Given the new risks and opportunities for our business and clients, we understand the relevance of this issue today. Hence, our Climate Change Management Strategy includes guidelines provided by the CDP (Carbon Disclosure Project), through which we have identified and managed physical and transitional risks for our direct and loan operations.

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Achievements

2021

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We continued to measure our progress against our financed issuances and developed strategies toward reaching net zero. The year’s management report shows progress in terms of climate scenario analysis. For CDP, we obtained the B performance rating.

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2020

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We used PCAF methodologies to quantify the CO2 emissions financed by Bancolombia (79% of these greenhouse gas emissions are concentrated in 7% of our loan portfolio). Additionally, we defined our policy of zero exposure to carbon by 2030. For CDP, we obtained an A- performance rating.

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2019

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Using the PACTA methodology, we conducted our first quantitative portfolio exposure to emission-intensive analysis in sectors under different long-term climate scenarios. We worked on a transition strategy towards a low-carbon economy for these sectors. For CDP, we obtained the B performance rating.

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This is how we execute our strategy

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Climate Change Policy

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In 2019, we updated our internal climate change policy. Our main objective: To identify and manage the risks and opportunities related to climate change to develop the necessary actions to align the business strategy with the goals established in the Paris agreement.

This policy covers our entire operation in the countries where we do business. This policy focuses on the economic sectors that are most vulnerable to climate change. Likewise, it focuses on sectors that generate a greater impact through greenhouse gas emissions in their activities development and on others that can derive greater opportunities through implementing mitigation and adaptation measures related to this phenomenon. See Climate Change Policy.

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Weather Disclosure Report

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Our climate change management and performance consider 4 fundamental pillars per the TCFD (Task Force on Climate-related Financial Disclosures):

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Governance

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Strategy

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Risk management

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Metrics and Goals

Results of quantifying our financed emissions using the PCAF methodology (Partnership for Carbon Accounting Financials). See the results of our financed issues.

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Protocols and Adhesion Treaties

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We have voluntarily adhered to various frameworks to stay current, apply best practices, and report on our management.

2020 – Net-Zero Banking Alliance

We joined the United Nations Environment Programme Finance Initiative (UNEP FI) as one of 43 banks worldwide committed to the Paris Agreement.

2020 – PCAF

We adhered to this global framework for financial institutions to measure and disclose greenhouse gas emissions from investment product portfolios.

2019 – TCFD

We adhered to the TCFD as part of a voluntary initiative that includes recommendations on making climate risk disclosure more effective.

2019 – Climate Action 100+

We invest to ensure that companies generating the highest GHG emissions act on climate change. We are 450 investors with more than 40tn USD of assets.

2019 - Business ambition 1.5°C

We signed the document in which we commit for 24 months to align our decarbonization plans with a 1.5°C scenario.

2015 - Science Based Targets

The World Resources Institute and WWF–in partnership with the United Nations Global Compact–support companies to set more planet-conscious goals.

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BanCO2

We understand the importance of protecting and conserving our country’s ecosystems. Therefore, BanCO2 is an initiative that transforms the lives of families committed to protecting ecosystems.

One of Colombia’s leading payments for environmental services (PES) schemes. This scheme benefits the environment, increases resilience and sustainability, and strengthens peace in the territories, improving the quality of life of those who live there. Additionally, it contributes to reducing social and armed conflict in the different territories and communities.

BanCO2

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Objetivos de BanCO2

Bio BanCO2

In this line of conservation, we have contributed to safeguarding vital ecosystems for species such as:

Hummingbird

Andean Condor

Tapir

Pink Dolphin

Jaguar

Otter

Ocelot

Andean Bear

Anteater

Sloth bear

Puma

Possum

BanCO2 Water

This line of conservation aims to preserve strategic ecosystems with springs, bodies of water, or aquifers. Municipalities and departments compensate farmers, communities, and landowners for conserving water sources.

BanCO2 Plus

This line of conservation corresponds to the Payment for Environmental Services, focused on a modality to reduce greenhouse gas emissions from deforestation that can be avoided. Thus, protecting several key ecosystems with rural communities that receive economic incentives. The purpose is to contribute to reducing greenhouse gas emissions into the atmosphere in the country, thus providing economic incentives to rural communities through protecting strategic ecosystems.

BanCO2 Potter & Limekiln Workers

Argos and Corpoboyacá, with BancO2’s support, pay 150 Pottery and Limekiln worker families from the Nobsa and Sogamoso municipalities of Nobsa in Boyacá, who no longer use fire in their ovens to avoid greenhouse gas emissions into the atmosphere.

Marine BanCO2

In 2017, 28 Raizal fishermen were linked for the first time in Colombia through Other BancO2 Conservation Incentives directly associated with the sea. This incentive was jointly linked to Coralina, the Archipelago of San Andrés Providencia, and Santa Catalina Governor’s Office and Conservación Internacional Colombia, for constructing coral nurseries to house more than 2000 fragments of coral species.

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How is BanCO2 and Bancolombia linked? –Bancarización

Associated rural families have access to mechanisms suitable for payment through Bancolombia with the “Ahorro a la Mano” program, consisting of a savings account managed through any cell phone, with no handling fee to save up to COP 5,000,000. In addition, it offers various benefits, including life and hospitalization insurance. Payment through this product eliminates intermediation and financial costs.

Fiducia Bancolombia & BanCO2

Since its creation, BanCO2 has been considered a scheme with specific resources. Its sources come from mandatory and voluntary compensations from the public and private sectors. In the beginning, Masbosques, as BanCO2 operator, managed the resources through bank accounts. However, since the alliance between Bancolombia & BanCO2, a fiduciary scheme built through an Autonomous Patrimony was implemented, thus, collecting and executing the scheme’s resources. This new mechanism provides financial security and confidence for voluntary or mandatory resource contributors.