Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Development
• Social Responsibility
• Customer Service

Social Achievements

• Launched a program to rescue socially excluded children and victims of drug addiction through the Asociación Unidos por la Niñez.

Governance Achievements

• Maintained strong financial indicators according to SUGEF standards, demonstrating solvency and efficiency in financial intermediation.

Climate Goals & Targets

Environmental Challenges

• Competition from private national and regional banks.
• The arrival of global mega-banks.
• Maintaining low interest rates while ensuring profitability.

Mitigation Strategies

• Implemented a transformation process to improve efficiency, growth, and consolidation.
• Focused on improving customer service and electronic means.
• Expanded branch offices and ATM networks.
• Developed new credit products and services.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainable development

Social Achievements

• Increased employee training
• Expanded geographically to develop underserved areas
• Strengthened traditional ties with productive sectors (small and medium-sized businesses)
• Financed projects that support cooperatives in the energy sector, commerce, agriculture, and industry
• Established strategic alliances with government institutions to support the formation and creation of consolidated productive sectors
• Acquired 51% of BICSA shares in 2005
• Joined the International Bank Alliance
• Became a strategic ally of the Costa Rican government in the Digital Government project in 2006, improving passport and driver's license processes

Governance Achievements

• Implemented strategies to address changing financial and credit market movements
• Created a new subsidiary, Corredora de Seguros BCR S.A., a first-of-its-kind insurance brokerage in Costa Rica
• Established a new subsidiary, BANPROCESA, with Banco Nacional de Costa Rica, to provide technology services to both banks
• Developed an efficient internal control culture
• Improved compliance indicators
• Improved its technological platform
• Managed net worth solvency indicators effectively

Climate Goals & Targets

Environmental Challenges

• Global economic crisis affecting the financial world and real economy
• Shrinkage of the net worth solvency index in the second half of 2008
• Increase in inflation rate
• Behavior of the exchange rate
• Decrease in net worth solvency percentage
• Credit regulation

Mitigation Strategies

• Used own means and support from the Executive Branch and Legislative Assembly to address the net worth solvency index issue
• Secured approval of the Ley de Capitalización to provide relief to the institution and the national financial system
• Designed and implemented a complement to the government's Plan Escudo, called Mano Solidaria, to maintain reasonable credit rates for housing and SMEs, including a ceiling for both segments, and to allow for the re-expression of obligations and grace periods
• Deepened business lines with current clients, grew the market base by banking previously unbanked micro, small, and medium-sized enterprises, and increased income from non-credit services
• Maintained a policy of rationalizing operating costs and seeking greater efficiency

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Environmental Sustainability
• Economic Development

Environmental Achievements

• Implemented a recycling project in 103 offices
• Planted 1,000 trees in the Atlantic zone and distributed 2,000 trees to clients and employees
• Hired a specialized company to measure greenhouse gas emissions in several offices to measure the bank's carbon footprint

Social Achievements

• Created the "Yo nací en este país" trust fund to aid victims of the Cinchona earthquake, matching donations from individuals and companies
• Invested over $137,331.20 in various social and environmental projects
• Employees raised over $406,053.20 for children with drug addiction problems and at social risk through the "Unidos por los Niños" association
• Provided support to the Friends of Coco's Island Foundation for biodiversity conservation
• Participated in the design of social interest housing credits for low-income individuals
• Financed public works projects that improved quality of life in various regions

Governance Achievements

• Implemented a policy of information transparency and a code of ethics for employees
• Established committees for values and occupational health

Climate Goals & Targets

Environmental Challenges

• The global economic crisis of 2009 impacted the bank's profitability and credit portfolio growth
• Decreased demand for bank loans from the private sector

Mitigation Strategies

• Lowered interest rates on loans for housing and SMEs
• Reinforced debt collection efforts
• Implemented strong cost-containment policies
• Received capital injection from the government
• Increased credit limits for public sector institutions
• Developed new products and services to support national development

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on credit risk management and economic conditions.

Mitigation Strategies

• Implementation of a Credit Portfolio Management Plan to address credit risk during the pandemic.
• Renegotiation of credit terms to support borrowers affected by the pandemic.
• Provisioning for potential loan losses.
• Regular review of loan loss provisions by the regulator.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: NIIF (International Financial Reporting Standards)

Third-party Assurance: Crowe Horwath CR, S.A.

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Observations from Sugeval (Superintendencia General de Valores) regarding advisory services for clients with real estate fund holdings. Concerns raised about evidence of concentration in client holdings.

Mitigation Strategies

• BCR Valores will review Sugeval's observations and provide a response. They will also request a meeting with Sugeval to discuss the findings. BCR Valores will ensure that the assessment considers the regulatory environment in place at the time of the initial client relationships.

Supply Chain Management

Climate-Related Risks & Opportunities