Case study: How Compartamos Banco works with its clients and customers to encourage sustainable practices
Compartamos Banco is a financial institution with over 31 years of experience, providing microentrepreneurs and entrepreneurs in Mexico with access to working capital, savings, insurance, and payment solutions. It is notably recognized as the first institution to offer financial inclusion to the popular segment in Mexico, primarily focusing on women, helping them achieve economic independence and contribute to their household income. Compartamos Banco 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 2023 PRB Reporting and Self-Assessment Template by Compartamos Banco, 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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- How Compartamos Banco proceeded with stakeholder identification and consultation, and
- How Compartamos Banco 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.
Compartamos Banco’s business model is designed to create significant social impact. The bank has observed how its customers, through their businesses, have expanded their opportunities and improved both their quality of life and that of their families. These customers also contribute positively to the local economies of their communities and to the broader economies of the countries where Compartamos Banco operates. By maintaining ongoing communication with clients, Compartamos Banco has been able to develop a product ecosystem that addresses their financial needs with a human touch. This approach aims to generate economic value for their businesses, social value for their communities, and personal value for themselves and their families. Furthermore, Compartamos Banco fosters relationships of trust and partnerships with peers, authorities, academia, suppliers, and civil society organizations to amplify its positive social impact.
How did Compartamos Banco work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?
In its 2023 PRB Reporting and Self-Assessment Template Compartamos Banco reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:
Compartamos Banco believes that the trust its customers place in it is largely influenced by the quality of its services. Therefore, Compartamos Banco continues to integrate the Client Protection Principles into its operations. In 2023, 16,253 employees were certified in customer protection.
Compartamos Banco ensures that its customers receive adequate and sufficient information and tools to help them increase their income, manage their finances responsibly, avoid harming their credit history, and prevent over-indebtedness.
Compartamos Banco’s commitment to financial education remains strong, benefiting not only its customers but also its employees and the wider community. In 2023, Compartamos Banco invested 4,010,803.84 Mexican pesos in financial education initiatives.
Compartamos Banco will continue offering various Financial Education initiatives through different channels, such as the Bank’s website, and will use its social networks to inform its clients about environmental opportunities.
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), 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.
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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 Compartamos Banco, 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:
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