Case study: How Ibercaja 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.

In 2021, Ibercaja conducted a materiality study, aligned with the last “Challenge 2023” strategic cycle. The aim was to identify the financial, economic, social, and environmental issues most critical to its stakeholders and business, ensuring proper reporting and dimensioning of these topics.

Before commencing the study, the key stakeholders were identified, including customers, owners and investors, employees, suppliers, society, competitors and benchmarks, public authorities, and the media and opinion influencers. Ibercaja defined the methods of engagement for each stakeholder and determined that issues likely to have a significant impact on both business performance and stakeholder valuations and decisions would be deemed relevant.

The results were organized into a materiality matrix, prioritizing 15 key topics of importance to both the bank and its stakeholders.

In 2023, Ibercaja updated this process, advancing in line with the requirements of the new GRI 3 – Material Issues 2021, by analysing and assessing the positive and negative impacts of these key topics, as well as the actions taken to manage them.

In addition to this annual assessment, Ibercaja recognizes the importance of communication and institutional relations with stakeholders. The bank continuously aligns with them through various internal and external communication channels such as social media, suggestion boxes, and telephone support.

Ibercaja Banco and its subsidiaries have signed multiple initiatives, alliances, and agreements to reinforce their commitment to environmental, social, and governance (ESG) factors, increasing the transparency of their disclosures and promoting sustainable growth.

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

In its 2023 Consolidated Directors’ Report Ibercaja reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

Ibercaja’s sustainable business strategy focuses on minimizing the environmental impact of both the institution and its customers. The approach enables Ibercaja to grow, enhance its profitability and position, and be recognized as an organization that adds value while improving its social and environmental surroundings.

Based on this dual vision, a strategy tailored to different customer segments, needs, and proposed solutions, is proposed, identifying the required capabilities. The strategy is structured as follows:

• Environmental Impact: Encouraging energy efficiency, a circular economy, and responsible consumption to reduce environmental harm and aid in its recovery.
• Social Impact: Supporting vulnerable individuals and regions to help them seize sustainable development opportunities.
• Good Governance: Promoting responsible corporate behaviour grounded in ethical principles that foster growth and well-being, supported by training initiatives led by the Ibercaja Foundation.

The customer communication plan consists of four phases:

1. Information: Raising customer awareness to achieve joint collaboration and progress, by explaining the significance of the Sustainable Development Goals (SDGs) and their importance for sustainable development. Internal coordination with the training area ensures that this information is properly conveyed to customers.
2. Needs and Opportunities Detection: Ibercaja collaborates with its customers, particularly in productive activities, by assessing their energy efficiency and analysing their exposure to climate risks. It also partners with specialized companies to enhance the energy efficiency of buildings, manage public assistance, and execute works for individuals and businesses.
3. Proposed Solutions: Ibercaja offers a wide range of commercial, investment, and financing products to meet the identified customer needs, particularly those related to sustainable development.
4. Carbon Footprint Solutions: The final phase involves offering carbon footprint calculation tools and solutions to offset it. Ibercaja has reached agreements with various companies to provide assessment services, reports, and improvement strategies, primarily for productive activities.

Carbon offset solutions have already started with reforestation projects, although customer participation remains in progress.

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:

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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 Ibercaja, 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://media.ibercaja.net/www-ibercaja-com/2023/ibercaja_banco_consolidated_director_report_2023.pdf

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