Colombia – SBFN Tool

SBFN Member Since:

2013

Member Organisations

Asobancaria (Banking Association of Colombia)

Superintendencia Financiera de Colombia (SFC)

Download Country Progress Report

2019 Comparison

2021 Comparison

Progress Against sub Pillars

Framework Documents

Ref	Country	Policies/ Principles/ Guidelines	Year	Issuer
50	Colombia	Best Practices for the Management of Investments of the Administrators of the General Pension System	2021	Financial Superintendence of Colombia (SFC)
51	Colombia	External Circular 028 (Spanish)	2020	Financial Superintendence of Colombia (SFC)
52	Colombia	Climate Change – Policies to Manage its Macroeconomic and Financial Effects	2020	Central Bank of Colombia (Banco de la Republica)
53	Colombia	Recommendations and Guidelines for the Issuance of Green Bonds (English)	2020	Financial Superintendence of Colombia (SFC)
53,1	Colombia	Recommendations and Guidelines for the Issuance of Green Bonds (Spanish)	2020	Financial Superintendence of Colombia (SFC)
54	Colombia	Guide for the Preparation of ESG Reports for Issuers in Colombia (English)	2020	Financial Superintendence of Colombia (SFC)
54,1	Colombia	Guide for the Preparation of ESG Reports for Issuers in Colombia (Spanish)	2020	Financial Superintendence of Colombia (SFC)
55	Colombia	Risks and Opportunities of Climate Change (English)	2019	Financial Superintendence of Colombia (SFC)
55,1	Colombia	Risks and Opportunities of Climate Change (Spanish)	2019	Financial Superintendence of Colombia (SFC)
56	Colombia	Roadmap of Actions to Launch a Green Bond Market (English)	2017	E3 and Metrix Finanzas
56,1	Colombia	Roadmap of Actions to Launch a Green Bond Market (Spanish)	2017	E3 and Metrix Finanzas
57	Colombia	General Guidelines for the Implementation of E&S Risk Analysis	2016	Asobancaria
58	Colombia	Protocolo Verde (English)	2012	Asobancaria
58,1	Colombia	Protocolo Verde (Spanish)	2012	Asobancaria

Pillar 1 - ESG Integration - Strategic Alignment

National Framework

P 1.1 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration of environmental, social, and governance (ESG) risks and performance?

Yes

Source Reference Detail

–

Source Reference Document

Protocole VerdeNational Strategy or Roadmap with timelines and goals: “Riesgos y oportunidades del cambio climático” National corporate governance code: “Código País”

Source Reference Description

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P 1.2 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration of environmental, social, and governance (ESG) risks and performance?

Yes

Source Reference Detail

–

Source Reference Document

Regulator/supervisor guidance (not mandatory) “Buenas pácticas de gestión de inversiones”National Strategy or Roadmap with timelines and goals: “Riesgos y oportunidades del cambio climático” National corporate governance code: “Código País”

Source Reference Description

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Pillar 1 - ESG Integration - Strategic Alignment

Alignment with International Goals & Standards

P 1.3 – Does the Framework make reference to international sustainable development frameworks or goals?

Yes

Source Reference Detail

–

Source Reference Document

National Strategy or Roadmap with timelines and goals: “Riesgos y oportunidades del cambio climático”

Source Reference Description

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P 1.4 – Does the Framework make reference to established international ESG risk management standards and principles for FIs??

Yes

Source Reference Detail

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Source Reference Document

Protocolo verde (Asobancaria, 2012), General Features – Reference standards & General Guidelines for the implementation of E&S risk analysis (Asobancaria, 2016), Normas de Desempeno de la IFC sobre sostenibilidad Ambiental y Social

Source Reference Description

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Pillar 1 - ESG Integration - Strategic Alignment

Alignment with national goals & strategies

P 1.5 – Does the Framework make reference to specific national development objectives, plans, policies, goals, or targets?

Yes

Source Reference Detail

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Source Reference Document

National Strategy or Roadmap with timelines and goals: “Riesgos y oportunidades del cambio climático”

Source Reference Description

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P 1.6 – Does any cooperation exist between agencies or between the regulator and industry association with respect to policy design and/or implementation related to ESG integration?

Yes

Source Reference Detail

–

Source Reference Document

Protocolo verde (Asobancaria, 2012), Agreement & General Features – Reference standards

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P 1.7 – Does any inter-agency data sharing currently exist related to ESG integration by FIs?

Source Reference Detail

–

Source Reference Document

Asobancaria publish the Sustainability Report yealy, where 32 FI report to Asobancaria their information about the advance in their ESG strategys.

Source Reference Description

Asobancaria Sustainability Report (2019)

Pillar 1 - ESG Integration - Regulatory and Industry Association Actions

Overall Approach & Strategy

P 1.8 – Does the Framework provide guidance on the role of the regulator or industry association with regard to assessing and managing ESG risk and performance in the financial sector?

Yes

Source Reference Detail

At SFC positions on Climate called “Riesgos y oportunidades del Cambio Climatico” (SFC, 2019), the SFC establishes its approach to Cliamte risk and opportunities and outlines the first 4 initiatives that the SFC is going to pursue from a Superviusory perspective.

Source Reference Document

National Strategy or Roadmap with timelines and goals: “Riesgos y oportunidades del cambio climático”

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P 1.9 – Has the regulator or industry association undertaken market assessment to identify systemic ESG risks through analysis of the portfolios of supervised entities/members and published the results?

Source Reference Detail

–

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–

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Pillar 1 - ESG Integration - Regulatory and Industry Association Actions

Technical Guidance

P 1.10 – Does the Framework provide technical guidance or tools to support implementation of ESG risk and performance management by the financial sector?

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–

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–

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Pillar 1 - ESG Integration - Regulatory and Industry Association Actions

Supervisory Activities & incentives

P 1.11 – Is the implementation of the Framework regularly monitored and/or information regularly collected from FIs by the regulator and/or industry association?

Yes

Source Reference Detail

For ESG integration in Banks, Asobancaria collects information on a yearly basis and published the results in its Sustainabiltiy Report. The SFC has the biennal survey on Climate Risks and Opportunities.For EsG integration in capital markets, we have the survey “risks and opportunities from climate change”.

Source Reference Document

Asobancaria Sustainability Report (2019)National Strategy or Roadmap with timelines and goals: “Riesgos y oportunidades del cambio climático”

Source Reference Description

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P 1.12 – Does the regulator or industry association provide any financial or non-financial incentives for FIs to manage ESG performance as part of the Framework?

Yes

Source Reference Detail

The Document published by the Comité de Gestión Financiera “Roadmap for Setting a Green Bond Market in Colombia”, pg24, states that “Environmental regulations provide broad and suffcient incentives; although some are not yet regulated, these are indeed suitable to promote green investment.”

Source Reference Document

“Roadmap for Setting a Green Bond Market in Colombia”, pg24, Comité de Gestión Financiera

Source Reference Description

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P 1.13 – Does the regulator or industry association apply any disincentives/penalties for non-compliance by FIs in terms of expectations from the regulator and/or industry association related to ESG risk management as part of the Framework?

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–

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–

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Pillar 1 - ESG Integration - Regulatory and Industry Association Actions

Tracking & Aggregated Disclosure

P 1.14 – Has the regulator or industry association established a data collection approach and database to track or regularly publish data related to ESG integration by FIs as part of the Framework?

Yes

Source Reference Detail

For ESRM, See 2019 reference.For ESG, The “Documento mejores practicas de inversiones” under the ” Investment principles” and “Corporate Governance” sections, includes reference to the role the Board and Invetsment and Risk comittees have in relation to responsibilities within the organization.

Source Reference Document

Asobancaria Sustainability Report (2019)National Strategy or Roadmap with timelines and goals: “Riesgos y oportunidades del cambio climático”

Source Reference Description

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Pillar 1 - ESG Integration - Expectations of FI Actions

Strategy & Governance

P 1.15 – Does the Framework require/ask the FI’s board of directors (or highest governing body) to approve an ESRM and/or ESG integration strategy, and to supervise its implementation?

Yes

Source Reference Detail

Source Reference Document

General Guidelines for the implementation of E&S risk analysis (Asobancaria, 2016), CONSIDERACIONES DE POLÍTICA Y GOBIERNO CORPORATIVO

Source Reference Description

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Pillar 1 - ESG Integration - Expectations of FI Actions

Organizational Structure & Capacity Building

P 1.16 – Does the Framework require/ask FIs to allocate resources/budget commensurate with portfolio ESG risks and define roles and responsibilities for ESG integration within the organization?

Yes

Source Reference Detail

Source Reference Document

General Guidelines for the implementation of E&S risk analysis (Asobancaria, 2016), Estructura Requerida

Source Reference Description

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P 1.17 – Does the Framework require/ask FIs to develop and maintain the ESG expertise and capacity of staff commensurate with portfolio ESG risks through regular training and learning?

Yes

Source Reference Detail

For ESRM, see 2019 reference.

Source Reference Document

Protocolo verde (Asobancaria, 2012), Disclosure – A) General guidelines for the implementation of E&S risk analysis – page 29 – Plan de formacion y capacitacion

Source Reference Description

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P 1.18 – Does the Framework require/ask FIs to create incentives for managers to reduce the ESG risk-level of the portfolio over a specified timeframe?

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–

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–

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Pillar 1 - ESG Integration - Expectations of FI Actions

Policies & Procedures

P 1.19 – Does the Framework require/ask FIs to develop policies and procedures to identify, classify, measure, monitor, and manage ESG risks and performance throughout the financing cycle at the client level and/or the transaction/project level?

Yes

Source Reference Detail

For ESRM, See 2019 reference.For ESG, there are 2 documents. The first one is the “Documento mejores prácticas de inversiones”, where we mention the need for institutional investors to “integrate ESG as risk factors”, where integration is understood as the explicit and systematic inclusion of ESG issues in investment analysis and investment decisions. In the annex we do make reference that for voluntario pension finds, for example, the investment manager can use and mix different ESG strategies, including exclusion list and abest in class.

Source Reference Document

Protocolo verde (Asobancaria, 2012), Strategy n°3 – A)

Source Reference Description

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P 1.20 – Does the Framework require/ask FIs to undertake a regular review and monitoring of ESG risk exposure at aggregate portfolio level?

Yes

Source Reference Detail

For ESG, The “Documento mejores practicas de inversiones” under the ” Investment principles” section, you will find reference to need to monitir and review the ESG policy. We do not specify specific frequency. It is said that it needs to be done regularly.

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–

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P 1.21 – Does the Framework require/ask FIs to establish and maintain an external inquiry/complaints/grievance mechanism for interested and affected stakeholders in relation to ESG practices?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 1 - ESG Integration - Expectations of FI Actions

Tracking, Reporting & Disclosure

P 1.22 – Does the Framework require/ask FIs to report ESG risks and performance to the regulator or industry association?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

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P 1.23 – Does the Framework require/ask FIs to report on ESG integration publicly?

Yes

Source Reference Detail

For ESG, The “Documento mejores practicas de inversiones” the “Divulgación” section is dedicated to outline the best practicies on diclosure, including ESG integration disclosure.

Source Reference Document

Protocolo verde (Asobancaria, 2012), Disclosure – D)

Source Reference Description

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P 1.24 – Does the Framework require/ask FIs to track credit risk (e.g. loan defaults) and/or financial returns in relation to ESG risk level?

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–

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–

Source Reference Description

–

Pillar 2 - Climate Risk Management - Strategic Alignment

National Framework

P 2.25 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy?

Yes

Source Reference Detail

The CRM Framework includes: SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”) regulatory position statement on climate risk and opportunity. “SFC made the decision to incorporate the management of climate risk and the promotion of finances in its strategic objectives.” Planned issuance by SFC of regulatory guidelines in 2021 on Governance and Climate Risk Management and Guidance on Climate-related Financial Risk Disclosure in 2021 for financial insitutions.SFC has issued BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”) including management of ESG and climate risk in the pension sector. Planned update to the Green Protocol (Protocole Verde) to include climate risks.

Source Reference Document

SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”)SFC BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”)

Source Reference Description

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P 2.26 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy?

Yes

Source Reference Detail

Source Reference Document

BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”).

Source Reference Description

Pillar 2 - Climate Risk Management - Strategic Alignment

Alignment with International Goals & Standards

P 2.27 – Does the Framework make reference to international agreements or frameworks to address climate?

Yes

Source Reference Detail

SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”) regulatory position statement on climate risk and opportunity. Page 9 “Impact of Climate Change in Columbia” references Paris Agreement.

Source Reference Document

SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”)

Source Reference Description

P 2.28 – Does the Framework recognize or align with established regional or international good practice for climate risk management and disclosure by FIs?

Yes

Source Reference Detail

SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”) regulatory position statement on climate risk and opportunity. TCFD is cited on Page 8. Planned issuance by SFC of regulatory guidelines in 2021 on Governance and Climate Risk Management and Guidance on Climate-related Financial Risk Disclosure in 2021. TCFD is cited in these draft documents (WB DRAFT_Guidance on climate governance and risk management_Mar2021, Page 2). SFC has issued BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”) including management of ESG and climate risk in the pension sector. Annex 3 Materiality references the TCFD.

Source Reference Document

“Documento mejores practicas de inversiones”SFC Climate Risks and Opportunities (“Riesgos y oportunidades del Cambio Climatico”) SFC regulatory guidelines on Governance and Climate Risk ManagementGuidance on Climate-related Financial Risk Disclosure

Source Reference Description

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Pillar 2 - Climate Risk Management - Strategic Alignment

Alignment with National Goals & Strategies

P 2.29 – Has the regulator or industry association aligned the Framework with national goals to address climate change in line with the country’s Nationally Determined Contributions (NDCs) to the Paris Agreement?

Yes

Source Reference Detail

SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”) regulatory position statement on climate risk and opportunity. Paris Agreement is cited in the Introduction and on Page 9 “Impact of Climate Change in Columbia” cites the Nationally Determined Contirbution (NDC).

Source Reference Document

SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”) “Impact of Climate Change in Columbia” (page 9)

Source Reference Description

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P 2.30 – Does any cooperation exist between agencies, or between government and industry association, with respect to policy design or implementation related to climate risk management?

Yes

Source Reference Detail

SFC Sustainable Finance Committee (Resolucion 0442) (“SF WOrking Group”). Comité de Gestión Financiera del SISCLIMA, Task Force de Inversiópn Responsable and Protocolo Verde includes the participation of Ministerio de Ambiente y Desarrollo Sostenible and Departamento Nacional de Planeaciòn, two of the most important Colombian goverment entities.

Source Reference Document

SFC Sustainable Finance Committee (Resolucion 0442)Comité de Gestión Financiera del SISCLIMATask Force de Inversiópn Responsable Protocolo Verde

Source Reference Description

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P 2.31 – Does any inter-agency data sharing currently exist related to climate risk management by FIs?

Yes

Source Reference Detail

SFC confirms data sharing between the Central Bank – Banco de la Republica and the SFC for climate stress testing. In addition, the National Planning Dept (DNP), SFC, and Banco de la Repuplica collaborated with the CLimate Policy Initiative including data sharing for the transition risk scenarios for Colombia.

Source Reference Document

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Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions

Overall Approach & Strategy

P 2.32 – Has the regulator or industry association undertaken research on historical impacts to the economy and financial sector from climate change, and/or future expected impacts resulting from physical and transition climate risks?

Yes

Source Reference Detail

The National Planning Dept (DNP) is developing “”Options for Colombia’s mid-century deep decarbonization strategy” and analysis on for climate stress testing. SFC developed a Climate Vulnerability Analysis with the World Bank. SFC collaborated with Carbon Policy Initiative (CPI) analysis of climate transition risk in Colombia (not yet published). Government of Colombia and SFC use MEG4C modeling tool to estimate the changes in macroeconomic variables (specifically GDP and employment, but potentially some others as well) as a result of climate scenarios, compared to a baseline due to transition risks (i.e., increase in carbon prices).

Source Reference Document

CVA Colombia – VULNERABILITY ANALYSIS pilot model.pdf[63]) “Options for Colombia’s mid-century deep decarbonization strategy” 2. (in development) CPI´s analysis of climate transition risk in Colombia (not yet published)

Source Reference Description

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P 2.33 -Does the Framework identify key sources of GHG emissions – such as in particular sectors – as priorities in the proactive management of climate risks by the financial sector?

Yes

Source Reference Detail

SFC developed a Climate Vulnerability Analysis with the World Bank which discusses direct sectoral GHG emissions (CO2 equivalent) in 2014 (slide 20 of Vulnerability Analysis Summary) including agriculture, livestock raising, energy production, and transportation. The Colombian Central Bank published Climate change: policies to manage its macroeconomic and financial effects which mentions key sectors for GHG emssions, including as related to carbon sinks (sequestration) in forestry and agriculture.

Source Reference Document

Climate Change – Policies to Manage its Macroeconomic and Financial Effects

Source Reference Description

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P 2.34 – Does the Framework incorporate the conservation/restoration of natural carbon sinks (such as oceans, forests, mangroves, grasslands, and soils) as an important part of reducing climate change risks? (e.g., through guidelines, scenario analysis, targets, or incentives for FIs)

Yes

Source Reference Detail

Source Reference Document

Climate Change – Policies to Manage its Macroeconomic and Financial Effects

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P 2.35 – Has the regulator or industry association developed an internal strategy to address climate risk, and/or embedded climate risk management into its governance, organizational structures, and budget as part of the Framework?

Yes

Source Reference Detail

SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”) regulatory position statement on climate risk and opportunity. SFC Sustainable Finance Committee (Resolucion 0442) (“SF Working Group”). Comité de Gestión Financiera del SISCLIMA, Task Force de Inversiópn Responsable and Protocolo Verde created the Grupo de Finanzas Sostenibles in charge, among other things, of the strategy development and implementation regarding sustainalbe finance.

Source Reference Document

SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”) SFC Sustainable Finance Committee (Resolucion 0442) (“SF Working Group”)Comité de Gestión Financiera del SISCLIMA,

Source Reference Description

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P 2.36 – Has the regulator or industry association undertaken any activities to expand and deepen analytical understanding of national and/or cross-border physical and transition climate risks, and to raise awareness as to how these risks may transmit to, and impact, the financial sector?

Yes

Source Reference Detail

SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”) regulatory position statement on climate risk and opportunity, and includes a survey component to deepen understanding of financial sector’s awareness on climate risks. SFC Sustainable Finance Committee (Resolucion 0442) (“SF Working Group”). Comité de Gestión Financiera del SISCLIMA, in charge of developing reaserch related to green finance, ESG and climate risks. SFC developed a Climate Vulnerability Analysis with the World Bank Identified data needs specifically credit portafolio data by sector by geo location.

Source Reference Document

SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”) SFC Sustainable Finance Committee (Resolucion 0442) (“SF Working Group”). Comité de Gestión Financiera del SISCLIMA, Climate Vulnerability Analysis with the World Bank

Source Reference Description

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Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions

Technical Guidance

P 2.37 – Has the regulator or industry association developed risk assessment approaches, methodologies, or tools to understand and assess the financial sector’s exposure to climate risk as part of the Framework?

Yes

Source Reference Detail

SFC has completed a Climate Vulnerability Analysis with the World Bank, a sectoral level climate risk exposure exercise to inform the development of further technical guidance. Further guidance is in development, including SFC’s regulatory guidance on climate risk management for financial insitutions, and Asobancaria’s SARAS guide, which is being updated for climate risk assessment. SFC also partnered with the 2 Degrees Investing Initiative to undertake climate stress testing of pension portfolios (stress test and portfolio analysis for pension (Movilizado datos publicos para el evaluacion de lose rigelos relacionadoscon el cambio climatico).

Source Reference Document

SFC Climate Vulnerability Analysis with the World BankSFC regulatory guidance on climate risk management for finanacial institutions (in development)Asobancaria SARAS guide

Source Reference Description

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Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions

Supervisory Activities & Incentives

P 2.38 – As part of the Framework, has the regulator clarified supervisory expectations with regard to climate risk management by FIs, including consideration of international good practices?

Yes

Source Reference Detail

SFC has issued BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”) including management of ESG and climate risk in the pension sector, which provide supervisory expectations for institutions including asset owners / managers (including pensions and insurance). Planned issuance by SFC of regulatory guidelines in 2021 on Governance and Climate Risk Management and Guidance on Climate-related Financial Risk Disclosure in 2021 for financial insitutions.

Source Reference Document

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P 2.39 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?

Yes

Source Reference Detail

SFC has issued BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”) including management of ESG and climate risk in the pension sector. Implementation of this guidance constitutes preliminary actions to begin embedding supervisory practices at SFC. Planned issuance by SFC of regulatory guidelines in 2021 on Governance and Climate Risk Management and Guidance on Climate-related Financial Risk Disclosure in 2021 for financial institutions will also constitute preliminary actions to begin embedding supervisory practices at SFC.

Source Reference Document

–

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P 2.40 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?

Yes

Source Reference Detail

SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”) regulatory position statement on climate risk and opportunity, and includes a survey component to deepen understanding of financial sector’s awareness and practices on climate risks. The latest survey was in 2021.SFC has issued BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”) including management of ESG and climate risk in the pension sector, and implementation of this guidance is monitored by SFC as part of public reporting requirements in Section 3.1.

Source Reference Document

SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”)BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”)

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P 2.41 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?

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–

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–

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Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions

Tracking & Aggregated Disclosure

P 2.42 – Does the regulator or industry association regularly collect and/or report market-level and/or FI-level data on climate-related financial sector risks as part of the Framework?

Yes

Source Reference Detail

SFC Climate Risks and Opportunities (2019) (“Riesgos y oportunidades del Cambio Climatico”) regulatory position statement on climate risk and opportunity, and includes a survey component to deepen understanding of financial sector’s awareness and practices on climate risks. The latest survey was in 2021. SFC has issued BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”) including management of ESG and climate risk in the pension sector, and implementation of this guidance is monitored by SFC as part of public reporting requirements in Section 3.1. Asobancaria’s annual Sustainability Report includes information about the performance and evolution of financial institution climate strategies.

Source Reference Document

Source Reference Description

Pillar 2 - Climate Risk Management - Expectations of FI Actions

Strategy & Governance

P 2.43 – Does the Framework require/ask FIs to establish a strategy for climate risk management with responsibility at the board of director level (or highest governing body)?

Yes

Source Reference Detail

SFC has issued BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”) including management of ESG and climate risk in the pension sector. Strategy and governance related to climate risk and ESG is discussed in Sections 1 Strategy and Asset Allocation (Including sections 1.1 on investment principles, and Section 1.2 on Risk Principles) and Section 1.3 Corporate Governance. Planned issuance by SFC of regulatory guidelines in 2021 on Governance and Climate Risk Management and Guidance on Climate-related Financial Risk Disclosure in 2021 for financial institutions will address strategy and governance of climate risks.

Source Reference Document

BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”) SFC regulatory guidelines on Governance and Climate Risk Management (2021 – in development) Guidance on Climate-related Financial Risk Disclosure for financial insitutions (2021 – in development)

Source Reference Description

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Pillar 2 - Climate Risk Management - Expectations of FI Actions

Organizational Structure & Capacity Building

P 2.44 – Does the Framework require/ask FIs to define the roles and responsibilities and related capacities of the FI’s senior management and operational staff in identifying, assessing, and managing climate-related financial risks and opportunities?

Yes

Source Reference Detail

SFC has issued BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”) including management of ESG and climate risk in the pension sector. Sections 1.1 Investment Principles and 1.2 Risk Principles includes climate-related physical and transition risks as ESG issues, and Section 1.3 establishes Board, Risk Committee, and Administrator responsibilities over these risks, including related to climate. Governance elements are also reflected in Section 2: on Asset Selection and Investment at the Administrator level, and Sections 2.1-2.3 on investment principles, risk management, and corporate governance address ESG issues including climate risk. Planned issuance by SFC of regulatory guidelines in 2021 on Governance and Climate Risk Management and Guidance on Climate-related Financial Risk Disclosure in 2021 for financial institutions will address strategy and governance of climate risks.

Source Reference Document

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Pillar 2 - Climate Risk Management - Expectations of FI Actions

Policies & Procedures

P 2.45 – Does the Framework require/ask FIs to expand existing risk management processes to identify, measure, monitor, and manage/mitigate financial risks from climate change?

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–

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Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions

Tracking, reporting & disclosure

P 2.46 – Does the Framework require/ask FIs to report on their overall approaches to climate risk management in line with international good practices (e.g., TCFD), or establish a timeline by which FIs should begin to align their reporting with such practices?

Source Reference Detail

–

Source Reference Document

–

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P 2.47 – Does the Framework require/ask FIs to identify, measure, and report on exposure to sectors which are vulnerable to transition risk and physical risk?

Yes

Source Reference Detail

SFC has issued BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”) including management of ESG and climate risk in the pension sector. Sections 1.1 Investment Principles calls for the integration of climate change into risk management, and the integration of climate-related physical and transition risks into stress tests. Section 3.1 – 3.3 on Principles of Public Disclosure refers to disclosure of exposure to climate risks. Planned issuance by SFC of regulatory guidelines in 2021 on Governance and Climate Risk Management and Guidance on Climate-related Financial Risk Disclosure in 2021 for financial institutions will address identification, management, and disclosure of climate risks.

Source Reference Document

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P 2.48 – Does the Framework require/ask FIs to adopt and report on performance targets to reduce portfolio greenhouse gas (GHG) emissions on a regular basis?

Source Reference Detail

SFC has issued BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”) including management of ESG and climate risk in the pension sector. Sections 1.1 Investment Principles calls for the integration of climate change into risk management, and the integration of climate-related physical and transition risks into stress tests. Section 3.1 – 3.3 on Principles of Public Disclosure refers to disclosure of exposure to climate risks, and as related to strategic goals established in the ESG/climate policy.Planned issuance by SFC of regulatory guidelines in 2021 on Governance and Climate Risk Management and Guidance on Climate-related Financial Risk Disclosure in 2021 for financial institutions will address identification, management, and disclosure of climate risks. Section D on Metrics and targets mentions GHGs and climate risk exposure.

Source Reference Document

Source Reference Description

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P 2.49 – Does the Framework require/ask FIs to adopt and report on performance targets to reduce exposure to climate change risks at the portfolio level on a regular basis?

Yes

Source Reference Detail

SFC has issued BEST PRACTICES FOR INVESTMENT MANAGEMENT OF GENERAL PENSION SYSTEM ADMINISTRATORS (“Documento mejores practicas de inversiones”) including management of ESG and climate risk in the pension sector. Sections 1.1 Investment Principles calls for the integration of climate change into risk management, and the integration of climate-related physical and transition risks into stress tests. Section 3.1 – 3.3 on Principles of Public Disclosure refers to disclosure of exposure to climate risks, and as related to strategic goals established in the ESG/climate policy.Planned issuance by SFC of regulatory guidelines in 2021 on Governance and Climate Risk Management and Guidance on Climate-related Financial Risk Disclosure in 2021 for financial institutions will address identification, management, and disclosure of climate risks. Section D on Metrics and targets mentions GHGs and climate risk exposure.

Source Reference Document

Source Reference Description

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Pillar 3 - Financing Sustainability - Strategic Alignment

National Framework

P 3.50 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy?

Yes

Source Reference Detail

–

Source Reference Document

Green Bond Guidance and RegulationAsobancaria Protocolo Verde

Source Reference Description

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P 3.51 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy

Yes

Source Reference Detail

–

Source Reference Document

Green Bond Guidance and Regulation

Source Reference Description

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Pillar 3 - Financing Sustainability - Strategic Alignment

Alignment with International Goals & Standards

P 3.52 – Has the regulator or industry association developed a strategy, regulations, or set of frameworks for stimulating the allocation of capital to sustainable assets, projects, and related sectors in line with global goals, such as the Sustainable Development Goals (SDGs)?

Yes

Source Reference Detail

The SFC developed Green Bond Guidance and Regulation (see previous answers) and is currently developing a Taxonomy. To see the taxonomy development workplan please got to: https://www.superfinanciera.gov.co/inicio/industrias-supervisadas/finanzas-sostenibles/taxonomia-10104719

Source Reference Document

Green Bond Guidance and RegulationTaxonomy Development Workplan (in development)

Source Reference Description

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P 3.53 – Does the Framework recognize and/or align with existing standards, voluntary principles, or market good practices related to sustainable finance instruments?

Yes

Source Reference Detail

–

Source Reference Document

Green Bond Guidance and RegulationRoadmap of actions to launch a Green Bond market in Colombia (E3 and Metrix Finanzas, 2017), 5.2.2 Segundo Objetivo: Definir inversión verde en Colombia con sus categorías y subcategorías.

Source Reference Description

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Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions

Alignment with national goals & strategies

P 3.54 – Does the Framework enable the achievement of stated national objectives by guiding capital to sectors, assets, and projects that have environmental and social benefits in line with national sustainable development priorities, strategies, targets, and the size of sustainable investment needs, and taking into account the local barriers to scaling-up sustainable finance?

Yes

Source Reference Detail

The SFC is currently developing a Taxonomy. To see the taxonomy development workplan please got to: https://www.superfinanciera.gov.co/inicio/industrias-supervisadas/finanzas-sostenibles/taxonomia-10104719

Source Reference Document

Taxonomy Development Workplan (in development)

Source Reference Description

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P 3.55 – Does the Framework enable the achievement of stated national objectives by guiding capital to sectors, assets, and projects that have environmental and social benefits in line with national sustainable development priorities, strategies, targets, and the size of sustainable investment needs, and taking into account the local barriers to scaling-up sustainable finance?

Source Reference Detail

–

Source Reference Document

Protocolo verde (Asobancaria, 2012), Agreement & General Features – Reference standards Task force de Inversión Responsable and Comité de Gestión Financiera del SISCLIMA.

Source Reference Description

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P 3.56 – Does any inter-agency data sharing currently exist related to stimulating and monitoring sustainable finance flows?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

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Pillar 3 - Financing Sustainability - Strategic Alignment

Overall Approach & Strategy

P 3.57 – Does the Framework require/ask the regulator or industry association to establish mechanisms to identify and encourage the allocation of capital to sustainable sectors, assets, and projects?

Yes

Source Reference Detail

–

Source Reference Document

Green Bond Guidance and Regulation

Source Reference Description

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Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions

Technical Guidance

P 3.58 – Does the Framework require/ask the regulator or industry association to establish mechanisms to identify and encourage the allocation of capital to sustainable sectors, assets, and projects?

Yes

Source Reference Detail

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Source Reference Document

Roadmap of actions to launch a Green Bond market in Colombia (E3 and Metrix Finanzas, 2017), 5.2.2 Segundo Objetivo: Definir inversión verde en Colombia con sus categorías y subcategorías. “Riesgos y oportunidades del cambio climático” Taxonomy Development Workplan (in development)

Source Reference Description

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P 3.59 – Does the Framework provide guidelines for extending green, social or sustainability-focused loans (excluding bonds)?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

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P 3.60 – Does the Framework provide guidelines for issuance of green, social or sustainability bonds?

Yes

Source Reference Detail

–

Source Reference Document

Green Bond Guidance and RegulationProtocolo verde (Asobancaria, 2012), Strategy 1 – A) & B)

Source Reference Description

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P 3.61 – Does the Framework require/ask for external party verification to ensure the credibility of sustainability instruments?

Yes

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

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Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions -

Supervisory activities & incentives

P 3.62 – Does the regulator or industry association monitor information reported by FIs related to green/social/sustainability investment, lending, and other instruments to prevent greenwashing and social-washing?

Source Reference Detail

–

Source Reference Document

Green Bond Guidance and Regulation

Source Reference Description

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P 3.63 – Are there any financial or non-financial incentives for FIs to develop and grow green, social, or sustainability finance instruments?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

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Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions -

Tracking & Aggregated Disclosure

P 3.64 – Does the regulator or industry association collect and/or publish data from FIs or other sources about allocation of capital to green/social/sustainability assets, projects, or sectors?

Yes

Source Reference Detail

–

Source Reference Document

Taxonomy Development Workplan (in development)

Source Reference Description

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Pillar 3 - Financing Sustainability - Expectations of FI Actions

Strategy & Governance

P 3.65 – Does the Framework require/ask FIs to establish a strategy, governance, or high-level targets, including at the Board of Directors level, for capital allocation to sustainable assets, projects, or sectors?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

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Pillar 3 - Financing Sustainability - Expectations of FI Actions

Organizational Structure & Capacity Building

P 3.66 – Does the Framework require/ask FIs to define internal staff roles and responsibilities to encourage finance flows to green, social, and/or sustainability-focused investments?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

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P 3.67 – Does the Framework require/ask FIs to develop and maintain internal staff capacity on green, social, or sustainability products through regular training and learning?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

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Pillar 3 - Financing Sustainability - Expectations of FI Actions

Policies & Procedures

P 3.68 – Does the Framework require/ask FIs to put in place policies and procedures for defining, issuing, managing proceeds, tracking performance, and reporting on green, social or sustainability-focused products?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

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P 3.69 – Does the Framework require/ask FIs to appoint an independent external reviewer to confirm that the FI’s internal framework meets the requirements of the recognized national framework and regulations, or aligns to international standards?

Yes

Source Reference Detail

–

Source Reference Document

Green Bond Guidance and Regulation

Source Reference Description

–

P 3.70 – Does the Framework require/ask that FIs create incentives for managers to increase sustainable loans or investments in the portfolio?

Source Reference Detail

Source Reference Document

–

Source Reference Description

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Pillar 3 - Financing Sustainability - Expectations of FI Actions

Tracking, reporting & disclosure

P 3.71 – Does the Framework require/ask FIs to publish annual updates on the performance and impacts of the sustainability instruments in compliance with relevant national and/or international standards?

Yes

Source Reference Detail

–

Source Reference Document

Green Bond Guidance and Regulation

Source Reference Description

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P 3.72 – Does the Framework require/ask FIs to obtain and disclose independent review of metrics reported annually in relation to the social and environmental outcomes and impacts achieved through the sustainability instruments?

Yes

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

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P 3.73 – Does the Framework require/ask FIs to obtain and disclose independent review of metrics reported annually in relation to the social and environmental outcomes and impacts achieved through the sustainability instruments?

Yes

Source Reference Detail

–

Source Reference Document

Green Bond Guidance and Regulation

Source Reference Description

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P 3.74 – Does the Framework require/ask FIs to report to the regulator(s) or industry association(s) on green, social, and/or sustainability bonds or other positive impact investments?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

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P 3.75 – Does the Framework require/ask FIs to report publicly on their green, social and sustainability-focused finance activities and positive outcomes or impacts (i.e. not only to the regulator or shareholders)?

Yes

Source Reference Detail

–

Source Reference Document

Green Bond Guidance and Regulation

Source Reference Description

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