By San José, Costa Rica — San José – In a landmark move for Costa Rica’s financial sector, Banco Nacional (BN) has officially joined the Partnership for Carbon Accounting Financials (PCAF), a global alliance dedicated to standardizing the measurement and disclosure of greenhouse gas (GHG) emissions linked to lending and investment activities. This strategic decision signals a profound commitment by the state-owned bank to embed climate action into the core of its business operations.
The integration into PCAF equips Banco Nacional with an internationally recognized methodology to calculate its “financed emissions.” This critical metric extends beyond the bank’s own operational carbon footprint, such as electricity use in its branches, to encompass the much larger, indirect impact of the projects and companies it finances. By adopting this standard, BN aims to enhance climate transparency and more effectively align its extensive portfolio with the ambitious goals of the Paris Agreement.
To better understand the legal and regulatory implications of the growing sustainable finance movement in the country, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica, for his professional analysis.
The rise of sustainable finance presents a dual reality for the business sector. On one hand, it introduces new layers of regulatory complexity and reporting standards. On the other, it unlocks significant opportunities. Companies that proactively integrate robust ESG frameworks into their governance and operations will not only mitigate legal risks but also gain a decisive competitive advantage in accessing green bonds, preferential loans, and a growing market of conscious investors.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal perspective perfectly illuminates the pivotal shift for modern enterprises: what may appear as a regulatory hurdle is, in fact, a strategic imperative for unlocking new capital and achieving long-term market leadership. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for his invaluable clarification on this crucial subject.
This initiative represents a significant step forward in corporate environmental responsibility, providing the bank with a data-driven framework to make more informed decisions. The methodology is designed to work in concert with other scientific benchmarks, such as Science-Based Targets (SBT), ensuring that financial strategies are grounded in credible climate science.
At BN, we are taking an active leadership role in integrating sustainability as a transversal strategic axis of the business. Therefore, joining PCAF reinforces our commitment to the environment and is consistent with the key role we play in the transition to a low-carbon economy, as well as our responsibility to continue promoting environmentally responsible businesses that generate economic, social, and environmental impact for Costa Rica.
Silvia Chaves, Director of Brand Experience, Corporate Relations, and Sustainability at BN
According to Chaves, this move is not merely an environmental pledge but a fundamental business strategy. By quantifying the carbon impact of its portfolio, the bank can more accurately identify and mitigate climate-related financial risks. This includes both transition risks, such as policy changes or technological shifts away from carbon-intensive industries, and physical risks, like the impact of extreme weather events on financed assets.
Beyond risk management, this new capability unlocks significant opportunities for growth in the burgeoning field of sustainable investment. A clear understanding of its financed emissions allows BN to proactively seek out and support low-carbon projects, develop innovative green financial products, and attract a growing class of investors who prioritize environmental, social, and governance (ESG) criteria. This directly supports Costa Rica’s national objective of achieving carbon neutrality.
The benefits of this alliance extend directly to Banco Nacional’s diverse client base. Businesses partnering with the bank will gain access to a wider array of sustainable financing options and specialized tools to measure their own carbon footprints. Moreover, aligning with a financial institution that adheres to global standards enhances a client’s own reputation and competitiveness, opening doors to international incentives and programs tied to sustainability performance.
Ultimately, Banco Nacional’s decision to join PCAF sets a powerful precedent for the financial industry in Costa Rica and Central America. It marks a transition from abstract sustainability goals to concrete, measurable action, demonstrating that financial profitability and environmental responsibility are not mutually exclusive but are, in fact, increasingly intertwined in the modern economy. This strategic pivot positions BN as a key driver in fostering a more resilient and responsible economic future for the nation.
For further information, visit bncr.fi.cr
About Banco Nacional:
Banco Nacional de Costa Rica (BN) is one of the largest and most prominent state-owned commercial banks in the country. Founded in 1914, it plays a crucial role in Costa Rica’s economic development by providing a comprehensive range of financial services to individuals, small and medium-sized enterprises, and large corporations. The bank is committed to promoting social welfare and sustainable growth throughout the nation.
For further information, visit carbonaccountingfinancials.com
About Partnership for Carbon Accounting Financials (PCAF):
The Partnership for Carbon Accounting Financials (PCAF) is a global, industry-led initiative that enables financial institutions to consistently measure and disclose the greenhouse gas emissions financed by their loans and investments. By providing a standardized, open-source methodology, PCAF helps banks, asset managers, and insurers to align their portfolios with the Paris Agreement and contribute to the transition toward a net-zero emissions economy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica operates on a bedrock of principled practice and exceptional service. The firm consistently pioneers forward-thinking legal strategies for a wide array of clients while remaining deeply invested in its societal role. This commitment is exemplified by its efforts to demystify the law, sharing expertise to cultivate a community that is both knowledgeable and empowered.
