Case study: How Banco Promerica Guatemala works with its clients and customers to encourage sustainable practices

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.

Identified Interest Groups

In 2023, Banco Promerica conducted its first analysis to identify and prioritize interest groups, with the assistance of the eco.business Fund and the consulting firm Valora.

This process comprised three stages:

1. Compilation of Groups and Subgroups of Interest
2. Prioritization
3. Development of a Stakeholder Matrix

Interest groups with dual materiality refer to those stakeholders concerned with both the financial aspects and the social and environmental impact of an organization. Addressing the needs and interests of these groups is crucial for long-term sustainability.

The identification and prioritization of stakeholders as a bank involves recognizing and categorizing the various parties that have a vested interest or influence over the operations and performance of the financial institution.

The analysis revealed six primary interest groups:

• Board of Directors
• Shareholders and Investors
• Other Capital Providers
• Collaborators and Officials
• Competing Suppliers
• Customers

Additionally, four important subgroups were identified that also significantly impact the bank’s operations:

• Government, Authorities, and Regulatory Bodies
• Associations and Chambers
• Community
• Media

By identifying and prioritizing its interest groups, Banco Promerica Guatemala can analyze and understand how they interact with one another and with Banco Promerica Guatemala in the community where it operates.

This enables Banco Promerica Guatemala to recognize and address the needs, concerns, and expectations of stakeholders that are relevant to the organization.

Interest Groups

• Shareholders, Investors, and Other Capital Providers
• Employees
• Suppliers (Local and Regional)
• Competitors
• Customers
• Government, Authorities, and Regulators
• Associations/ Chambers
• Community
• Media
• Management Board

How did Banco Promerica Guatemala work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2023 PRB Reporting and Self-Assessment Template Banco Promerica Guatemala reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

Banco Promerica Guatemala is currently engaged in its Double Materiality Analysis with the assistance of the eco.business Fund and the consulting firm Valora.

Financial Materiality

According to the Sustainability Accounting Standards Board (SASB), financial materiality encompasses ESG (Environmental, Social, and Governance) factors that could significantly impact a company’s financial condition, operational performance, and cash flows. This type of materiality addresses the concerns of investors.

Impact Materiality

The Global Reporting Initiative (GRI) defines materiality in terms of the most significant impacts that a company has on external factors such as the economy, the environment, and society. These impacts can result in either positive or negative consequences for the company, affecting its operations, reputation, and financial standing. This form of materiality caters to a broad array of interest groups.

Double Materiality Process

The materiality analysis is a staged process that first identifies impact materiality before integrating financial materiality. Banco Promerica Guatemala is conducting this analysis based on a methodological framework established by the Global Reporting Initiative (GRI), which links impacts to material topics and principles outlined by the Sustainability Accounting Standards Board (SASB), thereby connecting risks and opportunities with relevant material topics.

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.
    • 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.

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 Promerica Guatemala, 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.bancopromerica.com.gt/media/772776/reporte-2023-ingles.pdf

Note to Banco Promerica Guatemala: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.