Post on 14-Sep-2019
2016Sustainability
R e p o r t 2016Summarized
A n n u a l R e p o r t
Banco Nacional – Sustainability Report 20162
Banco Nacional – Sustainability Report 20163
ABOUT THE REPORT
In 2016, Banco Nacional de Costa Rica announced its sustainability model, defined on the basis of three essential pillars: economic growth, proper use of environmental resources, and enhancement of social
well-being. Using this formula, the Bank worked towards achieving a threefold gain, based on the performance indicators tracking the bank´s management. In turn, this model was conceived with effective, efficient financial management, and its implementation has created an awareness of the impacts generated by the group’s business.
Our planning has been grounded in a concept of sustainability mainstreamed into each BN area. This
has strengthened the group’s operation, resulting in a sound balance sheet, economic solvency, strengthened environmental actions, enhanced business, SME investment, community investment, healthy finances, more socially valuable transactions, stronger Costa Rican socioeconomic development, and transparent and responsible management.
This Sustainability Report draws upon the measurement and monitoring of the model’s indicators, turning this instrument into an informative document that Banco Nacional and its subsidiaries can use to report their environmental, social and economic performance for the period running from January 1 to December 31, 2016.
Banco Nacional – Sustainability Report 20164
KEY IMPACTS
SOCIAL MANAGEMENT: Contribution to the Country’s Development
ACHIEVEMENT: 21,509
ACHIEVEMENT: ¢98,884,417,581$131,208,321
ACHIEVEMENT: ¢184,678,593,168.57
9,324 families
ACHIEVEMENT: ¢17,421,918,726.84
3,360 families
ACHIEVEMENT: ¢500,000, 000
ACHIEVEMENT: ¢21,459,584,098.626 308 families
ACHIEVEMENT: ¢1,211,641,000,000 in deposits
ACHIEVEMENT: ¢149,041,225,128.7838,560 families
ACHIEVEMENT: 2,743 Active BN Servicios
ACHIEVEMENT: 35,852 accounts applied for
ACHIEVEMENT: ¢2,226,348,751,80
178 families
ACHIEVEMENT: ¢15,941,076,252$48,164,007
ACHIEVEMENT: 300,000 customers
ACHIEVEMENT: ¢37,143,366,166.155,680 families
ACHIEVEMENT: 450 ATM ´s
LOGRO: 79,352 Móvil affiliations
ACHIEVEMENT: ¢2,606,235,025.02
932 families
ACHIEVEMENT: ¢179,299,00016 families
ACHIEVEMENT: 86,901 people affected
ACHIEVEMENT: 170 Business offices throughout the country
ACHIEVEMENT: 201,103 BN Móvil / IB affiliations
ACHIEVEMENT: ¢31,334,079,715.24
8,126 families
ACHIEVEMENT: ¢4,216,721,500.70722 families
New Jobs
Financial Services
Housing Investment
Livestock, Hunting and Fishing
Social Investment Teletón
Support for Agriculture and Forestry
Support for Women Entrepreneurs
Consumption
Financial Inclusion
Simplified Account(CES)
Tourism
Investment in Energy
Support for SMECustomers
Services
Financial Inclusion
BN SINPE Móvil
Industry
Construction
Community Undertakings
Business Offices
BN Móvil / IB
Commerce
Transportation, Communications and Sourcing
B A D G E
Banco Nacional – Sustainability Report 20165
ECONOMIC MANAGEMENT: Financial Indicators:
SOCIAL RESPONSIBILITY MANAGEMENT: Compliance with the Model
ENVIRONMENTAL MANAGEMENT: Commitment to Sustainable Development
Banco Nacional Income Statement
https://www.bncr.fi.cr/BNCR/Estados/EstadosFin.aspx
ACHIEVEMENT: 27,812,839.20 KwH
ACHIEVEMENT: 100%
ACHIEVEMENT: 2,852 cartridges not needed
ACHIEVEMENT: 138,890 m³
ACHIEVEMENT: 24,507 hours
ACHIEVEMENT: 289 RFPs published
ACHIEVEMENT: 43,081.40 liters for 561,177.80 kilometers
ACHIEVEMENT: 14,000 students
ACHIEVEMENT: 8 offices awarded
ACHIEVEMENT: 5,125,000 sheets not used
ACHIEVEMENT: 5,452
Energy Consumption (KwH)
Compliance with the Model
Reduced Ink Consumption
Water Consumption(m³)
Visit the link for reference of the financial statements:
Volunteer Hours
Procurement with Sustainability Criteria (RFPs)
Fuel Consumption
Financial EducationStudents
Blue Flag Branch Offices
Reduced Paper Consumption (sheets)
Group Employees
Banco Nacional – Sustainability Report 20166
Banco Nacional – Sustainability Report 20167
CORPORATE PROFILE
Banco Nacional de Costa Rica (BNCR) is an autonomous, administratively independent financial institution governed by public law. Founded by executive decree No. 16 on October 9,
1914 as Banco Internacional de Costa Rica, it was the country’s first State-owned bank. Its creation gave rise to Costa Rica’s mixed banking system, since at that time only private banks existed. In 1936 its name was changed by legal decree to Banco Nacional de Costa Rica.
From its inception, BNCR has had the basic principles of sustainability, such as financial access and inclusion of the most vulnerable sectors of Costa Rican society, in its DNA. An example of this is its Rural Credit Board project, with which it sought to provide a response to the agricultural sector’s difficulties in accessing credit. Since then, Banco Nacional has been providing financial services steadily for 102 years and continues to be a major contributor to the country’s growth.
Banco Nacional plays a leading role in the Costa Rican financial sector, earning recognition for such qualities as its soundness,
transparency, profitability, and contribution to the country’s development. As the forerunning financial institution in an ample array of products and services, it offers a variety of housing, car, business, personal, SME, education, and health loans, among other lines of credit. Its robust electronic platform provides swift, safe Internet transaction services such as Internet Banking, BN Móvil and SINPE Móvil. It boasts an extensive network of automatic tellers and commercial offices and has more than 3,000 affiliated BN Servicios establishments that act as extensions of BNCR throughout the country. BNCR offers stock brokerage, pension fund and investment fund services as well as insurance brokerage through its subsidiaries: BN Valores, BN Vital, BN Fondos de Inversión, and BN Corredora de Seguros.
Banco Nacional’s most important asset is the trust deposited by its 1,995,428 customers in more than 5,000 employees making up the Banco Nacional family - a trust that has been earned from generation to generation over the years, thanks to a sound record and transparent management aimed primarily at benefitting each and every one of our target publics.
Banco Nacional – Sustainability Report 20168
MESSAGE FROM THE CHAIR OF THE BOARD OF DIRECTORS
In 2016 the Board of Directors of the Banco Nacional set about creating a sustainability model under the highest quality standards with the firm resolve to develop all of the Bank’s activities according to a sustainable management
guideline, boosting the Bank’s competitiveness, safeguarding the environment, and taking into account the needs of the Bank’s target populations.
This sustainability model was designed in such a way as to become one of the pillars supporting the 2016-2021 Strategic Plan, “Together We Are Progress”, which seeks to strengthen Banco Nacional in its role as driver of the country’s environmental and socioeconomic development. It is our conviction that a sustainability model of this nature is the ideal mechanism for consolidating initiatives that are durable over time and beneficial to both the Bank and all our interest groups.
Banco Nacional’s mission is to improve quality of life for the greatest possible number of people. This is achieved with the daily labor of all our employees and superior financial services, making it possible for entrepreneurs to turn productive ideas into
businesses, Costa Rican families to buy houses for making into their homes, retirees to enjoy the fruits of a lifetime of efforts, young people to realize their study goals, workers to invest in their dreams, and the country to invest in environmental resources. This translates into sustainable creation of wealth and prosperity for Costa Rica.
As a responsible institution, we strive for full attainment of our goals, solidifying a human-centered approach and reinforcing our commitment to the environment, all for the firm purpose of achieving a positive impact on the country’s well-being and development and, in particular, of benefitting all those who have deposited their trust in Banco Nacional.
In an awareness of our role in contributing to this country’s progress, we strive to provide a profitable Bank that fosters sustainable wealth creation. Our business model goes beyond actions and declares a serious commitment to the country’s development, where our work is the best proof of our goal to positively transform Costa Rican society.
We are committed to contributing to our
country’s developmentAna Isabel Solano Brenes
CHAIR OF THE BOARD OF DIRECTORS
Banco Nacional – Sustainability Report 20169
MESSAGE FROM THE GENERAL MANAGER
With this simple phrase we can describe Banco Nacional and its employees, because we work towards such values and principles as honesty, equality, legality, integrity, transparency, and accountability. This is
Banco Nacional, a model in Costa Rica of an ethical, sustainable Bank that invests in social development, economic growth, and biodiversity protection as incentives for actions to enhance the quality of life of Costa Ricans.
The year 2016 brought us great satisfaction. After implementing a speedier, customer-centric business model, we were able to improve our response to our customers’ credit needs for both individuals as well as micro, small, medium and large enterprises. We achieved sustained economic growth as a group, reinforced our branch network to provide closer, more efficient and decisive customer service, and energetically worked on empowering our staff, building their capacity for innovation, teamwork, and decision-making.
2016 also gave us the opportunity to reveal the Banco Nacional group’s sustainability model, which has as its premise to create social and economic value in the markets where we operate, managing social and environmental risks as well as financial ones. This means we have started out on a path to measure our impacts beyond what is strictly financial, integrating social and environmental aspects to achieve a threefold gain.
Our sustainability model was designed as part of the group’s commitment to foster development of a fair and egalitarian economy as well as the democratization and mainstreaming of our services. We strive to encourage best practices to help us maintain an optimum
balance of resources and environment. For this mission, the model proposes a strategy that prioritizes trust and transparency in the relationships between the Banco Nacional group – which includes its subsidiaries – and its interest groups. The model has become a declaration of our commitment to safeguard, based on our values, the economic, social and cultural rights of our different publics: customers, suppliers, employees, and the community in general. The results obtained in 2016 are an indication of good management in terms of efficiency and productivity. They also attest to the financial soundness of the bank and its subsidiaries, which boasted of the strongest earnings in their entire history (¢53,019 million, net). Earnings had grown by ¢16,217 million from December 2015 (44%), surpassing the initial target of ¢51,803million by more than 2%. In a stable international and national economic setting – despite the country’s economic difficulties, marked by a worrying fiscal deficit and slowing credit growth – lending has been on the rise and the quality of the loan portfolio continues to be notably healthy, with a 90+ day delinquency rate of 2.2% and a legal default rate of 4.68%, to the benefit of the country’s development.
As a result of reducing our administrative costs and aligning our efforts to a dynamic, renovated business model, we were able to bolster Banco Nacional’s financial indicators for 2016. Our outstanding results were complemented with actions deriving from the sustainability model. As a group, we know this is an inevitable step that all financial institutions will have to take if they wish to work towards the country’s integrated development.
We’re a bank with ethics at the heart
of our business.Juan Carlos Corrales Salas
GENERAL MANAGER
Banco Nacional – Sustainability Report 201610
SUSTAINABILITY INDICATORS
CONSUMPTION
Certified Eco-efficient OfficesTeleworkingFuelEnergyInkPaperWater
GREEN PRODUCTS
A) BNCRBN PYMES Verdes (green SMEs)Green Credit CardsGreen Debit CardsEco-Marchamo (voluntary vehicle eco-decal)Eco-Technological BN SolutionsBN Vivienda Sostenible (sustainable housing)
B) BN SegurosBN Seguros Verdes Automóviles (green auto insurance)
BN Seguros Verdes Incendio Comercial (green commercial fire insurance)BN Seguros Incendios Casa de Habitación (home fire insurance)BN Seguros Verdes de Vida (green life insurance)
SUSTAINABLE PURCHASINGNumber of purchases made with sustainability criteriaNumber of offices with eco-efficient equipment replacement
• Financial Soundness • Economic Value of Sustainability • Percentage Achievement of Sustainability Budget
ENVIRONMENTAL DIMENSION
ECONOMIC DIMENSION
3
21
PEOPLE AFFECTED
A) New Jobs• External JobsTotal new jobs Jobs for women living in poverty New jobs for people with disabilities New jobs for youths
• Organizational health
B) Positive Impacts• Health and well-being• Food Bank volunteering – Zero Hunger• Quality education• Clean water and sanitation• Access to energy• Infrastructure• Housing• Persons who have received financial
educationSegments that have received financial educationWomen who have received financial educationWomen living in poverty who have received financial educationPeople with disabilities who have received financial educationYouths who have received financial educationPersons of indigenous origin who have received financial education
C) Number of undertakings
Total community undertakings – seed capitalTotal productive undertakings – community undertakingsTotal business undertakingsUndertakings by womenUndertakings by women living in povertyUndertakings by people with disabilitiesUndertakings by youthsUndertakings for indigenous populations
D) Linkages
E) Products for persons living in extremepoverty
QUALITY SERVICE
A) Claims HandledComplaints due to poor operational practices (failure to follow operational procedures)Complaints due to discrimination of any kindComplaints due to poor business practicesComplaints due to poor environmental practicesComplaints due to poor reputational practicesComplaints due to poor practices of suppliersOther complaintsNumber of complaints requiring payment of an economic cost
B) Financial Inclusion • Physical Channel Availability
POSBN ServicesATMsBusiness Offices
• Accessibility
• Number of persons who have been financially included by segments
Other segments that have been financially includedWomen living in poverty that have been financially includedYouths who have been financially includedPersons of indigenous origin who have been financially included
• Number of persons who have been affiliated by channel
Simplified file accounts (CESs)BN SINPE MÓVIL
• Use of channelsBN SINPE Móvil
VOLUNTEER PLAN
Percentage achievement of plan
SOCIAL DIMENSION1
2
3
Banco Nacional – Sustainability Report 201611
SUSTAINABILITY MODEL
The model’s methodology is based on the Costa Rican government’s National Development Plan, the Indicarse Model and the Sustainable Development Goals as the primary building blocks.
Mainstream sustainability into the BN group’s strategic plan in line with the
National Development Plan and Sustainable Development Goals, contributing to the
country’s social and economic growth and development, according to the strategic
focus established by the Board of Directors and General Manager.
Enhance the economic value of the BN brand by implementing responsible practices in the value chain and socially and environmentally responsible practices with interest groups.
GOALS OF THE SUSTAINABILITY
MODEL
CONTINUOUS IMPROVEMENT
SCOPEWhat do we understand?
Assessment of the current context Bank’s current stance on sustainability
Definition of the initiative
MONITORING OF THE PLANWhat have we achieved?
Accountability Progress on action plans
COMMUNICATIONHow do we communicate it?
Sustainability reportCommunication with the parties involved
DIAGNOSTICWhere are we?Preliminary diagnosticsInventory of existing practices
IMPLEMENTATION OF INITIATIVESHow do we make progress?Critical factors for the model’s success
WORK PLANWhat are we going to do?Work plan for the sustainability modelWork plan for sustainability initiatives
Banco Nacional – Sustainability Report 201612
The Sustainability Model adopted the definition of interested parties proposed by the United Nations (UNEP-FI), which says they are “groups that either affect or are affected by the company’s activities.” As this was the first attempt at mapping publics, a roadmap was designed for a structured method of guiding the institution in identifying its publics.
TARGET PUBLICS
STEPS FOR INTERACTING
WITH INTERESTED
PARTIES
Monitoring of indicators and assessment of impacts Identify the interested parties and their sub-segmentsIdentify the expectations of the interested parties
The one in line with the interested party’s expectations will be integrated into the
sustainability balances
In response to the interested party’s expectations and the importance to
the institution
According to the type of instrument According to the type of instrument; ideally this should be a person who interacts routinely with the interested party
For managing the expectations of the interested parties
According to the type of rela-tionship desired and the type of interested party
IDENTIFICATION OF INTERESTED PARTIES
SELECTION OF THE INSTRUMENT
DEFINITION OF THE TYPE OF RELATIONSHIP
SELECTION OF THE SPOKESPERSON
MONITORING OF IMPACTS
DEFINITION AND IMPLEMENTATION OF ACTIONS
DEFINITION OF INDICATORS
FREQUENCY OF IMPLEMENTATION
PRESSWritten press
RadioTelevision
CUSTOMERSCorporations and
institutionsLarge, medium and small enterprises
Preferential customers (individuals)
Mass customers
SUPPLIERSStrategic suppliersCritical suppliersBasic suppliers
Replaceable suppliers
FUND PROVIDERSDevelopment Banking
(FINADE)IMAS (FIDEIMAS)
IDB
EMPLOYEESEmployee
associations and syndicate
Occasional personnel
Regular personnel
PARTNERSPublic companiesPrivate companies
NGOs
COMMUNITIESImmediate communitySurrounding population
Public opinion
REGULATORY BODIESSUGEF
SUGESESUGEVAL
SUPENCentral Bank
GOVERNMENTCentral governmentLegislative Assembly
Ministries
COMPETITIONState banks
Private banksCooperatives
Banco Nacional – Sustainability Report 201613
PROGRAMS AND MAINSTREAMING
The Sustainability Model was implemented in two directions, one aimed at carrying out a particular series of projects and the other at mainstreaming sustainability within the institution.
Programs:Drawing on its many years of experience and the expertise of its employees, the Bank designed some of the programs for the purpose of impacting segments defined as priorities for the model.
Mainstreaming:The programs were developed in connection with the Bank’s different strategic areas. The relationship between the focuses and segments is summarized in the following table.
INDICATORSWhat has the impact been?
Environmental indicators-Social indicators
MAINSTREAMINGHow have we progressed?
Objectives assigned to the groupProgress on work plans
PROGRAM RESULTS What have we achieved?Environmental Management ProgramFinancial Inclusion ProgramFinancial Education ProgramUndertakings ProgramProduction Linkages ProgramCorporate Volunteering Program
2016Sustainability
R e p o r t 2016Summarized
A n n u a l R e p o r t