Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Expanded coverage of the Environmental and Social Risk Management System (SARAS) to include evaluations of the commercial credit process and aligned methodology with Central American subsidiaries.
• Promoted "green" lines of credit to finance environmentally sound projects, totaling nearly COP 51 billion.
• Implemented recycling program, recycling 38.5 tons of materials.
• Continued energy efficiency project, including LED lighting and control systems.

Social Achievements

• Launched DaviPlata, a mobile platform for financial transactions, reaching 2.2 million customers and over 50 million transactions.
• Launched the first "Microseguro" life insurance policy for vulnerable families.
• Expanded Cultivarte program by 150%, reaching 19 municipalities and serving over 26,000 children and adolescents.
• Invested COP 17,395 million in employee training and development in Colombia and approximately USD 1 million in Central American subsidiaries.

Governance Achievements

• Joined the Dow Jones Sustainability Index (DJSI).

Climate Goals & Targets

Environmental Challenges

• Incorporating a larger number of Colombians into the banking system.
• Managing risks in the supply chain.
• Reducing the organization's carbon footprint.

Mitigation Strategies

• Implemented DaviPlata to increase financial inclusion.
• Developed a supply chain risk management system for critical suppliers.
• Implemented SARAS to evaluate and monitor environmental and social impacts.
• Continued energy efficiency project and recycling program.

Supply Chain Management

Supplier Audits: Semi-annual assessment of suppliers.

Responsible Procurement

• Sustainable procurement policy promoting good environmental and social practices among suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines (Essential option), Financial Services Sector Supplement

Third-party Assurance: Deloitte & Touche Ltda. (limited assurance)

Sustainable Products & Innovation

• Green lines of credit

Awards & Recognition

• DaviPlata Shared Value Award
• Recognition for "Mis Finanzas en Casa" program at the 5th Latin American Congress of Financial Education

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Finance
• Responsible Investment
• Eco-efficiency
• Circular Economy

Environmental Achievements

• Reduced Scope 1 emissions by 9.8% compared to 2019.
• Reduced Scope 2 emissions by 33% compared to 2019.
• Reduced Scope 3 emissions by 80.7% compared to 2019.
• Increased clean energy generation by 165% compared to 2020 (140.3 MWh).
• Installed 16 photovoltaic generation systems in Colombia with a total installed capacity of 291 kWp.
• Offsetting 100% of energy consumption through the purchase of renewable energy certificates (RECs) starting in 2021.

Social Achievements

• Launched the "Environmental Leaders and Managers" program to train employees on energy efficiency.
• Increased the balance of electric and hybrid vehicles portfolio by 98% in terms of disbursements, reaching a portfolio balance totaling COP 104 billion.

Governance Achievements

• Consolidated the Corporate Governance and Sustainability committees into a single committee with a comprehensive ESG business perspective.
• Incorporated climate change risk into the general risk management framework.
• Defined a 5-year plan to evolve and mature the climate governance model.

Climate Goals & Targets

Environmental Challenges

• High degree of uncertainty in climate change risk assessment.
• Need to broaden the scope of impact measurements across banking segments and products.
• Addressing transition risks from changes in regulations, technologies, and market trends.

Mitigation Strategies

• Conducting pilot tests to identify and assess exposure to climate change risks (physical and transition).
• Developing methodologies for identification, assessment, and management of physical and transitional risks.
• Implementing policies and procedures to reduce the impact and probability of climate-related risks.
• Using heat maps to identify segments with high CO2 emissions and prioritize transition risks.
• Defining a threshold for recognizing exposure to carbon-intensive sectors.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Landslides
• Droughts
• Hurricanes
• Sea level rise
• Changes in precipitation patterns
• Temperature increase

Transition Risks

• Regulatory and legal risks
• Technological risks
• Market risks
• Reputational risk

Opportunities

• Green credit lines
• Financing climate change mitigation and adaptation projects
• Developing new products and services
• Mitigating emissions in financed productive activities
• Enhanced reputation

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 13 - Climate Action

Davivienda's climate strategy contributes to targets 13.1, 13.2, 13.3, and 13.b.

Sustainable Products & Innovation

• Green credit lines (renewable energy, energy efficiency, clean transportation, clean production, sustainable infrastructure, sustainable construction)
• Electric and hybrid vehicle financing

Awards & Recognition

• Not disclosed