The Galicia Group, made up of Banco Galicia; Orange X; Galicia Insurance; Inviu and Nera developed actions aimed at mitigating and compensating their greenhouse gas emissions. The group’s strategy to achieve emissions neutrality It is based on its measurement, its reduction and the compensation of those that it cannot avoid.
“For several years at Banco Galicia we have measured the organization’s carbon footprint by minimizing the impact of critical resources, compensating for unavoidable emissions and carrying out Environmental and Social Risk analysis of our portfolio. So, during 2022 we become a Carbon Neutral company where we reduce and compensate 100% of our carbon footprint. The difference this year is that all the Group’s companies become carbon neutral”explains Constanza GorleriSustainability Manager Galicia.
“Within this framework, transversal teams were defined to address the different programs and lead the implementation strategies. This transversal, interdisciplinary and intercompany work allowed us to create synergy and generate better results in measuring the organizational footprint. In such a way that the Group has offset 22,523.3 tons of CO2e“, complete Gorleri.
The commitment to carbon neutrality
Galicia Bank has a framework for action ESG (Enviromental, Social and Governance), which is aligned with the UN Sustainable Development Goals. Within this framework, the financial institution measures its carbon footprint with a methodology aligned with the requirements of ISO 14064:2015 and the Green House Gas Protocol (GHG), identifying the emissions generated by its operations, both in branches and corporate buildings. For this it has a Environmental Management System (SGA) that allows measuring, planning and setting objectives around the rational use of energy, water and gas; optimization of resources and waste management; environmental awareness; and indirect environmental risks.
Since 2021, it adds emissions from own flow trucks, logistics vans, refrigerant gases and polyethylene bags for commercial use.
In terms of direct environmental risks of its operations, it identified that the consumption of electrical energy generates more than 50% of its carbon emissions, so it focused on efficiency energy and the incorporation of renewable energies to mitigate them.
Thus, since 2021 it has a renewable energy agreement with the Los Olivos Wind Farm and the La Castellana II Wind Farmwhich allows its central buildings and branches to be supplied with renewable energy.
In addition, it offsets its operational footprint by supporting different organizations and projects aimed at carbon capture. In articulation with Forest Bank managed to save 122,162 M2 of the Atlantic Forest, located in Misiones. Also, through Genneiamade the purchase of renewable energy bonds. Orange For its part, it compensates with regenerative agriculture and livestock projects through RUUTS.
Finally, it offsets its footprint with the recent expansion of the Galicia Foresta project that he carries out together with Bayka and Eco Housewhere They planted 2,058 specimenswhich are added to those planted in 2022 and amount to a total of 6,758 trees. These are native species that were destined for the San Sebastián reserve, in the heart of the Biological Corridor, between the Urugua-í and Foersters provincial parks, in the Municipality of Comandante Andresito, north of the province of Misiones.
In turn, it acquired I-Rec Standard mitigation certificates of the BIOREC+ Plan, as a flexible mechanism for reducing scope 2 of the carbon footprint based on the calculation of electrical energy consumption and Cammesa’s emission factor for an amount of 3,249 MWh from a biogas plant in Río Cuarto, Córdoba.
Also, through indirect risk management, it analyzes potential environmental and social risks that may arise from credit assistance. This analysis is carried out based on the amount of the BCRA consumer portfolio and the Standard of the International Financial Corporation (IFC) is applied for projects greater than 5 million dollars and the Equator Principles for corporate loans from 20 million dollars and from the 10 million dollars for Project Finance.
To respond to all these commitments, in 2023 Galicia initiated a project, with the support of the Inter-American Development Bank (IDB), with the objective of build a strategic sustainable finance plan to transition the decarbonization of the portfolio.
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