Bancolombia

In terms of its approach towards impact management, Bancolombia acknowledges that its financing activities have both positive and negative impacts and is a signatory of the Principles for Responsible Banking. The financial institution publicly commits to gender equality and women’s empowerment and discloses several quantitative targets to increase the proportion of women in junior, senior and overall management by 2030. The bank has an engagement policy where it describes its approach on sustainability themes and impact topics with and it publishes case studies describing where it has engaged successfully with clients on sustainability themes and impact topics. The financial institution also discloses a list of trade associations of which it is a member including sustainability- and non-sustainability-related organisations.

As a member of the Net-Zero Banking Alliance, Bancolombia has set a target of net-zero financed emissions by 2050. Through Climate Action 100+, the financial institution collectively engages with its clients on the topic of climate change. The financial institution discloses the aggregate amount of finance it devotes to climate solutions while specifying what these solutions are (renewable energy and sustainable construction) and that they are defined according to the Green Bond Principles. Additionally, the bank discloses time-bound targets for its climate solutions as it aims to finance USD 11 billion in climate solutions by 2030. The financial institution is also committed to minimising its negative impacts on nature and biodiversity.

Bancolombia has a publicly available policy statement committing it to respect human rights and the ILO core labour rights. It has a grievance mechanism that is accessible to all workers and external stakeholders to raise human rights complaints or concerns. The bank also discloses the proportion of its total direct operations workforce for each employee category by age group and gender and it states that 75% of its total direct operations workforce is covered by collective bargaining agreements. Bancolombia has a policy prohibiting bribery and corruption. Additionally, the financial institution discloses the amount of finance it directs towards small- to medium-sized enterprises in general and those led by women. It also discloses that 100% of its financing goes to low-income countries such as Colombia, Panama, El Salvador and Guatemala.

In terms of its approach to senior leadership accountability, Bancolombia could assign responsibility for sustainability to the group’s Board of Directors and links the remuneration of its executive and management teams to sustainability performance criteria. Additionally, the financial institution discloses some insights into its company engagement but no evidence is found that its engagement policy includes clear frameworks with success criteria and escalation points related to sustainability and impact topics.

Bancolombia has an opportunity to disclose the key sectors and companies it has identified as priorities to engage with on climate change, specifically on the alignment with the Paris Agreement. Additionally, the financial institution has an opportunity to disclose the alignment with the Paris Agreement as one of its engagement priorities with companies to which it provides financial services. It could also disclose progress against the targets it has set for its climate solutions.

Bancolombia has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. Furthermore, while the financial institution has a mechanism for stakeholders to raise bribery and corruption concerns, it could clarify if complainants have the option to identify themselves or remain anonymous.