SteelAsia Manufacturing Corp. has secured a “very good” SQS2 rating from Moody’s, earning what the agency described as the strongest and only Sustainable Finance Framework of its kind in the region to fully link financing with measurable decarbonization outcomes.
The Second Party Opinion validates the Philippine steelmaker’s approach—from capital-raising structures to plant-level environmental performance—placing sustainability at the core of its expansion strategy.
Led by chief executive officer Benjamin Yao, SteelAsia has been deploying modern, energy-efficient equipment, integrating renewable energy, and installing water recycling systems across new facilities, while ramping up domestic production of rebars that the Philippines largely imports.
“This rating from Moody’s validates SteelAsia’s strategy to build a globally competitive, low-carbon steel industry in the Philippines,” Yao said. “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 highlighted the company’s governance architecture, 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 on the framework design, while Norway-based DNV verified that SteelAsia’s Calaca plant operates with a carbon footprint nearly 90% lower than the global average for traditional steelmaking. The company’s decarbonization model centers on recycling-based production powered by renewable energy, with three million metric tons of new green steel capacity in the pipeline.
The rating signals a broader shift in heavy industry finance: sustainability claims now demand data, governance, and lifecycle carbon accounting. For SteelAsia, the endorsement strengthens its case that green steel can anchor both industrial self-sufficiency and credible climate action.
