Given the growing importance and exposure to environmental and social problems, there is a need to deal more appropriately with the risks on this subject from a banking perspective. For this reason, financial institutions are increasingly involved in the development and implementation of systems that allow the mitigation for this type of risk.
SIGAS is a methodology designed to address environmental and social issues and integrate sustainability components into operations executed by banks and other financial institutions. The system defines certain policies, guidelines, tools, procedures and systems that facilitate the identification, evaluation, mitigation and monitoring of environmental and social risks generated during the development of a project or economic undertaking.
In 2018, Banco Internacional de Costa Rica was one of 16 signatories of the Panama Sustainable Finance Protocol, that initiated the new GREEN DNA within our organization.
Since 2020, Banco Internacional de Costa Rica implemented an Environmental and Social Management System (SIGAS), that evaluates the operations of our Business Banking clients (Description) to identify socio-environmental risk and themitigating measures carried out by our clients, thus committing to a sustainable society and the wellness of the region.
The risks are classified into:
- Category A (high): all those activities, works or projects that, due to their high complexity or magnitude, can generate adverse, cumulative and/or synergistic environmental and social impacts of quantitative and/or qualitative significance and that can also be distinct, irreversible and unprecedented.
- Category B (Medium): Activities, works or projects that can generate adverse environmental and social impacts that are few in number, generally located in specific sites.
- Category C (Low): Activities, works or projects that pose minimal or no adverse environmental and social risks and/or impacts.