to ESG-screened assets (environmental, social, governance).
  
  

These funds invest in companies and bonds that:
✔ Cut carbon emissions
✔ Build renewable energy
✔ Improve labor governance
✔ Avoid coal, tobacco, or weapons
✔ Promote transparent corporate ethics

This isn’t “feel-good investing.” These funds are designed to be resilient in a climate-altered world—and historically, many ESG indices outperform traditional benchmarks during high-risk years.

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All performance figures: net of fees + 20% withholding tax; benchmark: 91-day T-bill at 5.1%.

Quick Take:

• For beginners → BPI Sustainable Bond + ATRAM Global Clean Energy combo.
  
  
• For long-term global exposure → Metrobank or Security Bank ESG Equity.
  
  

For nano-investors → GCash ESG Savings (₱50 minimum).

Let’s compare PHP 1,000 monthly using a 5-year projection:

Result:
Micro-ESG grows faster than both inflation and standard government bond funds, even after taxes and fees.

Risk Snapshot (2022–2024)

Metric

Micro-ESG Basket

PSEi Equity Index

Standard Deviation

10.8%

14.5%

Max Drawdown

–12.4%

–17.9%

Meaning: ESG funds tend to lose less during market shocks—because their underlying companies score better in governance, climate risk management, and long-term planning.

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Here’s a Finmerkado-approved starter plan:

1. Pick 2 Funds for a Simple 60/40 Split

• 60% Bonds → Stability
  
  
  
  • BPI Sustainable Peso Bond Fund
    
    
• 40% Equity → Growth
  
  
  
  • ATRAM Global Clean Energy
    or
    Security Bank Green Equity Index
    
    

Your monthly breakdown:

• ₱600 → Bond ESG Fund
  
  
• ₱400 → Equity ESG Fund
  
  

2. Set up Auto-Debit Every Payday

Use:
✔ InstaPay
✔ GCash → BPI/BDO/UnionBank
✔ Any bank’s auto-invest or scheduled transfer

This keeps you consistent and removes emotional decision-making.

3. Rebalance Every Quarter

If equity grows too fast, shift some via your fund’s free SWP (Systematic Withdrawal Plan).

4. Check Funds on the BSP ESG Checker

Use BSP’s new “ESG Fund Checker” tool to confirm:

• Genuine ESG allocation
  
  
• No coal exposure
  
  
• Verified impact reports
  
  
• Proper governance score
  
  

(This prevents greenwashing—a rising problem in 2025.)

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1. Use a PERA Wrapper (Personal Equity & Retirement Account)

When available for your chosen fund, PERA gives you:

• 5% income tax credit,
  
  
• Tax-exempt gains,
  
  
• Tax-free dividends and coupon income.
  
  

Example:
₱12,000 annual investment → ₱600 tax rebate.

2. Choose Accumulation Share Class

This avoids repeated dividend withholding taxes and compounds your returns automatically.

3. Pick Funds With <1.5% Expense Ratio

Anything above 2% in ESG Filipinos funds should be avoided unless performance justifies it.

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You don’t have to be a climate scientist. Track these simple metrics:

1. Avoided CO₂ per Peso

If a fund reports 0.75 kg CO₂ avoided per ₱1,000, your monthly SIP equals:

9 kg CO₂ avoided yearly = planting ~14 trees.

2. Renewable Energy Capacity Funded

Some clean-energy feeders disclose figures like:

“Every ₱1,000 supports 0.03 kWh of new solar capacity.”

Small numbers add up—especially if 300,000 Filipinos fund the same pool.

3. Impact Report Checklist

Before trusting a fund, confirm:
✔ Third-party audit (MSCI, Sustainalytics)
✔ Methodology explained
✔ Sector breakdown
✔ Carbon intensity score
✔ No coal exposure

Step-by-Step: How to Open Your First Micro-ESG Investment

GCash GFunds (30 seconds)

1. Open GCash > GInvest
   
   
2. Tap GFunds
   
   
3. Search “ESG Savings Fund”
   
   
4. Enter your first amount (₱50 minimum)
   
   
5. Confirm order
   
   

Security Bank Online UITF (1 minute)

1. Open Security Bank Online
   
   
2. Go to Investment > UITFs
   
   
3. Select Green Equity Index Feeder Fund
   
   
4. Complete risk profile
   
   
5. Fund minimum ₱1,000
   
   

Activate Auto-Debit

Climate risk is no longer abstract—it’s changing how Filipinos earn, spend, and plan for the future. Yet sustainable investing has never been more accessible. Micro-ESG funds now allow everyday Filipinos to grow wealth and support climate-smart projects with as little as ₱1,000 a month.

As Finmerkado continues to guide Filipinos through smarter, more purposeful investing, it’s clear that even small amounts—directed toward solar farms, electric mobility, or low-carbon industries—can build meaningful long-term strength. When we invest together, climate anxiety turns into climate action, and climate action turns into real results.

Start small, stay consistent, and let your money build a future you’ll want to live in.

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