RESPONSIBLE FINANCE
LARGE COMPANIES AND PROJECT FINANCE
Breakdown of projects analysed according
to the Equator Principles, by type of product
Conveyance of
credit rights
2%
Advisory
services
7%
Scope: BBVA Group
Peru, pioneers in risk management thanks to the Environmental Risk Management Unit
BBVA Banco Continental is a pioneer in the Peruvian market through the drafting of a social and environmental risk management policy,
as well as through the development of a social and environmental risk management system as the main tool for its implementation.
The Bank has extended the expertise and best practices in environmental issues related to its operations, as well as capitalising
on the opportunities presented by new emerging environmental markets, with the incentive being an environmental credit line
received from the International Finance Corporation (BBVA Banco Continental is the only bank in Latin America to have been
granted a finance line of this nature by the IFC, for US$ 30m). In March 2007 it created the Environmental Risk Management
Sub-unit, within the CBB Credit Risk Unit in the Risk Area; likewise, in May 2007 it approved its Environmental Risk Management
Policy. Since then it has developed a series of measures and procedures for identifying, assessing and managing the social and
environmental risks of the investment projects it finances.
One of the measures our bank has introduced is the inclusion of environmental commitment clauses in all business loan
agreements, and the process is now under way in the drafting of financial leasing contracts. In turn, these clauses have also been
applied to our approved suppliers.
The Handbook on Social and Environmental Risk Management was issued in 2008. It covers both Environmental Risk Policy and
the procedure and methodology for assessing Environmental Risk. In addition, the Green Portfolio Handbook was drafted with a
detailed explanation of both its content and of the procedure to be followed for including an operation within this portfolio that
promotes the financing of environmentally-friendly projects.
One important aspect of the Social and Environmental Risk Management System is the plan for internal coaching and awareness
involving both risk analysts and the heads and managers of the branch network. A total of 284 people have taken part in this
scheme in 2008, with an overall figure of 407 hours/person.
In addition, over the past two years bank staff have been involved in the workshop “Environmental Management for the Financial
Sector” organised by the Inter-American Investment Corporation (IIC-IDB), and we have also taken part in e-learning
programmes on Environmental & Social Risk Analysis (ESRA) and on Eco-efficiency, both sponsored by the UNEP FI in partnership
with INCAE and INWENT.
BUSINESS OPPORTUNITIES IN PERU
At BBVA Banco Continental we are aware that just as social and environmental impacts can have a bearing on the risk profile
and profitability of projects and companies, they also create a series of opportunities for new businesses in those segments
involved in new emerging environmental markets.
Our bank fosters the development of the Green Portfolio, which comprises those operations that are environmentally-friendly. In
2008, the Bank has managed this portfolio with funds from the environmental credit line provided by IFC, as well as with its own
resources, whereby it has drawn up a procedure that allows quantifying the environmental benefits each product provides,
mainly in the reduction of CO 2 (carbon dioxide), one of the main greenhouse gases.
In 2008, the Bank’s Green Portfolio amounted to $86.8m. We have financed $78m in the corporate segment, for projects in
energy efficiency, renewables (hydroelectric) and the changeover to natural gas, which will mean a reduction of 496,000 tonnes
of CO 2 emissions per year. In addition, we have financed $8.8m in the consumer segment, through the financing of vehicles
powered by natural gas within the programme Mi Taxi, a product that targets the base of the pyramid and which contributes to
the national goal of overhauling the country’s energy matrix. Mi Taxi lending has risen sharply over the past year, from 69 to 818
loans, making our bank a market leader.
Syndicated loans
2%
Bridging Loans
5%
Project finance
84%
SUPPLEMENTARY INFORMATION CRR 2008
Corporate Responsibility Report 2008
17
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