En Es

Focus and Vision

 

Every day more companies must review their strategies to include environmental, social, governance and risk management considerations in order to address the concerns of their stakeholders, who are more aware than ever and are demanding that companies include sustainability criteria in their daily operations. Given its leading role in the Colombian financial system, bvc has always contributed to Colombia’s economic, sustainable and inclusive development. In 2018, the Exchange made the following progress in the sustainability initiatives:

 

As part of the Asobolsa Congress in August 2018, we launched the sustainable products line, bvc sostenible, which is a financing and investment alternative for companies and investments through green financial products. Sustainable bvc promotes financing and investments in projects that help fulfill these commitments, aimed at supporting Colombia's transition to a low-carbon-emissions economy. It has the potential to become a pillar of economic growth that promotes innovation, development of new technologies, competitiveness and efficient use of natural resources

 

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  • In 2018, the dynamics of green bond emissions was very positive, with 100% growth from 2017. They amounted to COP 1.1 trillion issued on the Exchange through the main market with three issuances that had a AAA rating and an over-demand of 2.4 times, confirming the appetite of investors in the Colombian market for this kind of sustainable investment instrument. Bancoldex continues to be the most committed issuer to the issuance of green securities. In 2018, it made two issuances, one of a social bond and one of an orange bond, for a total of COP 800,000 million and a demand of 2.6 times. We had the company of the President of Colombia, Iván Duque, the auction day of the first orange bond. In 2018, Bancolombia also made an issuance of a green bond for COP 300,000 million with a demand of 1.9 times.

 

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  • The local market has two sustainability indices, which were also affected by the dynamics of international markets. The IR COLIR recognition index, which is comprised of 32 companies, decreased 12.2% YoY in 2018. However, it was the index on the Colombian market with the smallest reduction in its profitability. In the Integrated Latin American Market (MILA, for the Spanish original), the Dow Jones Sustainability MILA Pacific Alliance Index ended 2018 with a reduction of 13.3% YoY. This index is comprised of 40 companies of the MILA markets and Colombia is represented by 11 companies.

 

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  • March: On March 8, 2018, bvc joined the global UN gender equality initiative again and together with the IFC and UN Women, it opened the market with the “Ring the Bell for Gender Equality”, which highlighted the leadership of women in the private sector as the engine for sustainable development, renewing the Exchange’s commitment to the all-round development of women in Colombian society.

  • April: Together with GRI, PRI and the Embassy of Switzerland, bvc held the first Colombian Responsible Investment Session, which invited investors and issuers to consider environmental, social and governance factors more when making investment decisions, using practical cases. Experts from GRI, RobecoSAM, PRI and the Carbon Disclosure Project participated in the event. Also in April, bvc participated in the sustainability seminar of Bancoldex and Universidad del Rosario, which focused on giving journalists a better understanding of the sustainability issues that are occurring locally and globally.

  • November: bvc participated in the 5th Sustainable and Responsible Investment Event, which brought together leaders and experts to explore key topics for the consolidation of the responsible investment agenda in Latin America. The event had the participation of experts from Itaú, Barclays, HPL Sustainable Finance, GRI and 2°Degrees Investing Initiative. In turn, taking into account the regulatory changes in Colombia in terms of infrastructure and renewable energy, with the support of the IDB, bvc held another large event on Investment in Sustainable Infrastructure in Colombia.

 

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  • As part of its commitment to best standards of information disclosure, investor relations and sustainability, through its IR Recognition program, bvc ended 2018 with 32 listed companies that voluntarily have the best reporting standards on the Colombian market. Twenty-seven companies, including bvc as an issuer, reported on sustainability under the Global Reporting Initiative (GRI) standard. As an example of the Exchange’s commitment to sustainability, bvc has also written its integrated report in compliance with the new GRI standard since 2017.

 

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  • A very important area in which bvc started to work in the last quarter of 2018 with local investors was the promotion of using ESG criteria for making investment decisions. Therefore, it started a series of training sessions focused on this stakeholder and together with PRI and GRI, it held two workshops on Principles for Responsible Investment in October, and another training on How to Understand Sustainability and its Main Trends in November. In 2019, bvc will keep implementing training on sustainability for investment analysts of the brokers and participants in the local market.

 

 

Voluntarily, bvc is a signatory of the UN Global Compact initiative since 2012 and it keeps reaffirming its commitment, sending its fifth annual progress report as part of the integrated report under the GRI Standard. The Exchange is also part of the Sustainable Stock Exchanges Initiative (SSE) since 2014 and participates in the Sustainability Working Group of the World Federation of Exchanges (WFE) since 2015.

Since 2011, through Fondo Inversor, bvc has been making investments in companies that help to resolve different social and environmental challenges in Colombia and that have profitable and sustainable business models, generating a positive impact on the communities where they operate. Regarding its commitment to labor rights, the Exchange has focused on the professional development of its employees as strategic capital in the Colombian financial industry. Finally, in the anti-corruption principle, bvc has a Good Governance Code, an Ethics and Conduct Manual, and a strong Internal Control System to minimize and control any risk of fraud or corruption.