Reporting – Bancolombia S.A. (2020)

Adoption Date:11 December 2008
Country of Headquarters:Colombia
Region of Headquarters:Latin America
Institutional Reporting Hyperlink:Environmental and social risk management report 2020
Current EPFI Reporting Year/Period:2020
EPFI Reporting in Compliance:Yes

Please read the important notes and disclaimer for further information on ‘EPFI Reporting’, compliance and publication on the Equator Principles Association website.

Further information on this EPFI may be obtained through the Institutional Reporting Hyperlink above.


Total number mandated in the reporting period: 0


Total number that reached financial close in the reporting period: 5

SectorCategory ACategory BCategory C
Oil & Gas
RegionCategory ACategory BCategory C
Europe, Middle East & Africa
Asia Pacific
Country DesignationCategory ACategory BCategory C
Independent ReviewCategory ACategory BCategory C

1Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment. For the list of Designated Countries, go to:


No.Project NameSector Host Country Name/ Project LocationYear of Financial Close
1Alejandría Hydroelectric Power PlantPowerColombia2020
2RENACE IV Hydroelectric Power PlantPowerGuatemala2020
3Vías del Nús – VINUSInfrastructureColombia2020
4Plantation and commercialization of hass avocadoOthersColombia2020
5Industrial production of plastic fabricsOthersCosta Rica2020


Total number that reached financial close in the reporting period: 0


Bancolombia, committed to responsible and sustainable financing, has adopted the Equator Principles of the World Bank and the Performance Standards of the International Financial Corporation – IFC, as applied standards for the identification, evaluation and management of environmental and social risks and impacts, implicit in the operations and projects it finances. Its scope of application is the evaluation and management concerning the environment and natural resources, climate change, community health and safety, ethnic minorities, human rights and occupational and industrial safety.

Bancolombia adjusted its Environmental and Social Risk policies and processes to align with the third version of the Equator Principles and its entire application framework. However, it is currently updating its internal policies and processes for the implementation of the fourth version; approved by its members in November 2019. The update is based mostly on the evaluation of Climate Change, Human Rights, Transparency, Corporate and Government Ethics, both in ordinary projects and operations as in Project Finance, Corporate Credits, Credits Bridge and Financial Advisors, in Business and Government Banking, SME Banking, Investment Banking, Leasing operations and receipt of guarantees and settlement payments, preventing the risks associated with environmental liabilities in real estate where environmental impact-sensitive activities are developed.

The criteria, standards, risk categorization parameters and structuring of environmental and social covenants, are defined in each assessment, trough means generated by the Equator Principles and the Performance Standards, adjusted to the needs of Bancolombia, local regulations and the region.

For those operations that require it, the Risks Vice Presidency may present the evaluation of a project or activity before the Environmental Committee of the Bancolombia, consisting of the risk, legal, commercial, sustainability, communications teams and other stakeholders for the final decision, determine the feasibility, result, qualification and procedure to be carried out.

Regarding the analysis of environmental and social risks, the scope of Corporate Banking is maintained, reducing the amount required for the environmental and social risk assessment, for operations over US $ 2,300,000 and emphasizing the sectors: (i) Mining ; (ii) Power; (iii) Tanneries; (iv) Cement; (v) Oil and gas; (vi) Steelmakers and foundries; (vii) Chemicals and Agrochemicals; (viii) Oil Palm. In the same way, these sectors apply to financial operations of the SME Bank and Leasing products.

They are also considered different productive sectors from those mentioned and that also have the potential to present environmental and social risks and that may affect the payment of credit. These sectors are also subject to authorizations, approvals, licenses, and environmental permits from local and national authorities. Some of these sectors are: (i) Basic Sanitation (sewerage and waste landfill); (ii) Transportation and storage of hazardous substances; (iii) Food sector; (iv) Animal feed production plants; (v) Sugar mills (vi) Animal slaughter plants and animal farms for commercial purposes; (vii) Road, airport and port infrastructure; (viii) Poultry and pig farming; (ix) Apparel and textile plants; (x) Forestry activities; (xi) Fishing and tuna; and (xii) Glass plants. For the previous sectors, environmental and social risk assessments are carried out at the request of the commercial areas, approval entities, credit risk areas, legal areas, assets, compliance, customer engagement and sustainability.ÁLISIS+DE+RIESGOS+AMBIENTALES+Y+SOCIALES+–+GESTIÓN+2019.pdf?MOD=AJPERES&CVID=nB2GCgI