2022
INTEGRATEDREPORTGRI Standards|

SASB Standards|

Stakeholder Capitalism (WEF) Metrics|

TCFD Recommendations

INDEX

Pg.

Letter from the Executive President

4

Main figures

6

How to read the report?

8

1
2
3
4
5

PROFILE AND CONTEXT
1. 1

Profile.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  11

1.2

Products and services.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  13

1.3

Capital.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14

STRATEGY
2. 1

Customer-centric model .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 17

2.2

Sustainability Strategy.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .20

2.3Responsible Banking Approach.  .  .  .  .  .  .  .  .  .  .  . 23

CORPORATEGOVERNANCE . . . . . . . . . . . . . . . . . . 26
ETHICS ANDCOMPLIANCE
4. 1

Framework for action, culture and training.  .  .  . 37

4.2

Commitment to the culture of compliance .  .  .  . 39

RISK MANAGEMENT
5. 1

Prevention and monitoring.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  41

5.2

Analysis of risks and opportunities

5.3

Relationship with the supply chain.  .  .  .  .  .  .  .  .  .49

of climate change.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .44

6
7
8
9
10

ECONOMIC RESULTS
6. 1

Relevant Financial Data.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

51

6.2

Profit and loss .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

51

6.3

Breakdown of the Credit Portfolio.  .  .  .  .  .  .  .  .  . 54

6.4

Evolution of deposits.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .60

6.5Economic Value Distribution.  .  .  .  .  .  .  .  .  .  .  .  .  . 63

CONNECTION WITH THE CLIENT
7.  1

Experience.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 65

7.2

Comprehensive security.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 68

ANNEX I: BALANCE SHEET.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  104ANNEX II: ESG MANAGEMENT DETAIL

Relationship with our interest groups.  .  .  .  .  .  .  .  .  .  .  .  106Alliances and memberships .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  109

FINANCIAL CULTURE AND
ACCESS TO BANKING

Materiality Analysis.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  110Respect for Human Rights.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 114

8. 1

Financial inclusion.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 73

8.2

Accessibility.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 73

8.3

Inclusive products.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 73

Progress in the Principles of the Global Compact .  .  .  .  118

8.4Financial Education.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 75

Contribution to the Sustainable

8.5

Quality and transparency.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 75

Development Goals (SDGs).  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  120

FINANCING ANDSUSTAINABLE INVESTMENT . . . . 76
TEAM

ANNEX III: CONTRIBUTION TO REFERENCE INITIATIVES

ANNEX IV: PROGRESS IN RESPONSIBLE BANKINGPBR Self-Assessment Questionnaire.  .  .  .  .  .  .  .  .  .  .  .  .  124ANNEX V: REPORTING FRAMEWORKS AND STANDARDSGRI Contents Index .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  146

10. 1 Introduction.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  81

SASB Index of Parameters Related to10.2 Diversity and inclusion.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 84

Financial Materiality Issues.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  16810.3 Training and Career Development .  .  .  .  .  .  .  .  .  . 88

Contents Shareholder Capitalism – WEF.  .  .  .  .  .  .  .  .  .  . 174

10.4 Security and Health.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .90

TCFD INDEX .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  182

10.5 Commitment and work environment .  .  .  .  .  .  .  . 93

11

ANNEXESENVIRONMENTAL
MANAGEMENT . . . . . . . . . . . . . . . . . . . 94

LETTER
FROM THEEXECUTIVEPRESIDENT(GRI 2-22)

Dear readers,T

his year our institution contributed significantly toa greater dynamism of the Ecuadorian economy,
which began to recover after the incidence of thepandemic. The credit provided by the Bank to companies and families was key, experiencing an evolution
over the months as interest rates also progressed. We
allocated US$6,606 million to commercial credit, andUS$2,509 million to consumer credit. In growth, microcredit stands out especially, in which we added 27.6%
more than in 2021, with US$ 232 million delivered, with
48% of the beneficiaries being women. Its impact on
the economy is especially significant, through the MySMEs and self-employed workers who receive it.

We have consolidated our philosophy of Banking
Empathy, based on the values that have characterized
the institution and on the customer focus of thestrategic transformation that we have been developing.
<<Primero Tú>> is more than a phrase, it is a way offeeling and relating to our different interest groups,
including the client.
In our digital age we see a clear application of thisempathy, which has led us to have the best rated App
in the financial system, with a rating of 4.8. This is theresult of continuous listening to understand and meetthe needs of our clients and a committed human team.
This dynamism in the digital environment has also
allowed us to have 877,720 active users in our different
digital channels, as well as 68% of accounts and 61% ofconsumer loans being opened and/or placed digitally.

However, we continue to grow in coverage and physicalproximity. Our network of Bancos del Barrio continues tolead the proximity approach in Ecuadorian banking, also
being a regional benchmark. We already reached 18,067
non-bank correspondents, 40.5% more than in 2021.
We made solid progress in our Sustainability Strategy,
launched in 2020, with which we are responding to thegrowing interest of the financial market in ESG (environmental, social and governance) aspects. It goes handin hand with a responsible banking approach, with thecommitments we make as signatories to the Principles
set forth by the United Nations Environment Program
Financial Initiative (UNEP_FI).
Regarding the financial inclusion contained in theStrategy, the placement of the <<Cuenta Amiga>> forbanking access has continued, as well as <<MiCrédito>>as the first financing product. However, the evolutionof the microcredit for women that we launched in
2021 stands out especially, between US$5,000-10,000,
having delivered US$105 million, which represents 48%
of microcredit to women. We also subscribe to thecommitment to health and financial inclusion, within
the framework of the Principles of Responsible Bankingof UNEP_FI.
The social impact of financial products is complemented by the environmental one. The operation of ourEnvironmental and Social Risk Analysis System (SARAS)
allows us to promote good environmental practices asa condition for financing. But we wanted to go one stepfurther, developing a specific credit product for projects related to the environment, which we will launch
in 2023. This credit is part of our roadmap to address
climate change, to which we dedicate significant efforts
to identify the main associated risks and opportunities,
to establish prevention and mitigation initiatives, especially connecting with the activities of our credit clients. Also related to it, this is our first report in which we
can implement Recommendations from Task Force on
Climate-related Financial Disclosures (TCFD), a global
reference initiative to which we are pioneers in Ecuador.
Our team maintains is firm and committed to, it has
been recognized as the 2nd best place to work in
Ecuador and the 6th in Latin America; we are the first
Ecuadorian company in the ranking. This makes visible our efforts to attract talent and retain employees,with opportunities for their professional development.
We want to reflect the diverse society we serve, implementing an Equity and Inclusion Program based on thebest practices and international guidelines; likewise, weare committed to the Principles for the Empowermentof Women, of the Global Compact and UN Women. We
have a staff of 2,964 collaborators, 55.6% are women. Itshould be especially noted that 59.6 % of which are at a
managerial level. We believe that talent has no gender,
and we work applying this maxim.
Towards society, it reflects our contribution to the
Sustainable Development Goals (SDG) and progress in

the Principles of the United Nations Global Compact.
Also, in the scope of the financial education program,with which we have trained 45,586 people, 38% morethan the previous year. Let us consider that the younger
generations are the ones with the greatest capacity fortransformation and it is essential that they learn thecorrect management of finances, which represented
73% of the beneficiaries.
Sustainability is built on the operation and is reflectedin the financial results. Presently, we are already thesecond Bank in the country in that related to credit
portfolio and public deposits, leading in a ROE of
18.8%, above the goal that we had set for 2023. Our
Technical Equity and provisions exceed those required,guaranteeing greater stability.
We invite you to find out about our performancethrough this Integrated Report 2022, which complies theinternational standards of Transparency in information
disclosure.
In December 2023 we will reach our first 100 years as an
institution, and we want to remain connected to society
with a value proposition in financial products and services that contributes to sustainable development andan operation that continues to generate opportunities
for our different interest groups.

Econ. Angelo Caputi Oyague
CEO
5

MAIN
FIGURESAs of December 31, 2022

GOVERNANCEAND ETHICSCONNECTION
WITH THE CLIENT

22 %of the members of
the Board of Directors
are women (including
main members andalternates)

Solid Risk
Management
System for Money
Laundering and
Financing of Crimes,
such as Terrorism
ARLAFDT

3,100,096
Clients (+15 %)2

Second bankin Ecuador in Credit
Portfolio and Public
Deposits

Best Rated App
on the Market (4,8)

877,720

Digital customers(+50 %)

68 %of Savings
accounts are
opened digitally(+8 pp)61 %of the Multicredits
have been placed
online (-9 pp)
6

FINANCING ANDSUSTAINABLE
INVESTMENTFINANCIAL CULTURE
AND ACCESS TO
BANKING

INTERNAL
COMMITMENT

Loans forUS$

18,067

2,964

766

millionanalyzed through
SARAS

Bancos del Barrio (+41 %)75 million

US$

188 Due

Diligence carriedout in the SARAS

in transactions at
Bancos del Barrio(+15 %)

collaborators

55.6 %

employees are
women (similar
to 2021)

BUSINESSRESULTSUS$

6,606 millionof Commercial
Credit delivered tocompanies

5,362 million

US$of Public Deposits

59.6 %Development of
the Environmental
Credit product (tobe marketed in
2023)

Training

420
clients insustainable
certifications

Diagnosis of
Climate Change
Risks and
Opportunities

45,586

people trained in
Financial Educationof management levels
are women (+4 pp)

18.82 % ROE
Investment in
employee training

Bank withthe highest
profitability inthe country

2.3 %

US$

reduction inelectricity
consumption

Retained Earnings(+48 %)

US$  

218

1,078,730

US$

milliongranted in
Microcredit

48 % Microcredit
aimed at women

110 million

7.8 %reduction in GHG
emissions (mainbuildings)
7

HOW TOREAD THEREPORT?
(GRI 2-2, 2-3, 2-4, 2-5, 2-14)8Integrated Sustainability Report 2022 • Banco Guayaquil

At Banco Guayaquil we continue to advance in abanking model that creates value for all of ourinterest groups, and that puts the customer at theThis report:

For

the

first

•

we

are

responding

center with the strong commitment of our employees,
facilitating access to financial products and services
and promoting environmentally friendly practices.

The GRI Standards respond to the materiality of impact(or socio-environmental) and are intended for awide audience.

In 2020, we launched our 2021 - 2025 Sustainability
Strategy, the same one that we are currently applying,
and which includes our commitments to the Principles
of Responsible Banking coordinated by the Financial
Initiative of the United Nations Environment Program
UNEP_FI (for its acronym in English).
In this report, we address our performance on
environmental, social and governance (ESG) factors,
which are related to our impact and financial materiality.
We report the activities, results, and impacts of Banco
Guayaquil to society, from January 1 to December
31, 2022.
Regarding previous reports, there are restatements of
information, due to calculation adjustments, in relation
to energy consumption within the institution (GRI 302-1),
in addition to energy intensity (GRI 302-3) in the main
centers. These restatements can be found in the chapter referring to Environmental Management.
» More detail on the materiality process
The execution of this report was supervised by the
Executive Vice Presidency of Finance and Management
Control and was also validated by the Corporate
Governance and Sustainability Committee, as well as
the Board of Directors. The information was compiled
with the participation of different Bank units andin accordance with the pertinent techniques andstandards in each case.
» Verification letter

It has been developed applying the Global
Reporting Initiative (GRI) Standards. Additionally,
we apply the GRI Sector Supplement for financial
services.

•

It also includes the Sustainability
Accounting Standards Board (SASB)
Standards for commercial banks, consumer financing
and mortgage financing.
SASB Standards address financial materiality andrespond to information requirements, especiallyfrom investors.

• The metrics of stakeholder capitalism (Measuring
Stakeholder Capitalism initiative), of the International
Business Council (IBC) of the World Economic Forum(WEF). They seek to communicate how the company
works to create long-term value, considering theneeds of the interest groups, with people and theplanet at the center of the strategies. We use the coreand expanded metrics that are related to the double
materiality mentioned before.
• It gives an account of the contribution to the
Sustainable Development Goals (SDGs), the road map
proposed by the United Nations (UN) until 2030 toaddress the great challenges of society.
• It serves as our Communication on Progress (CoP) for
the Global Compact, and we report on progress in theimplementation of its 10 Principles.
• We communicate our progress regarding the Principles
of Responsible Banking, promoted by the Financial
Initiative of the United Nations Environment Program(UNEP_FI, for its acronym in English). The Principles
were developed to guide banks to strategically aligntheir business with Sustainable Development Goals.

time,to the Recommendations of the

Task

Force

on

Climate-related

Financial Disclosures (TCFD), after proposing a climate action
roadmap based on the analysis ofclimate change risks and opportunities that we have carried out. We
are pioneers in Ecuador and in the
country's financial sector in presenting this information publicly.

How to identify the contents:• On the cover of each chapter are: reference to the SDGs .
• At the beginning of each section
there is a reference to the contentsof the GRI Standards and the SASB
parameters.
• At the end of the report, our progress regarding the SDGs, theGlobal Compact Principles and thePrinciples of Responsible Banking
are detailed.
• In the end, the specific indices of thereporting frameworks and standards:

GRI, SASB, Stakeholder Capitalism
and the TCFD Recommendations.

9

1.
PROFILE AND
CONTEXT

1.1

PROFILE(GRI 2-1)

Banco Guayaquil is a multiple banking financial
institution, which celebrates 100 years of serving
Ecuadorians.

Bank Empathy
We believe in people, because we are a relationshipbank, a bank that recognizes its clients, collaborators,
allies, and community as unique people.
We work every day to provide our customers withthe best banking experience in every interaction
they have with us, because we understand andourselves in the place of the other, thinking andacting less like a bank and more like our customers.
We call this: Banking Empathy, which marks ourculture and the way we work, and is supported bythree principles. Thus, our purpose is fulfilled when:

We are close
We believe in long-term relationships, and we know thatto build them we must treat our clients with respectand equality. Talking to them how they want us to talkto them.

We make it easier
We believe in solutions, more than in problems. In thateach of us can solve problems and make everything
simpler. We believe that innovation is the best path to asimpler experience.
This approach has been generating progress throughthe Central Project, which began in 2018 with an eye
toward 2023, becoming a bank that places the customer
at the center of its decisions to continue promoting ourtransformation.

believe that we are a fundamental part of their lives.

We are transparent

We assume this responsibly and, above all, with
empathy. Listening, understanding, and putting

We believe in the truth and in clear accounts, in saying
everything as it is, without surprises.

In this context, 2022 is a year in which Banking Empathy
was consolidated as part of our corporate culture. We
are the first institution that addresses the treatment of
its clients and collaborators under this approach.

OUR PURPOSEOUR VALUESCOLLABORATOR PROFILE• PASSIONPERMANENTLYWORK TO OFFER
THE BEST BANKING
EXPERIENCE• EMPATHY• FLEXIBILITY• INNOVATION

Profile and Context• FIRM
PREDISPOSITION
TO PERSEVERE• UNDERSTAND
OTHERS• ADAPTS TO
CHANGES• PROVIDES NEWSOLUTIONS
11

Products and services(GRI 2-6)
During this year we already constituted ourselves as a
Financial Group and integrated into it the operations of
Peigo (a company that is developing a wallet model andthat is also evolving towards new services).1
At Banco Guayaquil we offer products and services forthe different needs of our clients, to facilitate the development of their personal, professional, and business projects, through Personal Banking and Business Banking.

1

12

Our commercial proposal includes products andservices that facilitate financial inclusion, within thecontext of savings and credit. Good environmental
and social practices are also promoted in companies,
either: 1) through evaluation by the Environmental andSocial Risk Analysis System - SARAS, 2) through specificproducts to finance projects that are favorable tosociety and the environment atmosphere.
›› In detail: Financial culture and access to banking›› In detail: Financing and sustainable investment

Since the process was carried out during the year, the operating
figures presented correspond to Banco Guayaquil, without Peigo.

Integrated Sustainability Report 2022 • Banco Guayaquil

Channels
We make different channels available to our customers
so that they can always interact with the bank andaccording to their needs. In recent years, the evolution ofdigital channels stands out, due to customer preference
and the impetus that the pandemic had on it.
The evolution of the physical and digital infrastructure is shown in the Customer Connection chapter,
including the size of the network and the evolutionof transactionality.

4.0 %

16.9 %

6.4 %Aquaculture andshrimp fishing

Accommodation andfood services

3.4 %

Other
Services

4.1 %Commerce

7.0 %Other GDP elements

Electricity
and Water

7.1 %Oil and
Mines

3.6 %
Financial Services

GDP
VARIATION BY
ECONOMICSECTOR
Growth inconstant values

1.2 CONTEXT-0.5 %

2.9 %Mail and Communications

1.5 %Domestic
Services

3.8 %Transport

2.0 %Manufacture(except refinancing)

Public Administration-2.0 %

Construction-2.6 %

Agriculture

2.9 %Professional
Activities

1.0 %Petroleum
Refining

1.4 %Teaching andSocial Services-3.5 %
Fishery(Except
shrimp)2.7 %Profile and Context

International Context
The world was progressively abandoning social
distancing and especially services dependent on
personal contact were reactivated. In addition, most of
the countries adopted aggressive monetary stimulus
policies to mitigate the recession, which translated into
an inflationary rise.
The year passed between the two extremes, closingwith measures to contain inflation by raising interest
rates. The final result was a slowdown, with world GDP
growing just 3.2% versus 6.0% the year before. The risein rates has considerably raised the cost incurred bynational banks and companies in bringing in funds
from abroad.
On the other hand, the geopolitical problem between
Russia and Ukraine in February and the European
boycott of Russian oil caused an unexpected rise in
the price of oil, which reached its peak in the second
quarter. WTI crude would have averaged $95 a barrel in
2022, up substantially from $68 in 2021.
13

The strong increase in interest rates in the US, added tothe international crisis caused by the Russian invasionof Ukraine, favored the stampede of capital from allover the world to the US, causing the strengthening of
the dollar. In 2022, the dollar averaged US$1.05 per euro,a revaluation of 11.00% year-on-year.

National Context
The Central Bank forecast is for a slowdown of theeconomy in 2022 to 2.7%, after 4.2% in 2021. The discreet
growth in 2022 is partly due to the fact that gross capitalformation has not recovered: Investment, neither public
nor private, would not have returned to the levels of
2018, when it reached its peak.
During 2022, the modest contraction in public sector
consumption continued, while private consumption
grew by 5%.
Regarding the economic sectors, the one with thegreatest expansion is aquaculture, with 16.9% in 2022,with a very strong investment in modernization thathas allowed increasing the quantity and quality without

services sector to continue, with 6.4%.

Regarding the portfolio by type of credit, microcredit
and consumer credit grew by 19% each. Commercial
credit also increased, to a lesser extent, 13%. Housing
financing increased by 4% and educational credit was
the only one that decreased to 14%.

Financial services recovered in 2021 what was lost in

1.3 CAPITAL

2020, so growth in 2022 was in line with the slower pace

(GRI 2-1)

expanding the shrimp frontier. It is followed by oil andmining, with 7.1%, after oil production recovered fromthe fall of 2020. The abandonment of social distancing
favored the rebound of the accommodation and foodof the economy and expanded by only 3.6%.

Evolution of the Financial Sector
The population continues with the growing trend of
deposits in institutions, increasing by 5.9% to reach US$
43,634 million. It is related to confidence in institutions,whichemergedstronger

from

the

pandemic,technological facilities, and the improvement in interest
rates on time deposits.
The credit portfolio, which includes credit portfolio andcontingents, expanded by 15%, up to US$ 41,828 million. It
14

is related to the strategy of the banks to place financing,after the political panorama was clarified.

Integrated Sustainability Report 2022 • Banco Guayaquil

Banco Guayaquil SA is a corporation, listed on the
Guayaquil and Quito Stock Markets. At the end of 2022,
it had 7,297 shareholders, of which 96.5% are natural
persons. 80.86% of the share capital is owned by theMultiBG Corporation. The capital value at the close of
December 31, 2022 was US$ 483,370,000.
Committed to our shareholders, the Bank distributed a
dividend in cash for US$ 44,980,000which corresponds
to the profits generated in the year 2022; according
to the authorization granted by the Superintendency
of Banks.

Distribution by range ofshareholders capital
Range ofshareholders capital% shareparticipation

Shares <1.000

0.12%

Shares >=1,000
to <=5,000

0.74%

Shares >=5,001
to <=10,000

0.95%

Shares >=10,001
to <=50,000

4.60%

Shares >=50.001
to <=100,000

2.68%

Shares >100,000

90.90%TOTAL

Thanks to our strong relationships with multilateralorganizations and the confidence generated byour solid bank management, we have successfully
attracted external funding. It is important to highlightthe recognition made to our Sustainability Strategy,
which is integrated in our business which contributes
to a social and economic development. It is also
highlighted the interest shown in our Climate Change
Strategy, in development.
In 2022, we received US$ 216 million of new funding(that is, without considering renewals), through thesupport of various foreign institutions.

We provide confidence to the market, both to clients andfunders. We obtained two international syndicated loans,the first one for US$ 33 million and the second one for
US$ 89 million, to continue growing in our strategy.
In addition, we issued our first green bond on the
Guayaquil Stock Exchange, for an amount of US$ 80
million. This issuance will be negotiated in two tranches
in 2023, with PROPARCO being the institutional investorof reference to date. The resources obtained will be
used to finance energy efficiency, renewable energy,
and sustainable construction projects, having also
launched our green credit lines from the bank.

100%

Classification of shareholders
by length of stay
Range ofyears

Number ofshareholders% ShareparticipationN°< 1 year

229

3.14%

>=1 <= 3 year

248

3.40%

>3 < =5 year

466

6.39%

> 5 year

6,354

87.08%

TOTAL

7,297

100%

Profile and Context

15

2.
STRATEGY2.1 CUSTOMER-CENTRIC MODEL(GRI 2-1)
Our value proposition is summarized in the phrase«Primero Tú» and in the concept of Banking Empathy.
We want to think less like a Bank and more like theperson, the customer, understanding and attending totheir needs.

Banco Guayaquil and its
corporate philosophy:

BANKINGEMPATHY« Less like abank and more
like you»
We built this philosophy from listening to our clients,
in an intense consultation exercise during 2020, which
led us to advance in different lines of work; listening
remains alive and we are evolving in accordance withthe customers and society.
Previously, in 2018, we had started the Central Projectwith an eye towards 2023, which already promoted
placing the customer at the center of our decisions.
We have the following objectives, in which we havemade significant progress:
Strategy17100 YEARS GRANTINGSERVICES TO ECUADORIANS
EC

1923

1990

1999

2014

2020

Start ofactivities
Banco Italiano

FINANSUR
FusionFinancial Crisis
in Ecuador

Banco Guayaquil

Primero tú

1941

1996

2001

2018

2023

Banco deGuayaquil

Definition of thebanking businessExclusivity

Centric
PROJECT

100 YEARS“DE PERSONASPARA PERSONAS”

18

A national bank

AMERICAN
EXPRESS

Integrated Sustainability Report 2022 • Banco Guayaquil

CENTRICPROYECTOBJECTIVEPROFITABILITY
To be the mostprofitable
Bank in
Ecuador

STARTING POINT
DECEMBER

2018 10.51 %Market Shareand Ranking

GOAL

2023

15 %

Market Shareand Ranking

SERVICELEVELNATIONAL
SCOPE

To be the second
Bank in Portfolio and
Deposits

To be the Bank
with the best
customer service

To be relevantin Quito

5.8 %

9.8 %

4 POSITIONPORTFOLIO
TH

9.9 %

3.58

6.3 %

5TH POSITIONDEPOSITS

13 %

10 %

PORTFOLIO

13 %

4.50

PORTFOLIO
2ND POSITION

12.3 %

DEPÓSITOS
2ND POSITIONPORTFOLIO

10 %TO BE ALEADER IN
DIGITAL
BANKING

61 %DIGITAL
CONSUMERPORTFOLIO

68 %OPENINGOF DIGITALACCOUNTSDEPOSITS

12.2 %

18.8 %

6TH POSITIONPORTFOLIO

4TH POSITIONDEPOSITSDEPOSITSDECEMBER

2022

MARKETLEADERSHIP

7.4 %

4.23

PORTFOLIO
4TH POSITION

8.0 %

45 %
OPENING
DIGITAL
POLICIES

DEPÓSITOS
5TH POSITION

19

2.2 SUSTAINABILITY STRATEGY(GRI 2-23, 2-24)
At Banco Guayaquil we had a history of creating value forthe different interest groups. Each time, our proposal togenerate social and environmental impacts was moreconnected with our business, with the development offinancial products and services. That is why in 2020 weset ourselves the task of building our Sustainability
Strategy, with a 2021-2025 horizon.
Through the mentioned strategy, we addressed
the critical and emerging issues resulting from ourmateriality analysis, as well as the possible contribution
to the 2030 Agenda and the Sustainable Development
Goals (SDGs).
The objective of updating the materiality in 2022 hasbeen to refocus our efforts of the Strategy according to
the change in the significance of the topics in this time,for example, with greater prominence of the climatechange agenda, and to reinforce the attention to the
topics key for our interlocutors in the financial market(rating agencies, development and multilateral banks,
among other players).
» See Annex III: Materiality Analysis.
The Strategy also includes the commitments we madewith our pioneering adherence in 2019 to the Principles
for Responsible Banking of the United Nations
Environment Program Finance Initiative (UNEP_FI).

Priorities
Below, we present the main pillars and lines of work.
These are made up of different initiatives, whichmaterialize thanks to the efforts of all our collaborators
and joint work with other interest groups.

20

Integrated Sustainability Report 2022 • Banco Guayaquil

Sustainability Strategy

LINES OF ACTION

16

1.1 Solidity of corporate governance
1.2 Ethical management, prevention ofcorruption and culture of compliance
1.3 ESG Governance

95

INTERNAL
COMMITMENT

2

5

3.1 Accessibility
3.2 Development of inclusive
products and services
3.3 Quality and transparency
3.4 Financial education
3.5 Development of SMEs

3

13

FINANCING ANDSUSTAINABLE
INVESTMENT

3

1

FINANCIALCULTURE AND ACCESSTO BANKING

8
12

10

• NGO's• Media

DIMENSIONS
GovernanceSocialEnvironmental

4
4.1 Analysis and management of portfolio risks
4.2 Development of ESG products
4.3 Commitment to climate action
4.4 Consideration of ESG criteria
in the investment

4

5

12

• Customers

3
16

4

• Suppliers and contractors• Government
2.1 Digital transformation and inclusion
2.2 Social and participative innovation

CONNECTION
WITH
THE CLIENT• Shareholders, investors, andother providers of capital• Bancos del Barrio (correspondents)

2

1

8

• Collaborators

1

GOVERNANCEAND ETHICS

13

INTEREST GROUPS

5
5.1 Diversity and inclusion in the team
5.2 Employee development and well-being
5.3 Shared responsibility with suppliers
5.4 Direct environmental footprint

Strategy21

The pillars were raised based on the synergies between the material issues.

Our efforts in sustainability have been recognized indifferent instances. In a transversal way, it should be noted

List of pillars andmaterial issues

that we received for the first time the ESR© Distinction, which
evaluates our management in aspects of business ethics,
quality of life in the company, ties with the community, andSpotlights
Governance andethicsCustomerconnection

Material Topics

care and preservation of the environment.

Self-regulation and governance• Systemic risk management• Ethics and anti-corruption(GRI 2-13, 2-23, 2-24)(TCFD GOB-A, GOB-B)• Innovation in products and services• Security of the information• Marketing and information of products andservices

The Strategy is materialized through initiatives, which we
give an account of in this report. In addition, for all of ourcollaborators, we have developed guidelines in the form ofpolicies for the main environmental, social and governance(ESG) issues. We also promote their knowledge by our• Customer experience• Technology

interest groups, and they are publicly available.

• Privacy and responsible use of customer information›› Sustainability Policy›› Human Rights Policy

Financial culture
and access tobanking
Financing andsustainable
investment

Internal
Commitment• Accessibility (customers)• Financial Inclusion›› Diversity Policy›› Climate Change Policy• Support for entrepreneurship›› Anti-Corruption Policy• Environmental and social evaluation of clients(responsible financing)• Risks and opportunities of climate change• Attraction and retention of talent• Diversity, inclusion, and equity• Social investment• Operational efficiency

Transversals
Competitiveness and market development, Disclosure, and transparency of
information on sustainability›› Financial inclusion policy›› Environmental and Social Risk Policy
The Corporate Governance and Sustainability Committeemonitors progress in the Strategies and the indicators they
are endowed with. It is made up of a delegate from theBoard of Directors, who presides over it; the Executive Vice
President – General Manager responsible for the Corporate
Governance Unit; the Vice President of Comprehensive
Risk or her delegate; the Vice President of Financial
Controllership, the Legal Vice President or her delegate andthe Marketing Vice President or her delegate. The Managerof the Corporate Governance Unit will be a permanent
guest, being able to invite any collaborator to the sessions,Symbology
Both materialities
Impact materiality
Financial materiality
22

as well as allied entities or those who wish to present a
proposal to the institution.
It should be noted that in the year 2022 we reinforced
our climate change roadmap. The Corporate GovernanceIntegrated Sustainability Report 2022 • Banco Guayaquil

Alliances
Committee had already been addressing the results• Comprehensive security, in the prevention part toof the energy efficiency program, the result of thecalculation of Greenhouse Gas (GHG) emissions and theaudit and certification for carbon neutrality. This year

strengthen operational continuity.
• Administration, in the state of physical assets andenergy management.

he was also informed of additional climate initiatives,
starting with the analysis of risks and opportunities forclimate change. In January 2023, the final result and• Sustainability, with its own activities such as the calculation of GHG emissions, the promotion of thethe recommendations for prevention and mitigation
measures will be presented, so that they can beenvironmental agenda in business and risks, andapproved in the first instance.

the comprehensive monitoring of progress in risks
and opportunities.

It is important to highlight the role that the following
areas will have in the approach of these prevention andmitigation measures:and Sustainability Committee is submitted to the Board• Risks, specially to add the findings to the current
SARAS,

creditenvironmental

assessment system.

The information received by the Corporate Governanceandsocialrisk

of Directors every six months; requesting its validation
for regulatory, budgetary issues and related to the approval of policies, codes or other guidelines.

We are part of organizations and collective initiatives
related to sustainability, being members of the EcuadorianConsortium for Social Responsibility and Sustainability(CERES) and the Global Compact Red Ecuador. Likewise,
we continue to work with the ASOBANCA Sustainability
Committee, where we advance in the Sustainable
Finance Protocol of Ecuador, established on November
25, 2016. We report the alliances and memberships inAnnex II.

2.3 RESPONSIBLE BANKING APPROACH
As an intrinsic part of the Sustainability Strategy, we practice responsible banking. This is especially connected
with: 1) governance practices, 2) products, services andchannels for financial inclusion, 3) products with an environmental purpose, 4) environmental and social credit
risk assessment (SARAS) and 5) financial education.

Chronological evolution2013 - 20152016 - 20192020 - 2021

2022

Code of ethics

Signature of the Sustainable
Finance Protocol of Ecuador ASOBANCA/CAF/IFC/UNEP_F1

Strength in the response to
COVID-19

Launch of green credits, which
will take place in January 2023

Sustainability Strategy

Sustainability ModelGreater development of theMacrofinance and SMEs businessContinue developing
specialized products for
women's banking

Corporate Governance CodeJoin the Global Compact
Network and work
contribution to the SDGs
Management of corporate
image change

Greater Impact on Education
and Financial Inclusion
programs
Centric Project

Establishment of an
Environmental Management
System

Anti-Bribery Management
System- ISO37001

Calculation of GHG emissions- Carbon Neutrality

Signing of the principles for
Responsible Banking UNEP_F1

Sustainability Reports andMateriality exercises

Design and Implementation of
an Environmental and Social
Risk Analysis System (SARAS)

Signing of the principles for the
Empowerment of Women of the UN
and the Global Compact
Corporate image change "A bankcloser to the customer"
First Social Bank
Integrated Sustainability Report
Growth in the number of NonBanking Agents

Subscription of theCommitment to inclusion and
Financial Health (within theframework of the Principles of
Responsible Banking)Analysis of climate changerisks and opportunities,
including portfolio analysis, toadvance client resilience andfunding placement decisions.

Climate Change Policy

Strategy23

Commitments and objectives
With the subscription of the Principles of Responsible
Banking, in 2020 we carried out an analysis of thepositive and negative impacts of our commercial offer,including credit products, savings products, as well asother products and services. The process was carriedout using the UNEP_FI Portfolio Impact Analysis Tool.
The result considered both the characteristics of ourportfolio, as well as the socioeconomic profile of theindividual clients and the sectors of activity of thecorporate banking clients, together with the country's
priorities for sustainable development (critical issues inthe social and environment of Ecuador).

1

OBJECTIVE

OFFER COMPANIES AND
ENTREPRENEURS THE NECESSARYCAPITAL, SO THAT THEY CANOPERATE AND ATTEND TO THE
INVESTMENTS THEY REQUIRERATIONAL
In this way, the development of employment and business is
supported in the value chains of which they are a part. It includes
support for large companies, such as MSMEs and entrepreneurs.

LINKED IMPACT AREAS

Based on them, we prioritize a series of commitments
and objectives:

Employment, Inclusive and healthy economies, Economic
convergence.

RELATED SDGS2OBJECTIVE

SDGs8 (Decent work and economic growth) andSDG 9 (Industry, innovation, and infrastructure).

SUPPORT THE POPULATIONTO HAVE THE PERTINENTSAVINGS AND CREDITPRODUCTSRATIONAL
Facilitate that they can undertake their personal and professional
projects, attention to possible biases and inequalities in thefinancial industry for the access of groups of the population.

LINKED IMPACT AREAS
Inclusive and healthy economies, economic convergence.

RELATED SDGS
SDGs1 (No poverty),
SDG 5 (Gender equality) and
SDG 10 (Reduction of inequalities).
24

Integrated Sustainability Report 2022 • Banco GuayaquilObjective

Objective 1

Objective 2

Baseline
2019

Value
2022

Goal
2025

Degree ofprogress (%)

Microcredit granted(companies) (millions
USD)

142

311

350

90%

Credit to SMEs (millions
USD)

259

464

700

66%

Trade credit delivered(millions USD)

2,815

3,053

3,250

94%

Microcredits to women(millions USD)

58

140

300

46.7%

% of total microcredit
given to women

44%

45%

50%

90%

Credit to SMEs led by
women (millions USD)

13

22

32

47%

Indicator

We are also working on the definition of impact indicators, which allow us to measure the contribution we
generate through credit, especially in relation to financial inclusion and the reduction of Greenhouse Gas(GHG) emissions.
Additionally, it should be noted that this year we signed
the Commitment to Health and Financial Inclusion

Strategy(within the framework of the Principles of Responsible
Banking). The initiative focuses on segments such as
the unbanked, ex-banked or underbanked population,
households, micro-enterprises and small and mediumsized enterprises. During 2023 we will be announcing
our more detailed objectives in this regard, which
expand what we already established in the previous
Objective 2 (PBR) (see previous page).

25

3.
CORPORATEGOVERNANCE

(GRI 2-9, 2-10, 2-11, 2-17, 2-18, 2-19, 2-20)
toguarantee compliance with the Bank's strategic ob-

Ecuador's own legislation, and we implement the bestjectives and generate value for all of our shareholders

Our

corporate

governancestrictlyadheres

international and national practices, such as the volun-

and other interest groups. We believe that the practicetary Standards recommended by the Superintendencyof good corporate governance transcends the fulfill-of Companies, Securities and Insurance (SCVS) andment of these objectives, which guarantees the conti-

the OECD Principles. and the G20. These guideli-

nuity of the business, makes it viable and competitive;

nes are included in our Bylaws and the Corporate

this is expressed in Article 41 of the Sixth Title of theGovernance Code.

Bank's Bylaws.

Responding to processes of continuous legal andTo

regulatory adaptation, the regulatory body called

Shareholders' Meeting, the Board of Directors, andthe Corporate Governance Code of Banco Guayaquil

Senior Management participate, each with their respec-

has undergone a Sixth Reform. For the developmentof this alignment, a general review of the document
has been carried out, for which the following has

ensureits

properfunctioning,thetive responsibilities. For Banco Guayaquil, its Corporate
Governance constitutes the set of organizational andoperating rules that regulate the relationships between

been considered:these actors.

Internal self-regulation of the Bank:

General Meeting Of Shareholders• New contents of the Code of Ethics

It is the supreme governing body of the Bank, whichcollegially brings together all the holders of the titles.

• Sustainability Policy Guidelines

It is in charge of the following main functions:International references:• Ecuadorian

GeneralStandards

for

Good

Corporate

Governance of the Superintendency of Companies(Resolution SCVS-2020-0013 of September 2020)• Appoint the Main and Alternate Directors, Internal
AuditorandExternal

Auditor,

and

set

their

remuneration.
• Approve the Financial Statements, the Report ofInternational references:the External Auditors and the Internal Auditor, and• OECD and G20 Corporate Governance Principles

the Commissioner's Report.

• IDB and CAF requirements in their terms of referen-• Approve the destination of profits proposed byce and other obligations and/or recommendations

the Board of Directors and authorized by thefor Banco Guayaquil in operations

Superintendency of Banks.

The structure and operation of Banco Guayaquil's
Corporate

Governance

has

been

establishedto• Approve any amendment to the Bylaws, among
others.

Corporative Governance27

It is convened once a year ordinarily. The Board
meets ordinarily within 90 days after the close of
the annual fiscal year, and extraordinarily whenlegally called. In 2022, two sessions were held: one
ordinary (corresponding to fiscal year 2021) and one
extraordinary (for a topic related to fiscal year 2022).

Board of Directors
It is the highest body responsible for the administration,
management, supervision, and control of the Bank,
ensuring its present and future viability.
In compliance with the reform of the provisions
corresponding to the Good Corporate GovernanceStandard of the Superintendency of Banks and theprovisions of Article 258 of the Monetary Code, all
the members, principal and alternate, that make up
the Board of Directors of Banco Guayaquil have been
appropriately qualified before the Superintendency
of Banks.
Within the functions of the Board of Directors:•

Define the financial and credit policy and supervise
its correct application.

•

Approve the main policies and procedures,
ensuring their compliance and the operation of
the Bank's internal control systems.

•

Approve the corporate strategy.

•

Authorize the annual budget.

•

Evaluate the performance of the Bank and Senior
Management, based on the management reportpresented by the Executive President.

This body is appointed by the General Shareholders'Meeting for periods of two years with the option of
re-election. For his part, the Chairman of the Board of
Directors is elected by all the members of the body.
They meet in Board sessions once a month, with thepossibility of making extraordinary calls, if necessary.
For their participation in the sessions, the members
receive a remuneration proposed by the Remuneration
28

Integrated Sustainability Report 2022 • Banco Guayaquil

Committee and approved by the General Shareholders'Meeting.

Guayaquil.

It is made up of five main directors and four alternates.

The Bank has been working to increase the diversity of
its Board of Directors, considering training, experience,

Concerning the directors:•

They are appointed for two-year terms, with thepossibility of re-election.

•

They are ratified by the General Shareholders'Meeting, in accordance with the guidelines
established in the Bylaws and in the Corporate
Governance Code.

•••none of the members hold executive positions at Banco

They must have the necessary skills and abilities toperform their functions, free of conflicts of interest.

and aspects such as gender, age and other relevantcharacteristics. The aforementioned, allows a buildingof a broader vision, more inclusive and ample.

Number of
Sessions per Year

Ordinary Sessions

12

Extraordinary Sessions

8

Total, Sessions held

20

The Board of Directors meets once a month in ordinary
sessions, to analyze and decide on the main mattersthat are within its competence, especially to review thereports on management and results, as well as to receive
periodic information regarding the topics examined
and approved. by the different committees of the Bank.

They receive a remuneration for each session
they attend, proposed by the Remuneration
Committee, and approved by the Ordinary General
Shareholders' Meeting.

There is the possibility of making extraordinary calls

They are accurately informed for decision-making
and receive annual training on key issues forstrategy and operation (see details in this chapter).

of directors at Board meetings is equivalent to 100%.

The Board of Directors that carried out its functionsin the year 2022 was that year. It should be noted that

Board Meetings

if the management so requires. In 2022, 12 ordinary
and 8 extraordinary sessions were held. During thementioned year, the percentage of average attendance

The

Board

of

Directors

also

has

increasing

responsibilities in terms of performance supervisionof environmental, social and governance (ESG) factors,
which is reported in the Profile and Context chapter.

Econ. Danillo Carrera Drouet
Presidente
2022 - 2024. Elegido en 1995

Dr. José Ayala Lasso
Director Principal
2022 - 2024. Elegido en 2005

CPA. Víctor Hugo Alcívar
Director Suplente
2022 - 2024. Elegido en 2020

Dr. Galo García Feraud
Director Principal
2022 - 2024. Elegido en 1998

Ab. Raúl Gómez Ordeñana
Director Principal
2022 - 2024. Elegido en 2004

Econ. Sandra Vargas López
Directora Suplente
2022 - 2024. Elegida en 2021

Dr. Mario Jaramillo Paredes
Director Principal
2022 - 2024. Elegido en 2012

Ing. Leonardo Moreira Luzuriaga
Director Suplente
2022 - 2024. Elegido en 2018

Dra. Paola Ycaza Oneto
Directora Suplente
2022. Elegida en 2022

Corporative Governance29

• 22% of the directors are women (considering holders and substitutes).
• The average seniority of the directors in the exercise of the position is 12 years.
• None holds an administrative position at the Bank.

Committee Membership
Members by Committee (X)• Ethics• Business Continuity

Ing. Leonardo Moreira Luzuriaga• Technology

CPA. Víctor Hugo Alcívar Alava• Audit• Compliance

Econ. Sandra Vargas López

X

X

Corporate
Governance andSustainability

X

Executive

Technology

X

X

X
X

X

X

X

Econ. Paola Icaza Oneto

30

Business
Continuity

Occupational
Safety and Health
Joint

EthicsRetributions

Compliance

X

Comprehensive
Security

Ab. Raúl Gómez Ordeñana

X

Rating of Risk
AssetsEcon. Danilo Carrera Drouet• Comprehensive Risk Management• Rating of Risk Assets• Comprehensive Security• Corporate Governance andSustainability

Comprehensive
Risk Management

Committees they chair

Audit

Directory

CreditManagement
Committees

Regulatory Committees

X

Integrated Sustainability Report 2022 • Banco Guayaquil

Statistics on the operation of the Regulatory Committees
Name

Training provided to Directors

Number of sessions

Audit Committee

10

Comprehensive Risk Management Committee

19

Compliance Committee

12

Ethics Committee

2

Retributions Committee

1

Total Sessions

44

The Board of Directors members receive support for
their knowledge through the Financial and Regulatory
Update Program, which provides information on thescope of the new regulations issued by the economic
and supervisory authorities of the country, on the
global and regional macroeconomic context, and of
possible risk scenarios for the Bank.
With the aim of enhancing the level of knowledge andoptimizing the decision-making of the members of theBoard of Directors, during 2022 the following training
programs were carried out aimed at that level ofthe organization:

Corporative Governance31

Senior Management / Administration

Training received by the Board
N°
Shareholders

Percentage

Talk: Organic Law on Protection of
Personal Data

8

88.9%

Directory Training: Analysis of the PoliticalEnvironment of Ecuador and the World

8

DescriptionMonth• Its responsibility includes the implementation of theDuration(Hours)strategies and guidelines approved by the Board.
• It consists of the CEO, two Executive Vice Presidents
and General Managers, who are elected by the

March

1.5

Board for 5-year terms, with the possibility ofreappointment.

88.9%

April

• General Attorneys are added, who represent the

1

Bank in both public and private acts, appointed by
the CEO with prior authorization from the Board.

Talk: Update of the Risk Management
Regulation for Money Laundering and
Financing of Crimes such as Terrorism(ARLAFDT)

8Board Training: Anti-Bribery Management
System (SGAS)

9

100%

July

1

Talk: Sustainability - New Challenges for
the Board of Directors

9

100%

October

2

•
88.9%

June

1.5

In compliance with the reform of the Corporate
Governanceregulations

of

the

Banking

Superintendent and Article 258 of the Monetary
Code, the legal representative of Banco Guayaquil
has

been

duly

qualified

beforetheBanking

Superintendent.
•

Complementing the aforementioned responsibilities
for monitoring and control, external to the Bank's
structure, there is the external auditor of theinstitution. According to the Monetary and Financial

Normative and managerial committees

Organic Code, there is the position of Corporation
Official and is responsible for overseeing the balance

Normative and managerial committees
The members of the Board and Senior Management
participate in various committees that make up
the Corporate Governance structure of the Bank.
These include normative committees, which are required by legislation, as well as managerial committees, which are established by the institutions tostrengthen decision-making.
Normative Committees
Audit Committee
Integrated Risk Management Committee

sheets and financial results. They are appointed
Continuity Committee

annually by the General Shareholders' Meeting, toTechnology Committee

which they report.

Comprehensive Security Committee•

Regarding internal control, we recognize and highlightthe role of the Compliance Officer. This professional

Managerial Committees

is responsible for Anti-Money Laundering andExecutive Committee

Combating the Financing of Terrorism (AML/CFT)

Credit Committee

Risk Management. Additionally, we have an Internal

Corporate Governance and Sustainability Committee

Auditor who also reports directly to the Board.

Security Committee•

On the other hand, there is the Customer Advocate,
responsible for receiving and processing complaints,

Risk Assets Qualification Committee

The Board is kept informed of the activities carried out

Compliance Committee

within the committees directly through the participation

Compensation Committeeof directors in both structures. In addition, it receives

Ethics Committee

regular presentations and consolidated information

Superintendent of Ecuador, and annually report their

Joint Health and Safety Committee

regarding the Bank's performance.

performance to the General Shareholders' Meeting.

32

Integrated Sustainability Report 2022 • Banco Guayaquil

seeking
areresolution

external

andbetweenthe

independent,

parties.

Theyappointed

by

the Government, collaborate with the Banking

Corporative Governance33

Management and Administrative Structure
Organization chart
General Meeting of
Shareholders

Audit Committee
Comprehensive Risk
Management Committee

Customer Ombudsman

Risk Asset Rating
Commission

Directory
Remuneration Committee
Ethics Committee

Compliance Officer

Occupational Health and
Safety Joint Committee

Internal Auditor

Executive committee

CEO

Continuity Committee

Credit committee

Technology Committee

Corporate GovernanceCommittee

Comprehensive
Security Committee
Executive Vice President
General Manager
Management and Operations

Executive Vice President
General Manager Business

Vice President of Retail andChannel Banking

Comprehensive Risk

Vice President ofTechnology and Operations

Vice President of Corporate
Banking and Value Chain

Talent and Culture
Vice President

Vice President Financial
Controller

Vice President of Microfinancesand Financial Inclusion

Legal Vice President

Vice President of Business
Development

Fixed Assets Vice President

Marketing Vice President

Treasury Manager

Regional Commercial
Vice President

Administration Manager
Comprehensive Security Manager

Vice President
Digital Transformation

34

Integrated Sustainability Report 2022 • Banco Guayaquil

Corporate Governance Manager

Angelo Caputi Oyague
Executive President

Guillermo Enrique Lasso Alcívar
Executive Vice President
Business General Manager

Juan Carlos de Genna Bowen
Vice President
Personal Banking and Channels

Alain Broos Córdova
Vice President
Business Development

Alexandra Rodríguez Viera
Vice President
Financial Controllership

Julio Mackliff Elizalde
Executive Vice President
General Manager of Finance and Support Divisions

Fernando Coronel Velasco
Vice President
Corporate Banking and Value Chain

Pedro Galvis Acosta
Vice President
Regional Commercial

Juan Fernando Noboa Baquerizo
Vice President
Legal

Rodrigo Mora Guzmán
Vice President
Comprehensive Risk

Miguel Vareles Sandoval
Vice President
Inclusion Banking

Pedro Escobar Ullauri
Vice President
Regional CommercialÍtalo Cuntó Icaza
Vice President
Fixed Assets

Ernesto Weisson Arízaga
Vice President
Talent and Culture

Luis Buendía Portaluppi
Vice President
MarketingJuan Luis Reca Montero
Vice President
Technology and Operations

Jorge Alfredo Hurtado Franco
Vice President
Digital Transformation

Corporative Governance35

4.
ETHICS ANDCOMPLIANCE

4.1

FRAMEWORK FOR ACTION,CULTURE AND TRAINING(GRI 2-15, 2-23, 2-24, 2-25, 2-26, 3-3,
201-4, 205-1, 205-2, 205-3, 206-1)

At Banco Guayaquil we require all our collaborators
to strictly adhere to the regulations and regulations
in force that apply to us, as well as to the different
policies, procedures, and codes that we havedeveloped internally.
Especially noteworthy is our Code of Ethics, which isapproved by the Board of Directors and serves as themain anti-corruption reference framework; also in otheraspects such as non-discrimination. The Code of Ethics
was updated in 2022. It governs the way in which ourcollaborators relate, and these with external interest
groups; it also applies to directors. Likewise, it contains
the main guidelines to avoid conflicts of interest, corruption practices and asset laundering. Additionally, it
promotes respect for diversity and non-discrimination.

Awareness to suppliers about the SGAS – 2022
N° awarenessN°suppliers
reachedSupplier
percentage
reachedN° suppliers
not reached

Percentage ofsuppliers notreachedTotal numberof suppliers

1

22

21.6%

80

78.4%

102

2

152

77.9%

43

22.1%

195

Note. Since the providers were informed through emails, there are providers reached (who opened the emails) and not reached (who did not open
the emails).

It is complemented by the Internal Work Regulations
and other Bank policies.
With regard to the Board of Directors, it constitutes
the Governing Body of the bank, consisting of five (5)principal directors (including the president of the Boardof Directors), and four (4) alternate directors, who will bein office during the period 2022 - 2024.
We also promote an ethical culture among our suppliers,
who have a specific code to which they commit in
writing, as part of the Anti-Bribery Management System(SGA) established in the purchasing process. In relation
to this, a Supplier Awareness Program by the SGAS was
implemented, and the results were as follows:

Ethics and Compliance37

Our collaborators receive regular communications of
the contents on the intranet and by email. We train themon induction and annually with a specific course, inwhich 96.9% of the collaborators participated. Likewise,
we inform and train 100% of the members of our Boardof Directors in this regard.
The following tables show the breakdown of training for
personnel on ESMS by region and job category, as wellas the breakdown of training for the Board of Directors
on this topic.

Breakdown of ESMS staff training by
job category and region – 2022
N° Employees trained

Trainedcollaborators

CenterOperatives

North

Total

South

1.024

513

175

1.712

Tactical

615

222

78

915

Executives

179

44

12

235

Strategic

8

1

1

10

1.826

780

266

2.872

Total

Note. The data indicated in the chart is as of july 2022.

Breakdown of communication and SGAS
Board Training by Region – 2022

38

RegionNumber Of
Principal
Directors

Number Of
Alternate
Directors

Total

Percentage

Center

4

4

8

88,9%

North

1

0

1

11,1%

Total

5

4

9

100%

Integrated Sustainability Report 2022 • Banco GuayaquilWe have an Ethics Line for reporting non-compliance inAs part of our efforts to avoid any corrupt practice, we

the exercise of our activities with access via the intranet

do not make contributions to political parties.

for employees and to the general public via email. In
addition, our internal audit team carries out an annual
evaluation program in which cases can be identified.
The cases are evaluated by the Vice-presidency of
Talent and Culture, and by the Vice-presidency that corresponds to the area involved. The most serious and/or those that require sanctions, as well as those that in-

4.2 COMMITMENT TO THE CULTURE OFCOMPLIANCE(GRI 2-27, 3-3, 415-1, 416-2, 417-2, 417-3)(SASB FN-CF-220a.2, FN-CF-270a.5,
FN-MF-270a.3, FN-CB-510a.1, FN-CB-510a.2)
We adhere to the Organic Law for the Prevention of

volve Senior Management, are analyzed by the Ethics

Money Laundering and Financing of Crimes such as

Committee. The Committee is also in charge of taking

Terrorism and the Regulation (ARLAFDT). For this, we

care of the knowledge of the Code of Ethics by the collaborators and of reporting this to the Board of Directors.

have an ARLAFDT Institutional Program, which is basedon corporate governance, internal regulation, culture

The composition and responsibilities of the Ethics

and technology. We also apply the recommenda-

Committee correspond to what is established by thetions of the main international organizations, such aslegal provisions. We seek that the members of thethe International Financial Action Group (GAFI) against

Committee have the highest credentials, for which they

Money Laundering and Financing.

are approved by the Board of Directors and must havea qualification from the Superintendency of Banks. Its
members include a representative of the shareholders,the Board of Directors, and employees, as well as the
Executive President of the Bank.
We also have an Anti-Bribery Management System, forthe process of selection, evaluation, and payment to
suppliers, certified in accordance with the ISO 37001

Added to this is a robust, specialized organizational
structure in accordance with the highest international
standards, as well as internal policies and procedures,
integrated into the ARLAFDT Manual.
We promote among our collaborators the knowledge ofthe set of external regulations and internal self-regulation, as we have indicated, as well as extend the culture

standard (certification valid in the year 2022). The

in our value chain.

performance of the management model is audited

All this has allowed us that in 2022 we again did notinternally and externally.
» More information on this in the section on
Relations with the supply chain

Ethics and Compliance

have significant sanctions for non-compliance or arbitration cases, including in relation to free competition
practices, product information and marketing.

39

5.
RISK
MANAGEMENT

5.1 PREVENTION AND MONITORING(GRI 2-12, 2-13)(SASB FN-MF-450a.3)
At the institution, we have a solid structure for theidentification and management of risks, which allows
us to be proactive in decision-making, safeguarding
the continuity of the operation.
The Board of Directors is responsible for establishing the
global risk management framework, and participates in
the identification and analysis of potential risks. It also
receives risk management information annually forfollow-up. It is supported by the Comprehensive Risk
Management Committee, which evaluates risk impact
projections on the Bank's operating and financial
results, with the participation of Senior Management.
The integrated Risk Management Committee is responsible for proposing strategies, policies and processes for risk management to the Board of Directors.
This proposals require approval from the Board, andthe Committee is responsible for overseeing theirproper implementation.
Risk management is strengthened by a culture of
prevention and active participation of our collaborators.
We require them to be vigilant to identify potential
risks in their processes and activities, including thoseemerging, and to bring them to the attention of theinstitution. They are also asked to participate in theinitiatives proposed by the risk management team andthe areas involved.
Below, we present our main risks and the keys to their
management:

Risk Management

41

Risk

CreditLiquidity

Description

Non-compliance on thepart of the borrowersof the payment of theobligations acquiredwith the Bank

Shortage of funds tomeet our obligations as afinancial institution

Keys in Management-

Analysis of applicants' information.

General delinquency rate: 1.43%-

Robust evaluation methodology.

-

System for the Analysis of Environmental and Social Risks(SARAS), which evaluates related aspects.

Delinquency rate in the commercial segment:
1.08%

-

Complementary and decision-making evaluation of the Risk
Management Committee.

-

Monitoring of customer payment behavior.

-

Analysis of different contractual scenarios regarding liquidity
gaps.

-

Monitoring of the adequate availability of resources, of thestability and concentration of public deposits and that the gaps
between assets and liabilities are covered with liquid assets.

-

MarketOperational

42

Decrease in the valueof the investment andcredit portfolio, due tochanges in the variables
that determine it: interest
rate, exchange rate, andstock market dynamics

Indicators of performance

Delinquency rate in consumer loans: 1.68%
Microcredit delinquency rate: 2.68%
Credit risk coverage rate: 304,65% and
US$ 204 million provision.

Liquidity ratio: 35.8%
US$ 2,004 millions of available liquid assets.

Compliance with the limits determined by the Superintendency
of Banks and the Central Bank.
Specific features based on risk:-

Interest rate risk: The sensitivity of the financial margin andequity value is measured.

-

Stock market risk: monitoring of the local and international
investment portfolio.

-

Exchange rate risk: monitoring through identification
methodologies and analysis of potential exposure, due tovariations in the price of currencies.

-

Identification of risks for their management.

-

Risk Matrices.

Failures in the systems
and processes, due toexternal and internal
agents (fraud, human
and/or technological-Business Continuity Management System (BCM), aligned with
the ISO 22301 standard.

-

Business Impact Analysis (BIA) to establish critical processes.

-

failures, etc.)

Establishment of preventive measures, with the participation of
the Continuity Committee.

-

Implementation of continuity tests, to verify that we could
maintain the required levels of functionality in case of criticalevents..

Banco Guayaquil • Reporte Integrado 2022

Interest rate risk: indicator of 0.47% of the Bank's.
Technical Equity Stock risk: indicator of 0.48% of
the Bank's.
Technical Equity. Exchange rate risk: 0.001% of theBank's Technical Equity.

The amount of operational losses represents
0.293% of the Bank's Equity.

Emerging Risks
We are continuously attentive to the evolution of risks,early identifying those emerging, which may be significant for the institution in the medium and long term.
Especially noteworthy are those related to cybersecurity,
considering the rapid shift towards predominantly
digital banking. We are also concerned about risks

FactorCybersecurity

Climate change

associated with climate change, including extreme
weather events as well and potential regulatorychanges and technological limitations that may impact
the activities of our clients to whom we extend credit.
It is important to highlight the efforts made in 20222023 to carry out a comprehensive identification of

Impacts-

Blocking of remote/digital channels.

-

Theft of customer data.

-

Impersonation of clients and/or collaborators(phishing).

-

Recovery of commercial credit.

-

Regulatory requirements for evaluation of
credit clients.

-

Request to establish provisions (capitalrequirements).

-

Loss of value of assets in which it has been
invested.

-

Availability of more efficient technologies in
the use of energy (for the operation of thebank).

-

Clients favored and/or financiallydisadvantaged by related regulations andregulations-

Regulatory requirements for business clientsin their fields of activity.

-

Increase in social inequalities (impact of
extreme weather events).

the climate change risks and opportunities related toclimate change to which Banco Guayaquil is exposed
to. In this process we follow the guidelines andnomenclature of the Task Force on Climate-related

Financial Disclosures (TCFD). The results are detailed in
the specific section in this same chapter.

Bank Management-

Implementation of the Cybersecurity Strategy, to detect,prevent and respond to internal and external threats
directed towards the Bank's technological infrastructure
and information.

-

Performance of the Integrated Intelligent Monitoring Center(CIMI), which coordinates the supervision of the different
Bank teams that work on prevention.

-

Assessment of environmental risks of credit applicants
through SARAS.

-

Support within the framework of ASOBANCA for the
preparation of Sectoral Guides to mitigate environmental
risks in the granting of credit.

-

Development of Green Lines: credit product for energy
efficiency.

-

Sensitization to business clients regarding environmental
practices.

-

Preparation for the measurement of credit portfolio issues(companies).

-

Compensation of GHG emissions: carbon neutrality
certification.

-

Availability of Microcredit.

Risk Management

More Information››

Comprehensive Security›› Financing andSustainable Investment››

Environmental
management435.2 ANALYSIS OF RISKS ANDOPPORTUNITIES OF
CLIMATE CHANGE(GRI 201-2)
Advancing on the road map that we have establishedin relation to climate change, we took a relevant step
this year with the analysis of the risks and opportunities
that it entails for our credit portfolio. Thus, for the firsttime, we are also addressing the Recommendations of
the Task Force on Climate-related Financial Disclosures(TCFD), to make our management transparent.
We follow the process below, with the support ofexternal specialists. It is also worth noting the active
participation of our sustainability and risk teams, whowill be in charge of management; see Governancesection in this same subchapter.

Performed Activities(TCFD GDR-A)
1. Sensitivity analysis, studying the distribution of ourcredit portfolio by type of economic activity, anddetermining which are more vulnerable to climatechange in Ecuador according to official/specialized
documents (ENCCE, IDB, ECLAC, among others). The
initial study was complemented with the analysis
of other regional banks based on their public
information.
2. Internal study: On a representative sample ofclients subject to SARAS from the sectors identified
in Phase 1, a survey was carried out to carryout an analysis of the maturity of their climate
management.
3. Transition risk matrix.

44

Banco Guayaquil • Reporte Integrado 2022

4. Matrix of opportunities.
5. Climate scenarios and threats: With the databaseof the clients and the location of their facilities, thephysical climatic risk and its level were determinedin accordance with the most pessimistic scenario,
RCP 8.5, using the information prepared by Ministryof the Environment, Water and Ecological Transition(MAATE).
Considering the result of the previous points and the
RCP 8.5 scenario, the risks and opportunities werequalified:• By the probability of occurrence:ashighlyprobable, probable, low probability or improbable.
• By the level of impact: high, medium high, medium
low and low.
• The combination of both variables gives the level ofrisk.
We present below the main risks. They have been
categorized according to the TCFD nomenclature, intransition and physical risks:
Transition risks: Those associated with changes on
the path towards a low carbon economy, example inlegislation, to address climate change mitigation andadaptation.
Physical risks: Those associated with events of greater
intensity (acute) and/or long-term changes in weather
patterns (example temperature) (chronic). They cancause damage to the infrastructure, affect operational
continuity, etc.
Below is a summary of the main risks.

Transition Risks(TCFD EST-A, EST-B)
LT-Long term; MT-Medium Term; ST-Short Term LI-Level of impact; P-Probability; M-Magnitude

Main risks by magnitude
Classification

Risks and descriptionTimehorizonNE

P

M

R.4.1 In a transition scenario, new regulations are expected to restrict the extractionof fossil fuels, which would result in stranded assets associated with: 1. oil andgas reserves that would remain unburned; 2. infrastructure for exploration anddevelopment without utility; 3. facilities for production and processing without
operation; and 4. unused distribution channels.

LP

3

3

9

R.9.1 Difficulty or impediment to correct price formation, allocation of financing orinvestment amounts.

MP

4

2

8

R.11.1 Risk that the financing cost of clients with greater exposure to climatic risks (increasein the severity and frequency of climatic events) will increase considerably, could
cause monetary losses in a way that affects their solvency by doing more difficult
for them to meet their credit commitments.

CP

3

3

9

R.12.2 Risk that the credit rating of clients with exposure to climate change risks will
worsen, with the adverse effects that this entails for BG.

MP

3

3

9

It could hinder the growth of our business, compromise our competitive position, or
adversely affect our business, results of operations, cash flows and financial condition.

CP

3

4

12

Responding to new or additional requirements (calculation of financed emissions)that stakeholders see regarding climate action, could result in adverse publicity, andnegatively affect our reputation, business, results of operations, cash flows and financial
condition.

CP

2

3

6

Regulation and legal
Emerging regulation: Statutes
and regulation of existingproducts and services.

MarketUncertainty in market signals.
Financial Impacts.
Risk of loss arising from theinability or failure of a client tomeet its obligations.
Increase in credit risk.

Reputation

Changes in consumer
preferences.

Risk Management

45

Physical Risks(TCFD EST-A, EST-B)
To determine the physical risks, we use the projectionof the RCP 8.5 scenario, which considers increases of
0.8°C in the period 2011-2040. In Ecuador, it translates
into differential increases depending on the region:+0.9°C in the Amazon, +0.66°C in the Sierra, +0.87°C in
the Coast, and +1°C in the Galapagos (Armenta, P. G etal. 2016). Regarding rainfall, they would increase by atleast 10% in most of the country, and with the highest
increases in the Central Sierra and in the center andsouth of the Amazon (Armenta, P. G et al. 2016).
The analysis was carried out by region and by sectorof economic activity; comprised a sample of 417 clients.
1. By region:
Clients distributed 53% in the Coastal Region, 41% in
the Sierra Region, 6% in the Amazon Region and 1%
in the Insular Region.
The main threats are very high temperaturesand heavy rains, where most of the facilities are
exposed to high and moderate levels; while withdrought, low and very low levels are recorded, andwith respect to frost most have very low levels.
2. By sector of economic activity:
As mentioned above, the main risks by location areheavy rains and very high temperatures.
The facilities with high exposure to intense rains
are: bananas (30.3%), rice (57.1%), and fishing industry(33.3%). The percentages refer to the proportionof customers in that sector with that degree of
exposure (example 57.1% of rice customers havehigh exposure).
Facilities

46

with

high

exposure

to

very

high

(78.9%), fishery industry (66.7%), agricultural inputs(64%), construction and infrastructure (47%), cargotransport (60%) and shipping transport (50%).

Opportunities(TCFD EST-A, EST-B)

temperatures are: bananas (45.5%), sugar cane

We indicate below the main opportunities identified,(47.1%), livestock (55.5%), poultry (44.2%), shrimp

based on the survey carried out with our clients:

Banco Guayaquil • Reporte Integrado 2022

General Sector

Opportunity
Classification
Resource efficiency

Identified opportunities
O.1. Efficient use of pesticides and fertilizer use to reduce their climate impact

TemporalhorizonCP

O.2. Financing to modernize tractors and agricultural machinery.
Agricultural andforestry sector

Infrastructure andpower generation

Power source

O.3. Opt for efficient irrigation systems and replace those that are not to promote efficiency andbetter use of resources.

CP

Products and services

O.4. Diversification of crops that are more resilient and adaptable to extreme weather conditions.

CP

Markets

O.5. New market niches with demand for organic products.

CP

Resilience

O.6. New farming techniques and practices that promote adaptability to possible extreme conditions.

CP

Resource efficiency

O.7. Application of value engineering techniques for the correct management of waste, reusing
and recycling materials, and the acquisition of more sustainable products.

MP

Power source

O.8. Financing to modernize construction equipment.

MP

O.9. New materials from recycled raw materials.
Products and services

Transport, storage,
and communications

O.10. Participation with the cement industry to generate carbon reservoirs through the reabsorptionof carbon dioxide.

LP

Resource efficiency

O.11. Efficiency of mobile equipment through the replacement of more current equipment and lessintensive in energy consumption.

CP

Products and services

O.12. New services for consolidation with product distribution logistics.

MP

Markets

O.13. Increased demand for home delivery of products.

CP

Resource efficiency

O.14. Reduced water consumption per occupied room by investing in new water efficiency projects,
including low-flow toilets, faucets and showerheads across the entire hotel portfolio.

CPPower source

O.15. Participation in renewable energy and energy efficiency programs.

CP

Products and services

O.16. Change in consumer preferences. Development of one or several iconic properties that areat the forefront of sustainability practices, for example, a hotel with a carbon footprint or Zerowater footprint.

MP

Markets

O.17. Several studies consider it very probable that the tourism sector will move towards latitudes
and altitudes higher than the weather conditions that attract tourism.

LP

Resilience

O.18. Access to new assets and locations that need insurance coverage. Strengthen communication
with investors by maintaining and improving the response to questionnaires or communications
such as CDP, SAM, TCFD, among others, of extra financial interest.

LP

Tourism

Risk Management

47

Management and governance(TCFD GOB-A, GOB-B, GDR-B, GDR -C)
The climate change risk and opportunity analysis
exercise has been led by the sustainability team, withthe active participation of the risk team. The objective is
to be able to propose from the results, presented abovein summary, a portfolio strategy. The risk team will
have the main role in managing decisions, integratingclimatic aspects together with the rest of the variables
analyzed in the clients, in the granting.
The results have been presented to the Corporate
Governance and Sustainability Committee in the first48

quarter of 2023, extemporaneously to the year of
this report, and will also be submitted to the Board of
Directors as the next instance. However, it should be
noted that the Board of Directors was already sensitizedin 2021 about the relationship between climate change
and banking activity, and has been kept regularly
informed of the progress of our climate roadmap; thisbecause it is integrated into the Sustainability Strategy,of which they have been informed by procedure
for several years and seeks to nurture the strategic
decision-making of its members.

Banco Guayaquil • Reporte Integrado 2022

5.3 RELATIONSHIP WITH
THE SUPPLY CHAIN(GRI 2-6, 204-1)
For the operation of the Bank and the quality of services,
we require competent and selective suppliers of
products and services. We seek trustworthy, beneficial,and long-term relationships.
During the evaluation process, we hire an external third
party to analyze operational capability, quality, andcompliance with applicable legislation. Furthermore,
we are progressing in integrating and analyzing theirsocial and environmental practices, in addition tolegal compliance.
Once selected, we require them to comply with the
ethical guidelines of the Bank; in 2023 we will belaunching the update of the Code of Ethics for suppliers.
The evaluation, selection, contracting and payment of
suppliers at the national level, is certified pursuant toInternational Standard ISO 37001and are part of our
Anti-Bribery Management System (SGA).
At the end of the year 2022, we had 324 active suppliers,
who billed US$ 102,753,963.03. 92% of what was invoiced
corresponded to national suppliers.

Percentage of the numberof suppliers by type of
product/service 2022
TECHNOLOGY

24%
49%

4%

OFFICE CONSTRUCTION

3%

OFFICE EQUIPMENT
MARKETING
GENERAL SERVICES

Percentage of suppliers
by type of products/
service according to thecontracted amount 2022
TECHNOLOGY48%

OFFICE CONSTRUCTION
OFFICE EQUIPMENT
MARKETING

19%

29%

GENERAL SERVICES

21%

1%

Risk Management

2%

49

6.
ECONOMICRESULTS

6.1 RELEVANT FINANCIAL DATA
In 2022, as an institution we continue to consolidate ourmain indicators.

• In efficiency, we closed at 34%, containing costs thanks• We managed to close with a profitability of 18.8%,
exceeding the goal set (15%) for the 2023 Centennial
Plan a year earlier.

• We have also reached the goal of being the secondbank in portfolio and deposits, already above 12% of
the market.

• We maintained our solvency level at a solid 15%,
despite portfolio expansion in recent years.

During the year we transitioned from an active credit
placement with the liquidity we had, to a more moderate

We presented excellent results, having generated a
profit of US$ 110 million, 48% above the previous year

2019

2020

2021

2022

-

The Operational Efficiency Index expresses therelationship between operating costs and income.

Assets and contingencies(thousands of dollars)

6,729,611

7,349,742

8,247,175

9,033,165

785,990-

The ROE expresses the net profits of a period for the
total equity; ROA shows the ratio of net earnings toaverage assets.

Loan portfolio (thousands ofdollars)

3,682,983

3,854,011

4,608,043

5,183,098

575,055-

Deposits (thousands of dollars)

3,718,315

4,373,171

5,010,624

5,362,093

351,469

Operational Efficiency Index (%)

38.09

32.27

35.36

34.17%-1.19

The Technical Equity is made up of the sum of thepaid-in capital, reserves, total current year profits,
accumulated profits from previous years, contributions
to future capitalizations, convertible bonds less the
deficiency of provisions, required amortizations anddepreciations, losses, and other items that the financial
institution has not recognized as losses and that theSuperintendency of Banks classifies as such.

-

ROE (%)

17,.62

6.63

13.92

18.82

4.90

The Delinquency index measures the operations thatat the time of expiration have not been canceled or
renewed by the clients.

ROA (%)

1.59

0.58

1.25

1.68

0.43

Liquidity Index (%)

36.75

43.73

37.25

35.82

-1.43

Solvency Index (Technical Equity)
(%)

14.55

15.90

14.62

15.21

0.59

Delinquency rate (overdue
portfolio) (%)

1.50

1.72

1.12

1.43

0.31

Net income (thousands ofdollars)

80,73333,29074,383

109,746

35,363to the advances in the digitization of our services.

approach in a context in the second semester due tothe rise in interest rates.

6.2 PROFIT AND LOSS(GRI 201-1)

Main financial and businessindicators – Banco Guayaquil

Economic ResultsNote.

∆22-21

51

Profit and loss
As of December 31, 2022 (In thousands of dollars)
ACCOUNT

Dec-19

Dec-20Dec-21

Dec2022

Var.
AnnualVar. %

INCOME536,794605,950

623,825

737,704

113,88018%

Earned interests

343,112407,125415,687

499,811

84,12420%

Service revenues

126,068

103,402124,655

129,005

4,350

3%Commissions earned

44,481

38,42539,041

66,67027,62971%

Other income

930

48,55322,351

27,883

5,532

25%

Financial profits

10,246

7,858

21,351

13,883-7,468-35%

Other operating income

11,956

588

740

452

-288

-39%

458,080

572,659

549,442

627,958

78,51614%

Operating costs

174,031

166,231

187,467

214,041

26,88814%

Accrued interest

103,899

145,004

144,809161,270

16,46011%

Provisions

63,051

177,256

114,010

113,795-215

0%Taxes and contributions

61,51247,06651,86869,521

17,33833%

Commissions paid

25,98923,602

27,93531,4793,543

13%Worker’s Participation

19,224

7,571

15,41924,5659,146

59%

Other expenses

2,462

2,137

4,356

3,139

-176

-5%

Financial losses

5,807

3,526

3,315

6,412

2,056

47%

87

266

261

3,737

3,476

1,334%

80,73333,29074,383

109,746

35,36348%

EXPENSES

Other operating expenses
NET UNIT

52

Integrated Sustainability Report 2022 • Banco Guayaquil

IncomeSales amounted to US$ 738 million, a figure in whichinterest earned (US$ 500 million) represented 68%,
followed by income from services (US$ 129 million) with
17%, and other income (including commissions earned
and financial profits) with 15%.

SALES STRUCTURE(in millions of dollars)

2%
9%
4%

Interest Earned / US$ 500 MM
Income from Services / US$ 129 MM

17%

US$ 738 MM

Other Income / US$ 28 MM
68%

Commissions Earned / US$ 67 MM
Financial Profits / US$ 14 MM

Costs and expenses
Costs reached the figure of US$ 628 million, that is, anincrease of 14% in relation to the previous period. Of thistotal, the most relevant costs were: operating expenses(40%), interest paid (26%) and provisions (18%).
The level of costs, however, was below our initial budget,
thanks to the optimization plans and the simplificationof the Bank's processes, with the potential of technology.

Cost Structure(in millions of dollars)
Operating Expenses / US$ 214 MM
Interest Paid / US$ 161 MM
Commissions Caused / US$ 31 MM
Provisions / US$ 114 MM

18%
2%
9%

40%

US$ 628 MM

5%

Taxes / US$ 69 MM

26%

Others / US$ 39 MM

Taxes and contributions
The total taxes and contributions to the Government
amounted to US$ 69 million and represents 64% of thetotal net profits for the year (US$ 110 million).
The majority corresponds to contributions for Deposit
Insurance (COSEDE) (39%) and Income Tax (35%).

Structure(in millions of dollars)
COSEDE - AGD / US$ 198 MM
Income Tax / US$ 180 MM

7%
10%
9%

39%

US$514 MM

Taxes on Foreign Assets / US$ 47 MM
Superintendence of Banks / US$ 54 MM
Other Taxes / US$ 35 MM

Economic Results

35%

53

Summary Balance Sheet
Below, we present the Balance Sheet, as of December
31, 2022.2

Balance Sheet(in thousands of dollars)
2020

2021

2022

Assets5,977,367

5,761,260

6,364,654

6,887,220

522,567

8%

Liabilities

4,538,511

5,225,863

5,762,317

6,205,773

443,4568%

Equity538,856

535,397602,337

681,447

79,11013%

Total: Liabilities + Equity

5,077,367

5,761,260

6,364,654

6,887,220

522,567

8%

Net Contingents

1,652,243

1,588,482

1,882,521

2,145,945

263,423

14%

Total:
Assets + Net Contingents

6,729,611

7,349,742

8,247,175

9,033,165

785,990

10%

6.3 BREAKDOWN OF THE CREDIT
PORTFOLIO(GRI 203-2)
During the year, we continued to contribute to theeconomic reactivation of Ecuador through different
financing options for individuals, companies, andmicro-entrepreneurs. It is worth noting the reactivation
experienced in sales in most sectors of the economy
and the boost that this has given to the Gross Domestic
Product (GDP).
2

54

Var.
Annual2019

The detailed table of the Balance Sheet can be found in the Annexes
section of this Report.

Integrated Sustainability Report 2022 • Banco Guayaquil

Var. %

Number ofactive credit
accounts

2020

2021

2022

631,714745,919862,855

The breakdown of the portfolio at the end of the year in
the different categories is presented below.

Credit Portfolio(in millions of dollars)

The total amount of the credit portfolio plus
contingencies amounted to US$ 5,183 million at theend of the year, which represents an increase of 12.48%
more than the previous year. The market share was
12.39%.

Segment

2022

Productive

6,606,261,710

People credit

2,509,413,385

Microcredit

231,534,176

Housing

121,479,278% Market Share

2018

3,147

10.49%

2019

3,683

11.28%

2020

3,854

12.08%

2021

4,608

12.68%

2022

5,183

12.39%

Evolution Of Credit Segments(SASB FN-CB-000.B)

Educational

482,563

Total placement

9,469,171,112

3%
8%Consumption

931,768,021

39%

Cards

1,577,645,364

Total people credit

2,509,413,385

Commercial credit

3,053,268,051

Contingents

3,552,993,659

Prouctive total

6,606,261,710

4%
6%

4%
6%

6%
5%

44%

42%

37%

7%
5%

41%

Micro
Housing
Consumption
Commercial

50%

2018

45%

48%

51%

47%

2019

2020

2021

2022

Economic Results

55

Loans(SASB FN-CB-000.B)

PeopleNumber of Loans
Value they represent (USD):

SME

2020

2021

2022

2020

631,714745,919862,855

44,36255,16956.461

1,620,869

1,977,306

2,484,013

146,411245,272

273,788

Companies
2020

2021

2021

2022

Corporate
2022

2020

2021

2022

Number of Loans

26,785

15,16014,691

1,827

3,428

3,613

Value they represent (USD):

617,349

691,328

760,179

1,087,043

1,256,416

1,173,786

Commercial Credit(GRI FS6, SASB FN-CB-410a.1)
Private companies are the engine of the economy in
our country and the largest generator of employment
and opportunities for Ecuadorians. During 2022, Banco
Guayaquil continued to promote the development of
the business sector through credit and the provision ofmultiple financial services.

Delivered Credit
US$ 3,053,268,051

56

Closing Balance
US$ 2,708

Integrated Sustainability Report 2022 • Banco Guayaquil

Δ22-21 (%)
5.01

Market Share (%)
12.96

Commercial Credit
Commercial Portfolio + Contingents(in millions of dollars)

By December 31 of 2022 (in millions of dollars)% Market Shares

2018

1,783

11.45%

2019

1,872

11.63%

2020

2,044

13.03%

2021

2,579

14.07%

2022

2,708

12.96%

Agriculture,
Livestock andFishery

Manufacturing

20.78%
562,904

19.63%

Commerce

Services

19.86%

20.27%

531,651

537,958

548,885

We distribute commercial credit among different
economic sectors; manufacturing and services standout above 20%, followed by commerce and thegrouping of agriculture, livestock, and fishing.

Construction

Mines
and Oil

15.28%

4.18%

413,802113,103

TOTAL: US$ 2,708,302

Economic Results

100%

57

Microcredit(SASB FN-CB-240a.1)
During this year, we promoted the delivery of new loans
to small business entrepreneurs nationwide.

New credit
delivered

Customers benefited(of the new credit)

US$ 231,534,176

35,471

Closingbalance∆22-21 (%)

Market share (%)

27.85

10.24

US$ 319

Microcredits(in millions of dollars)% Market Shares

2018

85

4.90%

2019

134

6.65%

2020

132

6.51%

2021

250

9.52%

2022

319

10.24%

Consumer Portfolio
New Credit
Delivered
US$ 2,509,413,385

58

Customers Benefited(Of The New Credit)
651,500

Integrated Sustainability Report 2022 • Banco Guayaquil

Closing
Balance
US$ 1,911∆22-21 (%)

Market Share (%)

22.65

12.66

Consumer Portfolio(in millions of dollars)% Market Shares

2018

1,068

10.69%

2019

1,464

12.47%

2020

1,473

12.82%

2021

1,558

12.26%

2022

1,911

12.66%

Credit cards(SASB FN-CF-000.B)
In addition, debit cards are also indicated.

2020

2021

2022

Number of credit card accounts

759,217

802,446

961,990

Number of debit card accounts

1,128,218

1,380,874

1,658,902

Housing Portfolio(SASB FN-MF-000.A)

New credit
delivered

Customers benefited(of the new credit)

US$ 121,479,278

Economic Results

781

ClosingbalanceUS$ 242∆22-21 (%)
10.90

Market share (%)
10.00

59

Housing Portfolio(in millions of dollars)% Market Shares

2018

206

8.89%

2019

208

8.73%

2020

202

8.61%

2021

219

9.40%

2022

242

10.00%

AmountWorthOriginatedMortgages

2020

2021

2022

2020

2021

2022

Residential

2,718

2,609

2,557

196,137

212,692

236,521Commercial

0

0

0

0

0

0

Note. Regarding commercial mortgages, Banco Guayaquil does notacquire a portfolio of mortgages issued by third parties.

6.4 EVOLUTION OF DEPOSITS(SASB FN-CB-000.A)
We closed 2022 with US$5,362 million in customer
deposits, which represents an annual growth of 7.01%
and is above the average for the financial system;
the market share was 12.29%. It reflects the trust that
customers have in our institution.

Number Of Active Debit Accounts

60

Integrated Sustainability Report 2022 • Banco Guayaquil

2020

2021

2022

2,438,439

2,806,993

3,039,526

People
2020

2021

SME
2022

2020

2021

2022

Number Of Checking Accounts

266,840

290,432

310,639

34,39739,46639,363

Balance Of Checking Accounts(USD) (As of Dec 31) (Of Deposits)

299,988,768

383,815,074

380,555,285

91,652,619

125,705,639

131,876,579

2,171,599

2,516,561

2,728,887

99,616110,262

105,283

889,510,201

1,019,788,665

1,078,928,643

43,739,985

56,971,776

60,593,905

2,438,439

2,806,993

3,039,526

134,013

149,728

144,646

1,189,498,969

1,403,603,738

1,459,483,928

135,392,604

182,677,415

192,470,484

Number of Savings Accounts
Savings Account Balance (USD)(As of Dec 31) (Of Deposits)
Total Number
Total Balance (USD) (As of Dec 31)(Of Deposits)

Companies
2020

2021

Corporate
2022

2020

2021

2022

Number of Checking Accounts

16,624

10,031

9,932

1,450

1,472

1,513

Balance of Checking Accounts(USD) (As of Dec 31) (Of Deposits)

709,382,057

879,723,172

638,714,780

414,608,523

501,739,374

526,381,536

13,118

5,458

4,340

263

284

177

166,386,105

151,955,112

129,569,229

7,369,079

11,496,806

12,937,758

29,742

15,48914,272

1,713

1,756

1,690

875,768,162

1,031,678,283

768,284,009

421,977,603

513,236,181

539,319,294

Number of Savings Accounts
Savings Account Balance (USD)(As of Dec 31) (Of Deposits)
Total Number
Total Balance (USD) (As of Dec 31)(Of Deposits)

Economic Results

61Total Deposits(in millions of dollars)% Market Shares

2018

3,320

10.62%

2019

3,718

11.04%

2020

4,373

11.65%

2021

5,011

12.16%

2022

5,362

12.29%

Evolution of deposits(in millions of dollars)
2019

2020

2021

2022

∆22-21%Market share2022

In checking accounts

1,270

1,516

1,891

1,675

-11.42%13.72%

in savings accounts

1,001

1,098

1,235

1,272

3.02%

10.89%

Term

1,386

1,706

1,814

2,342

29.12%

12.12%

Note. The difference with respect to the annual total corresponds to other types of deposits.

62

Integrated Sustainability Report 2022 • Banco Guayaquil6.5 ECONOMIC VALUE DISTRIBUTION(GRI 201-1, 201-4)
Banco
Guayaquil
annuallycomplieswithitscommitment to generate value for its respective
interest groups, which also implies a distribution of that
economic value generated. In a complementary way,the economic value retained makes it possible to havefinancial resources that promote the stability of theinstitution and make it easier to meet our objectives ofsustainable growth.

Economic value generated and distributed(VEG AND VED) (in USD)
Concept

2019

2020

2021

2022

Income (Economic Value
Generated, VEG)

536,794605,950

623,825

737,704

18.26%

Expenses (Distributed
Economic Value, VED)

492,360

572,659

549,442

627,958

14.29%

1) Operating Expenses

276,127405,656

337,375

364,7798.12%2) Salaries and Benefits

96,84980,123

100,279

120,890

20.55%

3) Payment to Suppliers
Capital57,71337,20559,443

72,61522.16%

4) Payments to theGovernment (taxes andcontributions)

61,51247,06651,86869,52134.03%

5) Community Programs

160

5.609

146

153

4.41%

44,43333,29074,383

109,74647.54%

Withheld (VEG-VED)

VAR 22-21(%)

Economic Results

As highlighted in the table above, sales amounted to
US$ 738 million, which means an increase of 18.26%
compared to 2021. This is mainly due to the growthof the credit portfolio by US$520 million. Likewise, an
improvement in income from means of payment (credit
and debit cards) should be mentioned.
In the Salaries and Benefits category, although the salary figure remained unchanged, it should be mentionedthat the distribution of profits (an issue that occurs onlyin Ecuador) increased by 60% compared to 2021.
This year the Superintendency of Banks authorized the
distribution of 2022 dividends to be 45%. This, together
with the higher profits generated by the Bank, generated an increase in the Payment to Capital Providers.
In the Payments to the Government category, we havean increase for Income Tax which is tied to the Bank's
Operating Profits, which were 28% higher than in 2021.

63

7.
CONNECTION
WITH THE
CLIENT

7.1

EXPERIENCE(GRI 3-3, 203-1, 416-1, 417-1)(SASB FN-CF-230a.2, FN-CF-270a.1,
FN-CF-270-a3, FN-MF-270a.4)

We are a customer-focused bank, with a Banking
Empathy model as part of our corporate culture to offer
the best experience.
We offer our customers relevant products and services,with clear conditions. We instruct our collaborators
so that the commercialization is responsible, always
facilitating the client the understanding of the productand/or service.
As a customer ally, we want to be there where theyneed us. We put at their disposal different physicaland remote channels, including digital ones, in which
we have made significant progress in recent years.
Our outstanding commitment to digital development
is giving us competitive advantages, being close tocustomers, including the generations that are joining
the management of their finances.
We are working on continuing to materialize ouromnichannel approach, so that the client can carry out
any process regardless of the channel in which theyinteract with us.
In 2022, through various initiatives, including those in
the digital sphere, we were able to attract 330,000 new
customers to the Bank.

Development of digital channels
The Bank's digital evolution is taking place at a culturallevel, internal processes and channels for customer
relations. In transactional terms, digital channels had a
relevant increase. In this way, we can also increase ourreach and the number of transactions, efficiently.
Our digital channels represent more than 67% of
financial transactions.

Connection with the Client65Customer Support
Indicator
Active digital users(number)

2021

This year we launched the new service channel via

2022

WhatsApp, which already has the best satisfaction ratingof all service channels. This chat-bot solves 35% of user

586,684

requirements, while the rest is referred to a bank advisor.

877,720

The Help Center for People and Companies, a website

Digital placement ofaccounts (Savings
and Current)

60%

Digital placement ofCredits (Multicrédito)

70%

61%

Opening of policies

ND

45%

with answers to more than 240 questions and tutorials, is

68%

still at your disposal. During 2022, were counted 21,759,729
visits to this portal (www.ayuda.bancoguayaquil.com),which has separate sections for individual and businesscustomers (66% of visits to the latter).
We also have various complementary communication
channels: face-to-face service, call center and social
networks. 81.3% of the claims received through theseND. Not available.

channels were resolved.

Information transparency

During 2022 we continued working on the App, with amultidisciplinary team in which the areas of Technology,
Organization and Methods, and Digital Transformation
participated. The changes are always designed to advance in a simpler App, facilitating the customer's banking experience. They are the result of the process ofcontinuous listening to understand the needs of users.

(GRI 416-1, 417-1)
We want our clients to be always informed so that they
can make the best decision about contracting thefinancial products and services that we make available
to them. This decision, at all times, must be supportedby the advice of our executives. We also comply

Our App has a rating of 4.8 points, the best on themarket (average rating from app stores).

with everything related to national legislation, so theinformation on our rates for products and services ispublicly available.3

Active users of the App went from 587 thousand in
2021 to 878 thousand in 2022, +50%.

We promote business practices aimed in a way that thecustomer’s officer offers the most relevant products in

Approximately 60% of those who file cases for customer
service issues use the App, therefore, we are also
turning it into the Bank's customer service center.

each case. We avoid the possible occurrence of abusive
placements with strict guidelines, a culture of ethics
and a fixed remuneration well above the variable.

In 2023, we will also launch the new mobile App forcompanies, from where orders can be approved andIn the same way, we avoid any improper use of thepersonal information of our clients, this in accordance

transfers made, among other functionalities.

3

https://www.bancoguayaquil.com/conocenos/transparencia/

66

Integrated Sustainability Report 2022 • Banco Guayaquil

Customer satisfaction
with national legislation and also in coherence with our

We have created the Bank Empathy department at theinternal guidelines and their rights as financial users.

Bank, whose main objectives are to keep our purpose
alive and permanently provide the best banking expe-

In the year, we obtained the CERISE/SPTF internationalrience to our customers; It is made up of the areas ofcertification, related to the 7 principles of client

INSIGHTS, LABORATORY AND CULTURE.

protection. We met 95.7% of the indicators, obtaining
the GOLD category, the highest on the certification

In turn, the INSIGHTS team is in charge of listening toscale, being the first Ecuadorian bank to obtain it.

our clients, their needs, expectations, and the strengths

1.

and opportunities for improvement in the relationship

Appropriate Product Design and Distribution

with us. To listen to them, we have some initiatives, such

2. Prevention of over-indebtedness

as the Voice of the Customer program, through which
we measure the level of satisfaction:

3. Transparency

The CSAT or level of satisfaction to understand how

4. Responsible prices

satisfied you are with the service provided by the Bank.

5. Fair and respectful treatment of customers

We closed 2022 with a General CSAT of 4.21.

6. Customer data privacy

The Recommendation Level or NPS, to identify the7.

probability that a client will recommend us to theirComplaint resolution mechanisms

friends or family. In 2022, we achieved a net NPS of 48
points, above our target of 45, measured as the differ-

Infrastructureence between the percentage of promoting clients and(GRI 203-1)

the percentage of detracting clients.

We continue to make progress in the resources

Once the improvement opportunities have been iden-

allocated for digital transformation. In the same way intified based on this follow-up, the LABORATORY team

digital and physical channels.

develops initiatives that help us close the gap between

Investments in 2022:

the ideal experience and the current experience.

• US$ 8,629.69 in research and Development

Finally, the CULTURE area implements tools and training
to promote and internalize the culture of empathy• US$ 9,519.62 in technology

throughout the organization. It includes the School of• US$ 1,389.25 in construction, remodeling andBanking Empathy, which consists of three programs:

maintenance of offices and agencies

Culture, Leadership and Service. In addition, this area

• US$ 1,056.82 in signs, posters, and other support for

manages and reinforces the sense of belonging with

the Bankers of the Neighborhood

the aim of strengthening the Bank as an employer brand.

Connection with the Client677.2 COMPREHENSIVE SECURITY

Prevention of external fraud(GRI 205-1, 418-1)

We(SASB FN-CF-220a.2, FN-CF-230a.1,

have

a

strengthened

prevention

program,constantly conducting risk assessment to implement

FN-CB-230a.2, FN-CF-230a.3)

measures to prevent fraud events. The main factor to2022 has been a year of new challenges, for which we

avoid or correctly manage a fraud event is the internal

have relied on the maturity and experience of our workand external user, so the culture of prevention is key.

teams. We have continued to evolve in the face of the

For 6 years we have implemented our annual campaign,

new digital environment and in the standardization

called "Prevention Week".

of processes.

The evolution of fraud in 2022 guided us to maintain

The integrated security structure generates added value

a process of continuous improvement with respect toto converge positively in preventing logical, physicalthe structure of the Fraud Prevention area. Since 2021,

and fraud attacks. For this, we have an Integrated

groups specialized in the prevention and detection ofIntelligent Monitoring Center (CIMI), which follows thefraud have been set up in the different channels oftransactions of our clients 24 hours a day.

our Institution. In addition, we apply the world-classguidelines of the brands with which we work in terms

Financial globalization has exposed the world toof cards.

new risks that go beyond borders in an increasingly
digital environment. We rely on new technologies to

In total, a number of 1,024 cases were registered between

generate increasingly dynamic and adaptive risk andclaims and account requirements, digital channels andsegmentation models to this new reality.

video requests. Once the cases were analyzed, it was
identified that the typologies presented correspondCompliancetocustomerWithin the regulatory framework, the year 2022 wasor

shortcomings

very important for the country, we managed to pass

generating returns for an amount of US$ 36,037 due tothe Mutual Evaluation exam of the Financial Action

service issues.

Group for Latin America (GAFILAT), which included acustody
in

and
our

not

to

products.

vulnerabilities
orservices;complete review of the effectiveness of the Anti-Money

Regulatory and internal control

Laundering and Financing System of Terrorism and its

At Banco Guayaquil we have different policies andlevel of compliance with the forty recommendations,guidelines

the results were satisfactory and Ecuador is consideredaCooperating

Country

andthatfights

that

guide

relationships:

1)

betweencollaborators, and 2) between collaborators and clients,

againstneighborhood bankers, suppliers and other interest

these crimes.

groups, always promoting a culture of compliance.

We have a solid Money Laundering Prevention Program,

Thealigned with ARLAFDT policies, monitoring, indicators

Regulatory

andInternal

Controlarea

hasmaintained its transversal actions within the institution,and risk methodologies that allow us to maintaindirectly involving the Talent and Culture area. We

effective controls recognized in the industry and byhave a monitoring structure that allows us to detectthe different control agencies, which allowed us tosituations of non-compliance with policies, conflicts ofrepresent Ecuador. in the Mutual Evaluation process.

interest, alleged acts or attempts at bribery. In the same

Within this context, in July 2022 at the Bank we compliedway, it contributes by maintaining follow-up actions,with the annual update of the ARLAFDT Manual.

expanded due diligence, and updating internal policies

68

Integrated Sustainability Report 2022 • Banco Guayaquiland regulations that allow outlining the ethical and• International cardholder data security standardtransparent relationship with our internal and external

PCI-DSS (Payment Card Industry Data Security

clients, as well as with strategic partners.

Standard).

The Anti-Bribery Management System that we have

• International Visa PCI PIN security standard.

includes the evaluation, selection, contracting and• CSP SWIFT security program.

payment of suppliers at the national level, and iscertified in accordance with the international standard

By virtue of these tools, in the review carried out by

ISO 37001. In 2022 it was recertified thanks to thethe Superintendency of Banks, it was confirmed thatmaturity reached in its implementation.

Banco Guayaquil has mature Information Security andCybersecurity controls.

The application of the system is extended to the entire
organization, taking the best international practices.

Within the context of the identification of risks that

The guidelines are displayed at all levels and can bethreaten information security and the actions imple-

found on the internal portal <<Vamos>>. The Complaints

mented to mitigate them, it was possible to conclude

Mailbox is fully available on the Vamos internal portal

that, due to the efforts to achieve digital transformationfor employees and collaborators, and on the Bancoand remote work, new threats have emerged that led to

Guayaquil website for clients, suppliers and thestrengthening the respective controls:

general public.

• Malware infection via emails: Phishing is the

Security of the information

oldest cyberattack that exists and it still continues
to be one of the most widely used cyberattacks

We are committed to the protection of our cus-because it directly affects the user and could

tomers' data and the information generated in theinfect an organization with ransomware, for thisBank's operations.

reason phishing tests were carried out on end

To continue aligned with the new work modalities andusers, continued with the training for collaborators

digital transformation, we strengthened preventive

on how to detect suspicious emails and training

and detective controls, within the framework of thefor the support team who are the first contact

Information Security Management System and thewith the end user on review and validation ofCybersecurity Program. We seek to avoid, among

suspicious emails.

others,malwareinfection

throughemailsand• Ransomware infection: Ransomware became one

ransomware infection.

of the most widely used cyberattacks to extort

We have international certifications that guarantee theand/or damage the reputation of an institution, forproper management of information security within thewhich reason network intrusion tests were carried

Bank, such as:out, validating the response of the end user, end
user support and control of network monitoring.

• Information security management system, certified

On the other hand, our cyber-incident response

in accordance with the international standard ISO

plan was put to the test through a tablet-top type27001: 2013 - “Information Security Management

test. Both actions generating improvements in our

System”.

incident response plan.

• Alignment with the ISO/IEC 27032:2012 standard
or regulation - "Information Technology - Security

In a complementary way, when the origin ofTechniques - Cybersecurity Guidelines".

attacks on data security and information systems
Connection with the Client69

is analyzed through the monitoring carried out by
the cybersecurity vertical, as a trend an increase
has been detected in:

Thanks to the measures implemented, 73% of possible leaks of customer personal information could
be stopped.

• Attempts to leak information by email: With theapproval of the data protection law, the scope of
the information leak rules was expanded, detecting
an increase in outputs and attempts to output files
with sensitive information. Some of the corrective
and preventive measures carried out were thedialogue with the collaborators involved and theirheads and the empowerment of DLP rules werelaunched opportunely.

As part of our Information Security System strengthening
strategies, the Information and Analytics Governance
Office (OGA) has been operational since January 2022,
the purpose of which is to facilitate effective information
governance and promote analytical capabilities
throughout the institution, thereby supporting a datadriven culture.

• Prevention Week: In our desire to raise awarenessand generate a safety culture among collaborators,
suppliers and customers, the Integral Security teamcoordinates the Prevention Week, in which integral
security talks are given to various audiences,
security advice is sent, among other activities.

This area is specifically responsible for managing theset of policies, processes, and controls implemented toensure that customers’ information has good quality
and proper structure to meet their needs. In tur, thisallows for data standardization to handle it more easily
and generate even more value-added in our services.
The information Governance of Banco Guayaquil isbased on four pillars:

POLICIES

70

of customers with remediations indemographic and economic data.

20% improvementin Contactability for
product sales.

6 Domains, 260 Terms
and y 101 Attributes
Standardize in a single andtransversal language the termsof the business.
Understand the organization
among the Data.

PROCESS• Newsletters: Within the weekly summary that issent through internal multidisciplinary newsletters,
comprehensive safety tips are added as a reminder.
In addition, phishing/ransomware tests are carried out
annually on all collaborators to test their knowledge
in detecting anomalies and the process to follow toproperly report these cases.

1,5 millons

Develop a policy that enablesalignment for the proper
handling of key data.

ORGANIZATIONALSTRUCTURE

INFORMATIONDOMAINS

Componentes ofInformation GovernanceIntegrated Sustainability Report 2022 • Banco Guayaquil

METRICS• Communicatingus:
By
sending
internal
communication campaigns with security advice
through institutional email.

With the correct Information Governance, during theyear 2022 we obtained:

Policy:Internally, multiple efforts and initiatives have also beendeveloped to raise awareness and training aimed at
employees on cybersecurity issues, the same ones that
seek to raise awareness of preventive measures:• Comprehensive Security Virtual Course: It
includes issues of information security, fraud
security, physical security, money laundering, dataprotection, among others.

Within the context of OGA’s operation, an Information
Governance Policy has been developed during 2022.
This policy establishes guidelines regarding the data
lifecycle at Banco Guayaquil.

Physical security
To always be aligned with the objective of guaranteeing the physical integrity of our clients, collaborators
and Bank facilities, we effectively apply schemes aimed
at preventing, monitoring and controlling all types ofcriminal events or disturbances to order that could
physically affect our institution.

To control the effects that derive from the actions oforganized crime in our country, the Physical Security
area during the year 2022 has managed multiple tacticalactions, as well as, it has strengthened certain measuresthat have been focused mainly on officials, collaborators,
clients and infrastructure of Banco Guayaquil. We haveexecuted these actions and measures through thedevelopment and monitoring of security plans that,together with allied Private Surveillance companies, haveallowed us to responsibly control threats, new types ofattacks, as well as being able to react to situations ofdemonstrations by insurgent groups in our country.
Likewise, we highlight the empathy that we have always
maintained with most of the control and assistanceentities, with the aim of contributing to the growth of aculture of Security in our country, based on respect andcontribution to Citizen Security.

Analytical Security
After being created in March 2021, the Analytical
Security area maintained its effective operation during2022. This unit fulfills the objective of centralizing theadministration of Integral Security monitoring tools andthe fine-tuning of alerts through statistical inputs, performance indicators and control panels.
This has allowed us to become a benchmark for bestpractices to make immediate decisions and manage different types of controls in relation to the diversity of attacks we face, through increasingly
digital performance.
Due to the continuous improvement in the administration of rules in the monitoring tools of Integral Security,
2022 was a challenging year in the sense that we adapted and updated our monitoring approach by building
new models and developing control rules that allow
us to identify trends or anomalies related to failures or
weaknesses in the Bank's controls or systems; which

has allowed us to make decisions immediately and update our controls in relation to the diversity of attacks
that we face in an increasingly digital age.

Personal Data Security
In May 2021, the Organic Law for the Protection of
Personal Data entered into force, for which reason in
2022 the Bank made the decision to create the Personal
Data Security area with the purpose of advising,preventing, executing, and ensuring compliance withthe different Personal Data Protection regulations
with all the Bank's interest groups. Within the strategicplan for compliance with this regulation, remediationand improvements have been implemented in all theprocesses that require adjustments in accordancewith the provisions of the Law, considering that the
sanctioning regime thereof enters into force on May
26, 2023.

Connection with the Client71

8.
FINANCIALCULTURE AND
ACCESS TO
BANKING8.1 FINANCIAL INCLUSION

territorial depth in the country, representing 48% of the
non-banking correspondents operating in the country.

(GRI 203-2, FS1, FS15)
At the institution, we have a long history of supporting

66% of Bancos del Barrio are led by women.

financial inclusion, including the development of accessTechnology allows us to advance in financial services
and efficiency in the operations of Bancos del Barrio.

channels such as Banco del Barrio and use initiatives,
such as the products: Cuenta Amiga, MiCrédito andGiro Rápido.
We propose the management and strategy of Financial
Inclusion within the new Inclusion Banking, which
additionally contemplates the verticals of Microfinances,Banco del Barrio and Remittances.
We understand Financial Inclusion as a multidisciplinary
management that is based on the following pillars:• Access• Use• Financial Education• Quality

Through Bancos del Barrio, ourcustomers can make deposits,
withdrawals, various transactions,and payments for services andtaxes. Additionally, they can receive
remittances and government
subsidies, make monthly payments
for their microcredit (Micrédito) andopen their “Cuenta Amiga”

8.2 ACCESSIBILITY
In 2022, we incorporated the payment of government(GRI FS13, FS14)
In terms of access, the Bancos del Barrio stand out,bonds through biometrics with facial recognition.

as they continue to help more and more Ecuadorians

We also provide them with training, useful for business

access the financial system close to their homes andmanagement, network marketing, data security, andworkplaces. Its expansion in 2022 was the largest

managing their finances. We gave 12 virtual talks, with aon record:

total of 1,815 participants.

• In access points, we went from 12,858 non-banking

8.3 INCLUSIVE PRODUCTS

correspondents at the end of 2021, to 18,067 by(GRI FS7)

December 2022, a net growth of 5,209, equivalent(SASB FN-CB-240a.1)

to 41%.
• In transactions, we grew from US$ 60 million to
US$75 million in the same period.

Cuenta Amiga y MiCrédito
Regarding products, the Cuenta Amiga for deposits• The economic amount processed by the channel
was US$ 2,843 million, an annual growth of 24%.

is acquired and activated directly at Banco del Barrio
points; it can be opened without an initial deposit andonly a citizenship card is needed. During 2022, 88,909

The coverage of the channel covers 100% of the

new Cuentas Amiga were opened, 42,402 existing ac-

provinces, 100% of the cantons, 99% of the urban

counts were reactivated, giving a total of 131,310 new

parishes and 74% of the rural parishes. Banco delor renewed accounts in our system. Within this con-Barrio is the offer of banking services with the greatest

text, at the end of December 2022, several 226,000

Financial Culture and Access to Banking

73Results
Cuenta Amiga remained active (with maximum trans-

2021

actions registered within the period of time between
the three previous months).
63% of Cuenta Amiga holders are women.
We offer MiCrédito for the financing of economic units

Expansion
Bancos del Barrio

2019
7,105

2020

PRES

REAL

2022

9,259

12,05012,85818,067

with annual sales of up to US$ 100,000 (microloans
aimed at continuing to grow businesses, ranging from2021

US$ 1,000 to US$ 40,000, and have terms from 12 to 42
months). We granted 34,600 operations for an amountof US$ 218 million, which represents 32% more funding
than in 2021. The portfolio at the end of 2022 was 319
million, an annual growth of 28%, the largest of the
bank's credit products.

Transactions
thousands

2019

2020

PRES

REAL

2022

Bancos del Barrio

40,873

41,77541,49859,94574,984

48% of microcredits granted have been directed2021

towards businesses led by women.
With the Girorápido product, we serve the beneficiaries
of remittances received from abroad. This is a significant
and growing number, which amounted to US$ 397
million in 2022, 8.4% of the total amount received in the

Active accounts

2019

2020

PRES

REAL

2022

Cuenta Amiga

661,361

338,025

348,756

362,403

226,000

country, mainly from the United States, Spain, and Italy.

2021

Growth compared to 2021 was 16%; 1,400,000 drafts
were paid, of which 72% were attended at Banco delBarrio and in credit in accounts.

Other inclusion or social impact products
In 2022, we made progress on a consultancy project toRemittances
Remittances
US$ millions

2019

2020

PRES

REAL

2022

231

246

304

347

402

promote the gender approach in commercial practice,2021

both in the design of products for women and intheir marketing. As a result, face-to-face training wasprovided to managers and assistant managers. These
training sessions emphasized unconscious gender

LOANS US$MILLIONS

2019

2020

PRES

REAL

2022

MICROCREDITS

132

72

167

165

218

WOMEN MICRO

58

31

80

79

105

% WOMEN MICRO

44%

43%

48%

48%

48%

biases and the market opportunity for specializedbanking for women.
The placement of microcredit in women is also oneof our objectives regarding the Principles of Responsible Banking; detailed reference available in theStrategy chapter.
74

Integrated Sustainability Report 2022 • Banco Guayaquil8.4 FINANCIAL EDUCATION(GRI FS16)(SASB FN-CB-240a.4)
We provide financial education with the purpose ofcontributing to a greater understanding of financesin Society, including the younger generations. We also
want our collaborators to set an example and customers to make responsible use of the financial productsthat we make available to them.
In 2022, 75 face-to-face workshops and more than 60 virtual workshops were given in the provinces of Pichincha,
Guayas, Sucumbíos, Esmeraldas, Azuay, Los Ríos, El Oro,and Loja. We trained a total of 45,586 people, among
the different target groups, which represents a 38% increase compared to the previous year; and in compliance with the assignments of the Superintendency ofBanks. 73% of the people trained are children and adolescents, between the ages of 5 and 17.

8.5 QUALITY AND TRANSPARENCY
We received the CERISE/SPTF international certification,
related to the 7 Client Protection Principles:
1. Design and appropriate distribution of products
2. Prevention of over-indebtedness
3. Transparency
4. Responsible prices
5. Fair and respectful treatment of customers
6. Customer data privacy
7. Complaint resolution mechanisms
With

the

measurementof83

indicators

andacompliance of 95.7%, we obtained the GOLD category,
the highest on the certification scale.
We are the first bank in Ecuador to obtain thequalification.
Financial Culture and Access to Banking

75

9.
FINANCING ANDSUSTAINABLE
INVESTMENT

Analysis of environmental andsocial risk in credit(GRI FS1, FS2, FS3, FS4, FS5, FS9, FS10, FS11)(SASB FN-CB-410a.2)
One of the premises that we have established as an
institution is to promote good social and environmental
practices among our clients. We begin with risk analysis
in part of the credit portfolio and later add productswith an environmental purpose, which complete ourportfolio in financial inclusion (social impact).
The Environmental and Social Risk Management System(SARAS) of Banco Guayaquil considers the evaluation ofcompliance with national and sectoral environmental
and social regulations, and the analysis of the
Performance Standards on environmental and social
sustainability of the International Finance Corporation(IFC). The SARAS is based on the bank's environmental
and social risk management policies and considers an
exclusion list of activities due to adverse environmental
and social effects.
Periodic monitoring is carried out based on the risk
results.

1
2
3
4

Financing and Sustainable Investment

The SARAS applies to theanalysis of individual or
accumulated financing of thesame client for certain credit
value thresholds.

When receiving a request forrevenue, we evaluate all typesof risk; this in addition to therespective verification of thebasic and economic informationof the client (or future client).
We also include an analysis of
its environmental and social
management data.

For those that have a greater
exposure, we previously
establish mandatory compliancecommitments, which we latermonitor periodically.

The authorization of the delivery of
the financing corresponds to theCredit Approval Committee.

77

We are strengthening the coverage capacity of
SARAS, to evaluate clients that meet the prerequisites(category A and B with current risk of over 250M). In acomplementary way, we report that the percentage ofthe value of the commercial credit delivered that has
been evaluated by SARAS during 2022 corresponds to
50.77%. In summary, the SARAS methodology has beenused to evaluate a total of 188 customer investment
projects for a total credit of US$ 766,345,680.
In addition, we provide training in sustainable practices,
including possible certifications depending on thetype of activity of the client. This added value will also
be incorporated into the green lines (see below). This
year we trained 420 clients on sustainable certification
issues, with the support of the Eco Business Fund.
Likewise, we promote the capacities of thosecollaborators related to the system, with the Risk,
Commercial and Sustainability areas; we not only
provide training in SARAS, but also in certifications
and good sustainability practices. During 2022 we
carried out 10 training sessions, one hour each, with theparticipation of 273 Bank employees.

Green lines(GRI 201-2, FS8)
At the bank we have been working on the developmentof a specialized credit product with an environmental
impact, the same one that was launched in February2023; we point it out as part of this report as it is theculmination of a process carried out during the year.

Crédito Terra offers advantages to clients, such as:
differentiated terms and grace period according to theprojects and stands out for having technical validation.

78• Energy efficiency. Replacement of equipment
andmachinery,

improvements/conversion

of processes, especially taking advantageof technology.
• Renewable energy. Electric power generationfrom renewable sources.
• Sustainable agriculture. Projects in the agricultural, livestock, aquaculture, fishing, and/or
forestry sectors that use practices, technologies, and/or certifications that help resource
efficiency and resilience to climate change.
• Sustainable

construction.

Infrastructure

projects for construction and remodelingthat incorporate positive environmental impacts; includes specialized certifications [egLEED (Gold or Platinum), EDGE and BREEAM(Very Good)].
• Sustainable Industry. Projects for cleaner
production measures, as well as how toprevent and control pollution in industrial
establishments; includes the use of technology.

Integrated Sustainability Report 2022 • Banco Guayaquil

It is an economic opportunity connected with sustainable development and attention to climate change;
It is added to the Climate Strategy that the Bank isdeveloping based on a specialized analysis of risks
and opportunities.

Thematic issues and otherfundraisingwith impact
As part of our 2021 - 2025 Sustainability Strategy, we had
set out to take advantage of funding opportunities withthematic bonds (environmental, social and sustainability)
to promote the placement of our portfolio of productswith impact.
These include microcredit and credit to SMEs. In 2020,
given the consequences of the pandemic, we issued afirst Social Bond of US$ 20 million, which was subscribedby IDB Invest. The destination of the funds is theplacement of credit for MySMEs especially affected by
the pandemic, including a proportion led by women. We
continue to account for the use of funds in the specificreports of the Social Bond.
In 2022 we are working on the issuance of a Green
Bond that helps in the availability of resources for
Crédito Terra. The amount of the green bond is US$ 80
million, and it was issued in January 2023.
We have applied both the Social Bond Principles
and the Green Bond Principles (respectively) of theInternational Capital Markets Association (ICMA). In thisway, we are contributing to the development of thegreen, social, and sustainable bond market in Ecuador.

Financing and Sustainable Investment

79

10.
TEAM

10.1 INTRODUCTION(GRI 2-7, 2-30, 3-3, 401-1, 405-1)
At Banco Guayaquil we work according to the

55.6% of all our collaborators are women, among thosephilosophy of banking empathy from within the

59.6% are in management positions. This is a good hot-organization, providing our employees with a safe place

bed for Vice-Presidency positions, which now has ato work, caring about their health and well-being, andrepresentation of 5.9% of women. We continue advanc-offering development opportunities. Our team is key toing in the professional progress of the collaborators to

the operation and excellence in customer service, andreach strategic and leadership positions.

we highlight their talent and commitment.

By age group, 39.5% of employees are under 30 years

At the end of 2022, our workforce was made up ofof age, forming a team with professionals with longer

2,964 employees, with fluctuations compared to theexperience.

years 2020 and 2021 being an increase of 4.3% and a

It is worth mentioning that the data indicated in thisdecrease of 0.8% of employees, respectively. 100% of

chapter about our collaborators have been obtained

our collaborators have an indefinite contract and workand processed from databases downloaded from ourfull-time.

Evolution platform and have been validated.

Breakdown of the workforce by professional category and gender; 2019 - 2022
2019
Professional category

Number ofCollaborators

2020
Percentageof Women

Number ofCollaborators

2021
Percentageof Women

Number ofCollaborators

2022
Percentageof Women

Number ofCollaborators

Percentageof Women

Executives

19

5.3%

17

5.9%

17

5.9%

17

5.9%

Managers

189

58.2%

201

58.7%

226

55.7%

235

59.6%

Middle managers

771

57.2%

795

57.9%

835

56.5%

892

57.0%

Assistants and
Auxiliaries

1,876

56.5%

1,827

55.8%

1,911

55.2%

1820

Total

2,855

56.5%

2,840

56.5%

2,989

55.3%

2,964

54.9%

55.6%

Note. The Executive category includes the Executive President, Executive Vice Presidents and Vice Presidents.
The percentage of women corresponds to the fraction of the number of collaborators in each professional category.

Team

81

Breakdown of the workforce bygender and age group - 2022
Category

<30

3050

>50

Breakdown of the workforce
by region - 2022
2022

Percentage

Total

Number ofcollaborators

Percentage

Center

1,925

64.9%

Region

Men

500

704

112

1,316

44.4%

Women

671

901

76

1,648

55.6%

North

780

26.3%

Total

1,171

1,605

188

2,964

100.0%

South

259

8.7%

39.5%

54.1%

6.3% 100.0%

Total

2,964

100.0%

Percentage

The regions cover the following provinces:
Regarding the distribution of our collaborators according to their highest level of training attained, more than
55% have third level studies or higher:• Center: Guayas, Los Ríos, Manabí and Santa Elena.
• North: Bolívar, Carchi, Chimborazo, Cotopaxi,
Esmeraldas, Imbabura, Orellana, Pastaza, Pichincha,
Santo Domingo de los Tsáchilas, Sucumbíos andTungurahua.

Breakdown of the workforce
by study category - 2022
Nivel

2022

• Sur: Azuay, Cañar, El Oro, Loja and Morona Santiago.

Secundaria

1,330

44.87%

Superior

1,371

46.26%

Postgrado

263

8.87%

2,964

100.0%TOTAL

Attraction and retention of talent

Porcentaje

We continue to generate employment opportunities,
having incorporated 337 employees in 2022.

Breakdown of contracts,
withdrawals, 2019-2022
Category

Likewise, we respect the freedom of association of
our employees. In practice, the entire staff is partof the National Association of Banco Guayaquil
Employees, a network that provides access to various
collective benefits.

2019

2020

2021

2022

Hiring

359

123

354

337

Voluntary andInvoluntary

395

138

203

361

Withdrawals
We also favor internal promotions when vacancies become available, contributing to the career developmentof our collaborators.
56.1% of the people hired in 2022 were women, while ininternal promotions it was 64.5%.

82

Integrated Sustainability Report 2022 • Banco Guayaquil

Additionally, the following tables show the breakdown of the contracts made in 2022

Additionally, the following charts show the breakdown of withdrawals recorded in theby age and sex, as well as the breakdown by region.

2022 by age and gender, as well as a breakdown per region.

Breakdown of recruitments by genderand age group carried - 2022

Breakdown of withdrawals per
gender and age groups - 2022

Category

Men

Women

Total

Total
Workers

Contract
ratesa< 30 años

115

157

272

1,171

23,2%

Between 3050 years

33

32

65

1,793

3,6%

Total

148

189

337

2,964

11.4%

Total workers

1,316

1,648

2,964

Percentage

11.2%

11.5%

11.4%

b

Category

Men

Women

Total

Total
Workers

Rotationrate< 30 años

77

100

177

1,171

15.1%

Between 3050 years

76

87

163

1,605

10.2%

<50 years

15

6

21

188

11.2%

Total

168

193

361

2,964

12.2%

Total workers

1,316

1,648

2,964

Rotation rate

12.8%

11.7%

12.2%

Recruitment rates are calculated considering the following: a) N° of new workers per age category/total
workers per age category by 100%, and b) N° of new workers per gender/total workers per gender by 100%.

Rotation rates are calculated considering the following: a) N° of new workers per age category/total workers
per age category by 100%, and b) N° of new workers per gender/total workers per gender by 100%.

Breakdown of recruitmentsby region in 2022

Breakdown of withdrawals
per region - 2022

RegionNumber of new
Percentage
collaborators

Total
Workers

Total
Recruitments

RegionNumber ofwithdrawals

Percentage

Total
Workers

Rotation

Center

230

68.2%

1,925

11.9%

Center

201

55.7%

1,925

10.4%

North

80

23.7%

780

10.3%

North

123

34.1%

780

15.8%

South

27

8.0%

259

10.4%

South

37

10.2%

259

14.3%

Total

337

100.0%

2,964

11.4%

Total

361

100.0%

2,964

12.2%

The recruitment rates are calculated considering the following: No. of new workers per region/total worker
per region by 100%.

Rotation rates is calculated considering the following: No. of withdrawals per region/total workers per regionby 100%.

Team

83

10.2 DIVERSITY AND INCLUSION(GRI 2-20, 3-3, 401-2, 401-3, 405-2, 406-1)
We value talent, which is why we respect diversity
and facilitate the inclusion of our collaborators. We
guarantee this culture of respect, for which we avoid
cases of discrimination and prevent the incursionof biases in the processes of greatest risk, such as
attracting talent, performance evaluation and internal
promotion. Not only do we have policies and codes that
ensure equal opportunities, but we also work on culture
by raising the awareness of our collaborators.
As previously mentioned, 55.6% of our workforce
corresponds to women, of which it is worth notingthat 22% work in executive, managerial and middle
management professional categories; In addition,
23% hold positions with responsibilities in Science,
Technology, Engineering and Mathematics (STEM),
including data architecture and digital transformation.
On the other hand, we offer opportunities to people
with some type of disability, based on the diagnosis ofpossible positions; We already have 86 teammates.
Efforts for us to live a culture of respect among
employees have resulted in the absence of complaints
for cases of discrimination through internal channels
and/or in judicial instances.

Equity and inclusion strategy
In 2022 we placed special emphasis on the articulationof initiatives, based on the best international practices,
including the components of the Bloomberg Gender
Equality Index, which are based on the action pillars
indicated below:

84

FemaleLeadershipand Talent
Flow

Equality
And Parity
Gender
Wages

Brand Pro
Women

Integrated Sustainability Report 2022 • Banco Guayaquil

Policies
for thePreventionof Workplace
Harassment
and all formsof violence

Inclusive
CultureLabor
Flexibility

Female Leadership and Talent Flow. We manage
personnel attraction, retention and development
practices focused on talent and its diversity.
Salary Equality and Parity. In the case of remuneration,
we apply the HAY methodology, with a scheme of ranks
and annual reviews, which systematize the process andresult. We present below the ratios in 2022:

Wage Ratio Women/Men 2022

1. Code of Ethics.
2. Internal Work Regulations.
3. Diversity and Inclusion Policy.
4. Protocol for the prevention of harassment,
discrimination and violence in workplaces.
5. Safety and Hygiene at Work Regulations.

Total Remuneration(fixed + variable) (annual average USD)
Professional category

guarantee equity and inclusion within the bank, someof which are:Salary Ratio (M:H)

Executives

0.94Managers

0.89

Middle managers

1.01

Assistants and Auxiliaries

0.98

Note. The differences are due to the diverse representation of thesexes within each job category and other factors in male andfemale professionals, such as seniority and the variable forresults obtained.

Pro Women's Brand – Primero Todas. Through thecampaign "When one grows, we all grow, a story offinancial inclusion and equity", we connect inclusion
with the financial education of the Bankers of the
Neighborhood, of which more than 60% are women
micro-entrepreneurs.

Inclusive Culture – Banking Empathy. Philosophy thatcharacterizes our “Primero tú” value promise. It shows
how the equity and inclusion strategy is not onlyinternal, but also extends to clients.
We also provide training in diversity with a gender
focus, to avoid biases in commercial activity and in risk
analysis. It is part of our commitment to banking for all.
Labor Flexibility. It aims to promote a balance between
personal and work life. Includes:• Bank of hours, so that collaborators can attend to
personal matters.
• Scheme of flexible schedules in which employees
can set their entry and exit times within intervals
established by the Bank.
• Teleworking schemes with modalities: Flexible,
Home Office, Mobile.
• Support for the exercise of maternity and paternity
leave.

Policies for the Prevention of Workplace Harassment

The 25.3% of the workforce works in the flexible homeoffice mode, 9.7% in teleworking, 22.3% in a mobile office

and all forms of violence. To guarantee a work
environment free of harassment, discrimination and allforms of violence, we have designed codes and policies
that allow us to prevent and take corrective actions toand 42.7% in face-to-face work. Regarding teleworking,it is worth noting the responsibility and commitmentof our collaborators in this operating scenario, and thegreater integration as a team with a national scope.

Team

85

During 2022, 63 men and 81 women took theirpaternity/maternity leave, of which 100% returned towork once their leave period had elapsed.

Connections and recognitions
The best place to work
From the Great Place to Work we were recognized as
the Best Place to Work in Ecuador.
We were able to share our practices as panelists at the
Women Economic Forum (WEF). There, we were also
recognized for the work carried out in the trainingof our collaborators in programs such as: “Training of
Women Leaders for Corporate Governance and Senior
Management 2022”; the launch of the campaign "Whenone grows we all grow", aimed at maternity; and "A
history of financial inclusion and equity", training forneighborhood bankers.

Secure Company Seal
We also obtained the Safe Company Seal free ofviolence and discrimination against women, granted by
the Ecuadorian production chambers.
We are also recognized as an inclusive company withforeigners and as one of the best places to work withyoung talents.

Violet Economy
Banco Guayaquil received the Violet Economy Award
given to companies that promote good gender equality
practices, reaffirming our commitment and struggle toreflect equal opportunities in our institution.

have good practices that favor the social and economic
inclusion of refugees, asylum seekers and people in human mobility; inspiring the action of other actors in the

Since 2020 we have subscribed to The Principles for
the Empowerment of Women, of the United Nations
Global Compact and UN Women that offer guidance tocompanies on how to promote gender equality and theempowerment of women in the workplace, the market
and the community.

All the positions reached in these, and more recognitions
are detailed below.

awareness and commitment, and support for inclusion.

Talent has no gender

Inclusive Company Seal

Youth studies (employers for youth)

We have obtained the Talent has no Gender award,
which is awarded by Women for Women Ecuador for
two consecutive years.

Banco Guayaquil received the Inclusive Company Seal,
recognition received from UNHCR, the Global Compact
and the Program Without Borders for companies that

This year Banco Guayaquil was part of the ranking of the86

Integrated Sustainability Report 2022 • Banco Guayaquil

private sector and Ecuadorian society in general.
This initiative recognizes the efforts of the private sector
in the categories of employability, value chains, training,

best companies to work for Young Professionals, obtaining second place among all participating companies.

This study measures 10 dimensions: recognition,
talent, innovation, infrastructure, quality of life, careerdevelopment, benefits, work environment, reputation,
diversity and culture.

transparency in their gender-disaggregated data reporting. Bloomberg's environmental, social and governance (ESG) coverage covers information from morethan 11,700 global companies. The captured information is organized into more than 1,300 fields that are

Equity and diversity on Boards

structured into actual, standardized, and derived data.

To contribute to the country, promoting diversity inboards, thinking about the sustainability of companies,
Angelo Caputi is the co-chairman of the 30% Club
Ecuador initiative, which aims to ensure that women
represent at least 30% of the Boards of Directors in
the 100 largest Ecuadorian companies by 2030. The 10
principles of 30% in which we believe are:
• The lack of diversity becomes a financial problem.

To ensure accuracy and consistency, Bloomberg only
captures data from direct sources, such as: corporate
responsibility reports, annual reports, ESG reports, corporate governance, and proxy reports, as well as datasubmitted to Bloomberg by the company directly, including Bloomberg's framework for gender issues.
Bloomberg's global team of ESG analysts run sophisticated, multi-layered quality assurance systems to ensure that all data meets the highest standards.

• We believe in merit.
• The importance of a group not feeling like aminority.

To continue improving our talent management practices
encouraging gender equality, we decided to measure
ourselves to compare ourselves with international companies by entering our data and statistics. The frame-• The search for talent needs to be redefined.
• The importance of supporting the talent pipeline
within the organization.

work includes more than 70 metrics, each assigned to
one of these five pillars:• What gets measured gets managed.

1. Female leadership and talent channeling (25%)• We don't believe in quotas.

2. Equality and parity of remuneration between
genders (25%)• The importance of retaining the best talent.

3. Inclusive culture (30%)

In this sense, agreements have been made with
the Academia, and other institutions such as UDLA,
IDE, among others, to create databases of qualified
women to be integrated into company boards, inaddition to training women and creating a communitythat multiplies generating a positive impact in
the community.

4. Policies against sexual harassment (10%)
5. Brand favorable to women's issues (10%)

Healthy Company
We are the first company in Ecuador and Latin America
certified as a Healthy Company by AENOR, complying

Bloomberg Gender Index

with several SDGs - especially SDGs: SDG 3 on Health

Reference is made to the modified Bloomberg Gender
Equality Index is weighted by modified market capi-

and Well-being, as well as SDG 5 on Gender Equality

talization and is intended to track the performance of
publicly traded companies committed to providing

sustainable societies since the empowerment of womenand Women's Empowerment to contribute to morestimulates productive and economic development.

Team

87

10.3 TRAINING AND
CAREER DEVELOPMENT(GRI 3-3, 201-3, 404-1, 404-2, 404-3)
We support the career development of ourcollaborators, strengthening their knowledge, abilities
and skills, thus promoting their professional growth. We
have an internal training system that allows updating
the knowledge of the staff in topics pertinent to theirfunctions and in other aspects.
In the year 2022, we reached the following milestones:• 2,277 colaboradores capacitados• 18.7 horas de capacitación promedio por
colaborador• US$ 1,078,730 de inversión en capacitación

Training 2022
Total numberof training
hours for
women

Total
N° of
hours

Numberof hours/
participant

1,260

25,218.1

20.0

Tactical772

13,111.4

17.0

Executive

228

3,918.5

17.2

Strategic

17

370.7

21.8

2,277

42,618.7

18.7

Trainedcollaborators
Operatives

Total

N° of
attendees

24,936.2

Among the different training programs developed, it isworth highlighting:• Schools for job profiles within the Bank: that
prepare the collaborator for their cashier, callcenter and microcredit work. Additionally, there isalso a Commercial Training Program.
88

Integrated Sustainability Report 2022 • Banco Guayaquil

Total numberof training
hours for men

17,682.5

Percentage of Evaluated Collaborators• Virtual Leadership Program: the same one that isoriented to the management of teams that work
remotely.
• Quality Program: Aimed at business advisors,financial executives, specialists, and agency heads.
• Value for Women Program / Gender Strategy:
aimed at managers and assistant managers. It
made it possible to raise awareness and train on
gender issues, in order to shorten their gaps. On
the other hand, identify the market opportunity
and its trends, the size and characteristics of thissegment in Ecuador.
During the 2022, we continue to support the
professional and academic development of ourcollaborators, through the granting of scholarships
at the master's and bachelor's levels.
Training contributes to internal development andis considered in performance evaluation. Our
collaborators are evaluated annually provided thatthey have been with the bank for more than 6 months.
The person in charge of the evaluation is the leaderof each area, who assesses the performance of his
subordinates through a 90° methodology common
to all professional categories. In this evaluation,organizational competencies, critical tasks andexceptional behaviors are considered. 99% of thecollaborators were evaluated.

Professional
category

Total number ofcollaborators

N° collaborators
evaluated

Operational

1,671

1,670

99.9%

Tactical

859

856

99.7%

Executive

221

221

100.0%

Strategic

1616100.0%

2,767

2,763

99.9%

TOTAL

% employees
evaluated 2022

Collaborators Evaluated by Sex
Professional Category

N° collaborators trained

N° collaborators evaluatedTotal

Hombre

Mujer

Total

Operational

1,671

783

888

1,670

783

887

Tactical

859

365

494

856

364

492

Executive

221

89

132

221

89

132

Strategic

16

15

1

16

15

1

2,767

1,252

1,515

2,763

1,251

1,512

TOTAL

Team

HombreMujer

89

Succession plan
At Banco Guayaquil there are currently 86 successorsof which 41% are men and 59% are women.

Healthy Work
100%

This succession plan is the planning and execution ofan orderly continuity of people in the key positionsof the organization, which ensures the developmentof collaborators and the continuity of the business incompliance with the strategy.

Operational emergency
response teams

98%of trained employees

10.4 SECURITY AND HEALTH(GRI 3-3, 403-1, 403-2, 403-3, 403-4, 403-5,
403-6, 403-7, 403-8, 403-9, 403-10)
Our collaborators are a priority in terms of safety andhealth, and our focus and actions go beyond that.
We address a comprehensive concept of well-being
through our strategic and comprehensive plan called"Me Cuido". It aligns with the Healthy Organization
model of the World Health Organization. Its actions are
structured around 4 themes: Healthy Work, Healthy
Mind, Healthy Body and Healthy Community.
The Bank also has the Healthy Organization (SIGOS)
certification, granted by the international certifier
AENOR. This regulatory framework serves as a guideline
for a continuous improvement process that promotes
the health, well-being and safety of employees in thework environment.
We also take care of the mental health of ourcollaborators, offering psychological consultations.
Throughout the 2022, we continued the training
programs aimed at employees for their strict adherence
to internal regulations on health and safety, and we also
raised awareness through communication campaigns
through our different internal channels.
We actively carry out face-to-face and virtual
inspections to validate compliance with the establishedmeasures, and regular tests (fire, ash fall, among others).

90%

of locations with drills
carried out

Healthy Body

Healthy Community

2,518 Medical records made

2,706 employees and familywith 66% of the healthy
population

members participating inwellness events

976 Collaborators

96% of employees feelparticipating in sports
clubs

good about the way
they contribute to thecommunity

599 Participants in healthy

95% of employees feel theycoaching, 144 people
reduced their weight

are treated fairly without
regardless of age, gender,
sexual orientation or race

Healthy Mind
1,768 psychological consultations
146 collaborators and
91 relatives
238 Participants in collaborative workshops

on managing emotions and mindfulness

86% of employees in a situation of adequate
psychosocial risk

We also make measurements of psychosocial risks,
which resulted in more than 86% of employees in90

Integrated Sustainability Report 2022 • Banco Guayaquilnon-risk situations. The remaining percentage is in situations of slight risk, issues thatare managed during the year to continue improving.
The management of our health and safety management system is the responsibilityof the Occupational Health and Safety Joint Committee, which covers the entire
workforce and has initiatives for all identified risks.
Among the main activities of the year, it is worth noting the relevant return to sports
and integration activities, such as the Family Walk and the Healthy Run, in addition to
the resumption of athletics, cycling and soccer clubs.

Health and Safety Indicators: 2019 - 2022
Parameter

2019

2020

2021

2022

Number of accidents

12

4

11

18

Number of occupational
diseases

0

0

0

0

Number of fatalities

0

0

0

0

109

108

71

76

5,459,685

4,703,471

6,124,800

6,286,192

2.20

0.85

1.80

2.86

0

0

0

0

Days lost due to injuries
and/or illnesses
Total hours worked
Accident rate
Occupational disease rate

Note. None of the accidents that occurred in 2022 resulted in a high-consequence work-related injury(resulting in death or injury such that the worker does not fully recover, or is not expected to fully
recover, to pre-employment health). accident, within six months).

Detail of Accidents
Cause

2019

2020

2021

2022

In Itinere

4

3

7

13

Mission/Service Commission

8

1

3

4

Workplace

0

0

1

1

Team

91

During

the

2022,

Banco

Guayaquil

maintained

management focused on the well-being of employees,
for which, within the framework of physical healthcare, it has a team of doctors, which performs
preventive health check-ups and care in 24/7 line, in
addition to carrying out physical activity, coaching andnutrition workshops. Likewise, it oversaw the physicalenvironment, maintaining safety standards and thenecessary resources for each type of work.
Focused on its environment, Banco Guayaquil has
policiesthat

guarantee

equal

conditions

for

all,

encouraging diversity and inclusion and maintains a
policy of zero tolerance for any act of discriminationor violence.
All this management is reflected in the following
indicators:

2020

2021

2022

VAR.

Goal
2022

Goal
2023

91%

91%

96%

5%

95%

96%

-

58%

66%

14%

63%

65%

Coverage Medical Records

16%

79%

102%

29%

80%

100%

Inspections Agencies

38%

19%

89%

368%

100%

100%

Employees Trained SSO

17%

93%

98%

5%

95%

98%

Occupational diseases

0

0

0

0%

0

0

Absenteeism

1.99

1.93

2.06

7%

-

-

Morbidity

21.26

8.51

9.9

16%

-

-

Psychosocial Risk (Adequate + Moderate)

80%

81%

86%

6%

90%

90%

Psychological professional help (N° collaborators)

239

278

237

-15%

-

-

Nutritional Counseling (N° collaborators)

554

472

599

27%

-

-

-

1,337

2,706

102%

1,500

2,800

Indicators
Percentage (%) of Compliance Plans and Programs;
Percentage (%) of Healthy Employees

N° registered wellness programs

92

Integrated Sustainability Report 2022 • Banco Guayaquil10.5 COMMITMENT AND WORKENVIRONMENT(GRI 3-3, 401-2)
We are constantly changing, but always attentive to the
expectations and satisfaction of our collaborators.
We regularly monitor the work environment. The results
are analyzed and allow us to continue improving. We
apply the Great Place to Work® (GPTW) methodology,
which includes the following dimensions: Credibility,
Respect, Impartiality, Pride and Camaraderie.
This year we were recognized again, in the rankings forcompanies with more than 500 collaborators:

97
95
97
96

%
%
%
%

of employees are proud to say that they work at
Banco Guayaquil.

of employees want to work here for a long time.

of employees consider that their tasks contribute tocompliance with the Bank's strategic plan.
of employees would recommend our products andservices to family and friends.

• 2º best place to work in Ecuador.
• 3º best place to work for women in Ecuador.
• 6º best place to work in Latin America. We are also
the only Ecuadorian company within the Top 10 inthat category.
Along with training and health benefits, we also
support financial stability, through: fair wages, financial
education and benefits such as:payment of personal
contributions, in addition to employer contributions
to social security, income tax, also Christmas bonuses
higher than what is established and other subsidies fortransportation and food. We also have the Belonging
Fund, which helps our collaborators prepare for theirretirement; From the third month in the company, theBank contributes 3% of the collaborator's monthly
remuneration for this purpose. In 2022 we allocate US$
1,608,602.33 in this concept for the entire workforce.

Team

93

11.
ENVIRONMENTAL
MANAGEMENTAt Banco Guayaquil we understand that environmental
management is a strategic and essential aspect in ouroperations, for which we are committed to protecting
the environment through positive environmental performance, strengthening efficient resource management actions, quantifying, reducing and compensating
our greenhouse gas (GHG) emissions, and promoting
good environmental practices in our clients.
In this regard, regarding our internal operations, wemonitor environmental aspects and work under anannual plan of actions in environmental matters toachieve the objectives and goals related to the "Yo
Cuido" Environmental Program.
In 2022 we began activities focused on the construction and application of a Climate Change Strategy forthe bank.

ACTIONS

We participated for the first time in
the transparent disclosure of climate
information by answering the questionnaireof the Carbon Disclosure Project-CDP, aninternational expert organization in unified
climate reports.
The results of the CDP reveal the risks andopportunities that climate change presents asa challenge in organizations.

IMPACTS AND RESULTS• We belong to financial institutions from theLatin American and Caribbean region thatare leaders in the dissemination of climate
information.
• We form part of the 43% of financial
institutions in the region, which have obtained
a "C" rating, which corresponds to a level ofawareness on climate issues (exceeding levels
C-, D and D-), meaning that the bank has withprocesses of environmental management
systems within the areas of your business.

Actions on climate change
In addition to the internal management of the Carbon
Footprint, we have carried out the following:

In September 2022 we began the Analysisof the risks and opportunities of Climate
Change of Banco Guayaquil.
In this regard, we consider strategic sectors
and clients, and we use validated informationfrom the Ministry of Environment, Water andEcological Transition (MAATE) in relation toclimate scenarios.

Education and awareness for all employeesof Banco Guayaquil regarding issues related
to climate change.
Constant information and monitoring of laws,
initiatives and good practices.
In addition, the organization is informed
about the decisions of the Conferences of
the Parties, organized annually by the United
Nations Framework Convention.

Environmental Management• In 2023, we will have matrices and maps forthe identification and evaluation of Climate
Change Risks and Opportunities for the bank.
• We will incorporate the climate aspect into theEnvironmental and Social Risk Management
System-SARAS.
• We will support our clients with project
financing for climate change mitigation andadaptation measures.

Around 3,000 employees sensitized to climatechange issues:• Importance of fighting climate change.
• Main challenges for the financial sector, interms of climate change.
• Main agreements of COP 27.
• Initiatives and Programs of Ecuador.

95

Energy and Emissions(GRI 2-4, GRI 302-1, 302-3, 302-4,
305-1, 305-2, 305-4, 305-5)(TCFD MYO-A, MYO-B)
At Banco Guayaquil we monitor throughout theyear 2022 the energy consumption of our five mainbuildings,4 including fuel and electrical energy used inoperations.
It is worth mentioning that the energy consumption
related to fuels originating from non-renewable sources
constitutes 98.2% of the total energy consumption
associated with fuels and the remaining 1.8% originatesfrom renewable sources, the latter corresponding to
the ethanol fraction. that makes up Ecopaís gasoline.
Regarding electrical energy, in Ecuador it is produced
92.5% by renewable sources, mainly composed ofhydraulic sources and to a lesser extent by biomass,
biogas, wind and solar sources (Ministry of Energy and
Mines, 2021).
To calculate the consumption of fuels and electricalenergy, the following has been carried out:
• Loading of information and means of verification(sheets and invoices) of energy consumption on
the SIM CO2 platform.
• The transformation of units of each of the energy
consumption to gigajoules (GJ), considering
the calorific power and density data from the
Department for Environment Food & Rural Affairs(DEFRA),5 for each of the calculation years.

4

Headquarters, Annex and Multiparking Building in Guayaquil; Quito
Mayor Branch; and Cuenca Branch.

5

DEFRA, 2022, Sheet Fuel properties; https://www.gov.uk/government/
publications/greenhouse-gas-reporting-conversion-factors-2022

We do not produce energy for sale in any capacity, including electricity,
steam, heating, or cooling.

96

Fuel consumption of the main centers (GJ)
Fuel type

Source

2019

2020

2021

2022

∆22-21(%)

Diesel (vehicles)

353.9

217.2

602.6

378.7

-37.2

Gasoline (vehicles)

2,015.3

1,736.9

2,358.7

2,640.1

11.9

122.8

111.7

82.1

180.2

119.6

LPG (facilities)

398.1

202.4

205.6

223.2

8.6

Ecopaís (Gasoline)

4,112.1

2,870.5

3,209.8

4,013.2

25

140.7

98.2

109.8

137.3

25

7,142.8

5,236.9

6,568.6

7,572.6

152.9

Diesel (generators)

Ecopaís (Bioethanol)
Total

NonRenewable

Renewable

Note 1 (GRI 2-4) Restatement of information for the 2019-2021 period,
based on the review of information and calculation
factors used.

Integrated Sustainability Report 2022 • Banco Guayaquil

Note 2 Ecopaís gasoline is divided into the fraction obtained from
non-renewable sources (gasoline) and renewable sources(ethanol).

Electricity Consumption of the Main Centers
Source20192

Measurement Unit

Nonrenewable

GJ

Renewable

20203

20214

20224

1,530.8

1,158.1

1,012.5

999.8

GJ

12,910.5

12,001.8

12,488.1

12,331.5

GJ

14,441.2

13,159.8

13,500.6

13,331.3

kWh4,011,454.5

3,655,513.1

3,750,174.6

3,703,147.3

Total∆22-21(%)

Note 2

Calculated based on the information obtained in Chart 2.21:
Electric power generation (GWh) from the “National Energy
Balance 2020” published by the Ministry of Energy and nonrenewable Natural Resources.

Note 3Calculated based on the information obtained in Chart 2.21:
Electric power generation (GWh) from the “National Energy
Balance 2020” published by the Ministry of Energy and nonrenewable Natural Resources.

Note 4

Calculated based on the information obtained in Chart 2.21:
Electric power generation (GWh) from the “National Energy
Balance 2020” published by the Ministry of Energy and nonrenewable Natural Resources. This data was presented for the2022 because the balance corresponding to the 2021 has not
yet been published.

-1.3
-1.3

-1.3

The energy consumption of our five main buildings
was 20,904 GJ, which represents an increase of 4.2%
compared to the previous year. It is worth mentioningthat 63.8% corresponds to electricity.

Note 1 (GRI 2-4) Re-expression of information for the 2020, based on
the review of means of verification.

The detail of the consumption of electrical energy of all
the bank's operations is set forth below. The five mainbuildings correspond to 43% of this consumption.

Electricity Consumption of the Main Centers (GJ)
Type ofEnergySource

2019

2020

2021

2022

∆2221(%)% Total2022

Non - renewable

7,002.1

5,138.7

6,458.8

7,435.3

15.1%

35.6%

Renewable

140.7

98.2

109.8

137.3

25%

0.7%

Non - renewable

1,530.8

1,158.1

1,012.5

999.8

-1.3%

4.8%

Renewable

12,910.5

12,001.8

12,488.1

12,331.5

-1.3%

59%

Total Non - renewable

8,532.9

6,296.7

7,471.4

8,435.2

12.9%

40.4%

Total renewable

13,051.1

12,10012,597.9

12,468.8

-1%

59.6%

Total

21,584

18,396.7

20,069.2

20,904

4.2%

100%

Fuel

Electricity

Total Electricity Consumption
Unit of measurement

2019

2020

2021

2022

kWh

9,346,481

8,703,437

8,812,126

8,611,983

33,64731,332

31,72431,003

GJ

Environmental ManagementΔ22-21(%)

-2.3

97

The energy intensity that corresponds to the energy
consumption of the five main buildings (internal
consumption) over the number of collaborators inthese operations is presented below.

Energy Intensity - Main Centers
Unit of measurement

2019

GJ/collaborator

2020

14.29

2021

12.50

2022

12.95

13.02

Δ22-21(%)
0.53

Note 1 (GRI 2-4) Restatement of information for the 2019-2021 period,
based on the review of information on the SIM CO2
platform and application of calorific value and density
data from the Department for Environment Food &Rural Affairs DEFRA.

Based on the results of energy consumption and applying the methodology of the NTE INEN-ISO 14064-1
Standard6 and GHG Protocol,7 at Banco Guayaquil wequantify direct GHG emissions (scope 1, related to fuelconsumption), and indirect GHG emissions (scope 2, related to electricity consumption) of our five main buildings, with the result for the year 2022: 1,775.2 tCO2eq.
This value corresponds to a 7.8% decrease in GHG emissions compared to 2021.

GHG Emissions - Main Centers (ton CO2eq)
Scope

6

7

98

2019

2020

2021

2022

Δ22-21(%)

Scope 1

531.0

424.3

487.2

681.6

39.9

Scope 2

1,808.8

1,654.7

1,437.8

1,093.5

-23.9

Total

2,339.7

2,079.0

1,925.0

1,775.2-7.8

Greenhouse Gases-Part 1: Specification with guidance, at theorganization level, for the quantification and reporting of greenhousegas emissions and removals (ISO 14064:2018, IDT).
Corporate Accounting and Reporting Standard, Greenhouse Gas
Protocol (GHG Protocol).

Integrated Sustainability Report 2022 • Banco Guayaquil

It is important to mention that we are advancing in
the calculation of scope 3 emissions for the years
2021 and 2022 (other indirect emissions) applying the
GHG Protocol methodology. In addition, for the year
2022 we are calculating the emissions of category 15of the GHG Protocol, related to our credit portfolio. The
results will be available in 2023 and will allow us to makestrategic decisions on financing. For the calculation of
category 15 we are using the international reference
methodology developed by the Partnership for Carbon
Accounting Financials (PCAF).
It should be noted that from the monitoring of energy
consumption and GHG emissions that we have started
at Banco Guayaquil since 2013, energy efficiency
measures have been defined and applied, the most
relevant being those indicated below:

Scope

Included Emissions
LPG consumption at the facilities.

Scope 1
Direct emissions

Diesel for emergency power generators.
Consumption of the Bank's own fleet vehicles [diesel, gasoline andEcopaís (gasoline)].
Leak of refrigerant gases from air conditioning equipment.

Scope 2
Indirect emissions

Electricity consumption (emissions associated with the generation ofthat electricity).

Energy efficiency measures

Modernization of air conditioning equipment,
through equipment renewal, which demand lessenergy consumption

Banco Guayaquil building in which it has been
appliedHeadquarters Building - Guayaquil
Annex Building - Guayaquil
Multiparking Building - Guayaquil
Headquarters Building - Guayaquil

Modernization of lighting equipment, by changing
to efficient LED-type luminaires

Annex Building - Guayaquil
Multiparking Building - Guayaquil
Cuenca Branch Building

Data Center Modernization, which uses digitaland non-mechanical means, reducing energy
consumption.

Quito Mayor Branch Building

Installation of solar panels, which are used during
the daytime, avoiding the use of electricity, andadditionally contributes energy to the public
network.

El Dorado Building - Samborondón

Headquarters Building - Guayaquil
Improvement of control and automation systems
for the operation of electrical systems.

Annex Building - Guayaquil
Multiparking Building - Guayaquil
Cuenca Branch Building
Quito Mayor Branch Building

Environmental Management

99

GHG Intensity – Main Centers
Scope/ Unit ofmeasure

2019

2020

2021

2022

∆22-21(%)(Scopes 1 and 2)(tCO2eq/employee)

1.5

1.4

1.2

1.1

-10.1

We compensate all emissions that cannot be reduced
through authorized compensation schemes to obtain
Carbon Neutrality, in compliance with the INTE B5
Standard to demonstrate Carbon Neutrality.

Since 2013, we have applied energy efficiency criteria
for all new branches and agencies, as well as inremodeling projects. The measures are accompanied
by awareness-raising communications for all bankpersonnel on good practices in energy use.
In this sense, these measures are part of the annual
initiatives to reduce GHG emissions that we apply at
Banco Guayaquil. The reduction in the intensity of GHG
emissions can be seen in the following table.

100

At Banco Guayaquil, through the Institute of TechnicalStandards of Costa Rica (INTECO), we are subject
to verification of the quantification, reduction, andcompensation of GHG emissions, in accordance withthe requirements established in validated standardsof national and international application, obtaining thecorresponding declarations. third party verification.

Green Dot Certification
During 2022, we obtained the Green Point certificationfor our five main buildings, granted by the Ministry ofIntegrated Sustainability Report 2022 • Banco Guayaquil

Environment, Water and Ecological Transition (MAATE),
since we have demonstrated that we go beyond
compliance with legal regulations, contributing toenvironmental management and to the reduction ofnegative environmental impacts.
The aspects that made us worthy of the certification
are indicated below:

Application of Cleaner Production projects
Mainly related to energy efficiency, obtaining thefollowing energy consumption savings.

Building

Approximate
energysavings (%)

Headquarters Building
Guayaquil

30,30%

Annex Building
Guayaquil

17,85%

Multiparking Building
Guayaquil

38,18%

Quito Mayor Branch Building

17,02%

Cuenca Branch Building

47,03%

Compliance with Good Environmental
Practices GAPs
Carrying out actions that allow:• Efficient use of resources (water and energy) andinputs (office supplies and paper)• Proper waste and waste management

Significant compliance with sustainable
criteria• Regulations in force.
• Efficient use of raw materials, inputs and auxiliarymaterials.
• Management, optimization and proper treatmentof water.
• Efficient food handling.
• Reduction in the emission of greenhouse gases.
• Efficient management of solid waste, hazardousand special waste.
• Investment in human talent and social management
model with an environmental focus.
• Innovations.

The energy savings achieved were: 1,368,965 kWh/year
In addition, we incorporate waste and residues management. In this regard, we manage 5,549 kg in 2022. In
this sense, we carry out the classification, weighing anddelivery to authorized environmental managers

Environmental Management

Environmental Alliances
During 2022, we continue working with the Coalition
for Water Security of Ecuador, whose purpose is tostrengthen the guarantee of availability of the resource,
defining a roadmap. In the same way, we work hand inhand with the initiative of the Guayaquil Water Fund
(FONDAGUA), a trust to develop actions that enable theconservation of the Daule River basin, where we arepart of the Board of Directors.

101

ANNEX I: BALANCE SHEET.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  104ANNEX II: ESG MANAGEMENT DETAIL
Relationship with our interest groups.  .  .  .  .  .  .  .  .  .  .  .  106Alliances and memberships .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  109Materiality Analysis.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  110Respect for Human Rights.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 114
ANNEX III: CONTRIBUTION TO REFERENCE INITIATIVES
Progress in the Principles of the Global Compact .  .  .  .  118Contribution to the Sustainable
Development Goals (SDGs).  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  120ANNEX IV: PROGRESS IN RESPONSIBLE BANKINGPBR Self-Assessment Questionnaire.  .  .  .  .  .  .  .  .  .  .  .  .  124ANNEX V: REPORTING FRAMEWORKS AND STANDARDSGRI Contents Index .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  146SASB Index of Parameters Related to
Financial Materiality Issues.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  168Contents Shareholder Capitalism – WEF.  .  .  .  .  .  .  .  .  .  . 174
TCFD INDEX .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  182

Annexes103

ANNEX IBALANCESHEETAs of December 31, 2022
In thousands of dollars

104

Integrated Sustainability Report 2022 • Banco Guayaquil

Account
ASSETS

Dec-19Dec-20Dec-21

Dec-22∆22-21 (overall)∆22-21%

5,077,368

5,761,260

6,364,654

6,887.220

522,566

8%

FUNDS AVAILABLE

932,001

1,004,165

1,010,882

1,060,344

49,462

5%

INVESTMENTS

625,058

1,135,596

977,440

944,528-32,912-3%

3,204,457

3,282,941

3,992,819

4,490,447

497,62812%

54,205

71,122

66,55867,165

607

1%

2,673

4,995

25,22022,622-2,598-10%PROPERTY AND EQUIPMENT

130,844

127,337

111,070

110,490-580-1%

OTHER ASSETS

128,129

135,03

180,665

191,624

10,9596%

LIABILITIES

4,538,511

5,225,863

5,762,317

6,205,773

443,456

8%

OBLIGATIONS TO THE PUBLIC

3,718,315

4,373,171

5,010,624

5,362,093

351,469

7%

IMMEDIATE OBLIGATIONS

10,31623,34850,12930,286-19,843-40%

ACCOUNTS PAYABLE

183,637

173,331

173,983

219,889

45,906

26%

FINANCIAL OBLIGATIONS

594,502590,584

458,091

502,049

43,95810%

1,182

21,49917,783

13,338-4,445-25%

30,56043,931

49,97574,99025,015

50%

-

-

1,732

3,128

1,396

81%

EQUITY

538,856

535,397602,337

681,447

79,11013%

SOCIAL CAPITAL

391,905428,265449,900

483,370

33,4707%

RESERVES

61,381

69,45472,78480,225

7,441

10%

SURPLUS FROM VALUATIONS

4,837

4,388

5,270

8.106

2,836

54%

80,73333,29074,383

109,746

35,36348%

TOTAL LIABILITIES + EQUITY

5,077,368

5,761,260

6,364,654

6,887,220

522,566

8%

NET CONTINGENTS

1,652,243

1,588,482

1,882,625

2,146,049

263,424

14%

TOTAL ASSETS + NET CONTINGENTS

6,729,611

7,349,742

8,247,279

9,033,269

785,99010%LOAN PORTFOLIOACCOUNTS RECEIVABLEASSETS AWARDED BY PAYMENTSECURITIES IN CIRCULATION AND OTHER PAS.
FORCE. CONV. ACTION. CONTRIBUTION FUT. CAPITALOTHER LIABILITIESRESULTS ACCUMULATED

Annexes105

ANNEX II
ESG MANAGEMENTDETAIL
Relationship with our interest groups(GRI 2-29)
Communication and permanent involvement with our different

We understand stakeholders to be all the agents that are impacted

interest groups is key to maximizing the results of operations andby our activity, as well as those that influence, in a decisive way,

the creation of value in a comprehensive manner.

the achievement of our objectives.

We encourage dialogue with our collaborators, communicationand interdisciplinary collaboration between them, as well as
close ties with their external counterparts: clients, neighborhoodbankers, suppliers, shareholders, among others. We have different
channels for dialogue, which allow us to develop and maintain a

Clients

close bond that strengthens trust.
Similarly, it is a requirement that these relationships are based on
our values, the guidelines of the Code of Ethics and other related

Suppliers andContractors

Collaborators

NGOs

Shareholders

regulations (policies, procedures, internal codes, and applicable
external legislation).
Together with this ongoing relationship with them, we also carryout periodic consultations by the teams in charge, such as theannual work environment survey, and comprehensive exercisesfor different interest groups at the same time as part of themateriality analysis.

106

Media

Government

Integrated Sustainability Report 2022 • Banco Guayaquil

Interest Group

Value creation

ChannelsHave relevant financial products and services, according to theirneeds.

•

Offices•

Remote channels (web, mobile app)•

Performance of the Customer Ombudsman•

Social networks and email notifications•

Help Center (Personal Banking and Business Banking)•Service Quality Platform (satisfaction monitoring)•

Training sessions: financial education, sustainable practices•

Integrated report•

Evaluation of work environment•

Complaint channel•

Weekly summaries (briefing) and internal corporate email

Seek professional and personal well-being, through job security, the•intranet

work environment and specific health and conciliation initiatives.

•

General and area meetings

Guarantee equal opportunities and non-discrimination, framed in a
culture of respect.

•

Training sessions•

Focus groups and surveys (as part of the materiality analysis)•

Integrated report•

Shareholders' Meeting•

Specific section on the web•

Shareholders Report (annual and quarterly)•

Performance of the Shareholder Service office•Information requests from capital providers•

Commissioner Performance•

Integrated report

Facilitate the achievement of their personal and professional goals,
based on savings and credit, including the development of products
and services with a special focus on inclusion.
Customers

Opportunity for them to choose solutions with criteria thanks to theinformation provided and the transparency of the conditions.
Live an experience appropriate to each moment, combining digitalchannels and face-to-face attention. Accessibility when and where
they need it.
Promote the incorporation of ESG best practices.

Support training and career development, generating highly competitive professional profiles.
Collaborators

Shareholders,
Investors, andother providersof capital

Invest in a company with a solid financial, profitable and demanding
track record in risk management, which advances in accordance witha strong strategic plan that includes ESG (environmental, social andgovernance) aspects.
The strength of the company's financing from multilateral banks.

Annexes107Interest Group

Trade unions
and businessorganizations

Government

Media

Value creation
Actively participate in the promotion of sustainability in companies,
exchanging learning and mobilizing other institutions. Especially, promote it in the financial sector, due to its transformative capacity.
In the same way, attend to the union level, the risks and opportunities
for the operation and results of financial entities.
Contribute to the socioeconomic development of the country, undercriteria of general interest collected in compliance with the legislation
and regulations of specific application.
Participate in the relationship between the public and private sectors
to advance in the attention of the main problems of the country, including in the achievement of the Sustainable Development Goals (SDG).

Report on the Bank's performance and contribution through its channels and platforms, as well as raise awareness of the importance offinancial management and create a culture of savings and prevention.
Offer opportunities for the development of projects through social
investment.

SocialOrganizations

Participate in alliances that address and intervene on social and environmental issues, especially those that are related to the operationand purpose of the Bank.
Promote financial education, especially among women, children andyouth.

Suppliers andContractors

To be allies of the Bank, both in the construction and delivery of products and services, as well as in the generation of customer experience, with quality criteria that, added to innovation, contribute to thedevelopment of the business and the increase in its levels of competitiveness .
Build mutually beneficial long-term relationships under a win-win
approach.

108

Channels•

Attendance at events•

Participation in directories•

Reports/formal documentation required•

Monitoring of the Superintendency of Banks (SB)•Monitoring of the Superintendence of Companies, Securities andInsurance (SCVS).

•

Report to other authorities (eg SRI)•

Shareholders' report with information required by regulations•

Performance of the communication and marketing team•Integrated report•

Participation in union and/or sectoral events•

Performance of the financial education program•

Social investment initiatives•

Sectoral actions and support for multilateral initiatives•

Integrated report•

Contracting meetings and daily operation of the provision of services•

Evaluation processes (including anti-corruption)•

Focus groups and surveys (as part of the materiality analysis)•

Complaint channel•

Integrated report

Integrated Sustainability Report 2022 • Banco Guayaquil

Interest Group

Value creation

Channels

Bancos del Barrio

Provide its customers with added value in their transactions throughthe complementary provision of financial services, in addition to increasing the frequency of visits and influx of its establishments.
Contribute to financial inclusion in their communities, becoming
agents of change and local development.

Alliances and memberships(GRI 2-28)
At Banco Guayaquil we are committed to the advancement of all

Chambers

Ecuadorian-German Chamber of Industries and Commerce
British Ecuadorian Chamber of Industries and Commerce

the process at the regional level and in Ecuador.
Other
organizations
and forums

ment of the system in sustainable finance, in addition to attending

environmental

development,

Ecuadorian Corporation for Social Responsibility and Sustainability (CERES)
Global Compact Red Ecuador
Women's Empowerment Principles (UN Women, Global Compact)

to other union aspects. We also participate in various chambers

andChamber of Industries and Production (Quito)
Ecuadorian-American Chamber of Commerce

give an account in this report of how we apply them, having ledsocial

Focus groups (as part of the materiality analysis)

Guayaquil Chamber of Industries

Initiative of the United Nations Environment Program (UNEP FI). We

to•

Cuenca Chamber of Commerce

Principles for Responsible Banking, coordinated by the Financial

contribute

Monitoring of the executives in charge

Guayaquil Chamber of CommerceThis commitment was intensified with the adoption of theOn the other hand, we also support specific initiatives that•

Association of Private Banks of Ecuador (ASOBANCA)

through a banking model that contributes to economic and social

and associations.

Training sessions

Associations

From our role as a financial institution, we seek to contributeence in ASOBANCA, an association that promotes the advance-•

Institution / Initiative

forth by the United Nations as the priorities in the 2030 Agenda.

We share this approach at the national level through our pres-

Networking calls

Ambit

of society, meeting the Sustainable Development Goals (SDGs), setdevelopment, protecting the environment.

•

Principles of Responsible Banking (UNEP - FI)
Main Initiatives
Supportedon

Alliance for Youth (promoted by Nestlé)Round tables on SDGs 5, 8 and 16 of the Leaders for the SDGs program(Global Compact)issues such as youth employment, gender equality, and proper

Initiative of the Guayaquil Water Fund (FONDAGUA)

management of natural resources.

Annexes109Materiality Analysis(GRI 3-1, 3-2)
As part of our progress in addressing the critical ESG issues
that correspond to us as an institution, this year we updated ourmateriality exercise. The previous one was carried out in 2020and served as the basis for the 2021-25 Sustainability Strategy
currently in force.

1. Revision
Analysis of the material issues determined in the previous
exercises. Opportunities for improvement were identified in the
consultation with groups of interest, including the scope, and in
the incorporation of the company's strategic priorities.

With this new exercise we seek to: 1) redirect efforts halfway
through the implementation of the Strategy, 2) continue the close
dialogue with the interest groups consulted, 3) reinforce internal

2. Identification
Update of the list of potentially relevant topics, considering:sensitivity in the management team and vice presidencies for• Reference sector documents that propose key issues. Includes

value that provides sustainability to the institution and 4) attend

those related to international non-financial reporting standards

to the international evolution of the concept of double materiality,(GRI, SASB), UNEP-FI and related benchmark initiatives, sectoral

which we already integrated in 2021.

risks and opportunities of rating agencies (eg S&P) and union

The concept of double materiality consists of working together
with the following two complementary approaches, strengthening
both the Strategy and the report:
Socio-environmental

or

impactinitiatives such as the ASOBANCA Sustainable Finance Protocol.
• References of the context of operation, such as the analysisof global risks presented annually by the World Economic

materiality:reflects

thecompany's most significant impacts abroad: on the economy,

Forum (WEF) and the progress of the status of the Sustainable
Development Goals (SDG) in Ecuador.

the environment and people; these impacts can have positive or• The investment positions of the main international asset

negative consequences (in the operation, reputation, financially).

managers (eg BlackRock, Vanguard) and the criteria of

It is used to apply the Global Reporting Initiative (GRI) Standards.

multilateral and/or development banks.

It constitutes the fiscal year updated in 2022, as detailed below.
Financial materiality: reflects ESG factors that are reasonably
likely to affect the financial condition, operating performance,and cash flows within the company. It serves for the application of
the Sustainability Accounting Standards Board (SASB) Standards.

• Pre-existing queries that we already had as part of the relationship that our different teams have with interest groups (eg resultsof the work environment survey, appearances in the media).

3. Prioritization
In this exercise we expanded the consultations to interest groups

Below, we detail the participatory process for socio-environmental

that we had been carrying out, both in which they participate andor impact materiality:

the depth in each case.

110Integrated Sustainability Report 2022 • Banco Guayaquil

The list of potentially relevant topics was evaluated from two
perspectives:
1.

Priority for the Bank, in accordance with the corporate strategy,
through interviews with a selection of Vice Presidents.

2.

Importance for stakeholders. To the focus groups withcollaborators, neighborhood bankers and suppliers, we add
this time: online surveys to collaborators and suppliers (forgreater reach), interviews with funders, regulatory entities,
unions, and other associations. In addition, we include theperspective of the clients by interviewing the managers of thedifferent segments in which we have organized the banks andthe digital transformation team.

Based on this, we elaborated the impact materiality matrix, withthe significance of the different issues.

4. Validation
The results were presented within the framework of the Corporate
Governance and Sustainability Committee.
For financial materiality, we apply the key issues established by
the Sustainability Accounting Standards Board (SASB) for theindustries within the financial sector that apply to us. SASB hasorganized the different economic activities in 77 industries, which
are grouped in turn into sectors:
Within the financial sector, they apply to us: Commercial banking,consumer financing and mortgage financing.
For this approach to financially material issues, SASB set up
working groups with participation from the financial market at aninternational level.

Annexes

111

112

N°

Material Issues

Total

N°

Emerging issues

Total

8

Innovation in products andservices

9.09

4

Green financing

6.68

31

Training and career developement(collaborators)

6

Customer experience

8.96

6.45

11

Technology

8.85

21

Regulatory compliance

6.34

1

Accessibility (customers)

8.24

27

Relationship with authorities

6.22

5

Operational efficiency

8.18

29

Financial health (customers)

6.17

15

Systemic risk management

8.13

23

Corporate Government

5.89

13

Competitivity and market
development

8.01

17

Issuances(from credit portfolio)

5.85

3

Financial inclusion

7.76

22

Ethics and anti corruption

5.81

33

Diversity, inclusión and equity

7.74

28

Financial education

4.6

30

Attraction and talent retention

7.7

10

Data safety

7.32

16

Customer environmental andsocial assessment(financiamiento responsable)(responsable financing)

6.86

34

Social investment

6.72

9

Marketing and information
concerning products and services

6.52

2

Support entrepreneurship

5.54

24

Sustainability disclosure andtransparency

5.1

Integrated Sustainability Report 2022 • Banco GuayaquilN°

Non Proactive Management issues

Total

20

Climate Change Risks andOpportunities

5.94

32

In-house communication andleadership (work environment)

5.93

14

Financial results

5.84

18

Own issuances (Banco Guayaquil)

4.96

36

Healthe and safety (collaborators)

4.76

12

Privacy and responsable use of
Customer’s information

4.73

26

Access to external funding

4.67

19

Corporate environmental
management

4.64

35

Remuneration and benefits(collaborators)

4.28

25

Dissemination and transparency offinancial information

2.92

7

Supplier and contractors
management

2.01

5

Materiality Matrix

Impact materiality
13

4.5

Emerging issues
1
15

9
4

34

22

3.5

Non proactive
management issues

16

24
2

6
5

11

21

28

29
20
26

3

3
33

Financial materiality

4

32
14

30

31
27

10

18
2.5

36

23
17

12
19

2

35

1.5

25

7

1

Perspectiveof interest
groupsMaterial issues

8

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Company priority

Annexes113

Respect for Human Rights(GRI 2-23, 2-24, 2-25, 2-26)
Aligned with our values, at Banco Guayaquil we always consider
respect for Human Rights, both within our teams and in the3.

In our direct investment, due to the impact of the recipientsof the investment, whether they are public and/or private

relationship with customers, neighborhood bankers, suppliers

institutions, and the need to progress in the integration

and all our external stakeholders.

of ESG aspects (environmental, social and governance) as

To do this, we consider not only the legal framework in the country

placement criteria.

but also the main international guidelines, including the Universal

We have implemented a due diligence roadmap, which we detail

Declaration of Human Rights, the United Nations Guiding Principles

below and is aligned with the OECD recommendations. Our

on Business and Human Rights, as well as the Guidelines forcommitment is also transferred to the Human Rights Policy, which

Multinational Companies and the other recommendations of thewe launched in 2021.

Organization for Economic Cooperation and Development (OECD).
In addition, we are attentive to the publication of the National Action Plan for Human Rights and Companies (PAN), in
which the Government is working with the support of different
multilateral institutions.

5.

2.

Report on

Identify andassess negative
impacts on

how impacts are
addressed

operations, supply
chains, and business
relationships

As a financial institution, we have a triple role in relation to
Human Rights:
1.

1.

In the administrative operation, very similar to other companies:

Incorporate
responsible
business conduct

in the treatment of employees, working conditions and nondiscrimination, as well as in the evaluation and treatment of
suppliers, and the security of customer information.
2.

6.

into management
policies

In financing, in the relationship with our clients: both in the

Collaboratein the repairof theconditions and possibility of access to products and services,
as well as in the transparency of information. But especially, it
is produced indirectly by the activities that they can carry out
with the capital that we offer them, hence the importance ofapplying our Environmental and Social Risk Analysis (SARAS),

4.

3.

Track
implementation

Stop, preventor mitigate

and results

negative impacts

as well as the development of products with a social purpose
and/or or environmental.

Fuente: Guía de la OCDE de Debida Diligencia para una Conducta Empresarial Responsable

114

Integrated Sustainability Report 2022 • Banco Guayaquil

impact whenappropriate

Process

1. Incorporate
responsible businessconduct into
management policies
and systems.

Performance•

The Bank's Code of Ethics constitutes the main framework of guidelines for the exercise of our activity
and promotes respect for diversity and non-discrimination.

•

Additionally, the Diversity and Inclusion Policy has been in force since 2021, with which we seek tofacilitate the experience of personal differences without barriers or biases.

•

We also incorporated these principles in the guidelines for the hiring and salary establishment
processes, as well as in the management of well-being.

•

As a fundamental part of the commitment, the Human Rights Policy, already mentioned, is also inforce.

•All these regulatory bodies serve as the basis for decision-making by all those agents involved indirectly related processes.

•

We inform our collaborators of them and we require their application.

•

We comply with external legislation and the main initiatives of international reference, including theUnited Nations framework to "Protect, Respect, Remedy".

•

Risk identification includes proactive analysis processes and other ways for a reactive response
thanks to the collaboration of our stakeholders:

2. Identify and Evaluate
the Negative Impactsof Operations,
Supply Chains
and Commercial
Relations.

•-

Annual processes of internal and external audit of processes; also performance of the complianceteam in promoting and evaluating adherence to internal and external regulations.

-Application of the Environmental and Social Risk Analysis System (SARAS) in the granting of credit,
which makes it possible to identify possible negative impacts.

-

Monitoring of the work environment through the annual survey and other exercises.

-

Monitoring of customer satisfaction and complaints.

-

Attention to the signals that arrive through the Ethics Line.

More detail›› Ethics and compliance›› Equipment›› Ethics and compliance›› Financing and sustainable
investment›› Equipment

In the identification of potential risks, consultation with the group/stakeholders that could be affected
is incorporated.

Annexes115

Process

Performance

More detail• Customers
1) The SARAS exercise itself allows us to identify risks and establish prevention and mitigation measures.
In addition, in accordance with international best practices, we have established a series of high-risk
activities that we do not finance.
2) The approach with which we have carried out the technological transformation is inclusive, both in
the design and operation of the channels and in the coexistence with the operation of branches andbankers in the neighborhood.
3) The offer of products for the segments with the greatest difficulties, base accounts, and microfinancing,favors opportunities and avoids exclusion.
• Collaborators
3. Stop, prevent or
mitigate negative
impacts.

1) Permanent awareness of diversity, initiatives to support the development of collaborators.
2) Systematization of performance evaluation and salary setting, to avoid bias.
3) Wellness program and strict health and safety measures to protect the integrity of employees.
• Supply chain
1) We require suppliers to have ethical and anti-corruption guidelines, as part of our Anti-Bribery
Management System, certified in accordance with ISO 37001, which has the scope of the supplierevaluation and contracting process.
2) We pay special attention to the practice of our physical security providers, in terms of respect forcustomers.
• Society1) We have an active participation in organizations that promote sustainability and respect for Human
Rights.
2) We also promote financial education as a vehicle to reduce inequalities.

116

Integrated Sustainability Report 2022 • Banco Guayaquil›› Financing and sustainable
investment›› Customer connection:
experience›› Financial inclusion›› Diversity and inclusion›› Security and health›› Relationship with the
supply chain›› Contribution to the SDGs›› Financial education

Process

4. Track Implementation
and Results.

Performance

More detail• The initiatives are monitored by different committees and working groups depending on the case.

›› Corporate governance• The Ethics Committee monitors compliance with the different policies and codes, including diversity
itself, as well as analyzes cases of possible non-compliance detected.

›› Ethics and compliance›› Sustainability Strategy• The Corporate Governance and Sustainability Committee monitors the pillars and initiatives of the
Sustainability Strategy, including those related to Human Rights.
• We maintain internal communication campaigns and call for the active participation of our collaboratorsin the initiatives.

5. Informar sobre
cómo se Abordan los
Impactos.

›› Relations with our
stakeholders• We are part of different networking spaces communicating our practices and learning from theexperience of other organizations.
• Similarly, we annually publish our ESG (environmental, social and governance) performance. This
report is key to making all our stakeholders aware of our work on Human Rights and the Sustainability
Strategy as a whole.
• We are therefore transparent about the risks inherent in our activities, about the policies and means
implemented to manage these risks and about the results of these measures.

6. Repair or collaboratein the repair of
the Impact whenappropriate.

• Our preventive management has allowed us not to have significant negative impacts that need repair.

›› Ethics and compliance• Similarly, adherence to external legislation.
• Through the Ethics Committee, once the possible cases have been evaluated, the pertinent measuresand sanctions derived from the magnitude of the case would be established.

Annexes117

ANNEX IIICONTRIBUTION TO
REFERENCE INITIATIVES
III.1 Progress in the Principles of the Global Compact
Human rights
Labor Standards
Environment
Anti-corruption

Principle

1

Commitment

Companies must support and respect the protection ofinternationally recognized fundamental Human Rights,
within their sphere of influence.

Creed: “A business of people for people”.

*Strategy

Code of ethics
Human Rights Policy
Diversity Policy
Financial Inclusion Policy
Sustainability Policy*Ethics and Compliance

Code of Ethics for suppliers

2Companies must ensure that they are not accomplices inthe violation of Human Rights.

Businesses must support freedom of association and theeffective recognition of the right to collective bargaining.

Code of Ethics

3*Financial Culture and Access to Banking Annex
2.4: Respect for Human Rights

Operating regulations (includes Internal
Labor Code).

Operating rules (includes Internal Work
Code)

118

Performance (presented in the
integrated report)

Integrated Sustainability Report 2022 • Banco Guayaquil*Equipment

Principio

4

Businesses must support the elimination of all forms offorced or coerced labor.

Compromiso
Code of Ethics
Code of Ethics for suppliers
Human Rights Policy

5

Desempeño(presentado en el informe integrado)

Companies should support the eradication of child labor.

*Ethics and Compliance*Annex 2.4: Respect for Human Rights

Supplier evaluation process
Code of Ethics
Code of Ethics for Suppliers
Human Rights Policy
6

Businesses must support the abolition of discriminatory
practices in employment and occupation.

Diversity Policy*Team*Annex 2.4: Respect for Human Rights

Gender strategy
Supplier evaluation process

7

Companies must maintain a preventive approach thatfavors the environment.

8

Companies should encourage initiatives that promote
greater environmental responsibility.

9

Companies must favor the development and diffusion ofenvironmentally friendly technologies.

Sustainability Policy
Climate Change Policy
Environmental and Social Risk Policy(SARAS)Climate strategy: identification of risks andopportunities*Risk Management: Climate Change Risks andOpportunities*Environmental Management*Financing and Sustainable Investment*Sustainable Financing and Investment
Environmental Management

Code of Ethics

10

Businesses must work against corruption in all its forms,
including extortion and bribery.

Corporate Governance*Corporate Governance

Code Anti-Corruption Policy*Ethics and Compliance

Anti-corruption management system:
purchasing process

Annexes*Risk Management: Relationship with the Supply
Chain.

119III.2Contribution to the Sustainable Development Goals (SDGs)

At Banco Guayaquil we identify the Sustainable Development Goals (SDGs) to which we can contribute
more significantly, due to our type of activity and the context of Ecuador. These are those where wecan make a difference and we are committed to contributing through our activities, products andservices, working closely with our stakeholders.
The 2030 Agenda, with the SDGs, constitutes the international roadmap proposed by the United
Nations to face the main challenges of society, in close collaboration with companies, academia andthe population as a whole.
We indicate below our main contribution to these SDGs and strategic goals, efforts that are detailed
throughout the report.

SDGs

Goals

Contribution•

We have financial products and services for different segments, including thosewith higher barriers to banking (Cuenta Amiga and MiCrédito).

>226,000 active Amiga accounts at theend of the year•

We develop Microcredit for women (see SDG 5)>

18,067 Neighborhood Banks•

We have Bancos del Barrio, a network of correspondents to facilitate financial
operations for clients.

>

30 % of transactions are made at
Bancos del Barrio.

>

Current
HealthyCompany
Management System (SIGES)>

Periodic evaluation of psychosocial
risks.

1.4
1.5

3.8

120

Results and Impacts•

We promote the health, safety and well-being of our collaborators, with thestrategic plan "I take care of myself", focused on prevention activities.

Integrated Sustainability Report 2022 • Banco Guayaquil

SDGs

Goals

4.3

Contribution

4.7

45,586 people trained in financial
education.

>

18.7 hours of average training per
employee.

>

US$ 1,078,730 invested in employee
training.

We develop Microcredit for women. We also promote the gender approach incommercial practice.

>

We work on the segmentation of acquisition and credit data by gender,
identification and approach of opportunities.

59.6% of women in management
positions.

>

55.6% of women in the total
workforce.

>

Safe Company Seal free of violenceand discrimination against women.

>

New Gender Strategy.

>

Financing of US$ 231 million granted
to 35,471 microentrepreneurs(microcredit).

>

Financing of US$ 6,606 million granted
to 40,540 projects in the Corporate,
Business and SME segments (incommercial credit).

>

2,964 collaborators.

We train children, youth and adults through financial education. Training is also
included as a value proposition for the collaborators of our corporate clients.

•

We offer our employees opportunities for professional development, throughtraining programs to strengthen their knowledge and skills, including thealternative of scholarships.

•
•
5.1
5.5

>

•

4.4

•

We promote equal opportunities in our work team, safeguarding the guidelines
established in our Code of Ethics and Diversity and Inclusion Policy. Launch of
the Bloomberg GHG-Based Strategy.

•

We adhere to the Women's Empowerment Principles of the Global Compact andUN Women.

•

We contribute, through credits, to the financing of the operations and projects ofbusinessmen and entrepreneurs.

•

Through the BG business website, we also support the strengthening of abilities
and skills related to business administration.

8.6•

We allocate credits for the growth and recovery of  MySMEs.

8.10

•

We are direct job generators, offering indefinite contracts to our team members.

8.2
8.3
8.5

Results and Impacts

Annexes

121

SDGs

Goals

Contribution

9.4>

62% of the multi-credit placed
through digital channels.

•

We work on optimizing the user experience of our digital channels.

>•

Through Commercial Credit (companies), we make it easier for our clients toinvest in technology and innovation, which translates into the reduction ofoperational costs for their businesses.

68% of the accounts (Savings andChecking) opened digitally.

>

App with the best rating on themarket.

>New service channel via WhatsApp.

>
We promote financial inclusion through different products and services, close to
all market segments.

Close request for microcredit throughBanco del Barrio (national coverage)>

The financing granted to increase the working capital of microenterprises
generates opportunities for development and employment.

66% of Bancos del Barrio are led by
women

>

Advice and support for microenterprises.

>

US$ 766 million analyzed with SARAS
in 188 projects.

>

Training of 273 employees in goodenvironmental and social practices>

CERISE/SPTF international certification,
related to the 7 Principles of Client
Protection.

•

•

12.2
12.6

•

Through our Environmental and Social Risk Analysis System (SARAS) we evaluate
the impacts of credit; In addition, we establish requirements and monitor theircompliance. In this way, we promote good practices and the efficient use offinancial resources.
Products with environmental purposes have been developed, aimed at financing
energy efficiency projects, renewable energy, agriculture, construction, andsustainable industry. Release in 2023.

12.8
•

122

877,720 digital users.

We promote innovation and the use of technology in our services andoperations.

•
10.2

>
•
9.2
9.3

Results and Impacts

Banking Empathy Area with a specialized team to attend to and monitor customer
satisfaction

Integrated Sustainability Report 2022 • Banco Guayaquil

SDGs

Goals

13.1
13.3

16.5

Contribution•

We train our clients in best environmental practices.

•

We develop our operations within the framework of our Climate Change Policy,
with the respective commitments and guidelines of the company.

>

2.3 % reduction in total electricity
consumption.

•

We have structured a Climate Change Strategy based on: 1) CDP requirements,
2) identified climate change risks and opportunities (including in relation tocustomers) and 3) measurement of GHG emissions.

>

7.8 % reduction in GHG emissions in
the five main buildings>•

We will add the measurement of GHG emissions to our loan portfolio in 2023.

10.1 % reduction in GHG emissions per
employee (scopes 1 and 2).

•

We report our performance using the Recommendations of the Task Force on
Climate-related Financial (TCFD).

>

Carbon neutrality.

•

We establish environmental and social commitments with clients receiving
financial products as part of the SARAS.

>

Identification of climate change risks
and opportunities.

•

Energy management in our operations, calculation of Scope 1 and 2 emissions,and compensation of these emissions (carbon neutrality).

>

Pioneering use of TCFD
Recommendations.

•

We have a solid corporate governance structure, adhered to the legislation andthe best international practices.

•

We have an Anti-Bribery Management System, certified in accordance with the
ISO 37001 standard, for the supplier selection process.

>Certified Anti-Bribery Management
System ISO 37001 in force•

We make the Ethics Line available to the public for any type of complaint related
to our operations.

>

Current Corporate Governance Code•We train Directors in risks and emerging trends, reinforcing strategic decisionmaking.

>Training for Directors.

16.6
16.7

Results and Impacts

Annexes123

ANNEX IV
PROGRESS INRESPONSIBLE BANKINGAt Banco Guayaquil we are a founding member of the Principles for Responsible Banking, promoted
by different leading international institutions and the coordination of the Financial Initiative of theUnited Nations Environment Program (UNEP-FI, for its acronym in English).
As part of this Annex, we give an account of:• Process followed to identify and prioritize areas of potential impact, the basis for our responsiblebanking commitments. See Responsible banking approach, Strategy chapter.
• Detailed response to the Self-Assessment Questionnaire of the Principles of Responsible Banking,developed by UNEP FI.

These are the areas of potential impact most significant by net
positive and/or negative contribution:

Potential Impacts Mapping Processincluding credit and savings products, as well as other products and services. For this we use the tool

Positive(net contribution)

Negative(net contribution)

developed by UNEP FI; for the prioritization, we consider both the criticality for each topic that the

Employment

Waste

Portfolio Impact Analysis Tool shows for our portfolio and because we operate in Ecuador (activities
and context of the Bank).

Inclusive and healthy
economies

Efficiency / security ofresources

Followed steps:

Household

Water (quality)

Information

Land

EnergyWater

In 2019 - 2020 we identified and prioritized the positive and negative impacts of our commercial offer,

1. Determination of our cartography of products and services: which categories, and incorporationof portfolio data (eg distribution of commercial credit by sector of economic activity).
2. Weighing of the impact categories by country of operation: Ecuador.
3. Generation of the impact map with a quantitative approximation of its weight, over 100% that
our institution could impact positively and/or negatively in each category.

Food
Economic convergence
Mobility
Note. Those categories above 10% of the balance are indicated (difference between
the highest and lowest, if the highest is positive it is placed in the net positive
contribution column, if it is negative, in the net negative contribution).

124

Integrated Sustainability Report 2022 • Banco Guayaquil

POSITIVE

NEGATIVE
Availability-Water

100%

OthersFood
Housing

80%

Economic Convergence

Inclusive and Healthy Economies

Health and Sanitation60%

Education

40%

Residues

20%

Employment

Climate0%
EnergyEfficiency/Resource Safety

Biodiversity and Ecosystems

Mobility

Soil

Information

Cultural Heritage

Air

Integrity and Security

Quality - Water
Solid institutions

Justice

The impact areas correspond to the classification provided by UNEP FI.
Annexes125

PBR Self-Assessment Questionnaire
We show an executive summary of our application of the Principles of Responsible Banking (PBR),
responding to the UNEP-FI self-assessment questionnaire. We also redirect to the parts of the report
where we provide more details.
For the first time, we submitted the information we provide for Principle 2 and Part 1 of Principle 5 toexternal verification. It is referenced in the letter issued by the verification team.

Principle 1: Alignment
We will align our business strategy to be consistent with and contribute to the needs of people andthe objectives of society, as expressed in the Sustainable Development Goals, the Paris Climate
Agreement, and relevant national and regional frameworks.

Business model
Describe (at a high level) your bank's business model, including the main customer segments served,
the types of products and services provided, the main sectors and types of activities in the main geographies in which your bank operates or provides products and services. Please also quantify the information by disclosing, for example, the distribution of your bank's portfolio (in %) in terms of geography, segments (i.e. by balance and/or off-balance sheet) or by disclosing the number of clients served.

AnswerLinks and references• Banco Guayaquil is a multiple banking institution that operates in Ecuador.
• We raise funds from people and companies, and we provide different financing options,organized in the commercial, consumer, housing and microcredit sectors.
• Regarding deposits, we offer savings accounts, credit accounts, and term deposits, as
the main alternatives.
• We are customer focused. You First is our way of banking. We are a simple, close andtransparent bank.
• The placement and deposit data are detailed in the Economic Performance chapter.

126

Integrated Sustainability Report 2022 • Banco Guayaquil

Profile (IAI22)
Breakdown of the credit portfolio (IAI22)
Evolution of deposits (IAI22)
Financial culture and access to banking (IAI22)
https://www.bancoguayaquil.com/conocenos/

Strategy Alignment
Does your corporate strategy identify and reflect sustainability as a strategic priority(s) for your
bank?
l Yes
` No
Please describe how your bank has aligned and/or plans to align its strategy so that it is consistent
with the Sustainable Development Goals (SDGs), the Paris Climate Agreement, and relevant nationaland regional frameworks.
Does your bank also reference any of the following sustainability regulatory reporting requirements
or frameworks in its strategic or policy priorities to implement them?
l United Nations Guiding Principles on Business and Human Rights.
l Fundamental Conventions of the International Labor Organization.
l United Nations Global Compact.
` United Nations Declaration on the Rights of Indigenous Peoples
l Any applicable regulatory reporting requirements on environmental risk assessments, forexample on climate risk; specify which ones:

Aplicamos las recomendaciones del Task Force on Climate-Related Financial Disclosures (TCFD),
sobre análisis de riesgos y consideración de escenarios (además de las directrices para el
informe público). También los contenidos climáticos de los Estándares GRI y SASB (estos últimos
de las industrias aplicables a Banco Guayaquil).
l All applicable regulatory reporting requirements on social risk assessments, eg on modern slavery; specify which ones apply.

We present our progress in the articulation of due diligence in human rights, using the OECD
recommendations in the Due Diligence Guide for responsible business conduct, which also
responds to the OECD Guidelines for Multinational Companies, reference framework. We also
consider the United Nations Guiding Principles on Business and Human Rights.
We respond to aspects related to diversity and financial inclusion through the use of the GRI and
SASB Standards (the latter of the industries applicable to Banco Guayaquil)` None of the above.

Annexes127

We have a Sustainability Strategy, designed in 2020 based on material issues and which considers ourwork history. We also present its alignment with the Sustainable Development Goals (SDG).
It includes a Responsible Banking Substrategy, to maximize the positive contribution that we can maketo social development and the environment through our financial products and services.
Therefore, we contribute strategically to a selection of the SDGs, and we monitor our contribution

Sustainability Strategy (IAI22)
Responsible banking approach (IAI22)
Contribution to the SDGs (section of Annex III, (IAI22)
https://www.bancoguayaquil.com/conocenos/

through specific indicators.
The different focuses and lines of action of the Sustainability Strategy relate to the Sustainable
Development Goals, specifically with those to which we can contribute more strategically, determinedfrom the material issues.

sostenibilidad/
Risks and opportunities of climate change (IAI22)
Respect for human rights (section of Annex II, IAI22)

This year we updated our materiality analysis, to refocus efforts on the 2023-25 period of the Strategy;With the result obtained, the SDGs and their strategic goals are maintained.
The Strategy, made up of different initiatives, has a scorecard of main indicators, for which objectives
were established, and against which we monitor our progress.
In relation to climate change, the following stand out in our roadmap: analysis of risks and opportunities(applying the TCFD Recommendations) (carried out in 2022-23); measurement of Scope 1 and 2
emissions (historical, annually) and in 2023 we will begin calculating the GHG emissions of our credit
portfolio. This will allow us to set emission reduction targets aligned with the Paris Agreement.
In relation to human rights, we advance in accordance with the OECD reference framework and the
UN Guiding Principles on Business and Human Rights.

Principle 2:
Impact and Goal Setting
We will continually increase our positive impacts while reducing negative impacts and managing
risks to people and the environment resulting from our activities, products and services. To this end,
we will set and publish targets where we can have the most significant impacts.

128

Links and references

Integrated Sustainability Report 2022 • Banco Guayaquil

2.1

IMPACT ANALYSIS (KEY STEP 1)

Demonstrate that your bank has conducted an impact analysis of your portfolio(s) to identify yourmost significant areas of impact and determine priority areas for targeting. All impact analyzes must
be regularly updated and comply1 with the following requirements/specifications (ad2):
a. Scope: What is the scope of your bank's impact analysis? Please describe which parts of the bank's
main business areas, products/services in the main geographies in which the bank operates (asdescribed in point 1.1) have been considered in the impact analysis. Please also describe whichareas have not yet been included and why.

AnswerLinks and references

In the impact analysis, credit and savings products, as well as other products and services, were

Process of mapping potential impacts (section of Annex IV,

included.

IAI22)

Consider the entire operation in Ecuador.
b. Portfolio Composition: Has your bank considered the composition of your portfolio (in %) in theanalysis? Provide a proportional composition of your portfolio globally and by geographic scope

13i) by sectors and industries for corporates, corporates and investment banking (i.e. sector exposure or industry breakdown in %), and/or

well as the quality of the impact analysis improved over time.
2ii) by products and services, and by types of customers for consumer and retail banking portfolios.
If your bank has taken another approach to determining the bank's scale of exposure, please provide further details, to show how you have considered where the bank's primary or core activities

That means that where the initial impact analysis has been carried out in an earlier
period, the information needs to be updated accordingly, the scope expanded, as

3More guidance can be found in the Interactive guide on impact analysis and goal
setting.
The “key sectors” in relation to the different areas of impact, that is, those sectors
whose positive and negative impacts are particularly strong, are particularly
relevant here.

lie in terms of industries or sectors.

AnswerLinks and references

In the risk analysis, credits were included for all the sectors and industries that we

Breakdown of the credit portfolio (IAI22)

financed in the case of Business Banking.
Updated information on the breakdown of the portfolio by sector of economic activity
is presented year after year, although the analysis was carried out with the portfolio at
the end of 2019. The breakdown of the portfolio in commercial, consumer, housing andmicrocredit is also presented.

Annexes129c) Context: What are the main challenges and priorities related to sustainable development in themain countries/regions in which your bank and/or your clients operate? Describe4 how they havebeen considered, including interest groups you have engaged to help inform this element of the
impact analysis.

This step aims to put the impacts of your bank's portfolio in the context of the needs of society.

AnswerLinks and references

The challenges for sustainable development in Ecuador were integrated from the very

Process of mapping potential impacts (section oflist of critical issues and level of criticality that the UNEP-FI tool already has.

Annex IV, IAI22)

In addition, in 2019 the Bank had a materiality analysis, which has been updated every 2

Materiality analysis (section of Annex II, IAI22)

years and which considers the main issues in the environment, especially: 1) consulting
the institution's interest groups, 2) through the analysis of the evaluation of the SDG
Index for Ecuador and the Voluntary National Report of Contribution to the 20230
Agenda presented by the country.
Once the issues of potential economic, social and environmental impact of our portfolio
have been determined, we also analyze the country criticality of said issues in the
country (as indicated above). With the balance of both aspects, we determine the final
main themes/impact areas.
Those to be addressed as a priority were approved by the Corporate Governance andSustainability Committee.
Based on these first 3 elements of an impact analysis, what areas of positive and negative impact has
your bank identified? Which (at least two) areas of significant impact did you prioritize to follow yourtarget setting strategy (see 2.2)? Please disclose. 5

Answer4
5

Links and references

The following remained as areas of the main potential impacts:

Process of mapping potential impacts (section of

Positive: Employment, inclusive and healthy economies, housing, information, energy,

Annex IV, IAI22)

food, economic convergence and mobility.

Responsible banking approach (IAI22)

Global priorities could alternatively be considered for banks with highly diversified and international portfolios.
To prioritize the areas of greatest significant impact, a qualitative overlay to the quantitative analysis as described in a), b) and c)
will be important, for example through stakeholder engagement and further geographic contextualization.

130

Integrated Sustainability Report 2022 • Banco Guayaquil

Negative: Waste, Efficiency and security of resources, Water (quality), Soil and Air.
Based on these main areas, we propose two responsible banking objectives, which we
present below (the relationship with the areas of potential impact is shown).
Objective 1: Offer companies and entrepreneurs the necessary capital, so that they can operate andattend to the investments they require.
Linked Impact Areas: Employment, Inclusive and healthy economies, Economic convergence.
Objective 2: Support the population to have the pertinent savings and credit products.
Linked Impact Areas: Inclusive and healthy economies, Economic convergence.
In 2023, an objective will be added related to the areas of Waste, Efficiency and security of resources,
Water (quality), Soil and Air, from the launch of the green credit.
d) For these (minimum two prioritized impact areas): Performance measurement: Has your bankidentified which sectors and industries, as well as the types of clients financed or invested in, arecausing the strongest real positive or negative impacts? Describe how you evaluated their performance,
using appropriate indicators related to significant impact areas that apply to your bank's context.
When determining priority areas for target setting among your areas of greatest significant impact, you
should consider the bank's current performance levels, i.e., qualitative and/or quantitative indicators
and/or proxies of the resulting social, economic, and environmental impacts. of the bank's activities
and the provision of products and services. If you have identified climate and/or financial healthand inclusion as your most significant impact areas, please also refer to the applicable indicators in
the exhibit.
If your bank has taken another approach to assess the intensity of the impact resulting from thebank's activities and the provision of products and services, please describe it.

The result of this step will also provide the baseline (incl. indicators) can be used to set targets in
two areas of greatest significant impact.

AnswerLinks and references

For the main impact areas, when establishing the objectives, it was considered where
the greatest result was possible considering the credit portfolio.

Responsible banking approach (IAI22)
Breakdown of the credit portfolio (IAI22)

Annexes131Summary of the self-assessment:
Which of the following components of the impact analysis has your bank completed, in order to
identify the areas where your bank has its most significant (potential) positive and negative impacts?6
Scope:l Sí` In progress` No

Portfolio composition:l Sí` Ongoing` No

Context:l Sí` In progress` No` Ongoing` No

Performance Measurement: l Sí

What most significant impact areas have you identified for your bank, as a result of the impact
analysis?
Employment, Inclusive and healthy economies, Economic convergence.
In 2023, an objective will be added related to the areas of Waste, Efficiency and security of resources,
Water (quality), Soil and Air, from the launch of the green credit.
How recent is the data used and disclosed in the impact analysis?
` Up to 6 months before publication` Up to 12 months before publication` Up to 18 months before publicationl More than 18 months before publication
Open text field to describe possible challenges, aspects not covered by the above, etc.: (optional)

2.2 DESTINATION CONFIGURATION (KEY STEP 2)

6

Demonstrate that your bank has established and published a minimum of two targets that address atleast two different areas of greatest impact that you identified in your impact analysis.
The objectives must be specific, measurable (qualitative or quantitative), achievable, relevant, and subject to deadlines (SMART). Indicate the following goal configuration (ad) items, for each goal separately:7132

7

You can answer "Yes" to a question if you have completed one of the steps
described, eg initial impact analysis has been carried out, a pilot has been carriedout.
Operational targets (relating, for example, to water consumption in office buildings,
gender equality on the bank's board of directors, or greenhouse gas emissions
related to business travel) are not within the scope of PRB application.

Integrated Sustainability Report 2022 • Banco Guayaquil

a) Alignment: What international, regional, or national policy frameworks for aligning your bank's
portfolio have you identified as relevant?8 Show that the selected indicators and targets are linked toand drive alignment and further contribution to the appropriate Sustainable Development Goals, thegoals of the Paris Agreement and other relevant international, national or regional frameworks.
It can be based on the context elements in section 2.1.

AnswerLinks and references

The following two objectives were raised, which in turn have measurement indicators.

Responsible banking approach (IAI22)

Objective 1: Offer companies and entrepreneurs the necessary capital, so that they

Financial inclusion (IAI22)

can operate and attend to the investments they require.
Indicators:> Microcredit delivered (millions USD)
> Credit to SMEs (millions USD)
> Trade credit delivered (millions USD)
Objective 2: Support the population to have the pertinent savings and credit products.
Indicators:> Microcredits granted to women (millions USD)
> % microcredit given to women> Credit to SMEs led by women (millions USD)
We are also making progress in setting impact indicators.

b) Baseline: Have you determined a baseline for the selected indicators and assessed the current levelof alignment? Please indicate the indicators used, as well as the year of the reference base.

You can build on the performance measurement done in 2.1 to determine the baseline for your goal.
A package of indicators for climate change mitigation and financial health and inclusion has beendeveloped to guide and support banks on their goal setting and implementation journey. The generaldescription of the indicators can be consulted in the exhibit of this template.

Annexes

8

You The Bank should consider the main challenges and priorities in terms ofsustainable development in your main/operating country in order to set targets.
These can be found in national development plans and strategies, international
goals such as the SDGs or the Paris Climate Agreement, and regional frameworks.
Alignment means that there must be a clear link between the bank's goals andthese frameworks and priorities, therefore showing how the goal supports anddrives contributions to national and global goals.

133

If your bank has prioritized climate mitigation and/or financial health and inclusion as (one of) its mostsignificant impact areas, it is strongly recommended to report on the indicators in the Annex, using
an overview table like the one below that includes the area of impact, all relevant indicators, and thecorresponding indicator codes:
See the Responsible Banking Approach section, in the Strategy chapter (pg. 25).
In 2023, an objective will be added related to the areas of Waste, Efficiency and security of resources,
Water (quality), Soil and Air, from the launch of the green credit.

AnswerLinks and references

For the indicators indicated above in subparagraph a), the value 2019 (base line) and
2022 (current) are presented.

Responsible banking approach (IAI22)
Financial inclusion (IAI22)

The fiscal year 2019 is considered as the baseline, in which the objectives were set,
after signing the Principles of Responsible Banking and mapping the areas of potential
impact.
c) SMART goals [including .key performance indicators (KPIs) 9]: Indicate the objectives for your firstand second most significant areas of impact, if they already exist (as well as other areas of impact ifthey exist). What KPI are you using to monitor progress toward achieving the goal? Please disclose.

AnswerLinks and references

We have been establishing goals for the objectives on an annual basis. See subparagraphb) of this part 2.2.
d) Action plan: What actions that include milestones have you defined to meet the established objectives? Please describe.
Also demonstrate that your bank has analyzed and recognized significant (potential) indirect impacts of the objectives set within the impact area or other impact areas and has established relevant
actions to avoid, mitigate or offset possible negative impacts.

9134

Key Performance Indicators are indicators chosen by the Bank for the purpose of monitoring progress towards goals.

Integrated Sustainability Report 2022 • Banco Guayaquil

Responsible banking approach (IAI22)

Links and references

Answer
The objectives and goals are the result of an exhaustive analysis of our portfolio and the

Responsible banking approach (IAI22)

participation of the different business areas.
To achieve it, we have the participation of the commercial teams in the placement of
the credits and the data analytics teams to be able to monitor the placement.

Resumen de la autoevaluación
Which of the following components of goal setting in line with PRB requirements has your bankcompleted or is currently in an assessment process for your...

Alignment

Reference

SMART
goals

Action plan

(If you are setting goals in more...First area ofgreatest impact:...(please name it)...Second area ofgreatest impact:...(please name it)

l Yes

l Yes

l Yes

` In progress` In progress` In progress

` No

` No

` No

l Yes

l Yes

l Yes

` In progress` In progress` In progress

` No

` No

` No

l Yes

l Yes

l Yes

` In progress` In progressl In progress

` No

` No

` No

l Yes

l Yes

` Yes

` In progress` In progressl In progress

` No

` No

` No

areas of impact) ...your thirdarea(s) of impact: ...(please
name)

The third area of impact corresponds to the environmental grouping: Waste, Efficiency and security ofresources, Water (quality), Soil and Air.
Annexes1352.3 IMPLEMENTATION AND MONITORING OF OBJECTIVES (KEY STEP 3)
For each goal separately:
Demonstrate that your bank has implemented the actions that you had previously defined to meetthe established objective.
Report on your bank's progress since the last report towards the achievement of each of the statedobjectives and the impact of its progress, using the indicators and KPIs for monitoring progress thatyou have defined in 2.2.
Or, in case of changes in the implementation plans (relevant only for the 2nd report and the following): describe potential changes (changes in priority impact areas, changes in indicators, acceleration/revision of targets, introduction of new milestones or revisions of action plans) and explain why
those changes have been made become necessary.

AnswerLinks and references

In this report we give an account of the progress in each objective with respect to the

Responsible banking approach (IAI22)

previous goals and the new ones proposed, see subparagraph c) of point 2.2.

Principle 3: Clients
We will work responsibly with our customers and clients to encourage sustainable practices andenable economic activities that create shared prosperity for current and future generations.

3.1 COMMITMENT TO THE CLIENT
Does your bank have a customer and customer engagement policy or process to encouragesustainable practices10
l Yes		` In progress		

` No

Does your bank have a policy for the sectors in which you have identified the greatest (potential)
negative impacts?
l Yes		` In progress		

` No

10

Please describe how your bank has worked and/or plans to work with its customers and customers
to encourage sustainable practices and enable sustainable economic activities). It should include

136

A customer engagement process is a process of supporting customers towards thetransition of their business models in line with sustainability stainability objectives,
strategically accompanying them through a variety of customer relationshipchannels.

Integrated Sustainability Report 2022 • Banco Guayaquilinformation on relevant policies, actions planned/implemented to support client transition, selectedindicators on client engagement and, where possible, impacts achieved.11

This should be based on and in line with the impact analysis, goal setting and action plansestablished by the bank (see Q2).
We encourage clients to adhere to the best environmental and social practices, especially throughcredit.
1) Application of the Environmental and Social Risk Management System (SARAS).
2) Development of credits that contribute to financial inclusion: Microcredit, microcredit with a

Links and references
Financial culture and access to banking (IAI22)
Financing and sustainable investment (IAI22)

gender focus, general microcredit.
3) Green credit is being developed, which will finance good environmental practices.
4) Training clients in sustainable practices and certifications.
These commitments are part of the Sustainability Policy; In this way, we seek to strengthen thecontribution to the SDGs and the Paris Agreement, also from the activities of our clients.

3.2 BUSINESS OPPORTUNITIESPlease describe what strategic business opportunities in relation to increasing positive impacts
and reducing negative impacts your bank has identified and/or how it has worked on these in thereporting period. Please provide information on existing products and services, information onsustainable products developed in terms of value (USD or local currency) and/or as a percentage ofyour portfolio, and on which SDGs or impact areas you strive to have a positive impact (for example,
green mortgages - climate, social bonds - financial inclusion, etc.)

AnswerLinks and references

Progress in achieving the two proposed objectives is related to taking advantage of the business
opportunity associated with financial inclusion.
The same will happen with the objective that is set in environmental issues once we launch the green

Financial culture and access to banking (IAI22)
Financing and sustainable investment (IAI22)

credit.

11

Responsible banking approach (IAI22)

Sustainable economic activities promote the transition towards a low carbon economy, more efficient in the use of resources andsustainable.

Annexes137

Principle 4: Interest groups
We will proactively and responsibly consult, engage and partner with relevant stakeholders toachieve societal objectives.

4.1 Identification and consultation of interest groups
Does your bank have a process for regularly identifying and consulting, engaging, collaborating, andpartnering with interest groups (or interested parties) that you have identified as relevant in relation
to the impact analysis and target setting process?12
			l Yes		` In progress		

` No

Please describe which interest groups (or groups/types) you have identified, consulted, engaged, collaborated or associated with in order to implement the Principles and enhance the impacts of yourbank. This should include a high-level overview of how your bank has identified relevant interest
groups, what issues were addressed/results achieved, and how they contributed to the action planning process.
As part of the development of the impact map, different business areas were consulted to assess the
Bank's portfolio of products and services, the profiles of associated clients and, with it, the possible

Links and references

impacts. They brought their knowledge of customer expectations and scenario.

Relations with stakeholders (section of Annex II, IAI22)

In addition to the impact map, we developed a materiality study, updated in 2022-23. In this case, theMateriality analysis (section of Annex II, IAI22)

following participated in the prioritization of material issues: collaborators, suppliers, Banqueros delBarrio funders, sectoral organizations and authorities, through different consultations.
In this way we can understand with their involvement, the positive and negative impacts resulting
from the whole of our activity.
We also develop training for clients, for example in sustainable practices for agriculture, aquaculture,etc.
We also maintain different communications with our stakeholders on a regular basis, making channels
and platforms available to them, with specialized teams.

12

138

As regulators, investors, governments, suppliers, customers and clients, academia, civil society institutions, communities,
representatives of the indigenous population and non-profit organizations.

Integrated Sustainability Report 2022 • Banco Guayaquil

Principle 5:
Governance and culture
We will implement our commitment to these Principles through effective governance and a
responsible banking culture.

5.1 GOVERNANCE STRUCTURE FOR THE APPLICATION OF THE PRINCIPLES
Does your bank have a governance system that incorporates the PRB?
			l Yes		` In progress		

` No

Please describe the relevant governance structures, policies and procedures that your bank has put
in place/plans to put in place to manage significant (potential) positive and negative impacts and support the effective implementation of the Principles. This includes information about•

which committee has responsibility for the sustainability strategy, as well as the approval and monitoring of the objectives (including information on the highest level of governance to which the
PRB is subject),•

details about the chair of the committee and the process and frequency for the board to oversee
the implementation of the PRB (including corrective actions in case objectives or milestones are
not met or unexpected negative impacts are detected), as well as,•

remuneration practices linked to sustainability objectives.

AnswerLinks and references

The Responsible Banking Sub-strategy is integrated into the Sustainability Strategy; It iscoordinated by the sustainability team.
Depending on the initiative, the responsibilities for implementation are distributed

IS21/22: ESG Strategy» Regulation of the Sustainability Commission

among the different business areas (product design and marketing), the risk team (socioenvironmental assessment, statement prior to credit authorizations), the inclusion andfinancial education team, and that of sustainability.
The progress of the different initiatives are reported by those responsible to the
Corporate Governance and Sustainability Committee; in addition to other specificcommittees such as risk.
Representatives of the Audit, Finance, Legal, Risk, Human Talent and Corporate
Governance areas are part of the Committee.
Annexes1395.2 PROMOTE A CULTURE OF RESPONSIBLE BANKING:
Please describe your bank's initiatives and measures to foster a culture of responsible banking amongits employees (for example, skills development, e-learning, sustainability trainings for customerfacing roles, inclusion in compensation structures and performance management and reporting).
leadership, etc.
The collaborators of the areas with responsible banking initiatives have an active role in their development and results.
In addition, some teams have specialized training due to their responsibilities, this is the case of Risks,
Treasury and Sustainability, trained in sustainable finance in 2021 in a program of the Quito Stock
Exchange (BVQ, ESPOL) and the IFC.
Likewise, this year work has been done on perfecting the internal training program in sustainable finance, aimed at all sales teams; and the introductory sustainability training program for all employees;
they will be finally released in 2023.
On the other hand, through internal networks, we frequently transmit our progress in sustainability, inthe different ESG aspects (environmental, social and governance).

5.3 DUE DILIGENCE POLICIES AND PROCESSES
Does your bank have policies that address environmental and social risks within its portfolio? Please
describe.13
Please describe what due diligence processes your bank has in place to identify and manage
environmental and social risks associated with your portfolio. This may include aspects such as
the identification of significant/outstanding risks, the mitigation of environmental and social risks
and the definition of action plans, the monitoring and reporting on risks and any existing grievancemechanisms, as well as the structures governance it has in place to oversee these risks.

13

140

Applicable examples of policy types are: exclusionary policies for certain sectors or activities; zero deforestation policies; zerotolerance policies; gender-related policies; social due diligence policies; stakeholder engagement policies; whistleblower policies,etc., or applicable national guidelines related to social risks.

Integrated Sustainability Report 2022 • Banco Guayaquil

Links and references
Sustainability Strategy (IAI22)
Focus on responsible banking (IAI22)

Links and references

AnswerWe have an Environmental and Social Risk Management System (SARAS) that allows us
to identify, evaluate, manage and monitor the possible environmental and social risksof the activities we finance.

Financial culture and access to banking (IAI22)
Financing and sustainable investment (IAI22)

This system is consistent with the eight Performance Standards of the International
Finance Corporation (IFC) and is aligned with the Fundamental Conventions of theInternational Labor Organization (ILO).
In the products connected with financial inclusion, the analysis is carried out in any
case that the potential client meets the conditions specified for the product; In thesame way, we take care that he has the necessary information for the hiring decision.

Self-Assessment Summary
Does the CEO or other C-suite officers have regular oversight over the implementation of the
Principles through the bank's governance system?
l Yes

` No

Does the governance system include structures to oversee the implementation of the PRB (forexample, including impact analysis and target setting, actions to achieve these targets, and corrective
action processes in case targets/milestones are not met or unexpected impacts are detected)?
l Yes

` No

Does your bank have measures to promote a culture of sustainability among employees (as describedin 5.2)?
l Yes` In progress` No

Annexes141

Principle 6: Transparency
and accountability
We will periodically review our individual and collective implementation of these Principles and willbe transparent and accountable for our positive and negative impacts and our contribution to thegoals of society.

6.1 INSURANCE
Has this publicly disclosed information about your PRB commitments been insured by an independent
insurer?
		l Yes` Partially` No

If applicable, include the link or description of the statement of assurance.

AnswerLinks and references

In accordance with the commitments acquired with the subscription of the Principles
of Responsible Banking, we have proceeded diligently in compliance with the roadmap
that UNEP-FI establishes, and which considers the external verification in the third
progress report.
The exercise is integrated into the verification of a selection of key indicators of thereporting standards that we use for our information on the performance of the Strategy:
Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB).

6.2 REPORTING ON OTHER FRAMEWORKS
Does your bank disclose sustainability information in any of the standards and frameworks listed
below?

142

l

GRI

l

SASB

l

CDP

l

IFRS Sustainability Disclosure Standards (pending publication)

l

TCFD

l

Another thing WEF stakeholder capitalism
Integrated Sustainability Report 2022 • Banco Guayaquil

External verification letter (IAI22)

Answer
In our integrated reporting, we use the Global Reporting Initiative (GRI) and Sustainability

Accounting Standards Board (SASB) Standards; In this way, we attend to the materialityof impact (with the related GRI standards) and financial materiality (with the parametersof the topics established by SASB for the industries of the financial sector in which we

Links and references
Cómo leer este informe (IAI22)
Anexo V: Marcos y estándares de reporte (IAI22)

operate – e.g. commercial banking).
For the first time, we are also responding to the Recommendations of The Task Force on

Climate-Related Financial Disclosures (TCFD). This is possible because we carry out theanalysis of risks and opportunities of climate change of our institution, including theportfolio of credit clients. It adds to the efforts that we were already making to calculate
Scope 1 and 2 GHG emissions.
Additionally, we use the stakeholder capitalism metrics of the International BusinessCouncil (IBC) of the World Economic Forum (WEF). These seek to communicate how
the company works to create long-term value, considering the needs of the different
interest groups, with people and the planet at the center of the strategies. We use thecore and expanded metrics that are related to the aforementioned double materiality.
It is part of our first approach to standards integration movements. As of the next report
we will already use the IFRS sustainability standards.
Additionally, committed to transparency towards the market, we made progress inconsidering the requirements of the CDP climate change questionnaire.

Annexes1436.3 PERSPECTIVE
What are the next steps your bank will undertake in the next 12-month reporting period (particularly
impact analysis, target setting and governance structure to implement the PRB)? Please describe
briefly14, 15

AnswerLinks and references› Integration of an objective for the areas of potential environmental impact, especiallywith climate change. Associated with the launch of our green credit.
› Calculation of GHG emissions from the credit portfolio.
› Evaluation of the feasibility to establish emission reductions based on science (throughthe SBTi initiative).
› Permanent reinforcement of the culture of sustainability and responsible banking
among employees.
› In the same way in clients, according to what is indicated in the application of Principle 3.

6.4 CHALLENGES
Here is a short section to learn about the challenges your bank may face with regard to implementing
the Principles for Responsible Banking. Your comments will be helpful in contextualizing the collective
progress of the PRB signatory banks.
What challenges have you prioritized to address when implementing the Principles of Responsible
Banking? Choose what you consider to be the top three challenges your bank has prioritized
addressing in the last 12 months (optional question).

14

15

144

For Example describing plans to increase scope by including areas not yet covered, or planned steps in terms of portfolio
composition, context, and performance measurement.
For Example describing plans for baseline measurement, development of targets for (more) areas of impact, setting intermediatetargets, development of action plans, etc.

Integrated Sustainability Report 2022 • Banco Guayaquil

Responsible banking approach (IAI22)

If you wish, you can explain the challenges and how you are addressing them:` Mainstreaming PRB Oversight into Governance` Gain or maintain momentum on the bench` Getting started: where to start and what to focus on at first` Carrying out an impact analysis` Assessment of negative environmental and social impacts` Choosing the right performance measurement methodology(ies)l Goal Setting` Another thing__________` Engagement with the client` Stakeholder Engagement` Data availability` Data quality` Access to resources` Reportsl Assurance` Prioritize actions internallyIf you wish, you can explain the challenges and how you are addressing them:Annexes145

ANNEX V
REPORTING FRAMEWORKS
AND STANDARDSGRI CONTENTS INDEXUNIVERSAL STANDARDSGRI STANDARDSGRICONTENTSGRI CONTENTSTITLEOMISSION
Omission

ReasonExplanation

EXTERNAL
VERIFICATIONPAGEGRI 1: Fundamentals 2021
GRI 2: General Contents 2021

The organizationand its practices
report146

GRI 2-1

Organization
Details

11, 15, 17

GRI 2-2

Entities
included in thesustainability
reports of theorganization

8

GRI 2-3

Reporting period,
frequency andcontact point.

8

GRI 2-4

Information Re
expression

GRI 2-5External
Verification

8, 51, 52, 94
8Integrated Sustainability Report 2022 • Banco Guayaquil

GRI STANDARDSGRICONTENTSGRI CONTENTS
TITLE

GRI 2-6

Activities, value
chain and othercommercial
relationships

OMISSION
Omission

Reasonn/a

The 100%
of Banco
Guayaquilcollaborators
have a perpermanent
contract andhave a full-time
job.

Information
nonavailable orincomplete

There is no
definedthreshold todeterminesignificant
fluctuations;
therefore, thesignificance ofthe described
figures cannot
be established.

ii. temporary employees andbreakdown per gender and region;iii. employees per non-guaranteed
hours, and breakdown by gender andregion;v. part-time employees and breakdown
per gender and region;
GRI 2-7

PAGE

12, 49b. Indicate the total number of:

Activities andCollaborators

Explanation

EXTERNAL
VERIFICATION

Employees

e. describe material fluctuations in
the number of employees during
the period of this report and among
periods of other reports.

Annexes

81, 82

147

GRI STANDARDSGRICONTENTSGRI CONTENTSTITLEOMISSION
Omission

ReasonExplanation

Notapplicable

Banco
Guayaquil
operates with
its own workforce.

EXTERNAL
VERIFICATION

PAGE

a. indicate the total number of: nonemployee workers whose work is
controlled by the organization anddescribe:
i. type of usual workers and theircontract relationship with theorganization;
ii. the type of work they carry out;

Activities andCollaborators

GRI 2-8

Non-Employee
Workersb. describe the methods andsuppositions of employees tocompile data and if the nonemployees workers are recorded:
i. staff template, units equivalent tofull-time or other methodology;-

ii. at the end of the period the
purpose of the report, average of theperiod or other methodology;
c. describe material fluctuations in thenumber of employees during theperiod of this report and among
periods of other reports

GRI 2-9

Governancestructure andcomposition

26

GRI 2-10

Nominationand selectionof the highest
governing body

26

Governance

148

Integrated Sustainability Report 2022 • Banco Guayaquil

GRI STANDARDSGRICONTENTSGRI CONTENTSTITLEOMISSION
Omission

ReasonExplanation

EXTERNAL
VERIFICATIONPAGEGRI 2-11

President of
the highest
government
body

26

GRI 2-12

Role of thehighestgovernancebody inoverseeing
impactmanagement

41

GRI 2-13

Delegation of
responsibility
for impact
management

41

GRI 2-14

Role of thehighestgovernancebody in the
preparation ofsustainability
reports

8

GRI 2-15

Conflicts ofinterest

36

Governance

GRI 2-16

Communicationof criticalconcerns

a. describir si se comunican lasinquietudes críticas al máximo
órgano de gobierno y, de ser así, dequé manera;b. indicar el número total y lanaturaleza de las inquietudes
críticas comunicadas al máximo
órgano de gobierno durante elperiodo objeto del informe.

Annexes

Información
confidencial

Información
confidencial,
debido a loslineamientos
internos de laorganización.

-

149

GRI STANDARDSOMISSIONGRICONTENTSGRI CONTENTS
TITLE

GRI 2-17

Collective
knowledgeof the highest
governance body26

GRI 2-18

Evaluation of theperformanceof the highest
government body26

GRI 2-19

Remuneration
policies26, 84

GRI 2-20

Process todetermine
remuneration

26, 84GovernanceOmissiona. present the ratio of the annual totalcompensation of the highest-paid
person in the organization to themedian annual total compensation of
all employees (excluding the highestpaid person);GRI 2-21

Annual Total
Compensation
Ratio

ReasonConfidential
informationb. present the ratio of the percentage
of increase in total annualcompensation of the highestpaid person in the organization to
the median of the percentage ofincrease of all employees (excluding
the highest-paid person),c. present the necessary information
to understand data and manner ofcollection of them.

150

Integrated Sustainability Report 2022 • Banco Guayaquil

Explanation

EXTERNAL
VERIFICATIONPAGE

Confidential,
due to internalorganization
guidelines.

-

GRI STANDARDSStrategy, Policy
and Practices

GRI
CONTENTSGRI CONTENTSTITLEOMISSION
Omission

ReasonExplanation

EXTERNAL
VERIFICATIONPAGEGRI 2-22

Sustainable
Development
StrategyStatement

4

GRI 2-23

Policycommitment

20, 36, 114

GRI 2-24

Incorporationof policy
commitments

20, 36, 114

GRI 2-25

Processes
to remedy
negative
impacts

36, 114

GRI 2-26

Mechanisms forseeking advice
and raisingconcerns

36, 114

GRI 2-27

Compliancewith laws andregulations

36

GRI 2-28

Associations
in which it
participates

109

Annexes151

GRI STANDARDSOMISSIONGRICONTENTSGRI CONTENTS
TITLE

GRI 2-29

Approach to
stakeholder
engagement

106

GRI 2-30

Collective
bargaining
agreements

81

Commitment toShareholders

Omission

ReasonExplanation

EXTERNAL
VERIFICATIONPAGEGRI 3: Material topics 2021				

GRI 3-1

Process fordetermining
material topics

110

GRI 3-2

List of material
topics110

GRI 3-3152

It isansweredthroughout
the reportfor eachManagement ofmaterial issues

material
topic, seesecondtable.

Integrated Sustainability Report 2022 • Banco Guayaquil

SPECIFIC GRI DISCLOSURES BY MATERIAL ISSUE IMPACT
MATERIAL
TOPICS

Accessibility(customers)

GRI
STANDARDSGRICONTENTSGRI 3: Material
topics 2021

GRI 3-3

GRI CONTENTSTITLEOMISSIONS
OmissionsReasonExplanation

EXTERNAL
VERIFICATIONPAGESManagement ofmaterial issues

73

FS13

Access points insparsely populated
or economicallydisadvantaged
areas by type

73

FS14

Initiatives toimprove access tofinancial services
for disadvantaged
people73

Sectoral
Supplement
Financial
SectorSupport forentrepreneurship

GRI 3: Material
topics 2021

GRI 3-3Management ofmaterial issues

20, 110

Attraction andretention oftalentGRI 3: Material
topics 2021

GRI 3-3Management ofmaterial issues

81

Annexes153

MATERIALTOPICS

Attraction andretention oftalent154

GRI
STANDARDSGRI 401:
Employment
2016

GRI
CONTENTSGRI CONTENTSTITLEOMISSIONS
OmissionsReasonExplanation

EXTERNAL
VERIFICATION

PAGES

401-1

New employee
hires and staff
turnover401-2

Benefits for fulltime employeesthat are notprovided to parttime or temporary
employees

84

401-3

Parental leave

84

81, 82, 83

Training andeducation

GRI 404-1:
training andeducation 2016

404-1

Employee average
hours for training
per year

88

Competitivenessand market
development

GRI 3: Material
topics 2021

GRI 3-3Management ofmaterial issues

36, 54, 60

Integrated Sustainability Report 2022 • Banco GuayaquilMATERIALTOPICSGRISTANDARDSGRICONTENTS

OmissionsReasonExplanation

EXTERNAL
VERIFICATION

PAGES

206-1

36

Sectoral
Supplement
Financial
SectorFS6

Portfolio
percentage forlines of businessby specific region,
size (eg micro/
SME/large) and bysector.

54

GRI 3: Material
topics 2021

GRI 3-3Management ofmaterial issues

26, 84405-1

Diversity ingoverning bodies
and employees

26, 81, 84405-2

Ratio of basic
salary andremuneration of
women compared
to men84

406-1

Cases ofdiscrimination andcorrective actions
taken

84

Competitivenessand market
development

Diversity,
inclusion andequityOMISSIONS

Legal actions
related to unfair
competition,
monopolistic
practices andagainst freecompetition

GRI 206: Unfair
competition
2016

Diversity,
inclusion andequityGRI CONTENTS
TITLE

GRI 405:
Diversityand equal
opportunities
2016

GRI 406: Nondiscrimination
2016

Annexes155

MATERIALTOPICS
Disclosure andtransparency of
information onsustainability
(ASG)

GRI
STANDARDSGRI 3: Material
topics 2021

GRI
CONTENTSGRI 3-3

GRI CONTENTSTITLEOMISSIONS
OmissionsReasonManagement of

PAGES

8, 36

material issues

GRI 3: Material
topics 2021

GRI 3-3Management ofmaterial issues

94

GRI 204:
Procurement
Practices 2016

204-1

Proportion of
spending on local
suppliers

49

302-1

Energyconsumption
within theorganization

Operational
efficiency
GRI 302:
Energy 2016
302-2

Energyconsumption
outside theorganization

96, 97a. Energy consumption
outside the organization,in joules or multiples.
b. The standards,
methodologies,
assumptions, or
calculation tools.

N/A

C . the source of conversion
factors used.

156

Explanation

EXTERNAL
VERIFICATION

Integrated Sustainability Report 2022 • Banco Guayaquil

Banco
Guayaquildoes nothave energy
consumption
outside theorganization..

-

MATERIALTOPICSGRISTANDARDSGRICONTENTS
302-3

302-4

Operational
efficiency

GRI CONTENTS
TITLE

OmissionsReasonExplanation

Energy intensity

Reduction of
the energy
requirements
of products andservices

EXTERNAL
VERIFICATION

PAGES

98

Reductionof energy
consumption

GRI 302:
Energy 2016

302-5

OMISSIONS

a. The reductions in energy
requirements of products
and services sold achieved during the reporting period, in joules ormultiples.
b. The calculation basis forthe reduction of energy
consumption, such as thebaseline year or reference line, includes the justification for the selection,c. The standards, methodologies, assumptions, andcalculation tools used.

Annexes

N /A

No aplica.
Banco
Guayaquil
proveeproductos yservicios
financieros
que norequieren deun consumo
significativo
de energía
para su uso/
operación.

96, 97

Banco
Guayaquil
providesfinancial
products
and services
that do not
requiresignificant
energyconsumption
for their use/
operation

96, 97157

MATERIALTOPICSGRISTANDARDSOMISSIONSGRICONTENTSGRI CONTENTS
TITLE

305-1

Direct GHG
emissions (scope 1)

98

305-2

Indirect GHG
emissions whengenerating energy(scope 2)

98

OmissionsReasonExplanation

EXTERNAL
VERIFICATIONPAGES

a. The gross value of otherindirect greenhouse gas(GHG) emissions (scope3) in metric tons of CO2
equivalent.
b. If available, gas includedin the calculation:
Operational
efficiency

CO2, CH4, N20, HFC, PFC,
SF6, NF3 or all of them.

GRI 305:
Emissions 2016

305-3

Other indirect GHG
emissions (scope 3)c. The biogenic emissionsof CO2 in metric tons
equivalent.
d. The categories andactivities related to otherindirect greenhousegas emissions (scope3) included in thecalculation.

Notavailable

e. The year base for the
calculation, if applicable,
and include:i. Justification for theselection;
ii. Emissions in the year
base;

158

Integrated Sustainability Report 2022 • Banco Guayaquil

Banco
Guayaquil
has a climate
strategy that
includes theestimationof GHGemissionsfrom thecreditportfolio.

-

MATERIALTOPICSGRISTANDARDSGRICONTENTSGRI CONTENTSTITLEOMISSIONS
OmissionsReasonExplanation

EXTERNAL
VERIFICATION

PAGES

iii. the context of any
material change in theemissions resulting in
new calculations foremissions in the year
base.

Operational
efficiency

f. The source of emission
factors and the potential
rates for global warming(PGW) used or a reference
to the PGW source.

GRI 305:
Emisiones 2016

g. Standards, methodology,
assumptions or
calculation tools used.
305-4

GHG emissions
intensity

100

305-5

Reduction of GHG
emissions98

Annexes159

MATERIALTOPICSGRISTANDARDSGRICONTENTS

305-6

OMISSIONSGRI CONTENTS
TITLE

Emissions of
substances that
deplete the ozone
layer (ODS)

OmissionsReasonExplanation

N/A

Banco
Guayaquil's
activity
essentiallygenerates
GHG
emissionsand not of
any othertype.

a. Production, imports
and exports of ODS in
metric tons of CFC-11(Triclorofluorometano)equivalent.
b. substances included in
the calculation.
c. Source of emission
factors used.
d. Standards,
methodologies,
assumptions, or
calculation tools used.

Operational
efficiency

a. The significant air
emissions, in kilograms or
multiples for each of thefollowing:

GRI 305:
Emisiones 2016

305-7

160

ii. SOX;
iii. Persistent Organic
contaminants COP;
IV. Volatile organic
compounds (VOC);
v. Hazardous air
pollutants (HAP)vi. Particles (PM); vii. Other
air emission categories
identified in relevant
regulations

PAGES

-

Banco
Guayaquil'si. NOX;
Nitrogen oxides(NOX), sulfur oxides(SOX) and othersignificant air
emissions

EXTERNAL
VERIFICATION

N/A

Integrated Sustainability Report 2022 • Banco Guayaquil

activity
essentiallygenerates
GHG
emissionsand not of
any othertype.

-

MATERIALTOPICSGRISTANDARDSGRICONTENTSGRI CONTENTSTITLEOMISSIONS
OmissionsReasonExplanation

EXTERNAL
VERIFICATIONPAGES

b. The source related toemission factors used.
Operational
efficiency

GRI 305:
Emisiones 2016

GRI 3: Temas
materiales 2021

Social andenvironmental
evaluationof clients(responsible
financing)c. The standards,
methodologies,
assumptions or
calculation tools used.
Management ofmaterial issues

76

FS2

Procedures forthe evaluationand detection ofenvironmental andsocial risks in thebusiness lines

76

FS3

Processes
to monitor
clients in theimplementationand compliancewith environmental
regulations
and social
requirements
included inagreements ortransactions

76

GRI 3-3

GRI Sector
Supplement
Financial
SectorAnnexes161

MATERIALTOPICS

Social andenvironmental
evaluationof clients(responsible
financing)

162

GRI
STANDARDSGRI Sector
Supplement
Financial
SectorOMISSIONSGRICONTENTSGRI CONTENTS
TITLE

FS4

Process(es) toimprove staff
competencies
to implement
environmental
and social policies
and procedures
applied to business
lines

76

FS5

Interactions with
Clients/Investees/
Business Partners
on Environmental
and Social Risks
and Opportunities

76

FS9

Coverage andfrequencyof audits toassess theimplementation ofenvironmental andsocial policies, andrisk assessment
procedures

76

OmissionsReasonIntegrated Sustainability Report 2022 • Banco Guayaquil

Explanation

EXTERNAL
VERIFICATIONPAGESMATERIALTOPICS

Social andenvironmental
evaluationof clients(responsible
financing)

GRI
STANDARDSGRI CONTENTS
TITLE

FS10

Percentage
and number ofcompanies in
the company's
portfolio withwhich there has
been interaction
on environmental
or social issues

76

FS11

Percentage ofassets subject
to positive
and negativeenvironmental orsocial assessment

76

GRI 3-3Management ofmaterial issues

65, 68GRI Sector
Supplement
Financial
SectorGRI 3: Material
topics 2021

205-1
Customerexperience

OMISSIONSGRICONTENTSGRI 205: Anticorruption
2016
205-2

OmissionsOperations
assessed for

ReasonExplanation

EXTERNAL
VERIFICATION

PAGES

37

risks related tocorruption
Communicationand training on
anti-corruption
policies andprocedures

37

Annexes163

MATERIALTOPICSGRICONTENTSGRI CONTENTS
TITLE

GRI 205: Anticorruption
2016

205-3

Confirmed casesof corruption andmeasures taken

37

416-1

Assessment of
the health andsafety impacts ofproduct or service
categories

65

416-2

Cases of noncompliancerelated to theimpacts on thehealth and safetyof the categories
of products andservices

37

FS1

Policies withspecific
environmental andsocial components
applied to business
lines

77

FS15

Policies for the fair
design and sale offinancial products
and services73

GRI 416: Saludy seguridad
de los clientes
2016
Customerexperience

GRI Sector
Supplement
Financial
Sector

Systemic risk
management

164

OMISSIONSGRISTANDARDSGRI 3: Material
topics 2021

GRI 3-3

OmissionsReasonManagement ofmaterial issues

Integrated Sustainability Report 2022 • Banco Guayaquil

Explanation

EXTERNAL
VERIFICATION

PAGES

41, 49

MATERIALTOPICS

Financialinclusion

GRI
CONTENTSGRI 3: Material
topics 2021

GRI 3-3Management ofmaterial issues

73

FS7

Monetary valueof products andservices designed
to provide a
specific social
benefit for eachline of businessbroken down by
purpose73

FS16

Initiatives toimprove financial
education by typeof beneficiary75

GRI Sector
Supplement
Financial
SectorGRI CONTENTSTITLEOMISSIONSGRISTANDARDS

OmissionsReasonExplanation

EXTERNAL
VERIFICATIONPAGESInnovation in
products andservices

GRI 3: Material
topics 2021

GRI 3-3Management ofmaterial issues

65

Socialinvestment

GRI 3: Material
topics 2021

GRI 3-3Management ofmaterial issues

22, 108

Annexes165

MATERIALTOPICS

Marketing andinformation of
products andservices

166

GRI
CONTENTSGRI 3: Material
topics 2021

GRI 3-3Management ofmaterial issues

36, 65, 68

417-1

Requirements
for informationand labeling ofproducts andservices

65

417-2

Cases of noncompliance related
to the informationand labeling ofproducts andservices

37

417-3

Cases of noncompliance related
to marketing
communications

37

GRI 417:
Marketing andlabeling 2016

GRI CONTENTSTITLEOMISSIONSGRISTANDARDS

OmissionsReasonIntegrated Sustainability Report 2022 • Banco Guayaquil

Explanation

EXTERNAL
VERIFICATIONPAGESMATERIALTOPICS

Security of theinformation

Technology

GRI CONTENTSTITLEOMISSIONSGRISTANDARDSGRICONTENTSGRI 3: Material
topics 2021

GRI 3-3Management ofmaterial issues

68

GRI 418:
Customer
privacy 2016

418-1

Substantiatedcomplaints
regardingbreaches ofcustomer privacy
and loss ofcustomer data

68

GRI 3: Material
topics 2021

GRI 3-3Management ofmaterial issues

68

OmissionsAnnexes

ReasonExplanation

EXTERNAL
VERIFICATION

PAGES

167

SASB INDEX OF PARAMETERS
RELATED TO FINANCIAL
MATERIALITY ISSUESSTANDARD

SASB TOPICFINANCIAL
MATERIALITY

CODE

ISSUEABG

CustomerPrivacyConsumer
Financing
Data Security

Sales Practices

168

Privacy andresponsible useof customer
information

Security of theinformation

Marketing andinformation of
products andservices

DESCRIPTION OF THE ACCOUNTINGOR ACTIVITY PARAMETEROMISSION

PAGE/LINK

Not available.

NA

FN-CF-220a.1

Number of account holders whose
information is used for secondary
purposes

FN-CF-220a.2

Total amount of monetary losses as aresult of legal proceedings related tocustomer privacy

FN-CF-230a.1(1) Number of data breaches, (2)percentage involving personallyidentifiable information (PII), (3)number of account holders affected

1) Answer2) Not available3) Not available.

68

FN-CF-230a.2

Card-related (1) no-card and (2) cardpresent and other types of fraud
lossesWe haveconsolidated
information: withand without thepresence of the
card.

68

FN-CF-230a.3

Description of the approach toidentify and address data security
risks

FN-CF-270a.1

Percentage of total compensation ofcovered employees that is variable
and linked to the number of products
and services soldIntegrated Sustainability Report 2022 • Banco Guayaquil

68

69

Not available.

NASTANDARDSASB TOPIC

Sales Practices
Consumer
Financing

Activity Parameter

FINANCIAL
MATERIALITY
ISSUEABGCODE

DESCRIPTION OF THE ACCOUNTINGOR ACTIVITY PARAMETEROMISSION

FN-CF-270a.2

Approval rate for (1) credit and (2)prepaid products for applicants with a
FICO score above and below 660.

Not available.

FN-CF-270a.3(1) Average commission forcomplementary products, (2) Average
APR, (3) Average age of accounts, (4)Average number of commercial lines,and (5) Average annual commissions
for prepaid products, for clients with a
FICO score above and below 660.

FN-CF-270a.4(1) Number of complaints filed with
the Consumer Financial Protection
Bureau (CFPB), (2) percentage of themwith monetary or non-monetarycompensation, (3) percentage ofthem contested by the consumer, (4)percentage of them that ended in an
investigation by the CFPB.

FN-CF-270a.5

Total amount of monetary losses asa result of legal proceedings related
to the sale and maintenance of the
products.

39

FN-CF-000.A

Number of unique customers with
(1) active credit account and (2) debit
account.

59, 60Marketing andinformation of
products andservices

Annexes

PAGE/LINK

NA

https://www.
bancoguayaquil.
com/conocenos/
transparencia/

Not available.

NA

169

STANDARDSASB TOPIC

Consumer
Financing

Activity Parameter

Data Security

FINANCIAL
MATERIALITY
ISSUEABG

CODE

FN-CF-000.B

Number of (1) credit card accounts
and (2) debit accounts.

FN-CB-230a.1(1) Number of data breaches, (2)percentage involving personallyidentifiable information (PII), (3)number of account holders affected

FN-CB230a.2

Description of the approach taken
to identify and address data security
risks

Security of theinformation

FN-CB-240a.1
Commercial
Banking

Financialinclusionand capacity
building

Financialinclusionand capacity
building

170

DESCRIPTION OF THE ACCOUNTINGOR ACTIVITY PARAMETER(1) number and (2) amount ofoutstanding loans qualified forprograms designed to promotesmall business and community

OMISSION

PAGE/LINK

591) Answer2) Not available3) Not available.

68691) Answer2) Not available
58, 73development3

Financial inclusion
FN-CB240a.2(1) Number and (2) amount of past-due
and non-performing loans qualified
for programs designed to promotesmall business and community
development

FN-CB240a.3

Number of free retail checking
accounts provided to previously
unbanked or underbanked customers

74

FN-CB240a.4

Number of participants in financial
education initiatives for unbanked,
underbanked or underserved
customers

75

Financial inclusion

Integrated Sustainability Report 2022 • Banco Guayaquil

Not available.

NASTANDARDSASB TOPIC

Incorporation ofenvironmental,social andcorporate
governancefactors in credit
analysis

Business ethics

FINANCIAL
MATERIALITY
ISSUEABG
Environmental
and social
evaluationof clients(responsible
financing)

OMISSION

FN-CB-410a.2

Description of the approach toenvironmental, social and corporate
governance (ESG) factors in credit
analysis77

FN-CB-510a.1

Total amount of loss as a result oflegal proceedings associated withfraud, anti-competitive behavior,market manipulation, malpractice orother financial regulations

39

FN-CB-510a.2

Description of whistleblowing policies
and procedures

39

FN-CB-550a.1

Systemically Important Global Bank
(G-SIB) Score, by Category

This SASB
topic does notcorrespond to
Banco Guayaquil.

Description of the approach forincorporating mandatory andThis SASB

Systemic risk
management

FN-CB-000.A

credit

PAGE/LINK

Commercial and industrial
exposure by industry

FN-CB550a.2

Activity Parameter

DESCRIPTION OF THE ACCOUNTINGOR ACTIVITY PARAMETER

FN-CB-410a.1

Ethics and anticorruption

Commercial
Banking

Systemic risk
management

CODE

voluntary stress test results into
capital adequacy planning and longterm corporate strategy.
(1) Number and (2) value of checking
and savings accounts by segments: (a)personal and (b) small businesses.

Annexes

56

topic does notcorrespond to
Banco Guayaquil.

NA

NA

61

171

STANDARDSASB TOPIC

Commercial
Banking

Activity Parameter

Credit Practices

FINANCIAL
MATERIALITY
ISSUEABG

CODE

Discriminatory
Lending172

Inclusión
financiera

PAGE/LINK(1) Number and (2) value of loans
by segment: (a) personal, (b) small
business and (c) corporate.

FN-MF-270a.1(1) Number and (2) value of residential
mortgages of the following types: (a)hybrid or option HTVs, (b) with earlytermination fee, (c) higher rate, (d) total,
with FICO (Fair Isaac Corporation) scores above or below 660

Not available.

NA

FN-MF-270a.2(1) Number and (2) value of (a)residential mortgage modifications,(b) foreclosures, and (c) short sales ordeeds in lieu of foreclosure, for FICO
scores above and below 660

Not available.

NA

FN-MF-270a.3

Total amount of monetary losses as aresult of legal proceedings associatedwith communications to clients or
remuneration of loan originators

FN-MF-270a.4

Description of the remuneration
structure of the issuers of the loans

Not available.

NA

FN-MF-270b.1(1) Number, (2) value, and (3) weighted
average loan-to-value (LTV) range ofmortgages issued to (a) minorities and(b) other borrowers, by FICO scores
above and below 660

Not available.

NA

Mortgage
Financing

Credit Practices

OMISSION

FN-CB-000.B

Marketing andinformation of
products andservices

Mercadeo e
informaciónde productos yservicios

DESCRIPTION OF THE ACCOUNTINGOR ACTIVITY PARAMETER

Integrated Sustainability Report 2022 • Banco Guayaquil

55

39

STANDARDSASB TOPIC

Discriminatory
Lending

Mortgage
Financing

Environmental
risks formortgaged
properties

Activity Parameter

Activity Parameter

FINANCIAL
MATERIALITY
ISSUEABGCODE

DESCRIPTION OF THE ACCOUNTINGOR ACTIVITY PARAMETEROMISSION

FN-MF270b.2

Total amount of economic losses as aresult of legal proceedings associatedwith discriminatory lending

Not available.

NA

FN-MF270b.3

Description of policies andprocedures to ensure that
discriminatory mortgages are notformedNot available.

NA

FN-MF-450a.1(1) Number and (2) amount of 100-year
flood zone mortgage loans

Not available.

NA

FN-MF450a.2(1) Total expected loss and (2) total loss
given by default attributable to themortgage loan and delinquency due
to weather conditions such as natural
catastrophes, by geographic region

Not available.

NA

FN-MF450a.3

Description of how the risks of climatechange or other environmental risks
are incorporated in the originationand modification of mortgages

Not available.

NA

FN-MF-000.A(1) Number and (2) value of mortgages
originated by category: (a) residentialand (b) commercial

FN-MF-000.B(1) Number and (2) value of mortgages
purchased by category: (a) residentialand (b) commercial

Financial Inclusion

Risks andopportunities ofclimate change

Annexes

PAGE/LINK

60

This SASB
topic does notcorrespond to
Banco Guayaquil.

NA

173

CONTENTS SHAREHOLDERCAPITALISM – WEF
PILLAR: GOVERNANCE PRINCIPLES
Issue

Metrics

Core/Expanded

Central11

Purpose Driven
Management

Expanded

How the purpose of the company is included in its strategies,
policies and objectives.

11, 17, 20, 21,
22Compositionof Corporate
GovernanceCentralComposition of Senior Management and its committees.

Centralthe company, how these issues were identified, and how
stakeholders are engaged with them.

Governance Purpose

Material issues that
Interest Groups Commitment

impact Interest
groupsList of issues that are material to stakeholders and to

29 - 35

9, 20, 22, 106,110

Anti-corruption

Central1) Total percentage of members of senior management,
employees and business partners that have received training
in the organization's anti-corruption policies and procedures,
broken down by region.

Anti-corruption

Central1.a) Total number and nature of incidents on corruption issues
confirmed during the current year, but related to previous years.

39

Anti-corruption

Central1.b) Total number and nature of confirmed corruption incidents
during the current year, in relation to this year.

39

Anti-corruption

Central

2. Discussion of initiatives and the commitment of interest
groups to improve the environment of operations and theirculture, to combat corruption.

37

Ethical behavior

174

Page

The purpose established by the company, as an expressionof the means that the company uses to propose solutions toeconomic, environmental and social problems. The corporate
purpose must create value for all stakeholders, including
shareholders.

Establish a Purpose

Quality of Corporate
Governance

Description

Integrated Sustainability Report 2022 • Banco Guayaquil

37, 38

PILLAR: GOVERNANCE PRINCIPLES
Issue

Metrics
Mechanisms for
information andethical advice

Core/Expanded

Description

Page

CentralAn internal and external description of mechanisms for:1.
Seeking advice on ethical and legal behavior and organizational
integrity.2. Report concerns about unethical or illegal behavior,and lack of organizational integrity

37, 38, 39

Expanded

Total amount of monetary losses as a result of illegal procedures
associated with fraud, influence peddling, anti-competitive
behavior, market manipulation, malpractice or violations ofother related laws and regulations.

39

CentralInformation about risk factors and opportunities that thecompany clearly identifies in the main material risks andopportunities it specifically faces (as opposed to genericindustry risks), the company's appetite for these risks, how theserisks have moved , opportunities over time and the responseto those changes. These opportunities and risks must integratematerial economic, environmental and social issues, including
climate change and data stewardship.

Ethical behavior
Monetary losses due
to unethical behavior

Supervision of risks andopportunities

Integrate risks andopportunities into
company processes

Annexes

40 - 49

175

PILLAR: PLANET
Issue

Metrics

Core/Expanded

Availability of fresh/
drinking water

176

Page
Banco Guayaquil will startcalculating Scope 3 emissions
from 2023, corresponding tocategory 15 of those associatedwith the credit portfolio,in accordance with PCAF
(Partnership for Accounting
Financials) guidelines.

Emission of Greenhouse
Gases (GHG)

CentralFor all relevant greenhouse gases (e.g.
carbon dioxide, methane, nitrous oxide,
F-gases, etc.), report in metric tonsof carbon dioxide equivalent (tCO2e)
Greenhouse Gas (GHG) Protocol Scope(Scope) 1 and Scope 2. Estimate and report
upstream and downstream material
emissions (Scope 3 GHG Protocol) whereapplicable.

TCFD Implementation

Central

Fully implement the recommendationsof the "Task Force on Climate-related
Financial Disclosures (TCFD)"5, 9, 44-47, 182-185

CentralReport the number and area (in hectares)of sites owned, leased or managed in or
adjacent to protected areas and/or key
biodiversity areas (KBAs).

Due to the type of activity, it is
not a material issue for Banco
Guayaquil. Additionally, credits
for larger projects are submitted
to the Social and Environmental
Risk Analysis System (SARAS).

CentralReport for operations where material:
megaliters of water withdrawn, megalitersof water consumed, and the percentage
of each in regions with baseline high orextremely high water stress, according to
the WRI Aqueduct Water Risk Atlas Tool.
Estimate and report the same information
for the entire value chain (upstream anddownstream) where applicable.

Due to the type of activity, it is
not a material issue for Banco
Guayaquil.

Climate change

Loss of nature

Description

Land use and ecologicalsensitivity

Consumption and extractionof water in areas with water
stressIntegrated Sustainability Report 2022 • Banco Guayaquil

PILLAR: PEOPLE
Tema

Métrica

Diversity and inclusion (%)

Equal Pay (%)

Equality andDignity

Wage Gap

Wage level (%)

Incidents of discriminationand harassment (#) and thetotal number of monetary/economic losses

Central/Expandida

Descripción

PáginaCentralPercentage of employees by employment category, by
age group, gender and other indicators of diversity (egethnicity)

CentralRatio/ratio between base salary and remuneration foreach category of employee, by significant locations ofoperation for priority equality areas: women to men, major
minority and majority ethnic groups, and other relevant
equality areas.

Available the female-male salaryratio by professional category. The
differences in turn represent thegender ratio within the different
profiles in each category and takes
into account other aspects, such as
seniority

ExpandedMedian salary gap between base salary and remunerationof relevant full-time employees based on gender (female
to male) and diversity indicators at the company level orby significant location of operation.

Not available.

Central

1. Relationship between the standard starting salary bygender and the local minimum wage.
2. Ratio between the total annual remuneration of the CEO
and the median of the total annual remuneration of all its
employees, except the CEO.

confidential content

Expanded

1. Number of incidents of harassment and discrimination,
status of incidents, and actions taken. 2. Total amountof economic losses as a result of legal proceedings
associated with: a) violations of laws) Employee
discrimination

84

Annexes

81, 82, 83

177

PILAR: PERSONAS
Issue

Equality andDignityCore/
Expanded

Description

Freedom of association andcollective bargaining at risk(%)

Expanded

1. Percentage of active workers under collective
bargaining agreements.
2. An explanation of the assessment made to suppliers forwhat the right to freedom of association and collective
bargaining is at risk, including the measures taken by theorganization to address these risks

Risk of incidents of child,forced or compulsory labor

CentralExplanation of the operations and suppliers that areconsidered to have a significant risk of child, forced orcompulsory labor.

Expanded

1. Total number and percentage of operations that havebeen subject to human rights reviews or human rights
impact assessments, by country.
2. Number and type of reported complaints associatedwith impacts related to a prominent human rights issue
in the reporting period and an explanation of the type of
impacts.
3. Number and percentage of operations and suppliers
that are considered to have a significant risk of incidents
involving labor, forced or compulsory labor.

Metrics

Review of human rights,
impact of injustices andmodern slavery (#,%)

178

Integrated Sustainability Report 2022 • Banco Guayaquil

Page
1. Answered (the page will be
flagged)
2. In the supplier evaluation process,prior to their registration and theestablishment of the commercial
relationship, the Bank ensures
the supplier's compliance with its
obligations in labor matters.
Does not apply, due to the type of
suppliers required for the operationof Banco Guayaquil.
1. Answered (the page will be
indicated) In relation to credit,
larger projects are evaluatedby applying the SARAS prior todeciding to grant credit.
2. Cases of internal discrimination
are referenced.
3. Does not apply, due to the typeof suppliers required for theoperation of Banco Guayaquil.

PILAR: PERSONAS
Issue

Metrics

Health and security (%)

Core/
Expanded

Description

Page

CentralThe number and rate of fatalities as a result of workrelated accidents, serious work-related injuries (excluding
fatalities); recordable work-related injuries; main types ofwork-related injuries; and the number of hours worked.
An explanation of how the organization facilitates accessto non-occupational health and medical services, and theextent of access provided to employees and workers.

90, 91, 92

Expanded

1. The number of deaths as a result of work-related healthproblems, recordable work-related ill-health injuries, andmajor types of work-related illnesses for all employees
and workers.
2. a) Percentage of employees participating in health andwellness “best practice” programs, and b) Absenteeism
Rate (AR) of all employees.

Health &Wellness

Employee well-being (%)

Skills for the
FutureTraining (#,$)

Central1) Answered (page 91)2.a) The program I take care ofmyself and the participants/
beneficiaries by type of initiative
are detailed.
2.b) Not available

1. Average training hours per person that theorganization's employees have completed during thereporting period, by gender and employee category (total
number of training hours provided to employees, divided
by the number of employees).

88

2. Average expenditure on training and development
per full-time employee (total cost of training provided to
employees divided by the number of employees).

The total cost and the number ofcollaborators trained are indicated;
the average cost per employee is$485.

Annexes179

PILLAR: PROSPERITY

Issue

Metrics

Absolute number
and employment
generation ratio

Economic
Contribution
Generation of
employment andwealthFinancial
Investment
Contribution

Investments ininfrastructureand support
services

180

Core/
Expanded

Description

Central

1. Total number and rate of new employee hires during
the reporting period, by age group, gender, and otherdiversity indicators, and region.2. Total number and rateof employee turnover during the reporting period, by age
group, gender, and other diversity indicators, and region

Central

1. Direct economic value generated and distributed, onan accrual basis, covering the basic components forthe global operations of the organization.2. Financial
Assistance Received from Government: Total monetary
value of financial assistance received by the organizationfrom any government during the reporting period

Central

1. Total capital expenditures less depreciation, supported
by a narrative to describe the company's investment
strategy.2. Share repurchase plus dividend payment,
supported by a narrative to describe the company's
strategy for capital returns to shareholders.

Expanded

Qualitative information to describe the following
components:1. Scope of development investment insignificant infrastructure and support services.2. Actual or
expected impacts on local communities and economies,
including positive and negative impacts where relevant.3.
If these investments and services are commercial, report
the commitments in kind or pro bono.

Integrated Sustainability Report 2022 • Banco Guayaquil

Page

1. Answered (the page will be indicated)
2. Not available yet.

Not available.

1 - Answered (the page will be indicated)
2- Not available
3- Not available

PILLAR: PROSPERITY

Issue

Innovation of
better products
and services

Community andSocial Vitality

MetricsCore/
Expanded

Description

Page

Total R&D
expenses ($)

CentralSocial Value
Generated (%)

Expanded

Percentage of revenue from products and services
designed to deliver specific social benefits or to address
sustainability challenges

78, 79Total taxes paid($)

Central

Total global tax borne by the business, including
corporate income taxes, property taxes, non-creditable
VAT and other sales taxes, employer-paid payroll taxes,
and other cost taxes for the company, by tax category.

52, 53, 63

Total tax paidby country
for significant
locations

Expanded

Total tax paid and, if declared, additional tax remitted, bycountry for significant locations

Banco Guayaquil operates in Ecuador; themain taxes are broken down.
Pages: 52, 53, 63.

Total expenses related to research and development.

Annexes67

181

TCFD INDEX
Recommendations

Recommended report

Code

Pages

Additional information
The risks and opportunities of climate change have been identified in a
specialized exercise, the results of which will be presented to the Corporate
Governance and Sustainability Committee in the first quarter of 2023. The
Corporate Governance and Sustainability department will also submit themain findings to the Board of Directors.

a)Describetheboard's
oversight of climate-relatedrisks and opportunities.

GOB-A

22

Previously, in 2021, Directors received a comprehensive session onsustainability trends for the financial sector, in which climate change risks andopportunities were addressed at the macro level.
The institution's Sustainability Strategy, launched in 2020, already included
a climate action roadmap, both for direct operation and in the financing
delivered to clients. This strategy was approved by the Board of Directors,
which has received annual progress information, previously presented to the
Corporate Governance and Sustainability Committee.

Governanceb) Describes the role ofmanagement in assessing
and managing climate-relatedrisks and opportunities.

GOB-B

22

The identification of climate change risks and opportunities has beendeveloped collaboratively between the sustainability and risk teams, with thesupport of external specialists. The result is expected to be integrated during2023 in the planning of the following areas:- Risks - especially to add the findings to the current SARAS, credit
environmental and social risk assessment system.
- Comprehensive security - in the prevention part for strengthen operational
continuity.
- Administration - in the state of physical assets and energy managementSustainability, with its own activities such as the calculation of GHG emissions,the promotion of the environmental agenda in business and risks, and theComprehensive monitoring of progress in risks and opportunities.
The Corporate Governance and Sustainability Committee is in charge ofanalyzing progress in the initiatives, indicators and commitments assumed
by the areas and the institution as a whole, such as those presented forthe placement of green credit within the framework of the Principles of
Responsible Banking (UNEP-FI).

182

Integrated Sustainability Report 2022 • Banco Guayaquil

Recommendations

Recommended reporta) Describe the climaterelated risks andopportunities that theorganization has identified
in the short, medium andlong term.

Strategyb) Describe the impact ofclimate-related risks andopportunities on theorganization's business,strategy and financial
planning.

c) Describe the resilience ofthe organization's strategy,
taking into account thedifferent scenarios related
to climate, such as a
scenario with 2ºC or less.

Code

EST-A

Pages

45 - 47

Additional information

The risks and opportunities have been identified in an exhaustive process,which is described in this report, with the participation of the related areas;
The TCFD nomenclature has been used for its categorization and reporting.

The risks and opportunities are presented with an explanation of theirconnection with the business model, operations and with the value chain,especially with customers.

EST-B

45 - 47In the following steps, the Bank will be financially sizing the risks andopportunities, which will strengthen decision-making and budget allocation
for CAPEX and related OPEX.
Likewise, the approach to prevention and mitigation measures will be
deepened, which will be integrated into the Sustainability Strategy, as wellas in the particular strategies of each related area (eg risks, administration,
comprehensive security).

EST-C

44, 46

Annexes

The scenarios used and the result of the application are presented indetail in this report. The RCP 8.5 scenario was used, the least and mostpessimistic, respectively, on the increase in temperature. (RCP. Representative
Concentration Trajectory).

183

Recommendations

Recommended report

Code

Pages

Additional information
The risks were identified:a) Describe the organization's
processes for identifying
and assessing climaterelated risks.

1) with an analysis of the distribution of the credit portfolio by type of
economic activity and the exposure of said activities to climate change
considering official sources;
GDR-A

44

2) Studying the maturity of climate management of a sample of clients , objectof SARAS.
3) Determination of priority risks by probability of occurrence and impact.4)
Analysis at customer level considering scenario RCP 8.5.
It is detailed in the Risk Management chapter..

Risk managementb) Describe the organization's
processes for managing
climate-related risks.

c) Describe how processes for
identifying, assessing andmanaging climate-relatedrisks are integrated into theorganization's overall risk
management.

184

GDR-B

GDR -C48

48

Ya estamos estableciendo las medidas de prevención y mitigación en base al
resultado del análisis. Se sumarán a las medidas de que ya disponíamos comoparte de nuestra gestión ordinaria y los avances previos de la Estrategia desostenibilidad.
Por ejemplo, a los compromisos de avanzar en ecoficiencia y neutralidad decarbono.
En el Banco, existe una gestió especializada de los riesgos por parte dediferetes áreas en función de su naturaleza, destacando el equipo de riesgos
de crédito (que lleva la evaluación socioambiental), de riesgos integral(seguridad física, de sistemas) y cumplimiento. Además otros equipos
son claves en los planes de acción, como administración con lo relativo a
inmuebles y capital humano con los colaboradores.
Los riesgos y oportunidades de cambio clmático identficados han sido
construidos con los equipos, al igual que sucederá con los planes deprevención y mitigación.

Integrated Sustainability Report 2022 • Banco Guayaquil

Recommendations

Recommended reporta. Disclose the metrics usedby the organization toassess climate-relatedrisks and opportunities
in accordance with
its strategy and risk
management process.

Metrics and goals

b. Disclose Scope 1, Scope 2
and, if applicable, Scope
3 greenhouse gas (GHG)
emissions and their relatedrisks.

c. Describe the objectives
used by the organization
to manage risks andopportunities related toclimate and performanceagainst the objectives.

Code

MYO-A

Pages

96 - 100Additional information
Banco Guayaquil had already been measuring and reporting metrics related
to energy efficiency and Greenhouse Gas (GHG) emissions, which are closely
related to transition risks, with possible regulatory and/or market limitations.
The same happens with the SARAS application metrics. With the launch of
Crédito Terra in 2023, our specialized green lines product, we will also bemeasuring and reporting placement.
Now available.

MYO-B

MYO-C

98

ND

Annexes

The calculation of GHG emissions was carried out following the guidelines
established in the Greenhouse Gas Protocol (GHG Protocol), for Scopes 1 and2. The Bank is also advancing in the measurement of Scope 3 emissions, withspecial focus in the calculation of those associated with the credit portfolio(category 15 of Scope 3, GHG Protocol categorization).

Based on the progress in 2022-23, in products with environmental criteria andmeasurement of credit portfolio emissions, the Bank will establish mediumterm objectives. The SBTi methodology will be applied for the emission
reduction targets.

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Assurance
ReportBanco de Guayaquil S.A.
INFORME DE
ASEGURAMIENTOLIMITADO
LIMITEDASSURANCEREPORTONSOBRE
THE LA
INFORMACIÓN DE LOSINFORMATIONOF INDICADORESSELECTED SELECCIONADOS
INDICATORSINCLUIDOS ENIN
EL THEREPORTEINTEGRADO 2022
INCLUDED
INTEGRATEDREPORT 2022

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BANCO GUAYAQUIL S.A.
INFORME DE ASEGURAMIENTO LIMITADO SOBRE LA INFORMACIÓN DE LOS INDICADORESSELECCIONADOS INCLUIDOS EN EL REPORTE INTEGRADO 2022 DEL BANCO GUAYAQUIL S.A.
Contenido

INFORME DE ASEGURAMIENTO LIMITADO SOBRE LA INFORMACIÓN DE LOS INDICADORES SELECCIONADOS
INCLUIDOS EN EL REPORTE INTEGRADO 2022 DEL BANCO GUAYAQUIL S.A.

PáginaInforme de aseguramiento limitado independiente

A los Accionistas y miembros del Directorio deBanco Guayaquil S.A.

1–3

Informe de aseguramiento limitado sobre la información de los indicadores seleccionados incluidos en elreporte integrado 2022 del Banco Guayaquil S.A.

Abreviaturas:
IESBA
ISAE

Profesionales de la Contabilidad del Consejo de Normas Internacionales de Ética para
Contadores
Norma Internacional de Encargos de Aseguramiento

Hemos llevado a cabo un trabajo de aseguramiento limitado sobre la información selecta detallada en el
Anexo A (en adelante, información objeto de aseguramiento), incluida en el Reporte Integrado 2022 delBanco Guayaquil S.A. por el año terminado el 31 de diciembre de 2022. Este compromiso de aseguramiento
fue llevado a cabo por un equipo multidisciplinario que incluye profesionales de aseguramiento yespecialistas en sostenibilidad y medio ambiente.
Nuestro compromiso de aseguramiento limitado se realizó únicamente en relación a la información
seleccionada de los indicadores incluida en el Anexo A. Nuestro informe de aseguramiento no se extiende a
información de períodos anteriores ni otra información incluida en el Reporte Integrado 2022, ni otra
información relacionada a dicho reporte que pudiera contener imágenes, audios o videos.
Criterios
Los criterios utilizados por la administración del Banco Guayaquil para preparar la información objeto deaseguramiento incluida en el Reporte Integrado 2022 fueron establecidos considerando los conceptos,
requerimientos y principios expuestos en los estándares Global Reporting Initiative (“GRI”, por sus siglas en
inglés), los cuales se detallan en el anexo A adjunto.
Limitaciones inherentes del encargo de aseguramiento
La información de indicadores seleccionados está sujeta a incertidumbre inherente debido al uso de
información no financiera la cual es objeto de mayores limitaciones inherentes que la información
financiera dada la naturaleza de los métodos utilizados para determinar, calcular, hacer muestreos oestimar dicha información. En la preparación de la información selecciona la entidad efectúa
interpretaciones cualitativas sobre la relevancia, la materialidad y la exactitud de la información que estánsujetas a supuestos y juicios.

Deloitte se refiere a Deloitte Touche Tohmatsu Limited, sociedad privada de responsabilidad limitada en el Reino Unido, a su red de firmas miembro y sus entidades
relacionadas, cada una de ellas como una entidad legal única e independiente. Consulte www.deloitte.com para obtener más información sobre nuestra red global de firmas
miembro.

Annexes187

Nuestra Independencia y Control de Calidad
Hemos cumplido con los requerimientos éticos y de independencia del código de ética profesional delcontador público emitido por el International Ethics Standard Board for Accountants (IESBA), el cual se basa
en los principios de integridad, objetividad, competencia profesional y debido cuidado confidencialidad y
comportamiento profesional.
Nuestra firma aplica el International Standard on Quality Management (“ISQM”) 1 y, por lo tanto, mantiene
un sistema integral de control de calidad que incluye políticas y procedimientos documentados
relacionados con el cumplimiento de requisitos éticos, estándares profesionales y requisitos de ley yregulaciones aplicables.
Responsabilidad de los profesionales independientes
Nuestra responsabilidad es expresar una conclusión de aseguramiento limitado sobre la información
objeto de aseguramiento con base en los procedimientos que hemos efectuado y la evidencia que hemos
obtenido. Llevamos a cabo nuestro trabajo de aseguramiento limitado de acuerdo con la NIEA 3000
(revisada) Norma Internacional de Encargos de Aseguramiento distintos de la auditoría o de la revisión deinformación financiera histórica emitida por el “International Auditing and Assurance Standards Board”(IAASB). Este estándar requiere la planeación y realización del trabajo para obtener la seguridad limitada
acerca de si la información de la información objeto de aseguramiento incluida en el Reporte deSostenibilidad está libre de errores materiales.

iv. Comparaciones de los contenidos presentados por la Administración con lo establecidos en lasección de criterios de este informe.
En el anexo A se detalla la información objeto de aseguramiento incluida en el alcance de nuestro trabajo.
Nuestro encargo de aseguramiento limitado se realizó solamente con respecto a la información objeto deaseguramiento incluida en la Anexo A, por el año terminado el 31 de diciembre de 2022; y no hemos
realizado ningún procedimiento con respecto de años anteriores, proyecciones y metas futuras, ocualquier otro elemento de otra información incluida en el Reporte Integrado 2022 por el año terminado
el 31 de diciembre de 2022 y, por lo tanto, no expresamos una conclusión al respecto.
Un trabajo de aseguramiento limitado implica evaluar lo apropiado, en la circunstancia, del uso de loscriterios por parte de la administración como base para la preparación de la información objeto deaseguramiento; evalúan todos los riesgos de errores materiales de la información objeto deaseguramiento debido a fraude o error; respondiendo a los riesgos evaluados según sea necesario en las
circunstancias; y evaluando la presentación general de la información objeto de aseguramiento incluida
en el Reporte Integrado 2022. El alcance de un trabajo de aseguramiento limitado es sustancialmente
menor que el de un trabajo de aseguramiento razonable en relación tanto con los procedimientos deevaluación de riesgo, incluido un entendimiento del control interno, así como con los procedimientos
realizados en respuesta a los riesgos evaluados. Por lo anterior, no expresamos una conclusión deaseguramiento razonable acerca de si la información objeto de aseguramiento ha sido preparada en todos
los aspectos materiales, de conformidad con lo establecido en la sección de criterios de este informe.

Los procedimientos que realizamos se basaron en nuestro juicio profesional e incluyeron indagaciones,
observación de los procesos realizados, inspección de documentos, procedimientos analíticos, evaluaciónde la idoneidad de los métodos de cuantificación y políticas de informes y acuerdo o conciliación con losregistros subyacentes.

Consideramos que la evidencia obtenida es suficiente y apropiada para proveer una base para nuestra
conclusión de aseguramiento limitado.

Dadas las circunstancias del compromiso, hemos realizado los siguientes procedimientos:

Con base en el trabajo efectuado descrito en este informe, los procedimientos llevados a cabo y laevidencia obtenida, no ha llegado a nuestro conocimiento ninguna cuestión que nos lleve a pensar que la
información objeto de aseguramiento incluida en el anexo A del Banco Guayaquil por el año terminado el
31 de diciembre de 2022, no ha cumplido en todos los aspectos materiales, de conformidad con loestablecido en la sección de criterios de este informe.

a. A través de indagaciones, obtuvimos una comprensión del entorno de control y sistemas deinformación del Banco Guayaquil, relevantes, pero no evaluamos el diseño de las actividades decontrol particulares ni obtuvimos evidencia sobre su implementación, ni probamos su efectividad
operativa.

Restricción del uso del Informe

b. Entendimiento de las herramientas usadas para generar, agregar y reportar la información objeto deaseguramiento mediante indagaciones con los responsables de los procesos relacionados.
c. Pruebas sustantivas sobre una base selectiva aleatoria de la información objeto de aseguramiento,
elaborada por la administración, para determinar los estándares e indicadores y corroborar que losdatos se hayan medido, registrado, recopilado e informado adecuadamente a través de:i.

Conclusión del Aseguramiento Limitado

Nuestro informe se emite exclusivamente con el propósito expuesto en el primer párrafo y, no debe
utilizarse para ningún otro propósito ni ser distribuido a otras partes por sí solo. Este informe se refiere
solamente a los asuntos mencionados en las secciones precedentes y la información objeto deaseguramiento incluida en el anexo A y no se extiende a ninguna otra información financiera y no
financiera incluida en el Reporte Integrado 2022 del Banco Guayaquil por el año terminado el 31 dediciembre de 2022, ni a sus estados financieros, tomados en su conjunto.

Inspección de políticas y procedimientos establecidos por Banco.

ii. Inspección de documentos soporte de origen interno y externo.

Quito, 6 de julio de 2023

iii. Recálculos
-2-

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Adriana Loaiza
Socia
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BANCO GUAYAQUIL S.A.

ANEXO
( 1 de 1)

RESUMEN DE ESTÁNDARES OBJETO DE ASEGURAMIENTO LIMITADO
A continuación, se detallan los estándares GRI, definidos por la Administración del Banco como la
información objeto de aseguramiento limitado.
Estos criterios de evaluación forman parte integral de nuestro informe de aseguramiento limitado sobre la
información de los indicadores seleccionados incluidos en el reporte integrado 2022 del Banco Guayaquil
S.A. por el año terminado el 31 de diciembre de 2022
Estándares GRI

Descripción

2-7 (2021)

Empleados302-1 (2016)

Consumo energético de la organización

302-3 (2016)

Intensidad energética

401-1 (2016)

Nuevas contrataciones de empleados y rotación de personal404-1 (2016)

Media de horas de formación al año por empleado

Annexes189

2022
INTEGRATEDREPORT

Banco Guayaquil S.A.
RUC: 0990049459001
Matriz: Pichincha 105 y P. Icaza
Teléfono: (593 4) 3730100
Guayaquil, Ecuador