Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Our People
• Relationship with Customers
• Fair Operating Practices
• Environment
• Community Development

Environmental Achievements

• Inaugurated a new operational center with high environmental sustainability standards (rainwater retention system, double-glazed windows, reflective roof, efficient building orientation, lighting control system, regenerative elevator units, variable air volume mechanical system, energy recovery ventilation).
• Collected and disposed of 4,426 lamps, preventing mercury from reaching landfills.
• Recycled 36,472 lbs of paper.
• Recycled 3,204 pounds of electronic scrap.
• Solar panels at Brisas del Golf branch generated a saving of 50.90 MWh, representing a saving of 29 tons of CO2.

Social Achievements

• Continued the Food Subsidy Program, benefitting 3,095 employees.
• Trained 5,111 collaborators with a total of 213,173.32 man-hours of training.
• Maintained a healthy turnover index of 7.59%.
• Conducted health and well-being programs for 3,101 collaborators.
• Supported 170 organizations through the Good Neighbors Foundation, contributing over US$4.7 million to 245 social programs.

Governance Achievements

• Reinforced ethics and anti-corruption management systems.
• 99.6% of personnel received online training on the Ethics and Conduct Code.
• Improved Business Continuity management, documenting and testing 69 of 91 processes.

Climate Goals & Targets

Environmental Challenges

• Design of strategies for maintaining contingency in critical processes due to the moving of the Operational Center.
• Energetically irregular year due to the move of 1800 collaborators to the Operational Center and irregularities in Panama's national electrical system.

Mitigation Strategies

• Defined, prepared, and tested new sites for 5 critical processes.
• Developed and implemented a new alternate contingency site.
• Implemented the CN Program at Subsidiaries, including General de Seguros.

Supply Chain Management

Supplier Audits: 278 new providers underwent due diligence in 2017

Responsible Procurement

• Know Your Provider practice

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: United Nations Global Compact, ISO 26000, Global Reporting Initiative (GRI)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

The Good Neighbors Foundation's programs align with these goals.

Awards & Recognition

• Rational Use and Energy Efficiency Award

Environmental Metrics

ESG Focus Areas

• Governance
• Environment
• Social
• Community Engagement
• Fair Practices

Environmental Achievements

• Reduced energy consumption by 20.75% (electricity) and 43.49% (power plants) due to lockdown and remote work.
• Increased paper recycling rate to 89%.
• Saved 4 million gallons of drinking water compared to 2019 through water reuse system.

Social Achievements

• Implemented various initiatives to protect employee health and well-being during the COVID-19 pandemic, including on-site Covid-19 testing, emotional support programs, and remote work options.
• Maintained 100% employee job security throughout 2020.
• Reduced employee turnover rate to 5.20%.

Governance Achievements

• Maintained open communication with shareholders, employees, customers, and regulatory entities despite pandemic restrictions.
• Adjusted the 2019-2021 Strategic Plan to address the challenges posed by the COVID-19 pandemic.
• Provided annual training on anti-corruption policies and procedures to all bank personnel.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted operations, employee well-being, and community engagement.
• Supply chain disruptions due to pandemic.
• Economic downturn affecting customers and their ability to meet financial obligations.

Mitigation Strategies

• Implemented strict biosecurity protocols and remote work options to protect employees and customers.
• Offered customized financial relief solutions to customers affected by the pandemic.
• Provided significant financial support to community organizations through the Good Neighbors Foundation.

Supply Chain Management

Supplier Audits: 110 new providers underwent due diligence in 2020; 2,447 providers documented since 2015.

Responsible Procurement

• Know Your Provider policy; digital document submission for streamlined process.

Climate-Related Risks & Opportunities

Physical Risks

• Climate phenomena

Transition Risks

• Not disclosed

Opportunities

• Green financing; development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (Core option), UN Global Compact, Principles for Responsible Banking

Certifications: Null

Third-party Assurance: Limited assurance on GRI Standards content

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 4: Quality Education
• Goal 13: Climate Action

Initiatives aligned with these goals through various programs and partnerships.

Sustainable Products & Innovation

• Green loans

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Financial inclusion
• Investment in education
• Climate change and circular economy

Environmental Achievements

• Reduced carbon footprint by 78.97 Ton CO2 eq/year in 2021 through solar panel installation and other energy efficiency measures.
• Approved over $12.5 million in solar energy financing by December 31, 2022, with a commitment to at least $105 million by 2025.
• Reused 1,057,714.61 gallons of water in 2022, a more than 200% increase compared to 2021.

Social Achievements

• Opened a new office in Panama Oeste, providing 170 employees with closer-to-home work opportunities.
• Launched a free psychological support line for employees and their families.
• Expanded customer base to over 1,550,000, with 202,110 first accounts opened 100% digitally.

Governance Achievements

• Drafted and published an internal Anti-Corruption and Anti-Bribery Policy.
• Maintained International Investment Grade ratings from Fitch Ratings, Standard & Poor's, and Moody's.
• Actively participated in the Sustainability Committee of the Panama Banking Association and founded the Panama Sustainable Finance Group.

Climate Goals & Targets

Environmental Challenges

• Measuring and reducing the financed carbon footprint (Scope 3) in a market still developing understanding of the issue.
• Incorporating climate and transition risk into risk analysis.

Mitigation Strategies

• Initiating a pilot plan in 2023 to measure the financed footprint and engage with corporate clients.
• Working towards incorporating climate and transition risk into risk analysis in 2023 and beyond.

Supply Chain Management

Responsible Procurement

• Know Your Supplier policy (digital information request)

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Third-party Assurance: KPMG

Sustainable Products & Innovation

• Leasing and loans for solar panel installation
• Loans with reduced rates for electric and hybrid cars

Environmental Metrics

ESG Focus Areas

• Climate Change
• Financial Inclusion
• Education

Environmental Achievements

• Installed solar panels in 9 branches, generating 1,922.9 MWh of renewable energy annually and reducing emissions by 198.06 tons of CO2 annually.
• Purchased 7 electric cars, reducing CO2 emissions by 17.65 tons per year.
• Installed a solar water heating system, expected to reduce approximately 3.4 tons of CO2 per year.
• Reduced carbon footprint by 9.02% from 2021 to 2022 (towards a 33% reduction goal by 2025).

Social Achievements

• Expanded Operational Center in Panama Oeste, doubling capacity to 332 workstations and benefiting more than 300 employees.
• Trained more than 5,270 employees in the Corporate University.
• Increased digital transactions by 45% compared to 2022.
• Made donations of more than $8MM through the Sus Buenos Vecinos Foundation.
• Opened the ¡Supérate! Center in Santiago de Veraguas, serving 57 students.

Governance Achievements

• Implemented “Conversemos” program for open communication with employees.
• Conducted performance conversations with employees to reinforce feedback spaces.
• Maintained an anonymous ethics hotline.
• Appointed a Personal Data Protection Officer.

Climate Goals & Targets

Environmental Challenges

• Water scarcity in Panama Oeste.
• Climate change impacts (El Niño phenomenon causing irregular rainfall and drought).
• High unemployment rates.
• Economic inequality.

Mitigation Strategies

• Conducted a study on drinking water supply in Panama Oeste.
• Installed a 40,000-gallon flexible tank for rainwater reuse.
• Developed digital loan products to increase financial inclusion.
• Implemented financial education programs.

Supply Chain Management

Supplier Audits: Due diligence process carried out on 873 new suppliers in 2023.

Responsible Procurement

• “Conozca a su Proveedor” policy model (Know your supplier).

Climate-Related Risks & Opportunities

Physical Risks

• Drought (El Niño phenomenon)

Transition Risks

• Regulatory changes

Opportunities

• Financing of solar energy projects.

Reporting Standards

Frameworks Used: GRI, Principles of Responsible Banking, UN Global Compact

Certifications: CAPADESO Seal (Sus Buenos Vecinos Foundation)

Third-party Assurance: KPMG

UN Sustainable Development Goals

• SDG 8
• SDG 12
• SDG 13

Financial inclusion initiatives align with SDG 8; climate change mitigation aligns with SDGs 12 and 13.

Sustainable Products & Innovation

• Digital loan products
• Solar panel financing
• Loans for electric and hybrid cars

Awards & Recognition

• INVENTORY+ and REDUCTION+ awards from the Ministry of Environment (2023)