Climate Change Data

Environmental Metrics

ESG Focus Areas

• Equality and Social Inclusion
• Universal Access to Water and Sanitation
• Environmental Sustainability

Environmental Achievements

• Reduced water pollution in several cities (e.g., Sao Paulo's Tiete River, Bogota River)
• Initiatives to protect water sources (e.g., Costa Rica's gasoline tax for ecological protection zones)

Social Achievements

• Significant increase in access to drinking water and sanitation networks in Latin America (from 40% in 1950 to over 90% in 2008)
• Implementation of conditional transfer programs (e.g., Bolsa Familia in Brazil) to improve access to basic services
• Chile's success in modernizing its sanitation sector, achieving high levels of coverage comparable to OECD countries

Governance Achievements

• Chile's establishment of the Superintendency of Sanitation Services for regulation and oversight
• Colombia's institutional tripod of policy design, regulation, and supervision for water and sanitation services
• Brazil's creation of the Regulatory Agency for Sanitation and Energy of Sao Paulo State (Arsesp)

Climate Goals & Targets

Environmental Challenges

• High levels of inequality in Latin America, with significant disparities in access to water and sanitation services
• Rapid urbanization and informal settlements leading to infrastructure deficits and environmental degradation
• Inefficient water utilities with high water losses and low service quality
• Climate change impacts on water resources (droughts and floods)
• Lack of comprehensive water management approaches
• Insufficient investment in water infrastructure

Mitigation Strategies

• Investments in human capital and infrastructure
• Conditional transfer programs
• Improved governance and regulation of water utilities
• Public-private partnerships
• Demand-side subsidies
• Comprehensive water management plans
• Efforts to improve efficiency and reduce water losses
• Initiatives to protect water sources and reduce pollution

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods

UN Sustainable Development Goals

• Goal 6: Clean Water and Sanitation

Environmental Metrics

ESG Focus Areas

• Water Resource Management
• Climate Change Adaptation
• Sustainable Energy
• Food Security
• Ecosystem Management
• Governance

Environmental Achievements

• Guarani Aquifer System (SAG) protection project implemented, involving Argentina, Brazil, Paraguay, and Uruguay; aimed at coordinated institutional framework for management and preservation.
• Colombia's departmental water and sanitation plans improved water service provision and reduced administrative costs.

Social Achievements

• Significant progress in improving economic and political stability across nine South American countries.
• Progress in reducing poverty rates in several countries.
• Increased access to potable water and sanitation services, although significant gaps remain.

Governance Achievements

• Significant strides in preparing plans, policies, programs, and strategies to ensure access to the human right to safe drinking water and sanitation.
• Strengthening of water administration agencies in several countries.
• Development of independent regulatory frameworks in some countries.

Climate Goals & Targets

Environmental Challenges

• Inadequate access to potable water and sanitation services, particularly in rural and intermediate-sized cities.
• Insufficient funding and appropriate projects for water and sanitation infrastructure.
• Lack of stable regulatory frameworks and independent agencies in many countries.
• Scant sector data in most countries.
• Increased demand for energy and the need for sustainable energy sources.
• Low water productivity in agriculture.
• Impacts of climate change on water resources.
• Limited attention to ecosystem services in water management.
• Water-related conflicts.
• Need for stronger legal frameworks and institutional arrangements for water management.

Mitigation Strategies

• Public policies addressing large cities separately from intermediate and small cities and rural areas.
• Increased funding and innovation in water projects.
• Improved regulatory practices and efficiency of service operators.
• Development of comprehensive management schemes for water and energy resources.
• Interventions in all links of the agricultural “use chain” to improve water productivity.
• Strengthening legal and institutional settings to address water and climate change issues.
• Integration of ecosystem management into IWRM.
• Strengthening water administration agencies and fostering stable water rights.
• Promoting the “water pays for water” principle.
• Reforms in Bilateral Investment Treaties (BITs).

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Desertification
• Glacier retreat
• Sea level rise

Transition Risks

• Changes in rainfall patterns
• Reduced river flows
• Impacts on hydroelectricity generation

UN Sustainable Development Goals

• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 13: Climate Action

Environmental Metrics

ESG Focus Areas

• Equity
• Sustainability
• Institutionality
• Efficiency
• Integration

Environmental Achievements

• Achieved carbon neutrality by offsetting its historic carbon footprint (1970-2018) through a REDD+ project in Peru, reducing 162,984.67 ton CO2 eq.

Social Achievements

• 91 new personnel contracts subscribed, 50% women.
• Supplier satisfaction survey showed 93% satisfaction.

Governance Achievements

• Updated Management Policies approved by the Board in September 2019.
• New Organizational Structure defined.

Climate Goals & Targets

Environmental Challenges

• Infrastructure gaps in Latin America compared to developed countries.
• High levels of contamination and lack of access to basic services in Latin American cities.
• High levels of poverty and inequality, particularly among vulnerable groups.
• Low productivity in the private sector due to institutional barriers and lack of access to credit.
• Complexity in State functions affecting citizens' quality of life.

Mitigation Strategies

• Comprehensive Development Agenda focusing on efficiency, equity, sustainability, institutionality, and integration.
• Strategic programs for infrastructure development, financial inclusion, and digital transformation.
• Social innovation initiatives to address complex social problems.
• Green agenda promoting low-carbon economies and climate resilience.
• Strengthening of institutional capabilities and public management.

Supply Chain Management

Responsible Procurement

• Rigorous due diligence process for all suppliers and consultants.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 22301

Environmental Metrics

ESG Focus Areas

• Equity and sustainable development
• Green economies, resilient to climate change
• Digital transformation and public innovation
• Human and social development, equitable and supportive
• Pact for productivity and competitiveness
• Economic and financial sustainability
• Regional integration
• Development of infrastructure

Environmental Achievements

• Environmental and climate financing reached USD 3,312 million (23.42% of total resources approved).
• Mobilized USD 295.7 million in third-party resources for environmental and climate financing.
• Compensated CAF’s carbon footprint, reaching 10,810 tons CO2-e for 2019.

Social Achievements

• Approved credit operations and technical cooperation to support health and nutrition, education, and social inclusion initiatives.
• Implemented social innovation operations benefiting over 10,880 beneficiaries.
• Decreased employee turnover rate by 50% compared to 2019.

Governance Achievements

• XVIII Extraordinary Shareholders’ Assembly approved amendments to Articles of Agreement.
• Implemented a new performance evaluation scheme aligned with corporate strategic objectives.
• Maintained high supplier satisfaction (98.8%).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted the region's economic and social conditions.
• Supply chain disruptions due to the pandemic.
• Increased risk of information leakage due to remote work.

Mitigation Strategies

• Adjusted strategic planning to address pressing needs of shareholder countries.
• Implemented electronic signatures for contractual documents.
• Developed working mechanisms with corporate information repository in the cloud.
• Implemented a corporate awareness program on information security.

Supply Chain Management

Responsible Procurement

• Rigorous due diligence process based on CAF’s internal regulations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 14001 (Institutional Environmental Management System)

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 16
• SDG 17

CAF's actions are guided by its Comprehensive Agenda for Development, which aligns with the SDGs and the Paris Agreement.

Environmental Metrics

ESG Focus Areas

• Climate Change

Social Achievements

• Mainstreaming gender considerations in project design and implementation.

Governance Achievements

• Improved decision-making processes at the NDA level for project approval.

Climate Goals & Targets

Environmental Challenges

• Limited operational capacities to guide, assess, prioritize, and select climate change projects.
• Limited capacity to effectively engage national stakeholders, particularly from the private sector.
• Limited number of accredited direct access entities (DAEs).
• Limited capacity to finance climate change projects.

Mitigation Strategies

• Strengthening institutional capacity of the NDA.
• Improving stakeholder engagement.
• Supporting the accreditation of DAEs.
• Finalizing the GCF Country Programme.

Supply Chain Management

Climate-Related Risks & Opportunities