Bancóldex, Colombia’s business development bank, received the highest rating from Standard & Poor’s Global (S&P) in the Environmental, Social and Governance (ESG) Assessment As the national development bank of Latin America, this is due to its environmental, social and governance corporate practices.
The result of the ESG evaluation obtained by Bancóldex was 68 points out of 100, after an analysis by Standard & Poor’s Global around three dimensions: environmental profile (includes aspects such as internal and external management associated with factors such as greenhouse gases, water use and waste disposal); social dimension (equity in the workforce, customer engagement, communities); and governance (includes factors such as transparency, codes and values, and financial and operational risk).
The ESG corporate evaluation processes of companies from different sectors in the world seek to have comparable rating scales in relation to the best practices in this matter.
To date, the average reached by the companies measured in Europe is 70 points; in North America, 65; in Asia-Pacific, 60; and in Latin America, it is 55 points.
According to the S&P report, the rating given to Bancóldex “reflects a solid commitment of its credit operations with the fronts of the ESG Evaluation and with the granting of sustainable financing and technical assistance for micro, small and medium-sized companies in Colombia.”
In the social dimension of measurement, bancóldex it obtained a rating of 71 points out of 100, ranking second in Latin America among the evaluated entities.
At the same time, in governance the score was 65 out of 100 and in the environmental field, it reached 59 out of 100. These latest results are above the ESG practices of the banking industry.
“On the other hand, Bancóldex plays an important social role as a development bank reflected in its commitment to the community. Bancóldex’s corporate governance standards and practices are generally in line with Colombian standards, but lag behind global best practices.” ensures the S&P report.
The ESG Assessment highlighted that the bank has adequate preparation in line with the disruptive trends of the local and global environment.