Case study: How Banco Popular identifies and works on strategic business opportunities to increase positive and reduce negative impacts

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

Banco Popular has formed strategic partnerships with prominent organizations including Aval Digital Labs, the Inter-American Development Bank (IDB), the German Cooperation Agency (Sparkassenstiftung), and numerous entities within the social and environmental sectors. These collaborations have enhanced the bank’s institutional capacity to carry out initiatives that generate positive and sustainable impacts.

Banco Popular’s approach to stakeholder identification, consultation, and engagement is an ongoing, transparent, and strategic process aimed at ensuring that the bank’s actions are aligned with the actual needs of its operating environment. This methodology reflects Banco Popular’s dedication to responsible banking and sustainable development.

How did Banco Popular identify and work on strategic business opportunities to increase positive and reduce negative impacts?

In its 2024 PRB Reporting and Self-Assessment Template Banco Popular reports that it identified and worked on strategic business opportunities to increase positive and reduce negative impacts as follows:

Social Impact Strategy: Inclusion and Financial Well-being for Older Adults

Banco Popular has developed a strong set of strategic social initiatives focused on increasing positive impacts and reducing both financial and social exclusion in Colombia, with a particular emphasis on older adults. This social focus acts as a vital driver for sustainable growth and the creation of shared value.

Given that 49% of Retail Banking clients are aged 60 and above, and considering projections that by 2050 this demographic could make up nearly half of Colombia’s population, the bank has designed products and services tailored to meet the specific needs of this group. These efforts extend beyond conventional offerings through:

1. Inclusive financial products crafted to address the unique characteristics and requirements of older adults.
2. Accessible and empathetic service models adapted to facilitate meaningful interactions and improve customer experience.

In this way, Banco Popular serves as a catalyst for reducing social disparities and promoting equitable access to financial services, particularly for traditionally excluded or underserved segments such as older adults. Simultaneously, it promotes financial awareness and education through campaigns and workshops aimed at increasing understanding of products and fostering responsible financial habits, thereby empowering users and enhancing their economic well-being.

Contribution to the Sustainable Development Goals (SDGs)

This strategy directly supports the following SDGs:

• SDG 1 – No Poverty: By expanding access to financial services for vulnerable populations.
• SDG 4 – Quality Education: Through financial literacy programs tailored for older adults.
• SDG 10 – Reduced Inequalities: By addressing systemic barriers to financial inclusion.

Through this approach, Banco Popular positions itself as a key contributor to inclusive and sustainable social development, aligning with global priorities and the Principles for Responsible Banking.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• • • FBRH is a GRI Certified Training Partner (Global), ISEP Training Centre and a member of CPD.
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    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Banco Popular, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.bancopopular.com.co/wps/wcm/connect/bancopopular/6e116d81-01af-45b9-b28e-dea701e16432/Banco-Popular-S.A.-PRB-Responsible-Banking-2024.pdf?MOD=AJPERES&CVID=pCwOWDz

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