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.

Through the double materiality exercise, Banco de Bogotá evaluates both the internal and external impact of its operations. The bank reviews international standards and business practices, while also considering the expectations and concerns of external stakeholders, the community, and the environment.

Banco de Bogotá conducted its first double materiality exercise in 2022, carried out by an expert, and plans to review and update it in 2024 in alignment with the bank’s 2027 strategy.

In regard to its stakeholders, Banco de Bogotá has established various channels for ongoing communication, including surveys, newsletters, emails, training, face-to-face and virtual meetings, calls, self-management channels, and focus groups, among others.

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

In its 2024 PRB Reporting and Self-Assessment Template Banco de Bogotá reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

Banco de Bogotá conducts engagement, knowledge, and maturity assessment processes regarding ESG issues through conversations with corporate clients in prioritized sectors, taking into account the following:

• Strategy and objectives: The bank evaluates climate change strategies, targets, and timelines for compliance.
• Initiatives: Banco de Bogotá reviews initiatives that are being implemented to reduce carbon emissions.
• Bank support: The bank supports client initiatives and defines mechanisms and points of contact to continue collaborative efforts to strengthen the Net Zero strategy.

 Engagement mechanisms include:

• Innovation within the sustainable financing portfolio
• Specialized support to identify opportunities
• Client segmentation based on geography, size, and sector
• An ecosystem of alliances and expert suppliers
• Organization of strategic events with clients
• Periodic training and incentives for the sales team

Banco de Bogotá has a Transition Finance Policy that encompasses:

• Coal phase-out: This aims to limit financing for mining and the use of thermal coal.
• Prioritized sectors: Economic sectors identified for their significant negative environmental and climate impacts, including Oil & Gas and Energy.
• Sectors in transition: Sectors that contribute to environmental and climate impact, which are considered to be in transition. They include Cement, Iron, Transportation, AFOLU, Construction, Plastics, and Chemicals.

In 2023, Banco de Bogotá conducted engagement visits to 75% of its clients in the prioritized sectors of energy and Oil & Gas.

Additionally, the bank carried out face-to-face and virtual visits to more than 150 corporate banking clients.

During 2023, Banco de Bogotá organized 15 events, partnered with 7 allies, and attracted over 870 attendees.

 

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 de Bogotá, 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.bancodebogota.com/wps/themes/html/banco-de-bogota/pdf/nuestra-organizacion/sostenibilidad/2023/eng/first-prb-report-banco-de-bogota-2024.pdf

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