Climate Change Data

FICOHSA FINANCIAL GROUP, S.A.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:8,817.07 tCO2e/year (Scope 1, 2, and 3)
Scope 1 Emissions:1,149.50 tCO2e/year
Scope 2 Emissions:2,734.09 tCO2e/year
Scope 3 Emissions:4,933.47 tCO2e/year
Renewable Energy Share:71% (in 11 agencies and 2 buildings)
Total Energy Consumption:1,200 MWh/year (from solar energy)
Water Consumption:48,114 m3/year (regional)
Waste Generated:580,202 tons/year (regional)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 4.4% reduction of the ecological footprint in Honduras
  • 20.4% reduction of energy consumption of Ficohsa Honduras
  • 307,980 pounds of paper generated in operations were responsibly recycled at the regional level
  • 15,300 trees planted in buffer zones around La Tigra National Park

Social Achievements

  • Launched Mujeres Adelante program, training +700 women entrepreneurs
  • 150,600 boys and girls benefited through Ficohsa Foundation
  • +8.6 million people reached through the regional financial education program

Governance Achievements

  • 100% of the members of the Boards of Directors in each country trained in the Environmental and Social Risk Analysis System (ESRAS)
  • 99% of our employees trained with the Anti-Corruption and Bribery Management System (ABMS)

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Global economic slowdown and high inflation
  • Climate change risks (physical and transition risks)
  • Corruption risks
Mitigation Strategies
  • Implementation of the Environmental and Social Risk Analysis System (ESRAS)
  • Investment in eco-friendly equipment and renewable energy
  • Anti-Corruption and Bribery Management System (ABMS) training

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier Code of Conduct
  • FFG Code of Conduct
  • Anti-Corruption and Bribery Policy
  • Supplier Certification Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
  • Changes in precipitation patterns
Transition Risks
  • Regulatory changes
  • Market shifts
  • Changes in client preferences
Opportunities
  • Development of energy-efficient products
  • Investment in renewable energy

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, UN Global Compact, ISO 26000, INDICARSE 2021

Certifications: ISO 14064-1:2018, ISO 14064-2:2019, ISO 14064-3:2019 (for carbon footprint)

Third-party Assurance: FUNDAHRSE; Valora Sostenibilidad e Innovación S.A. de CV

UN Sustainable Development Goals

  • Goal 1
  • Goal 4
  • Goal 5
  • Goal 8
  • Goal 13

Initiatives contributing to poverty reduction, quality education, gender equality, decent work, and climate action

Sustainable Products & Innovation

  • Green financing products

Awards & Recognition

  • Best Bank Award
  • Best Digital Transformation Central America
  • Best Central American Banking Group
  • Bank of the Year in Honduras
  • Best Employer in Honduras
  • COVID-Free Enterprise CSR

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:8,814.01 tCO2e/year (verified)
Scope 1 Emissions:2,197.22 tCO2e/year
Scope 2 Emissions:1,348.76 tCO2e/year
Scope 3 Emissions:5,268.03 tCO2e/year
Renewable Energy Share:71% (in specific buildings and agencies)
Total Energy Consumption:9,620,279 kWh/year
Water Consumption:10,989 m3/year
Waste Generated:181,967.6 pounds/year

ESG Focus Areas

  • Environment
  • Social
  • Governance
  • Economic

Environmental Achievements

  • 7.7% reduced ecological footprint in Honduras
  • 1.2 million kilowatt hours (kWh) are produced annually through solar panels for FG installations
  • 1.27% reduced energy consumption in Honduras
  • 4.10% reduced water consumption per collaborator in Honduras and Nicaragua
  • 4.71% reduced paper consumption per collaborator in the region
  • 1,457 cases analyzed through the Environmental and Social Risk Analysis System (SARAS), 91.5% more than the previous year
  • USD $229.2 million disbursed to date for green financing of 15 renewable energy projects (solar, wind, hydro, biomass)
  • Main buildings in Honduras, Nicaragua, and Panama, in addition to 11 agencies work with solar panel power (5,499 mt2 of solar panels)

Social Achievements

  • Launched the first loyalty plan in Honduras with the product of Remesa+, which provides benefits in stores, free recharges and unique promotions aimed at the Remesas customer
  • Expanded the channels of attention through the CLAROPLAY projects and the payment of remittances at the cashiers of Supermarkets La Colonia, providing extended hours
  • Broadened the scope of financial products through their digitization to encourage greater inclusion of the Honduran population in banking
  • Financial inclusion of 60,000 people through TENGO, representing 8 million digital transactions
  • More than 3,500 youth banked through partnership with Glasswing International
  • 2,700 credits granted to agricultural producers through the De Mi Tierra program, representing +USD $7.8 million in financing
  • 157,000 preschool children benefited at the regional level through the Ficohsa Foundation for 25 years
  • 7% reduction in overall collaborator turnover
  • Onboarding program launched to provide new collaborators with the best experience
  • Well-being program implemented focusing on health, security, and social well-being
  • Regional Policy on diversity, equity and Inclusion created
  • Sign Language Program created to facilitate communication with deaf people

Governance Achievements

  • 100% of the members of the Assembly attended the ordinary sessions held in 2023
  • Average length of service of directors is 10 years
  • 98% of FG employees were trained on issues of Corruption and Bribery
  • 100% compliance with the activities of the Training and Awareness Plan
  • Implementation of the Anti-Corruption and Bribery Management System (ABMS)
  • ISO 37301:2021 Compliance Management System (CMS) certification process initiated for Ficohsa Bank Honduras
  • Update of the Human Rights Policy concluded
  • FG signs with Transparency International (TI), an Anti-corruption and Transparency initiative

Climate Goals & Targets

Long-term Goals:
  • Carbon 0 roadmap
Medium-term Goals:
  • Double the SME loan portfolio in the next five years, prioritizing the growth of women-led businesses
  • Increase remittance banking penetration by at least 20% over the next five years
Short-term Goals:
  • Consolidate the process of evaluating assets submitted as collateral for cases subject to SARAS
  • Integrate future updates established by CNBS socio-environmental management regulations and international parameters that can enrich the implementation of SARAS and support the development of sustainable banking
  • Integrate SARAS with a regional perspective on climate change risk

Environmental Challenges

  • Personal Data Risk
  • Financial Risks (credit, liquidity, market)
  • Climate Change Risks (physical and transition)
  • Corruption Risks
  • Cybersecurity Risks
  • Environmental and Social Risks
Mitigation Strategies
  • Implementation of technological tools for better process quality and control
  • Regional Risk Committee and local committees by country
  • Implementation of the Anti-Corruption and Bribery Management System (ABMS)
  • Strengthening existing security controls and implementing new technologies
  • Environmental and Social Risk Analysis System (SARAS)

Supply Chain Management

Supplier Audits: 80% of suppliers are domestic; due diligence process implemented

Responsible Procurement
  • Supplier Code of Conduct
  • Ethical Requirement for Business Partners and Suppliers document

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Universal Standard, SASB

Certifications:

Third-party Assurance: FUNDAHRSE (Honduran Foundation of Social Responsibility)

UN Sustainable Development Goals

  • Goal 7
  • Goal 13
  • Goal 1
  • Goal 2
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 15
  • Goal 16
  • Goal 17

Various initiatives contribute to these goals as detailed throughout the report.

Sustainable Products & Innovation

  • 100% digital products (savings accounts, personal loans, credit cards)

Awards & Recognition

  • World Economic Magazine Awards 2023 (Best Banking Group of Honduras, Most Innovative Bank of Honduras, Best CSR Banking Group of Honduras, Best Digital Bank of Honduras, Best CSR Bank of Honduras)
  • LatinFinance Bank of the year in Honduras
  • FUNDAHRSE 2023 (17 consecutive years recognized for promoting sustainable development in the region)
  • Federación Internacional del Automovilismo (FIA) (For creating road safety campaigns)