Table 10. Business Context - Bank

86 | Carlos Fúquene Retamoso

Ranking Climate Disclosure of CDP since 2015, after its main competitor in Colombia was listed in 2012. The main competitor of Bank is the market leader and has historically been ahead of Bank in CO2 compensation activities and self-reporting initiatives, such as the Carbon Disclosure Project (CDP).

Coercive pressures, such as regulations or community demands, did not constitute a key influencing factor for the adoption of environmental strategies. The regulation of financial activities in Colombia has mainly focused on controlling the economic impact of monetary transactions and has not been not specifically directed towards environmental issues (Villamizar-Torres, 2015). From interviews and data analysis, no evidence was found indicating that regulators have instituted a relevant mechanism for the adoption of environmental strategies for Bank. According to Villamizar-Torres (2015), there is no specific environmental regulation applicable to financial activities in Colombia.

Communities did not institute a mechanism for the adoption of environmental strategies either. Specifically, hearing processes with ethnic or local communities have not occurred in the financial sector. Hearings and informed consent processes have occurred mainly in industrial sectors in which there is a plan to develop projects associated with natural resource exploitation (G. Rodriguez, 2014), which is not the case here. Furthermore, no record was found about the development of social plans as a way to manage a social license to operate.

Villamizar (2015) states that communities assume the banking sector does not affect the natural environment because its activities do not require raw materials or resources that come directly from nature. Table 10 presents a summary of influencing subfactors and environmental practices.

In Table 10 is presented a summary of the evidence found for influencing factors at Business Context.

Table 10. Business Context - Bank

ESA factor Category Examples

Business context

Normative * Green due diligence in response to IFC norms. * Voluntary programs such as Global Compact and “Protocolo Verde.” * Subscription to Industry standards such as ISO 14001. Mimetic * Adoption of competitors’ practices in CO2 compensation. * Adoption of competitors´ self-reporting initiatives such as DJSI and CDP. Coercive Do not apply environmental permits or hearing processes to this industry sector.

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b) Business model

Bank has worked to develop innovative products based on its technological capabilities related to information and communication technologies. For example, in 2011, Bank developed a pioneering financial product to serve “any kind of consumer (banked, unbanked or under banked)” at the bottom of the pyramid at no cost (Exchange, 2012).

In a consistent manner, Bank has maintained these capabilities over years of operation. Recently, Bank developed a financial product to serve people with physical impairments (Asobancaria, 2017), showing once again the use of its capability to develop innovative products to serve societal needs. Bank has constantly used technological innovation in the service of value-added business endeavors through the implementation of app-based business transactions.

Regarding strategic capabilities, Bank has focused on achieving an advantageous position through the creation of novel products to develop new markets. Specifically, strategic capabilities were observed to facilitate the development of financial products to support green production and consumption systems. Additionally, Bank has made use of its reputation through brand management and striking publicity campaigns, which have enabled the company to achieve an important level of acceptance and memorability in the Colombian financial market (Pineda Rojas, 2014).

Financial capabilities were observed to support risk investment for the development of novel products, such as green lending and green bonds. Green lending focuses on the use of green criteria in credit risk evaluation when granting a financial loan. In turn, green bonds have supported the development of smart-climate projects and the financing of new production and consumption systems.

Finally, organizational learning has been present in Bank since it was founded in the 1970s and has increased over the years. Bank has developed its organizational learning capability by acquiring and developing complementary businesses. Specifically, the company began to operate as a corporation with only one product: mortgage loans for consumers.

Bank gradually started endeavors in new operations through the acquisition of other banks that specialized in personal banking for consumer loans (an acquisition performed in 2005), rural loans (an acquisition performed in 2006) and vehicle financing (an acquisition performed in 2006). Years later, Bank entered the financial market of Central America (an acquisition of operations