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.

Bci acknowledges the vital role that various stakeholder groups play in fulfilling its corporate mission. In the reporting year, Bci refreshed its material sustainability topics, a process last carried out in 2018. For the first time, this exercise adhered to the double materiality framework promoted by the European Commission, utilizing the latest implementation guide published by EFRAG. The process engaged a diverse range of internal and external stakeholders through secondary documents, workshops, and interviews. Consequently, the topics prioritized in this report were identified as the most material from both internal and external perspectives.

To better understand and integrate the perspectives and expectations of all stakeholders, Bci maintains an annual active listening process. This approach enhances its capacity to create a triple impact—economic, social, and environmental. The Corporate Affairs and Sustainability Division is responsible for assessing, developing, managing, coordinating, and maintaining stakeholder and community relationships. Customer relationships are overseen by the Customer Experience Division, while employee relations are managed by the Human Relations Division.

Furthermore, Bci Asset Management (BAM) has adopted an Active Ownership or Stewardship approach, which involves engagement and voting activities outlined in its Sustainable Investment Policy. BAM fosters constructive dialogue with companies, aiming to set ambitious, long-term ESG goals that benefit its clients.

Bci also actively participates in workshops and working groups focused on financial health and climate stability, including those organized by UNEP-FI, NZBA, the Chilean Bank Association (ABIF), and Green Finance Public-Private Roundtables.

How did Bci identify and work on strategic business opportunities to increase positive and reduce negative impacts?

In its 2024 PRB Reporting and Self-Assessment Template Bci reports that it identified and worked on strategic business opportunities to increase positive and reduce negative impacts as follows:

Financial Health and Inclusion
Bci demonstrates its dedication to improving financial health and fostering inclusion through the following innovative products and services:

• MACH
  • User Base: As Chile’s first fully online account, MACH served 1,875,356 users in 2023.
  • Tu MACH: Designed for children aged 14 to 17, this service has activated over 40,000 accounts since its launch.
  • MACH Future: This initiative has enabled the saving of CLP 18 billion since inception, helping users boost their savings with simple, cost-free procedures.
• Digital Checking Accounts
  • Individual Accounts: Over 180,000 digital accounts were opened for individuals in 2023.
  • SME Accounts: More than 13,000 digital accounts were opened for small and medium-sized enterprises in the same year.
• Support for Entrepreneurs
  • Bci’s open program, providing innovative tools and expert guidance, benefited 282,000 users in 2023.
• Centro Bci Nace: A collaborative workspace for entrepreneurs, utilized by over 5,500 people in 2023.
• My Finances Program (“Mis Finanzas”)
  • Financial Monitoring: This program offers a dashboard to track monthly finances, assess debt levels, and diagnose personal financial health.
  • User Engagement: In 2023, 233,747 clients used this service.
• Piggybank
  • Savings Encouragement: Automatically transfers funds from the main account to a secondary savings account to promote saving habits.
  • Savings Growth: In 2023, the average savings balance among customers was CLP 338,691.

Climate Stability
Bci is proactively advancing its decarbonization strategy, targeting net-zero emissions by 2050. Key initiatives and products include:

• Green Bonds: In 2023, Bci issued USD 207 million in Green Bonds to finance environmentally sustainable projects.
• Financing Sustainable Projects: Bci allocated CLP 887,753 million to sustainable projects, supporting initiatives with environmental and social benefits.
• Sustainability-Linked Loans: The bank offers various green financing options, including green loans, green mortgage loans, green leasing, and other sustainable financing products.
• Net Zero Banking Alliance: Bci’s membership in this alliance underscores its committed and structured approach to achieving decarbonization goals.

 

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 Bci, 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://cdn3.bci.cl/uploads/8f824e8b-90a6-4ea0-a1cc-c8e99669fea6/original/Bci-Reporting-and-self-assessment-2024.pdf

Note to Bci: 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.

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.

Bci acknowledges its stakeholders as essential components of its corporate mission. The organization carries out an annual active listening initiative to comprehend and integrate the perspectives and expectations of its stakeholders into its strategic considerations. This approach enhances the ability of its various business sectors to create a triple impact—economic, social, and environmental—and bolsters the bank’s social legitimacy.

Within Bci, the Corporate Affairs and Sustainability Division oversees the assessment, creation, management, coordination, and maintenance of relationships with stakeholders and the community. The Human Relations Division and the Customer Experience Division are responsible for managing relationships with employees and customers, respectively.

• Employees and Their Families: Bci is dedicated to ensuring that employees’ working conditions allow for a satisfying personal and family life. Communication channels include One Bci (a platform enabling the CEO to communicate with all employees via streaming), corporate listening processes, the Bci World website, ethics workshops (Dynamic Verdict project), and confidential resources (Bci Te Escucha, Qué Hago, Employee Call Center 555, Mundo App).
• Customers: Customers are the cornerstone of Bci’s success, and the bank approach to customer relationships is long-term. Channels for engagement include active listening processes, social media, webinars and podcasts on investment and economic topics, and the Valor Pyme website, among others.
• Shareholders: Bci implements policies and decisions aimed at enhancing the equity of shareholders while maintaining acceptable risk levels for its business operations. Engagement channels consist of shareholders’ meetings, conferences, and communication with the Investor Relations team, along with an investor website.
• Suppliers: Bci is committed to fostering mutually beneficial relationships with suppliers, characterized by long-term loyalty and high standards of quality, compliance, and transparency. Channels for interaction include a suppliers’ portal, discussion series, an annual awards ceremony, and ESG impact assessments.
• Society: Bci aims to contribute positively to environmental sustainability and the enhancement of the country’s social, cultural, and economic heritage by supporting relevant initiatives. Engagement channels include corporate listening processes, the corporate website, and various corporate citizenship activities.

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

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

Although Bci does not currently have a specific policy or engagement process in place to promote sustainable practices among clients and customers, they remain central to Bci’s success. This is why Bci manages customer relationships with a long-term perspective across multiple fronts. Bci engages with customers through various channels, including: active listening processes, social media, webinars and podcasts on investment and the economy, the Valor Pyme website, Valor Pyme TV, presentations and events for the Wholesale & IB Loyalty Plan, and visits to wholesale clients at their companies.

Moreover, Bci places a strong emphasis on educating customers about ESG (Environmental, Social, and Governance) issues and their importance in business operations. To facilitate this, Bci offers webinars, newsletters, and advisory services to assist clients in integrating ESG principles into their business models.

Specifically designed for small and medium-sized enterprises (SMEs), Bci SME Banking has developed the “Nace” service model. This model is led by specialized account executives who provide both financing and non-financial support to new businesses (operating for less than 12 months). To further assist these customers, Bci has established the Centro Nace, the first financial entrepreneurship centre in Latin America, located in Santiago. Additionally, Bci’s Valor Pyme Program collaborates with Microsoft, the Catholic University of Chile, and the National Entrepreneurs Association to provide comprehensive support to small and medium-sized businesses, helping them to thrive and succeed.

 

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 Bci, 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://cdn3.bci.cl/uploads/edf8e1b6-8d88-411b-9435-c0b0a48664bd/original/PRB-Reporting-and-Self-Assessment-2023_docx.pdf

Note to Bci: 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.