Banco Bolivariano
Connecting nature-risk assessment with lending and funding
Climate and nature-related risk: Borrowers’ dependence on ecosystems and exposure to environmental degradation, flooding and other hazards affecting their ability to repay
Solution pathway: Portfolio assessment; transaction screening; borrower action plans; sustainability-linked funding conditions
Business type: Private commercial bank
Sector: Banking and financial services
Geography: Ecuador
In practice
At portfolio level, the bank identifies sectors and locations where dependencies and environmental pressures are most significant. Its assessment highlighted aquaculture, forestry, agriculture and commerce, alongside territories including flood-prone regions. For credit applications linked to sustainability bonds, assessments examine ecosystem dependencies, environmental impacts and proximity to sensitive locations. Findings influence financing eligibility and tailored action plans with indicators that borrowers must report against.
The approach also connects risk management with the bank’s own funding. ENCORE reports that meeting environmental assessment, disclosure and other sustainability conditions under its blue bond is linked to a potential 20-basis-point interest-rate reduction. This creates a financial incentive to integrate nature considerations into established lending and reporting processes.
Why this example was selected
Key lesson
Translate nature assessments into decisions about financing eligibility, borrower conditions and monitoring. Where funding instruments reward stronger risk management, connect those incentives to clear responsibilities, reporting requirements and verifiable actions.
