Case study: How Banco Hipotecario works with its clients and customers to encourage sustainable practices
Banco Hipotecario provides financial products and services across all productive sectors in El Salvador. The bank’s portfolio is predominantly focused on SMEs, totalling $493 million, followed by large corporations with $285 million, individuals such as microentrepreneurs with $209 million, and state entities with $103.7 million. Banco Hipotecario is a signatory of the Principles for Responsible Banking (PRB) and is, accordingly, working with its clients and customers to encourage sustainable practices and enable sustainable economic activities. Tweet This!
This case study is based on the 2022 Sustainability Report by Banco Hipotecario, prepared in relation to its implementation of the PRB, that can be found at this link. Through all case studies we aim to demonstrate what ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Which Principles for Responsible Banking have been addressed?
The Principles for Responsible Banking addressed in this case are:
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- Principle 3: Clients and Customers
- Principle 4: Stakeholders
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With this case study you will see:
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- How Banco Hipotecario proceeded with stakeholder identification and consultation, and
- How Banco Hipotecario worked with its clients and customers to encourage sustainable practices and enable sustainable economic activities
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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 Hipotecario underwent a process to identify and prioritize its stakeholders, which also facilitated consultations during the materiality assessment to determine critical issues resulting from the bank’s impact.
The prioritization of stakeholders also determines their level of involvement in implementing the Sustainability Strategy.
To maintain consistent communication with stakeholders, Banco Hipotecario has defined channels and designated areas based on the nature of each stakeholder group. The specialization of Banco Hipotecario’s teams enables direct and efficient relationships, characterized by transparency and mutual value creation.
In terms of external initiatives and partnerships, Banco Hipotecario is a member of the national alliances, the Green Protocol and the National Council for Financial Inclusion and Education. These collaborations contribute to advancing efforts in impact areas prioritized by Banco Hipotecario, guided by the outcomes of the UNEP FI tool application.
How did Banco Hipotecario work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?
In its 2022 Sustainability Report Banco Hipotecario reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:
Within the framework of its sustainability policy, Banco Hipotecario’s sustainable finance pillar endeavours to offer financial products and services that foster sustainable development among customers.
Simultaneously, Banco Hipotecario carries out constant training and education activities for its customers via the Desarróllate business school, focusing on environmental and/or social topics to enhance their businesses.
Moreover, Banco Hipotecario’s Environmental and Social Credit Risk Management System (SGRAS) facilitates the promotion of sound social and environmental practices through its assessment of loan applicants.
Furthermore, the Bank remains dedicated to improving the customer experience, ensuring that its products and services fulfill their functions, and that service delivery across its various channels is satisfactory. To this end, technology integration and internal efficiency are being prioritized.
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
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- FBRH is a GRI Certified Training Partner (Global), IEMA Training Centre and a member of CPD.
- FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
- FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.
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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 Hipotecario, 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.bancohipotecario.com.sv/wp-content/uploads/2023/05/reporte-gri-2022-final-300523-EN.pdf
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