Our Commercial Banking business units include International, Investment, Corporate, SME and Business, and Government and Institutional Banking. We work under ESG criteria (Environmental, Social, and Governance Criteria).
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ESG Criteria in Corporate and Investment Banking
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ESG Criteria in Corporate and Investment Banking
Our Commercial Banking business units include International, Investment, Corporate, SME and Business, and Government and Institutional Banking. We work under ESG criteria (Environmental, Social, and Governance Criteria).
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Client Knowledge
Knowing our customers and ensuring their principles align with ours is also important in our sustainability procedures.
Due Diligence Process:
Bancolombia’s policies, controls, and procedures have been designed and implemented with a risk-oriented approach. They are based on due diligence to prevent criminal elements from using our entity. We have adopted and implemented a Risk Management System for Money Laundering and Financing of Terrorism (SARLAFT), which complies with the regulations of the financial sector (Organic Statute of the Financial System –EOSF), other instructions issued by the Financial Superintendence of Colombia, including the FATF1 recommendations and the best international standards.
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Mejoramiento en el conocimiento de nuestros clientes y sus operaciones.
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Segmentación de clientes, productos, canales y jurisdicciones.
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Monitoreo de transacciones.
This includes improving our knowledge about our customers and their operations, client segmentation, product, channel, and jurisdiction segmentation, and transaction monitoring, resulting, when applicable, in reporting suspicious transactions to the competent authorities. Conduct procedures and rules related to implementing all SARLAFT control mechanisms and instruments are included in the SARLAFT Handbook, and Code of Ethics approved by our Board of Directors which is mandatory for all Bancolombia collaborators.
Analysis of Environmental and Social Risks in Financing:
In addition to promoting sustainability in the businesses we finance, we have adhered to the agreement of the Equator Principles of the World Bank. We are part of the United Nations Environment Program (UNEP-FI), the Principles for Responsible Banking, the Business Ambition for 1.5°C initiative, the Dow Jones Sustainability Index, have an alliance with World Wildlife Fund (WWF), actively participating within the Green Protocol of the National Government. In addition, it has committed to environmental and social sustainability principles by applying the standards defined by the “International Finance Corporation –IFC” or other applicable standards.
Client ESG Involvement
We share ESG practices and knowledge with our clients through various mechanisms generating a differential experience.
ESG Media Involvement:
In 2021, we reached a 25,371-client audience through different portals. We published more than 35 pieces of content between articles and podcasts with valuable knowledge, guides, and forecasts that allow incorporating ESG criteria into daily activities.:
Direct ESG involvement:
We accompany our clients in incorporating ESG practices in their businesses through events and consulting. In 2021, we impacted approximately 13,800 clients with more than 20 events in Colombia and 205 technical consulting services in sustainable financing, trends and sustainable benefits, cleaner production, energy efficiency, renewable energies, sustainable construction and livestock, and responsible investment.
We also implemented expert consulting initiatives for our clients with national and international partners in livestock and sustainable construction, impacting 150 and 55 clients, respectively.
As part of our business vision, Grupo Bancolombia does not finance companies or projects related to the production, marketing, or use of the products, substances, and activities included in our exclusion list.
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ESG financing products
We offer different solutions to our clients based on our ESG criteria that have been designed with these characteristics from the outset, and their use represents support towards our sustainability goals:
Sustainable Financing Lines:
This strategy seeks to support the development and implementation of projects that promote the use of clean technologies, renewable energy, efficient energy use, waste reduction, emissions and discharges, clean fuels, among others.
Green and sustainable bonds are debt securities issued to generate capital specifically to support projects with environmental/social benefits. Since 2016, we have issued 4 green and sustainable bonds, accounting for COP 1.9 billion in Colombia and a Banistmo issuance for USD 50 million. These issuances have been made both in the secondary market and in the primary market, with international buyers such as IFC and the Inter-American Development Bank (IDB). Learn about the results of the Sustainable Emissions Framework until 2021 and the Sustainable Emissions Framework from 2022.
2016 - First broadcast
Bonus amount: COP $300,000 million
Projects: 9 projects in 3 Departments
Average disbursement: COP 44,800 million
Average term: 9 years
Results: The Impact of the projects financed by the green bond was 265 GWh per year of electricity generated from renewable sources, 40.9 MW of installed power from renewable energies, 76,000 tons of CO2 avoided per year and 385,000 M2 of sustainable construction.
2018 - Second issue
Bond amount: COP $350,000 million
Projects: 8 projects in 6 departments
Average disbursement: COP 37,500 million
Average term: 6.5 years
Distribution (%): 10% green projects focused on sustainable energy and 90% projects focused on affordable housing.
Results: The impact of the projects financed by the green bond was 230 GWh per year of electricity generated from renewable sources, 34.7 MW of installed power from renewable energies, 66,600 tons of CO2 avoided per year and 69,000 m2 of sustainable construction.
2019 - Third issue
Bonus amount: COP $657,000 million
Projects: 26 projects in 8 departments and 18 projects with green characteristics and 8 social projects
Average disbursement: COP 25,000 million
Average term: 7 years
Distribution (%): 10% green projects focused on sustainable energy and 90% projects focused on affordable housing.
Results: In the development objectives SDG 3: Health and Well-being, SDG 4: Quality education, SDG 6: Clean Water and Sanitation, SDG 7: Affordable and clean energy, SDG 9: Industry, Innovation and infrastructure and SDG 11: Cities and sustainable communities.
2021 - Fourth issue
Bond amount: COP $600,000 million
Projects: 175 projects in 16 departments and 10 projects with green features and 165 social projects
Average disbursement: COP 3,560 million
Average term: 7.5 years
Distribution (%): 70% green projects focused on sustainable energy and 30% projects focused on affordable housing.
Results: In the development objectives to which we contribute with this issue SDG 1: End of poverty, SDG 3: Health and Well-being, SDG 5: Gender equality, SDG 7: Affordable and non-polluting energy, SDG 8: Decent work and economic growth, SDG 9: Industry, Innovation and infrastructure, SDG 10: Reduction of inequalities, SDG 11: Sustainable cities and communities, SDG 12: Responsible consumption and production, and SDG 13: Climate action.
Green/Sustainable Infrastructure Financing:
We provide solutions through financial leasing and loan operations for sustainable infrastructure projects, including solar farms in non-interconnected areas, small hydroelectric plants, and energy efficiency projects in public lighting.
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ESG financing product figures 2021
ESG Financing Figures for Business and Investment Banking
