Have few minutes? Help us improve how content is organized on by completing a brief survey.

Take Quick Survey

Aligning Colombia's Financial System with Sustainable Development

This paper explores the state of green finance in Colombia within the wider economic and financial sector context, and identifies challenges and potential solutions that would enhance the application of environmental, social, and governance (ESG) criteria in the financial sector decision-making process and mobilize more investments for the transition toward a green economy. The report is part of IFC’s efforts to mobilize climate investment, through partnering with the UNEP Inquiry into the Design of a Sustainable Financial System, with support from GIZ, to develop a holistic view of current green investment by a range of domestic financial actors and the local financial regulatory landscape across a range of countries. The study informed by interviews and research maps the investor ecosystem in Colombia, looking at existing practices, enabling environment, regulations, barriers, and instruments for green investment as applicable across the financial sector. 


It highlights four factors that may be significant drivers of change in Colombia:


  • Leadership by individual institutions such as Grupo Sura, Grupo Bancolombia, and Davivienda, the Colombian Stock Exchange, or responsible investment funds such as Fondo Inversor.


  • Real sector crises such as natural disasters or major industrial disasters, originated in environmental or social issues, can focus the attention of investors and civil society, and can lead to a general awareness of green finance.


  • Policy innovation such as the new Código País corporate governance framework, the Green Protocol and the financial committee of the National Climate Change Committee (SISCLIMA) could form the initial foundations for a broader country-level green finance vision.


  • Multilateral institutions applying social and environmental risk management criteria may influence broader practices across the financial sector and the real economy.
  Download the paper (.pdf)