Environmental Management System / Environmental Policy
At Bancolombia we work to generate a balance between the environment quality and life quality to be more sustainable through time. Thus, we identify the direct and indirect impacts of our activity and encourage the prevention, mitigation, correction and compensation thereof in order to get a prosperous future enjoyable by next generations.
The strategy of our Environmental Management model is directly related with our strategy as Group. For such purpose, we have established a permanent dialogue with our Stakeholders as a tool to create long-term relationships based on trust, to generate pleasant experiences, to ensure a sustainable growth and to become increasingly committed with our Vision.
All this is part of our materiality.
Components of the Environmental Management System
At Bancolombia Group we have an Environmental Management System aligned with ISO 14001. This includes our Environmental Management Policy, that sets the reference framework, the structures, principles and guidelines to plan, organize, perform, track, control and improve our Environmental Management Integral System. Thus, we favour the achievement of sustainable development goals thanks to the strategic planning made on an annual basis with the active involvement of the areas that form part of the Management System.
Within the above, we also have:
Environmental Legal Matrix: It meets the requirements of the National Government and by MADS, the Regional Environmental Authorities and the commitments of our clients and suppliers.
Environmental Impacts Matrix: It identifies our environmental aspects and impacts and allows us to give priority with regard to the action plans to be started.
During year 2019 a external audit of the Environmental Management System was conducted in order to close the gaps found through 2020.
Mission Hubs of the Environmental Management System
As a guideline of our actions, at Bancolombia Group we have the following mission hubs:
In order to promote the sustainability of our clients, at Bancolombia Group we design ongoing strategies to provide business opportunities that have a positive social and environmental impact, with financing, investment and implementation facilities.
Sustainable Supply Chain
Our allies of the Supply Chain play a fundamental role in the sustainability efforts we make at the Group, because through them we extend our operations oriented to generate economic, social and environmental value.
With the same orientation, we work together in all areas of our organization in the stages of contracting and procurement.
Sustainable Procurement Policy
To promote the sustainability in the country, at Bancolombia Group we implemented our policy of sustainable purchases that includes specific environmental, social, economic and ethical criteria for the selection of products and services.
Since 2018, all our potential suppliers that submit business proposals to our different bidding processes must be evaluated through the B Impact Assessment.
During 2019, a total of 134 potential suppliers have been evaluated on the different bidding process for products and services.
Development of Suppliers in Sustainability
In year 2019:
In 2017 the average rating was 77.7 points, in 2018 79.3 points and in 2019 an average rating 65.5 points. Due to the decrease in scores, during this last year we have advanced with the creation of action plans as part of continuous improvement with our supply chain, for a total of 108 vendors with proposals for good practices.
Some of the data obtained from the program in 2019
- The companies evaluated generate a total of 139,910 jobs, of which around 38% are women.
- 55% have a code of conduct for their vendors.
- 68% do not manage or do not know their reduction of greenhouse gases for Scope 1 and 2.
- 55% have established goals for the environmental impact of their operations and 34% periodically evaluate their compliance.
- 75% have energy saving strategies in their facilities.
- 49% monitor and record their water consumption and 24% additionally check compliance with their goals.
In year 2018:
- We continued to implement the methodology to measure the sustainability performance of our supply chain, with 82 of our suppliers evaluating their impact through the “Mide lo Importante” program, in partnership with “Sistema B”, B Lab partner in South America.
- “Mide lo importante” is now three years old
- We have evaluated 177 suppliers.
- 106 companies have been evaluated three times: 70% have increased their performance score at their third evaluation
- In 2016 the average score was 66.3 points; in 2017 was 77.7 points and in 2018 we reached a mean score of 79.3 points.
In year 2017:
- We continued to implement a new methodology to measure the sustainability performance of our supply chain, with 89 of our suppliers evaluating their impact through the “Mide lo Importante” program, in partnership with “Sistema B”, B Lab partner in South America.
- We have evaluated 141 suppliers. 61 companies have been evaluated twice: 70% have improved their performance compared to the first year of evaluation.
- In 2016 the average score was 66.3 points; in 2017 we reached 77.7 points.
In year 2016:
- We implemented a new way to measure sustainability performance of our supply chain with 111 of our suppliers who measured their impact through the tool “Mide lo Importante” in alliance with “Sistema B”, B Lab partner in South America.
- We made tools available for our suppliers, which allow measuring their economic, social, environmental, and corporate government performance to identify improvement opportunities so we can accompany them in the implementation of better practices.
In year 2015:
- We evaluated 103 suppliers (by means of environmental and social risk assessments, self-evaluations and inspections of civil engineering works), corresponding to 48% of the total amount invoiced in 2015.
- We carried out on-site visits to all those suppliers with higher risk profiles and drew up action plans for any room for improvement that was detected as a result.
- We also performed sustainability evaluations on Grupo Bancolombia’s strategic supply chain partners. Scores averaged out at 4.67 out of a maximum of 5, showing an improvement compared to 2014 when the average score came to 4.23. We also saw an improvement in overall performance in 20 of the cases that had been evaluated previously.
- Out of the 26 sustainability improvement plans drawn up for our suppliers and strategic partners.
Bancolombia Group we direct our actions towards environmental impact reduction, cost structure improvement and overall efficiency.
Through our operational ecoefficiency program, which manages the generated direct impact to the environment associated with the consumption of natural resources needed for our operation, we seek to reduce it with the constant implementation of strategies to reduce our water, energy, paper, and business travel consumption and to valorize our waste.
Actions to reduce the Environmental Impact.
Within our Ecoefficiency strategy we support the management of following actions to reduce the environmental impact of our operations:
- Creation of campaigns and projects that generate environmental awareness within the organization: collaborators, suppliers and visitors.
- Development of projects and strategies to reduce the consumption of water and power in all our operation sites, together with the Real Estate Management and Fixed Asset Administration Areas.
- Creation and support to strategies that reduce the trips by our collaborators in order to decrease our indirect carbon footprint. This is made together with the administrative service areas.
- Support to logistic areas to encourage the reduction of paper consumption, printing and other supplies and an adequate disposal of waste generated in our operation sites.
- Management of solid waste through separation, recycling and valuation processes with the support of expert companies.
Based upon the consumption generated in 2010 and as part of our Vision 20/20, at Bancolombia Group we have established the following consumption reduction goals:
Get to know in further detail our Ecoefficiency performance 2019 y clicking here
Get to know in further detail our Ecoefficiency performance 2018 y clicking here
Get to know in further detail our Ecoefficiency performance 2017 by clicking here.
Get to know in further detail our Ecoefficiency performance 2016 by clicking here.
Get to know in further detail our Ecoefficiency performance 2015 by clicking here.
Get to know in further detail our Ecoefficiency performance 2014 by clicking here.
Environmental management for computer and peripheral equipment
Committed to reducing the impact generated by direct and indirect greenhouse gas (GHG) emissions associated with our operation, the Grupo Bancolombia has been developing deferent strategies to control emissions towards a low-carbon economy, within the framework of our Climate Change Policy.
This is how on November 26, 2019 we signed the Business Ambition for 1.5 ° C Pledge, a document in which we commit to align our decarbonization plans with a 1.5 ° C scenario, incorporating in our strategy the relevant scope, that is, both direct emissions and financed emissions. For this we have defined an ambitious goal of reducing our CO2 emissions Scope 1 + 2 at the corporate level, where we commit ourselves to reduce our emissions by 57% in 2050 compared to our emissions in 2010. This goal was designed according to current science to respond to this 1.5°C scenario (SBTi - Science Base Target Initiative).
For 2019 we develop initiatives that will allow us to continue making progress in meeting the goals set based on our
Procurement of iRECs certificates previously described in the energy chapter, for which we calculate our footprint based on geography and based on market.
Compensation strategy, in an agreement made with the Natura Foundation, we planted 172,000 trees between 2009 and 2014, which annually capture CO2 to ofset all of our scope 1 emissions and part of our scope 2 emissions, these crops will continue to capture CO2 until around 2028. During 2018, we o€set 17,716 CO2 emissions,
corresponding to 76% of our total emissions.
Approval of the Carbon Tax for business trips that will come into force from 2020, which will allow us to carry out initiatives that will lead us to reduce energy consumption, thus contributing to become carbon neutral in such business trips.
The measurement of our carbon footprint Scope 3 was incorporated into the once, cleaning and cafeteria supply service, and the amount of bank statements and formats in the volume of paper.
Scope 1+2+3 GHG Emissions (TonCO2eq)
Total emissions Grupo Bancolombia (Tonco2eq)
Climate Change Strategy
Climate change is considered as one of the largest challenges of the world, having consequences that go beyond the environmental effects. This has raised the global awareness, because in a relatively short period of time, the dynamic has drastically changed: Understanding of the issue by the media and communities has been growing fast and the actions of government and private sector clearly demonstrate that these matters have entered into the global political and economic spheres.
Bancolombia recognizes climate-related risks and opportunities, pose strategic and financial implications for our business and those of our clients and stakeholders. Hence, we ratify our commitment to implement mitigation and adaptation actions in order to face the adverse effects of climate change throughout actions that are articulated in our Climate Change Management Strategy.
Within the climate change strategy, we have identified, managed and financially quantified the climate-related risks. The analysis includes the physical and transition risks both for our direct operation (business continuity) and for the credit operations we carry out. As a methodological basis we have used the guidelines given by the CDP - Carbon Disclosure Project.
Since 2014 we have been reporting, trough CDP, our climate change management strategy. During 2019 we were rating as Performance band B. See more Information.
This result shows that there are still many opportunities to improve and continue implementing the best practices that allow us to have a consolidated climate change strategy and aligned with the requirements of the Paris agreement. During 2019 we conducted our first quantitative analysis of portfolio exposure to climate scenarios and we continued working on a strategy of transition towards a low carbon economy.
CLIMATE CHANGE POLICY
2019 was a year of updating and ratifying our internal climate change policy. Our main objetive in this topic is:
Identify and manage the climate-related risks and opportunities that will allow us to develop the necessary actions to align the business strategy with the goals set out in the Paris agreement.
This policy covers up all our operation in the countries where we are present, focusing on the more climate-vulnerable economic sectors; as well as those that their activity generate a major impact in terms of GHG emissions; and on those that might derive bigger opportunities through the implementation of mitigation and adaptation measures
Click here to check the complete document of our Internal Policy on Climate Change
ADHERENCES AND PROTOCOLS
At Bancolombia Group we have voluntarily adhered to various frameworks that allow us to be aware of and apply best practices in climate change issues, as well as to account for our management.
The Task Force on Climate-related Financial Disclosures -TCFD- is a voluntary initiative that includes recommendations about climate-related financial risk disclosures for a better understanding of the financial system´s exposure to climate-related risk. Bancolombia signed its adherence to TCFD on September 2019.
Is a partnership between CDP, UN Global Compact, WRI and WWF, which develop methodologies and tools to helps companies to set climate-related targets. Bancolombia has been committed since November 2015.
Is an investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. To date, more than 450 investors with more than USD $40 trillion in assets under management have signed on to the initiative. Bancolombia as investor is part of the initiative since July 2019
On November 2019 we signed the Business Ambition for 1.5 ° C pledge, a document in which we commit ourselves, in the next 24 months, to align our decarbonization plans with a 1.5 ° C scenario, incorporating in our strategy the relevant scope, including both, direct emissions and financed emissions.
Analysis of Environmental and Social Risks in Financing
Upon the Analysis of Environmental and Social Risks in financing, at Bancolombia Group:
- We prevent and mitigate the indirect environmental and social risks that can be materialized in the projects and activities financed by us to our clients and investors.
- We identify business opportunities with positive environmental impact.
- We focus on evaluating environmental, social, health and work security aspects in accordance to the regulatory guidelines and international standards that allow us to comply with our commitment of adhesion to the “Principles of Ecuador” International Protocol that can be consulted by clicking here.
For further information, click here to see our Policy of Analysis for Social and Environmental Risks.
For the Analysis of Social and Environmental risks we have identified special sectors in which the projects are evaluated even when such exceed the amount proposed by the Principles of Ecuador:
- Mining (Other mining activities and coal extraction)
- Oil and gas (Refinery; Oil and gas exploration and extraction; oil and gas stations and grease)
- Power (hydroelectric dams, PCH, thermoelectric stations, transmission lines).
- Port and road infrastructure.
- Cement, steel, concrete and brick sector.
- Chemicals and agrochemicals
- Palm oil
We consider other different economic activities and production sectors that also have environmental and social risks that may affect the payment of financial obligations. Additionally, these activities are subject to authorizations, licenses approvals and environmental permits from local and national authorities. These sectors are:
- Transportation and storage of hazardous substances
- Animal slaughter plants
- Animal Food Plants
- Sugar cane plantations
- Wild animals farms
- Food sector
- Poultry and pig farming
- Textile plants
- Forestry activities
- Fishing and tuna
- Glass plants
For this sectors may apply the environmental and social risk assessment process at the direct request of commercial leaders, approval bodies and credit risk leaders.
Also, we apply general clauses and specific environmental and social commitments (Covenants) keeping in mind the recommendations submitted by the Equator Principles for the contractual figures focused toward the bank businesses and other business lines.