Colombia

SFC issues External Circular 007/2021 on the Integration of ESG factors in Investment Policy for the Pension and Insurance sectors

SFC issues External Circular 008 2021 on the Integration of ESG factors in Voluntary Pension Funds

Asobancaria issues the "NetZero Calculator for meassuring financed emissions"

Asobancaria issues General Guidelines for the Management of Environmental and Social Risks (ARAS) derived from Deforestation

SFC issues a Technical Document on Climate Risks and Opportunities Management for the Insurance Sector

91 percent of banking assets covered by ESG integration requirements in the national sustainable finance framework

99.5 percent of banks report their ESG activities/performance regularly to SFC

80 percent of banks disclose their ESG risk management performance to the public

93 percent of banking assets covered by decarbonization plans, and 52 percent of banking assets have TCFD-aligned reporting

37 percent of banking assets have been subject to environmental/climate risk-related scenario analysis and/or stress testing

The Green Protocol is updated, covering the period 2022-2027, and includes all sustainability strategies: Climate, Environment, Social (including Financial Inclusion and Gender Equality), and Governance

SFC issues the Technical Paper on Climate Risk and Opportunity Management for Credit Institutions to provide clarity regarding the expectations of the SFC regarding financial risk management related to climate change by credit institutions and supervised development banks.

The Colombian Government, in collaboration with SFC, and with the support of IFC, the World Bank and SBFN, launches the Colombian Green Taxonomy, defining what types of projects are green, and SFC issues a Tool for Implementation of the Green Taxonomy by the financial sector

External Circular 008/2022 providing Instructions for the issuance of sustainability-linked bonds, and External Circular 020/2022 providing instructions for the issuance of green, social, sustainable and/or orange bonds

Asobancaria creates a Strategic Board of Sustainability to achieve the SDGs, in which presidents of the banks are responsible of defining the objectives and targets for four strategic pillars: 1. Financial education and inclusion, 2. Climate Change, 3. Diversity, Equity and Inclusion, 4. Corporate Governance for Sustainability

SFC issues its Green Finance and Climate Change Strategy, proposing a conceptual framework, strategy, objectives, and actions for greening the Colombian Financial System

The Government of Colombia issues a report on Gender and Climate Change for the elaboration of a self-assessment tool to facilitate the inclusion of the gender perspective in the financing processes for climate change in Colombia

Asobancaria develops a new committee targeting gender equality and social issues

The World Bank, with the support of SFC, publishes the report Not-So-Magical Realism: A Climate Stress Test of the Colombian Banking System

SFC collaborates with Two Degrees Investing Initiative on stress-testing and alignment analysis of pension funds

Asobancaria updates the General Guidelines for the Implementation of Environmental and Social Risks Analysis (ARAS), including Climate Risks, and launches a new Guideline for the implementation of TCFD

SFC issues External Circular 008/2021 and its Annex on the Integration of ESG factors in Voluntary Pension Funds

SFC issues External Circular 007/2021 and its Annex on the Integration of ESG factors in Investment Policy for the Pension and Insurance sectors

SFC creates the Sustainable Finance Working Group to implement SFC’s sustainability strategy, including a sustainable finance taxonomy, ESG integration by financial institutions, climate risk, and capacity building

SFC conducts survey to reveal risks and opportunities related to climate change for the broad financial sector

The Colombian Stock Exchange issues the Guide for the Preparation of ESG Reports for Issuers in Colombia

The SFC issues Circular 028 and its Annex: Instructions Related to the Issuance of Green Bonds on the Stock Market; and the Green Bond Guide. This circular was replaced in 2022 by External Circular 020.

91 percent of banking assets covered by ESG integration requirements in the national sustainable finance framework

99 percent of banks report their ESG activities/performance regularly to SFC

90 percent of banks report on overall climate risks and/or approach to managing climate risk

37 percent of banks undertake environmental/climate risk-related scenario analysis and/or stress testing

65 percent of banks have a decarbonization strategy, and 53 percent of banks have TCFD-aligned reporting

Total green bond issuance of $582 million

SFC conducts for the first time a survey to reveal risks and opportunities related to climate change for the broad financial sector

Asobancaria invites other financial associations to sign the Updated Green Protocol. The agreement is signed by Fasecolda (Insurance Guild), Asofondos (Pension Funds Association), Asomicrofinanzas (Microfinance Association), Asofiduciarias (Trust Companies Guild) and Colcapital (Private Capital Funds Association).

SFC joins SBFN

A Roadmap for Actions to Establish a Green Bonds Market in Colombia is developed by the National Planning Department to support the Financial Management Committee of the National Climate Change System (SISCLIMA)

Asobancaria publishes General Guidelines for the Implementation of Environmental and Social Risk Analysis

Asobancaria joins SBFN

Asobancaria launches Colombia’s Green Protocol