2016 Anuales/Summarized... · B N St R 2016 7 CORPORATE PROFILE B anco Nacional de Costa Rica...

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


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.


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


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


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.


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


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


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


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


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


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

2016 Anuales/Summarized... · B N St R 2016 7 CORPORATE PROFILE B anco Nacional de Costa Rica...

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