Our country faces significant environmental challenges, such as increased vulnerability to natural disasters (such as floods and droughts), water stress, urban pollution, loss of biodiversity, among others. All of these have a greater impact on Peruvians with fewer resources and, therefore, less capacity to recover. Therefore, in order to talk about sustainable and inclusive development in Peru, it is important to pay attention to environmental aspects.
As part of its sustainability strategy, the BCP has opted for the promotion of sustainable finance as a tool to accompany plans that enhance the socio-environmental impact of its clients.
So far in 2024, the bank has placed almost US$$1,000 million in green financing for investments that promote better environmental practices, maintaining as a premise the concept of just transition -which aims to seek the fulfillment of objectives, such as those of the Paris Agreement, without negatively impacting the most vulnerable populations-. In the case of BCP, the "green" category is granted when such investments meet the eligibility criteria established in the BCP Environmental Taxonomy, which are aligned with the main international standards. To date, the main sectors that have accessed this type of credit have been agriculture, fishing, energy and real estate. Likewise, there is greater demand for this type of credit and interest from other sectors in an environment in which corporate sustainability is developing at a faster pace.
Fiorella Rosell, ESG manager of Wholesale Banking at BCP, explains that the bank's support for this type of initiative is key, not only in its financial role but also in the extension of technical capabilities. On that basis, BCP has financed projects in non-conventional renewable energy, sustainable water management and circularity, but has also offered training spaces to its clients, such as the Sustainable Impact 2024 event held in June of this year. "We believe that the accompaniment, both financial and technical, of these initiatives is essential not only for the planet, but also for the socioeconomic development of the country," said Rosell.
The executive also explained that the benefits generated by sustainable investments for companies include the possibility of enhancing business competitiveness, reducing costs in the short, medium and long term, managing the organization's financial and non-financial risks, and fostering a better relationship between companies and their stakeholders. "At BCP we are proud to be strategic allies for the development of environmentally responsible businesses that contribute to building a more sustainable future," he added.
Beyond green credits.
Although the green loans promoted by BCP are among the most traditional sustainable financing instruments, the bank is actively working on the development of other financing instruments to support its clients in the implementation of their transition plans towards better socio-environmental practices.
Along these lines, BCP also recently granted its first Sustainability-linked loan (SLL) to Buenaventura, in the amount of US$$100 million. This financing, in the form of a committed revolving credit facility (RCF), is designed to encourage the mining company to meet its environmental and social objectives as part of its sustainability strategy. In this type of product, the financial conditions are linked to the fulfillment of environmental and social performance goals.
It has also participated in social loans for the construction of basic infrastructure (roads) to improve connectivity and access for the population.
BCP's goal is to become a strategic ally of its clients to face new business challenges that go beyond the generation of profitability, and thus contribute to the sustainable and inclusive development of Peru. The development of the sustainable financing portfolio goes in that direction.
