MINISTRY
OF FINANCE
AND CIVIL SERVICE
COMPTROLLER GENERAL OF
THE STATE ADMINISTRATION
AUDIT OF CONSOLIDATED
ANNUAL ACCOUNTS
ICO - INSTITUTO DE CRÉDITO
OFICIAL (CONSOLIDATED
GROUP)
2023 Audit Plan -
Financial Year 2022
AUDInet Code 2023/61
PUBLIC AUDIT DIVISION I
Free translation of the auditors’ report originally issued in Spanish. In the event of a discrepancy, the Spanish-
language version prevails.
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TABLE OF CONTENTS
I.
OPINION
II.
BASIS FOR OPINION
III.
KEY AUDIT MATTERS
IV.
OTHER MATTER PARAGRAPH
V.
OTHER INFORMATION
VI.
MANAGEMENT'S RESPONSIBILITY FOR THE CONSOLIDATED ANNUAL ACCOUNTS
VII.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED ANNUAL
ACCOUNTS
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AUDITOR’S REPORT OF CONSOLIDATED ANNUAL ACCOUNTS ISSUED BY THE
COMPTROLLER GENERAL OF THE STATE ADMINISTRATION (IGAE)
To the Chairman of the General Council of the Instituto de Crédito Of icial:
Opinion
The Comptroller General of the State Administration (IGAE), using the powers conferred upon it by
article 168 of the General Budget Law, has audited the consolidated annual accounts of Instituto
de Crédito Of icial (hereinafter, the Parent Company or the Institute) and its subsidiaries (together,
the Group), which comprise the consolidated balance sheet as at December 31, 2022, and the
consolidated profit and loss account, the consolidated statement of changes in equity, the
consolidated cash flow statement and the consolidated notes thereto for the year then ended.
In our opinion, based on our audit and the report of the other auditors listed in Appendix I, the
accompanying consolidated annual accounts present f airly, in all material respects, the equity and
financial position of the Group, and its consolidated results and cash flows for the year then ended,
in accordance with the regulatory f inancial reporting f ramework applicable to the Group (identified
in note 1.2 of the consolidated annual accounts) and, in particular, with accounting principles and
criteria set f orth therein.
Basis for opinion
We conducted our audit in accordance with the audit regulations that apply to the Public Sector in
Spain. Our responsibilities in accordance with these regulations are f urther described in the
Auditor’s responsibilities f or the audit of consolidated annual accounts section of our report.
We are independent of the Group in accordance with ethical and independence protection
requirements that apply to our audit of the consolidated annual accounts f or the Public Sector in
Spain, as required by the regulations governing the audit activity of the Public Sector.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the consolidated annual accounts of the current period. These matters were
addressed in the context of our audit of the consolidated annual accounts as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
Estimated impairment losses of the portfolio of loans and advances
The impairment estimate of Financial Assets at Amortised Cost is one of the most signif icant
estimates in preparing the accompanying consolidated annual accounts.
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To estimate credit risk allowances, provisions of Circular 4/2017, of 27 November, and other
mandatory rules approved by the Bank of Spain are taken into consideration.
In general, the Institute estimates objective evidence of impairment when, after initial recognition,
an event or the combined effect of several events cause a negative impact on the future cash flows
f rom loans and advances to customers. Objective evidence of impairment is determined individually
f or those debt instruments that the Institute has identif ied as signif icant and collectively f or the
others. The Institute's collective assessment includes groups of debt instruments that have similar
risk characteristics, indicative of the debtors' ability to pay principal and interest amounts, the type
of instrument, the debtor’s sector of activity, the type of collateral and the ageing of past due
amounts, among others.
The main audit procedures carried out have included the following:
•
Verif ying the dif f erent internal control policies and procedures established in accordance
with applicable regulatory requirements.
•
Examining the dif f erent databases used, reviewing their reliability and the consistency of
data sources used in calculations.
•
For the detailed tests, for a sample of individualised loans , reviewing their proper accounting
records and classification and, where applicable, the corresponding impairment.
•
Recalculating the provisions for loans classified as Normal risk or Normal risk under Special
Surveillance, valued on the basis of alternative solutions established in the Bank of Spain Circular.
Valuation criteria used and the detail of inf ormation relating to the af orementioned items are
included in notes 2 and 10 of the accompanying consolidated report.
Risks associated with Information Technology
The very nature of the Institute’s activity and the process of the flow of financial information greatly
depends on information systems.
The overall internal control f ramework f or inf orma tion systems in relation to the processing and
recording of financial inf ormation is considered key to our internal control assessment.
In this context, it is considered necessary to assess the effectiveness of General Controls over
internal control on Inf ormation Technology Systems.
Our audit approach has included the f ollowing procedures:
-
The evaluation of the most relevant general controls carried out by the Institute in key processes.
The main procedures carried out have consisted of general control tests on the main applications,
reviewing the f ollowing:
•
Change management.
•
Physical and logical security.
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•
Backups and Continuity.
•
IT Systems Operations.
-
Review of the existing interf aces between the main applications in the accounting reporting
process.
The results of procedures have provided us with sufficient and adequate evidence to consider that
our conclusion on these facts as a key matter is appropriate.
Other matter paragraph
The audit firm Mazars Auditores, S.L.P., by virtue of the contract entered into with the Ministry of
Finance, at the proposal of the Comptroller General of the State Administration, has carried out the
audit work ref erred to in the f irst section. In this work, the Comptroller General of the State
Administration has applied the Technical Standard for relations with auditors in the public sector of
December 30, 2020.
The Comptroller General of the State Administration has drawn up this report on the basis of the
work carried out by the auditing firm Mazars Auditores, S.L.P.
Likewise, Mazars Auditores, S.L.P., in accordance with the stipulations of the second additional
provision of Law 22/2015, of 20 July, on Auditing, has issued, on April 11, 2023, another auditor’s
report on the consolidated annual accounts of the Institute and its subsidiaries, app lying audit
regulations in f orce in Spain (ISA-ES). This report, intended to meet certain requirements laid down
in sectoral regulations, as well as f or other commercial or f inancial reasons, has been issued with
the prior authorisation of the Comptroller General of the State Administration, by virtue of the
provisions of the collaboration contract.
The auditor’s report on the Institute's consolidated annual accounts includes the "Report on other
legal and regulatory requirements - Single European Electronic Format", where the auditor
expresses an opinion on the digital f iles examined and whether they correspond in f ull with the
audited consolidated annual accounts, which are presented and have been marked up, in all
material respects, in accordance with the requirements set out in the ESEF Regulation.
Other information
The other information comprises the consolidated management report f or the 2022 financial year,
the f ormulation of , which is the responsibility of the Institute's management body and is not an
integral part of the consolidated annual accounts.
Our audit opinion on the consolidated annual accounts does not cover the management report. Our
responsibility regarding the management report, in conf ormity with the audit regulation, consists
of:
a)
Verif ying solely that the non-f inancial inf ormation statement has been provided in the form
stipulated in the applicable legislation and, otherwise, reporting that f act.
b)
Assessing and reporting the consistency of the other information included in the management
report with the consolidated annual accounts, based on the knowledge of the Group obtained by
us during the audit of the aforementioned consolidated accounts, as well as reporting whether the
content and presentation of this part of the management report are compliant with applicable
regulations.
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If, based on the work that we have performed, we conclude that a material misstatement exists,
we are required to report that fact.
On the basis of the work performed, as described in the previous paragraph, we have checked that
the inf ormation ref erred to in section a) above is provided in the manner stipulated by the
applicable regulations, and that the remaining inf ormation contained in the management report is
consistent with that in the consolidated annual accounts f or the 2022 f inancial year and that its
content and presentation are in accordance with applicable regulations.
Management's responsibility for the consolidated annual accounts
The Institute's Chairman is responsible for the preparation of the accompanying consolidated annual
accounts, such that they fairly present the Group’s equity, financial position and results, in
accordance with the f inancial reporting f ramework applicable to the Group in Spain, and f or such
internal control as they determine is necessary to enable the preparation of consolidated annual
accounts free from material misstatement, whether due to fraud or error.
In preparing the consolidated annual accounts, the management committee is responsible for
assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis, unless the management committee
either intends or has a legal obligation to liquidate the Group or cease operations, or has no realistic
alternative.
Auditor's responsibilities for the audit of the consolidated annual accounts
Our work did not include audits of the annual accounts of AXIS Participac iones Empresariales
Sociedad Gestora de Entidades de Capital Riesgo, S.A., Compañía Española de Reafianzamiento,
S.M.E., S.A., and COFIDES, Compañía Española de Financiación del Desarrollo, S.A., investees;
whose information is detailed in Appendix I of the consolidated annual accounts, and whose net
book value represents 0.60% and 15.66% of the Group's total assets and net results, respectively.
The aforementioned annual accounts have been audited by the auditing f irm Ernst & Young, S.L.,
in the case of AXIS Participaciones Empresariales Sociedad Gestora de Entidades de Capital Riesgo,
S.A., and by Mazars Auditores S.L.P., in the case of Compañía Española de Reafianzamiento, S.M.E.,
S.A., and COFIDES, Compañía Española de Financiación del Desarrollo, S.A ., and our opinion
expressed in this report on the consolidated annual accounts is based, as regards the shareholding
indicated, solely on the report of the other auditors.
Our objectives are to obtain reasonable assurance about whether the consolidated annual accounts
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with audit regulations f or the Public Sector in Spain will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence users’
economic decisions taken on the basis of the annual accounts.
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As part of an audit in accordance with audit regulations for the Public Sector in Spain, we exercise
our professional judgement and maintain professional scepticism throughout the audit.
We also:
•
Identify and assess the risks of material misstatement of the consolidated annual accounts,
whether due to fraud or error, design and perf orm audit procedures responsive to those risks and
obtain audit evidence that is suf ficient and appropriate to provide a basis f or our opinion. The risk
of not detecting a material misstatement resulting f rom f raud is higher than one resulting from
error, as f raud may involve collusion, f orgery, intentional omissions, misrepresentations or the
override of internal control.
•
Obtain an understanding of the internal control relevant f or the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purposes of expressing
an opinion on the ef f ectiveness of the Group's internal control.
•
Assess the appropriateness of accounting policies used and the reasonableness of
accounting estimates and the related disclosures made by management.
•
Conclude on the appropriateness of the management committee of the audited entity’s use
of the going concern basis of accounting is appropriate and, based on the audit evidence obtained,
whether a material uncertainty exists related to the events or conditions that may cast signif icant
doubt on the group’s ability to continue as a going concern. If w e conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report on the related
disclosures in the consolidated annual accounts or, if such disclosures are not adequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue
as a going concern.
•
Evaluate the overall presentation, structure and content of the consolidated annual
accounts, including disclosures, and whether the consolidated annual accounts represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with the Institute's Chairman regarding, among other matters, the planned scope
and timing of the audit and the signif icant audit findings, including any signif icant def iciencies in
internal control that we identify during our audit.
From the matters communicated with the Institute’s Chairman, we determine those matters that
were of most significance in the audit of the consolidated annual accounts of the current period and
are, therefore, the key audit matters.
We describe these matters in our auditor’s report unless laws or regulations preclude public
disclosure about the matter.
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This auditor’s report was signed electronically through the CICEP.red application of the Comptroller
General of the State Administration by the Audit Director and the Head of the Public Audits Division
I of the National Audit Of fice in Madrid on April 11, 2023.
INSTITUTO DE CRÉDITO OFICIAL
AND SUBSIDIARIES
Consolidated Annual Accounts at 31 December 2022 and
Consolidated Management Report corresponding to 2022
Free translation of consolidated annual accounts originally issued in Spanish.
In the event of a discrepancy, the Spanish-language version prevails
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AT 31 DECEMBER 2022 AND 2021
(Expressed in thousands of Euros)
1
ASSETS
2022
2021
Cash, deposits at central banks and demand deposits (Note 6)
Financial assets held for trading (Note 7)
Derivatives
Memorandum item: loaned or advanced as collateral
Financial assets not held for trading obligatorily valued at fair value through profit or loss
(Note 8)
Financial assets at fair value through other comprehensive income (Note 9)
Equity instruments
Debt securities
Loans and advances
Memorandum item: loaned or advanced as collateral
Financial assets at amortised cost (Note 10)
Debt securities
Loans and advances
Credit institutions
Customers
Memorandum item: loaned or advanced as collateral
Hedging derivatives (Note 11)
Investments in joint ventures and associates (Note 12)
Joint ventures
Associates
Property, plant and equipment (Note 13)
Property, plant and equipment
For own use
Memorandum item: Acquired under financial lease
Intangible assets (Note 14)
Other intangible assets
Tax assets (Note 15)
Current
Deferred
Other assets (Note 16)
Non-current assets and disposable groups of elements qualified as held for sale (Note 17)
TOTAL ASSETS
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AT 31 DECEMBER 2022 AND 2021
(Expressed in thousands of Euros)
2
LIABILITIES
2022
2021
Financial liabilities held for trading (Note 7)
Derivatives
Financial liabilities at fair value through profit or loss
Financial Liabilities at amortised cost (Note 18)
Deposits
Central Banks
Credit Institutions
Customers
Marketable debt securities
Other financial liabilities
Hedging derivatives (Note 11)
Provisions (Note 19)
Pensions and similar obligations
Provisions for contingent exposures and commitments
Other provisions
Tax Liabilities (Note 15)
Current
Deferred
Other liabilities (Note 16)
TOTAL LIABILITIES
EQUITY
Equity (Note 20)
Capital or endowment fund
Accumulated reserves
Revaluation reserves
Other reserves
Profit and loss for the period
Less: Dividends and remunerations
Other accumulated comprehensive income (Note 21)
(26 734 )
Elements that cannot be reclassified at profit and loss
Changes in fair value equity inst. at fair value through other comprehensive income
Elements that can be reclassified at profit and loss
(221 008 )
(161 291 )
Cash-Flow hedges
(192 695 )
(164 931 )
Changes in fair value debt inst. at fair value through other comprehensive income
(28 313 )
TOTAL EQUITY
TOTAL EQUITY AND LIABILITIES
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AT 31 DECEMBER 2022 AND 2021
(Expressed in thousands of Euros)
3
MEMORANDUM ITEM
2022
2021
Granted guarantees (Note 22)
Granted contingent commitments (Note 22)
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED PROFIT AND LOSS ACCOUNTS CORRESPONDING TO YEARS
ENDED AT 31 DECEMBER 2022 AND 2021
(Expressed in thousands of Euros)
4
2022
2021
Interest and similar income (Note 24)
Interest and similar charges (Note 25)
(200 270 )
(147 640 )
NET INTEREST INCOME
Dividends income (Note 26)
Profit/(loss) from entities valued through equity method (Note 27)
Fee and Commission income (Note 28)
Fee and Commission expense (Note 28)
(9 025 )
(7 793 )
Gains or losses from financing operations (net)
Gains or losses on financial assets and liabilities not measured at fair value through profit or loss (net) (Note 29)
(356 )
Financial assets at fair value thr oug h other comprehensi ve income
Financial assets at amortised cost
Financial liabilities at amortised cost
(356 )
Gains or losses on financial assets and liabilities held for trading (net) (Note 30)
(259 )
Gains or losses on financial assets oblig ator ily at fair value thr oug h results (net) (Note 31)
Gains or losses resulting from hedg e accounting (net) (Note 32)
Exchange differences (net) (Note 2.4)
Other operating income and expenses (Note 33)
GROSS MARGIN
Administration expenses
(45 340 )
(42 560 )
Personnel costs (Note 34)
(24 242 )
(23 612 )
Other administr ation expenses (Note 35)
(21 098 )
(18 948 )
Depreciation and amortisation
(5 662 )
(4 782 )
Property, plant and eq uipment ( Note 13)
(2 167 )
(2 023 )
Intangible assets (N ote 14)
(3 495 )
(2 759 )
Provisions expense or reversal of provisions (Note 19)
(3 517 )
(15 609 )
Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss
Financial assets at fair value thr oug h other comprehensi ve income ( Note 9)
(8 767 )
Financial assets at amortised cost (Notes 10)
Impairment or reversal of impairment on non -financial assets
(77 )
(81 )
Goodwill and other intangible assets (Note 14)
Other assets (N ote 17)
(77 )
(81 )
Gains/ (Losses) on non-current assets and groups held for sale of elements classified as held for sale not
classified as discontinued operations (Note 17)
PROFIT OR LOSS BEFORE TAX FROM ONGOING OPERATIONS
Income tax expenses (income) from ongoing operations (Note 23)
(57 033 )
(54 809 )
PROFIT OR LOSS AFTER TAX FROM ONGOING OPERATIONS
CONSOLIDATED PROFIT OR LOSS FOR THE YEAR
Profit or loss attributable to the parent company
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF RECOGNISED INCOME AND EXPENSES
CORRESPONDING TO YEARS ENDED AT 31 DECEMBER 2022 AND 2021
(Expressed in thousands of Euros)
5
2022
2021
Profit/(loss) for the year
Other comprehensive income
Elements not reclassified on profit and loss account
Variations in fair value equity instruments at fair value through other comprehensive
income (Note 21)
Profit or loss hedge accounting
Income tax of elements not reclassified in profit or loss
(92 176 )
(26 414 )
Elements that can be reclassified in profit or loss
(59 717 )
Hedging of cash flows, effective portion (Note 21)
(39 663 )
Debt instruments at fair value through other comprehensive income (Note 21)
(45 647 )
(1 524 )
Income tax of elements that can be reclassified on profit or loss
(15 836 )
TOTAL RECOGNISED INCOME AND EXPENSES (global result)
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CORRESPONDING TO
YEARS ENDED AT 31 DECEMBER 2022 AND 2021
(Expressed in thousands of Euros)
6
At 31 December 2022
EQUITY
RESERVES
Capital /
Endowmen
t fund
Share
premium
Accumulated
reserves
(losses)
Reserves
(losses) of
entities valued
through equity
method
Other capital
instruments
Less:
Treasury
shares
Profit/(loss)
for the year
attributable
to the
parent
company
Less:
dividends and
remunerations
Total
equity
Other
accumulated
comprehens
ive income
Minority
shareholders
Total
Equity
Closing balance at 31
December 2021
(26 734 )
Total recognised income and
expenses
Other variations of equity:
(139 861 )
(122 609 )
(122 609 )
Capital incr eases / endowment
fund
Capital decreases
Transfers between eq uity item s
(139 861 )
(139 861 )
(139 861 )
Other increases (decr eases) of
eq uity
Closing balance at 31
December 2022
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CORRESPONDING TO
YEARS ENDED AT 31 DECEMBER 2022 AND 2021
(Expressed in thousands of Euros)
7
At 31 December 2021
EQUITY
RESERVES
Capital /
Endow men
t fund
Share
premium
Accumulated
reserves
(losses)
Reserves
(losses) of
entities valued
through equity
method
Other capital
instruments
Less:
Treasury
shares
Profit/(loss)
for the year
attributable
to the
parent
company
Less
:
dividends and
remuneration
s
Total
equity
Other
accumulated
comprehens
ive income
Minority
shareholder
s
Total Equity
Closing balance at 31
December 2019
(125 315 )
Total recognised income
and expenses
Other variations of equity:
(79 092 )
(69 954 )
(69 954 )
Capital increases /
endowment fund
Capital decreases
Transfers between eq uity
items
(79 092 )
(79 092 )
(79 092 )
Other increases (decr eases)
of eq ui ty
Closing balance at 31
December 2021
(26 734 )
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS CORRESPONDING TO YEARS
ENDED AT 31 DECEMBER 2022 AND 2021
(Expressed in thousands of Euros)
8
2022
2021
A. CASH FLOWS FROM OPERATING ACTIVITIES
(6 606 242 )
1. Consolidated profit/(loss) for the year
2. Adjustments to obtain operating cash flows
Depreciation and amortisation
Other adjustments
3. Net increase /(decrease) in operating assets
Trading portfolio
(19 935 )
Other financial assets at fair value through profit or loss
Financial assets at fair value through other comprehensive income
(67 684 )
(618 151 )
Financial assets at amortised cost (2019)
Other operating assets
(171 084 )
4. Net increase/(decrease) in operating liabilities
(8 221 849 )
Trading portfolio
(50 244 )
Other financial liabilities at fair value through profit or loss
Financial liabilities at amortised cost
(8 892 592 )
Other operating liabilities
5. Collections/(payments) for income tax
(5 810 )
(27 114 )
B. CASH FLOWS FROM INVESTMENT ACTIVITIES
(13 161 )
(5 231 )
6. (Payments)
(13 161 )
(6 931 )
Property, plant and equipment (Note 13)
(1 212 )
Intangible assets (Note 14)
(3 806 )
Shareholdings (Note 12)
(8 143 )
(6 931 )
Non-current assets and liabilities associated for sale (Note 17)
Other payments related to investing activities
7. Collections
Property, plant and equipment (Note 13)
Intangible assets (Note 14)
Shareholdings (Note 12)
Non-current assets and liabilities associated for sale (Note 17)
Debt securities at amortised cost (Note 10.1)
Other collections related to investing activities
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS CORRESPONDING TO YEARS
ENDED AT 31 DECEMBER 2022 AND 2021
(Expressed in thousands of Euros)
9
2022
2021
C. CASH FLOWS FROM FINANCING ACTIVITIES
(122 753 )
8. (Payments)
(122 960 )
Dividends
Subordinated liabilities
Amortisation of own equity instruments
Acquisition of own equity instruments
(122 960 )
Other payments related to financing activities
9. Collections
Subordinated liabilities
Issue of own equity instruments
Disposal of own equity instruments
Other collections related to financing activities (Note 20)
D. EFFECT OF EXCHANGE RATE FLUCTUATIONS
E. NET INCREASE/DECREASE IN CASH OR CASH EQUIVALENTS
(6 742 156 )
F. CASH OR CASH EQUIVALENTS AT BEGINNING OF THE YEAR
G. CASH OR CASH EQUIVALENTS AT END OF THE YEAR
MEMORANDUM ITEM
COMPONENTS OF CASH AND EQUIVALENTS AT THE END OF THE PERIOD
Cash (Note 6)
Cash equivalent balances with central banks (Note 6)
Other financial balances (Note 6)
Less: bank overdrafts repayable
10
AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
corresponding to the year ended at 31 December 2022
11
1. INTRODUCTION, BASIS OF PRESENTATION AND OTHER INFORMATION
1.1 Introduction
Credit Organisation and System was regulated, up until the publication of Royal Decree Law 12/1995
on Urgent Budget, Tax and Financial Measures, by the provisions of Article 127 of Law 33/1987 on
the General State Budgets for 1988 and some provisions not repealed of Law 13/1971.
The Institute is domiciled at Paseo del Prado, 4, in Madrid , where it carries out all of its activities
without having any other office network in Spain.
through the Secretary of State for Economy and Company Support; it is a credit institution by law and
is considered to be a State Finance Agency with its own legal personality, assets and finance, as well
as management autonomy to fulfil its purpose.
The Secretary of State for Economy and Company Support is responsible for the strategic
management of the Institute, as well as for the evaluation and control of the results of its activities.
The Institute is governed by the provisions of the Law 40/2015 on the Legal Regime of the Public
Sector, through Additional Provision Six of Royal Decree-Law 12/1995, on Urgent Budget, Tax and
Financial Measures; by applicable provisions of Law 47/2003, of 26 November, General Budget, by
its bylaws, approved by Royal Decree 706/1999, on the adaptation of Instituto de Crédito Oficial to
Law 6/1997 (14 April) and the approval of its bylaws, and any other matter not covered by the above
regulation, are governed by the special legislation applicable to credit institutions and general civil,
mercantile and employment legislation.
Concerning the Corporate Governance, in addition to the abovementioned Law 40/2015, Royal
Decree 1149/2015, of 18 December, is applicable to the Institute. Since its entry into force, the
General Council is made up by the President and 10 Members (9 until then), in whose appointment
objective selection criteria are applied, such as the prestige and training, regulating incompatibilities,
and establishing a three-year period, renewable (only once) for three more. Independent Members
have double vote in financial business matters and will therefore be majority in the ICO’s General
Council. The Members’ appointment and cessation is the responsibility of the Council of Ministers, at
the proposal of the Minister of Economic Affairs and Digital Transformation.
The requirements to be appointed as independent Director include: recognised commercial and
professional honourability, have appropriate knowledge and experience, not incurring potential
permanent conflicts of interest and refrain from developing activities by self-employed or employed
which involve effective competition with the ICO. Furthermore, it is required not be linked to credit
institutions; financial credit establishments; investment firms; collective investment schemes, risk
capital entities, its subsidiaries and the group which they belong to or associations.
The General Board members will have to perform their functions always attending to the ICO interest,
as well as keeping secret on information, data, reports and confidential backgrounds to which they
have had access in the performance of their duties, even after ceasing their duties. The dismissal can
occur by resignation accepted by the Minister of Economic Affairs and Digital Transformation, expiry
of the mandate for the independent Members or termination in the case of Members from the public
sector. Unexpected lack of suitability in the case of independent members will be cause of dismissal,
just like serious breach of confidentiality duties or conflict of interest.
12
The Institute's purposes are to sustain and promote economic activities that contribute to growth, and
the improvement of national wealth distribution, especially, of all those activities that deserve some
support due to their social, cultural, innovative or ecological importance.
When pursuing these aims, the Institute must completely respect the principles of financial balance
and the adaptation of the means to purposes.
The Institute has also the following functions:
a) Contribute to the mitigation of the economic effects deriving from serious economic
recessions, natural catastrophes or similar situations, in accordance with the instructions
received in this aspect from the Council of Ministers or the Government Commission for
Economic Matters.
b) Act as the principal instrument for executing certain economic policy measures, in line with the
fundamental guidelines established by the Council of Ministers or the Government
Commission for Economic Matters, or the Ministry of Economic Affairs and Digital
Transformation, subject to the rules and decisions adopted by its General Board.
Within the framework of these purposes and duties, the following types of operations are included:
1. Direct and mediation activities, modalities that count with a wide catalogue of financing
products and collaterals through which ICO contributes to promoting feasible business
projects, favouring the growth of companies, their long-term investments, and international
activity, in order to promote the sustainable growth, employment generation, and wealth
distribution.
2. Reciprocal Interest Adjustment Agreement (CARI for its initials in Spanish). This exportation
support system ensures a good performance for the member financial institution, domestic or
foreign. The Institute merely acts as an intermediary in the transaction, charging the State for
its management costs, in accordance with the provisions of the General State Budget Act for
each year.
The net result of interest adjustments with member banks is regularly offset by the State or
through a payment by the Institute to the State, depending on which part is the debtor or
creditor, respectively.
3. Development Promotion fund (FONPRODE for its initials in Spanish). This Fund was
established in 2010 under Act 36/2010. It is designed to finance development projects and
programs in under developed countries in the form of State-to-State grants. The Institute acts
as a Government agent. The structure, administration and accounting of these transactions is
kept separated from all other operations, in independent accounts maintained by the Institute,
and for what the ICO is reimbursed for the cost of management in accordance with the General
State Budget for each year. As of December 2010, this particular Fund, acquired the Fund for
micro-credits granting, also managed by the Institute since 1998 until its merger into
FONPRODE.
4. Companies Internationalisation Fund (FIEM for its initials in Spanish). This Fund was
established in 2010 under Act 11/2010. Its activity consists on providing reimbursable
financing for projects, under concessions or market terms, tied to the acquisition of Spanish
goods and services and to the execution of Spanish investment projects or those of national
interest. The Institute acts as a Government agent and the structuring, administration and
accounting for these transactions is kept separate from all other operations, in independent
accounts maintained by the Institute and for what the ICO is reimbursed for the cost of
13
management in accordance with the General State Budget for each year.
5. Water and Sanitation Cooperation Fund. It was created through the Sixty-First Additional
Provision of Law 51/2007, 26 December, of the 2008 General State Budget to fund water and
sanitation projects under the financing arrangements with the national authorities of the Latin
America Countries, considered a priority for the Spanish cooperation.
6. Finance Fund to Local Entities, resulting from the 17/2014 Royal Decree-Law, of 26
December, measures of financial sustainability of the autonomous communities and local
entities and others of economic nature, in order to ensure financial sustainability of the
municipalities attached, by addressing its financial requirements. The equity of the Fund is
endowed by the result of the liquidation of the Fund for the Financing of Payments to Suppliers
(created by Royals Decrees 4/2012 and 7/2012), which happens in all its rights and
obligations, effective January 1, 2015. ICO plays the trader role, without registering any of
these operations on its accounting records. This activity generates for the Institute a pertinent
trading commission.
7. Finance Fund to Autonomous Communities resulting from 17/2014 Royal Decree-Law of 26
December, measures of financial sustainability of the autonomous communities and local
entities and others of economic nature, in order to ensure financial sustainability of the
autonomous communities attached. The equity of the Fund is endowed by the result of the
liquidation of the Autonomous Region Liquidity Fund (created by Royal Decree 21/2012),
which happens in all its rights and obligations, effective January 1, 2015. Also, it included in
the equity part of the funding mechanism for payment to suppliers in the part corresponding to
Autonomous Communities. ICO plays the trader role, without registering any of these
operations on its accounting records. This activity generates for the Institute a trading
commission.
8. ICO COVID-19 surety lines, established and regulated by RD Law 8/2020, of 17 March, RD
Law 25/2020, of 3 July, RD Law 11/2020, of 31 March, RD Law 34/2020, of 17 November and
RD Law 5/2021, of 12 March. This regulation, developed through the corresponding
Agreements of the Council of Ministers, approved the establishment of several State surety
lines, for an amount above 140,000 million Euros, in order to ease the maintenance of
employment and palliate the economic effects of the health crisis caused by the COVID-19.
Sureties are granted to financing granted by financial entities to ease the access to credit and
liquidity for businesses and employers (liquidity surety lines), as well as to face the financial
needs derived from the performance of new investments (investment surety lines).
Additionally, specific tranches were enabled, establishing sureties in issues of promissory
notes made by companies in the Alternative Fixed-Income Market (MARF). Sureties have a
term of up to 8 years. Also, a surety line is contemplated for lessees, in the modality of liquidity
loans, guaranteed and subsidised by the State to face the lease of the families’ main
residences. By Council of Ministers Agreement of June 21, 2022, the possibility of extending
the maturity of guarantees managed on behalf of the State is enabled. In this activity, ICO acts
on behalf of the State, exercising management and administration functions, for which the
Institute accrues the corresponding commissions, registered as income in the income
statement.
9. UKRAINE surety line. This line is included in the Plan to respond to the Russian war in Ukraine,
and is allocated with up to 10,000 million Euros (at 2022 closing, a tranche of 5,000 million
has been activated). The line is subject to the EU State aids regulation, regulated by RD Law
6/22, of 19 March, Council of Ministers Agreement of May 10, 2022 (amended by Council of
Ministers Agreement of October 11, 2022) and Council of Ministers Agreement of November
22, 2022. In this activity, ICO also acts for and on behalf of the State, exercising management
and administration functions for which the Institute accrues the corresponding commission,
14
registered as income in the income statement.
Except for the direct and mediation activity, which is included in the Institute’s accounts, its remaining
functions are management operations of public funds, performed by ICO as State’s Financial Agency,
and therefore are not included in the Institute’s accounts, by virtue of regulations applicable to them.
1.2 Bases of presentation of the consolidated annual accounts
The Group presents its consolidated annual accounts according to the International Financial
Reporting Standards adopted by the European Union (hereinafter, IFRS-EU), taking into account
accounting principles and standards established by Circular 4/2017, of 27 November (hereinafter,
Circular 4/2017), of Bank of Spain, on public and reserved information standards and models of
financial statements. This Circular 4/2017 is compulsorily applicable to individual annual accounts of
the Spanish Credit Institutions.
Accordingly, the preparation of the accompanying consolidated annual accounts has been based on
the Group Companies’ accounting records and in agreement with the International Financial
Reporting Standards (IFRS) adopted by the European Union (IFRS-EU) and Circular 4/2017 of Bank
of Spain, and subsequent amendments, and with the Commercial Code, Capital Corporations Act or
other applicable Spanish regulations, to show the true and fair view of the Group’s consolidated equity
and consolidated financial situation at December 31, 2022 and results from its operations, changes
in consolidated equity and consolidated cash flows corresponding to the year therein ended.
The information contained on in these consolidated annual accounts corresponding to 2022 is solely
and exclusively presented for comparison purposes with information related to 2022 and, accordingly,
does not constitute the Group’s annual accounts of 2021.
Note 2 summarises the most significant accounting principles, policies and valuation criteria, applied
in the preparation of the Group’s annual accounts corresponding to the year ended at December 31,
2022.
Main regulatory changes during the period from January 1 to December 31, 2022
Bank of Spain Circular 3/2022, of 30 March
This standard updates Circular of Bank of Spain 2/2016, of 2 February, and completes the adaptation
of the Spanish legal system to Directive 2013/36/EU and EU Regulation 575/2013, on supervision
and solvency. The standard has not had a significant impact in the ICO.
Royal Decree-Law 6/2022, of 29 March
This standard adopts urgent measures within the National Plan of response to the economic and
social consequences of the war in Ukraine, and creates a new public sureties for an amount of 10,000
million Euros, in order to cover the financing granted by monitored credit institutions to freelancers
and employers, to be able to face liquidity needs in the current situation. The Council of Ministers
Agreement of May 10, 2022 and the 2022 establish conditions for a first tranche that will be managed
by ICO, for an amount of 5,000 million Euros. The Council of Ministers of December 27, 2022 agreed
a new package of measures to respond to the impact caused by the war of Ukraine during 2023.
These measures establish a second tranche in the surety line of 500 million Euros, which will allow
gas-intensive industries to dispose of financing with public surety up to 90%.
15
Council of Ministers Agreement of 21 June 2022 (Covid-19 sureties)
The standard establishes the possibility to extend the maturity of sureties managed on behalf of the
State (liquidity and investment COVID-19 sureties), in collaboration with operating credit institutions.
Standards and interpretations published until the date of formulation of the Group’s financial
statements that are not yet in force are included below. The Group intends to adopt these standards,
if applicable, as soon as they become effective:
IFRS 17: “Insurance contracts”
IFRS 17 establishes the principles of registration, valuation, presentation and disclosure of insurance
contracts. Its objective is to ensure that an entity provides relevant information, fairly representing
such contracts. IFRS 17 substitutes IFRS 4 on insurance contracts and will enter into force for years
beginning from January 1, 2023.
Modifications of IAS 1: “Presentation of financial statements”
It introduces clarifications on requirements to be applied in the classification of liabilities as current or
non-current, and will enter into force in years beginning from January 1, 2023.
All compulsory accounting principles and standards with a significant effect have been applied in their
preparation, including on Note 2 a summary of accounting principles and standards and the most
significant valuation criteria applied on the present consolidated annual accounts. The Chairman of
the Group’s Parent Company is responsible for the information contained on the present consolidated
annual accounts.
The Group’s consolidated annual accounts of 2022 have been formulated by the Parent Company’s
Chairman on March 28, 2023, awaiting approval by the Institute’s General Board, Group’s Parent
Company, expecting their approval without significant changes. The present consolidated annual
accounts, unless otherwise indicated, are presented in thousands of Euros.
1.3 Responsibility for information and estimates.
The information contained in the Group’s consolidated annual accounts for the year ended at
December 31, 2022 and the accompanying consolidated Notes are responsibility of the Institute’s
Chairman. In the preparation of these annual accounts, some estimates have been made by the
Group to quantify certain assets, liabilities, income, expenses, and commitments included in those
statements. These estimates basically refer to the following:
- Impairment losses of financial assets (Note 2.7).
- Assumptions used in actuarial calculations of liabilities and commitments related to post-
employment benefits and other long-term commitments with employees (Note 2.10.2).
- Useful life of fixed assets and intangible assets (Notes 2.12 and 2.13).
- Losses on future obligations derived from granted contingent commitments (Note 2.14).
- The fair value of certain unlisted assets (Note 2.2.3).
- Recoverability of tax assets (Note 2.11).
Although these estimates were made based on the best information available at December 31, 2022
in relation to the analysed facts, future events could lead significant adjustments to be made (upward
or downward) in coming years. These changes would be made prospectively, to recognise the impact
of the change in the estimate of the consolidated profit and loss account for the specific years.
16
1.4 Transfer of assets and liabilities from the former Argentaria
The extinct entities Argentaria, Caja Postal y Banco Hipotecario, S.A., were the result of the merger
between Corporación Bancaria de España, S.A., Banco Externo de España, S.A. (BEX), Caja Postal,
S.A. and Banco Hipotecario de España, S.A. (BHE), in accordance with the public merger document
dated September 30, 1998. Banco de Crédito Agrícola, S.A. (BCA), which was previously taken over
by Caja Postal, S.A. and Banco de Crédito Local de España, S.A. (BCL), which also pertained to the
first entity, Argentaria, maintains its legal personality.
Based on what was established in the A.C.M. on February 15, 1993, the Institute acquired on
December 31, 1992, assets and liabilities pertaining to BCL, BHE, BCA and BEX derived from
economic policy operations that were guaranteed by the State or the Institute and, specifically, the
loans and guarantees provided to companies in conversion (covered by the conversion and re-
industrialisation legislation). Also, exceptional loans granted to victims of floods were acquired, as
well as loans granted by these entities prior to their transformation into public limited liability
companies, and other assets, rights and equity investments.
Furthermore, on March 25, 1993, a management contract was signed with the relevant banks,
regarding the assets and liabilities transferred, including its administration as well as its correct
accounting in accordance of the current banking legislation.
On January 2019, both the management, and the administration and bookkeeping of transferred
assets and liabilities was assumed by the Institute. At December 31, 2022, the balance of net assets
was of 12 thousand Euros and the amount of results generated in the year was of 112 thousand Euros
(17 thousand Euros of net assets and 247 thousand Euros of results at December 31, 2021).
1.5 Presentation of individual annual accounts
In accordance with Article 42
nd
of the Spanish Code of Commerce, the Institute has formulated, at the
same date as the present consolidated annual accounts, individual annual accounts, prepared in
accordance with the same accounting principles and standards and valuation criteria applied on the
Group’s present consolidated annual accounts. The consolidation effect on the accompanying
balance sheet at December 31, 2022 and 2021, the profit and loss account, the statement of total
changes in equity, the statement of recognised income and expenses, and the statement of cash
flows of 2022 and 2021, implies the following differences:
Thousands of Euros
2022
2021
Individual
Consolidated
Individual
Consolidated
Assets
29 774 943
29 802 910
37 766 136
37 790 436
Equity
5 514 563
5 589 018
5 354 004
5 409 434
Profit/(loss) for the period
127 951
146 832
122 960
139 861
Total income and expenses recognised in equity
283 312
302 194
221 541
238 442
Net increase / (Decrease) of cash
and cash equivalents
(6 742 060)
(6 742 156)
6 650 111
6 650 015
1.6 Environmental impact and greenhouse gas emission rights
The Group’s global transactions follow the laws on environmental protection. The Institute considers
that it substantially complies with these Laws and maintains procedures designed to ensure and
encourage its compliance.
Also, the Group considers that appropriate environmental protection and improvement measures
17
have been taken, and to minimise, when possible, the environmental impact following rules regarding
this matter. In 2022 and 2021, the Group has not carried out significant environmental investments
and has not considered it necessary to register any provision for environmental risks and charges.
Furthermore, the Institute has not considered any significant contingencies in relation to
environmental protection and improvement, and has not had greenhouse gas emission rights.
1.7 Minimum coefficients
1.7.1 Minimum equity ratio
Bank of Spain, on May 22, 2008, issued Circular 3/2008 on identification and control of minimum
equity. The aforesaid Circular is the final development in the field of credit institutions, on the
legislation on equity and supervision on a consolidated basis of the credit institutions issued from Law
36/2007 of 16 November. It amends Act 13/1985, of 25 May, of the investment ratio, equity and
information obligations of financial intermediaries and other financial system that includes the Royal
Decree 216/2008, of February 15 of credit institutions’ equity. This also completes the process of
adapting the legislation of Spanish credit institutions to EU Directives 2006/48/EC of the European
Parliament and the Council of June 14, 2006 concerning the business of credit institutions (recast)
and 2006/49/EC of the European Parliament and the Council of June 14, 2006 on capital adequacy
of investment services companies and credit institutions (recast). The two Directives have been
deeply revised, following the equivalent agreement adopted by the Basel Committee on Banking
Supervision (known as Basel II), the minimum capital requirements due to credit institutions and their
consolidated groups.
Law 10/2014 of 26 June, concerning management, supervision and solvency of credit institutions, has
replaced, from January 1, 2014, the former legal body concerning prudential banking regulation (Law
13/1985, from 25 May, and Circular 3/2008 of the Bank of Spain). Previously, the European Union
moved to its legal system Basel III accords, as of December 2010, by Regulation (EU) No 575/2013
of the European Parliament and of the Council from 26 June on the prudential requirements for credit
institutions and investment services companies, amending Regulation (EU) No 648/2012 and
Directive 2013/36/EU of the European Parliament and of the Council of 26 June, relating to the activity
of credit institutions and the prudential supervision of credit institutions and investment services
companies, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC
as transposed into our system started with Royal Decree-Law 14/2013, of 29 November, on urgent
measures for adaptation of Spanish law with the norms of the European Union supervision and
solvency of credit institutions.
The main purpose of Law 10/2014, of 26 June, was to adapt Spanish law to regulatory changes
imposed on the international stage and the European Union, directly incorporating the provisions of
Regulation (EU) 575/2013 of 26 June (CRR), and making the proper transposition of Directive
2013/36/EU of 26 June (CRD). These Community rules have led to a substantial alteration of the rules
applicable to credit institutions, since aspects such as the supervisory regime, capital requirements
and penalty system has been extensively modified.
The CRR and CRD regulate capital requirements in the European Union and include the
recommendations set out in the Basel III capital regulatory framework or agreement, specifically:
- The CRR, which is directly applicable to Member States, contains prudential requirements for
credit institutions and covers, inter alia, the following:
- The definition of elements of eligible equity, establishing requirements for hybrid
instruments to be included and limiting the eligibility of minority interests.
18
- The definition of prudential filters and deductions of items in each capital levels. In this
respect, the Regulation includes new deductions compared to Basel II (deferred tax
assets, pension funds) and introduces changes to existing deductions. Nevertheless, it
notes that the Regulation establishes a phase calendar until its final full implementation
between 5 and 10 years.
- Establishment of minimum requirements (Pillar I), with three levels of equity: a Common
Equity Tier 1 capital ratio of 4.5%, a Tier 1 capital ratio of 6% and a minimum requirement
total capital ratio of 8%.
- Requirement of credit institutions to calculate a leverage ratio, defined as Tier 1 capital
divided by total exposure unadjusted for risk. The disclosure requirement will be
applicable from 2016 onwards and the final definition was established in 2017 by
supervisors.
- The aim and main purpose of the CRD, which must be transposed into national legislation by
the Member States according to their criteria, is to coordinate national legislation regarding the
access to the activity of credit institutions and investment firms and their governance and
supervisory framework. The CRD includes, inter alia, additional capital requirements to those
established in the CRR, which will be phased in gradually until 2019. Failure to comply will
imply restrictions on the discretionary distributions of profit, specifically:
- A capital conservation buffer and a countercyclical capital buffer, extending the
regulatory framework of Basel III, to mitigate pro-cyclical effects of financial regulation.
All credit institutions must maintain a capital conservation buffer of 2.5% above Common
Equity Tier 1 and an institution-specific countercyclical capital buffer above Common
Equity Tier 1.
- A systemic risk buffer. For global systemically important institutions and other
systemically important institutions to mitigate systemic or macro prudential risks; i.e.,
risks of disruptions in the financial system with the potential to have serious negative
consequences for the financial system and the real economy in a specific Member State.
- In addition, the CRD, within the oversight responsibilities, states that the Competent
Authority may require credit institutions to maintain a larger amount of equity than the
minimum requirements set out in the CRR (Pillar II).
Pursuant to Additional Provision 8
th
of Law 10/2014, of 26 June, on management, supervision
and solvency of credit institutions, the Instituto de Crédito Oficial will apply Titles II (Solvency
of credit institutions), III (Supervision) and IV (Legal penalties) of that Law, except as
determined by regulations, and the provisions regarding duty of confidentiality of information.
From the period 2015, according with Circular 2/2014 of Bank of Spain, capital buffers
established in this standard are applicable. To date, no amount has been established for the
specific countercyclical capital buffer by the Banking Supervisor this year. ICO is not an entity
of global systemic importance (EISM for its initials in Spanish) nor is it considered as a
systemically important entity (EIS for its initials in Spanish).
In 2019, Regulation EU 2019/876, of 20 May, was approved, amending Regulation (EU)
575/2013 (CRR II) of Credit Entities’ solvency. Although the standard will enter into force, in
general, from June 28, 2021, certain provisions entered into force on June 27, 2019 (field of
application, supervision powers, definitions, equity and admissible liabilities and definitions of
the leverage ratio). These provisions did not affect ICO.
19
In 2020, Regulation EU 2020/873, of 24 June, was approved, amending Regulations EU
575/2013 and EU 2019/876 concerning certain adaptations made in response to the COVID-
19 pandemic (including, among other measures, the extension of transitory provisions in
relation to the effect of the IFRS 9 on provisions, for the purpose of solvency, establishment
of new temporary prudential filters, and advancement of the new treatment for certain
exposures, and application of the support factor to SMEs and Infrastructures). This standard’s
provisions have had a scarce impact in ICO.
At December 31, 2022 and 2021, the Group’s computable capital is as follows:
Thousands of Euros
2022
2021
Common Equity Tier 1 (*)
4 897 422
4 942 804
- Capital
4 314 687
4 314 480
- Reserves and prudential filters (**)
582 735
628 324
Tier 2
-
-
- Other reserves (**)
-
-
- Generic insolvency risk hedging
-
-
Total computable capital
4 897 422
4 942 804
Total minimum capital (***)
2 478 267
2 132 547
(*) The Group has no additional Tier 1.
(**) The total reserves used for the calculation of capital of the Group computable differ from those recorded in the consolidated balance sheet because in the
calculation of capital are given: adjustments for intangible assets and adjustments for reserves.
(***) Calculated as 17.05% of risk-weighted assets (RWA), established by Bank of Spain for the Group for 2022 (15.95% for 2021 closing).
At December 31, 2022 and 2021, the most important data of the minimal capital of the Group are (in
thousands of Euros):
Thousands of Euros
2022
2021
Tier 1
4 897 422
4 942 804
Risk-weighted assets (RWA)
14 535 290
13 370 200
Tier 1 ratio (%)
33,69%
36,97%
Computable total Capital
4 897 422
4 942 804
Computable total Capital ratio (%)
33,69%
36,97%
Minimum computable capital ratio (%) (*)
17,05%
15,95%
(*) The total minimum capital ratio from December 31 2022, established by Bank of Spain for the ICO Group, is 17.05%, considering
both the requirements established by the Regulation EU 575/2013 (8%), and additional capital needs (6.55%) and the capital bu ffer
(2.5%).
At December 31, 2022 and 2021, the Group’s computable capital exceeds minimum requirements
required by applicable regulations in 2,419,155 thousand Euros and 2,810,257 thousand Euros,
respectively.
1.7.2 Minimum reserves ratio
The Institute must maintain a minimum level of funds deposited in a central bank of a Euro country to
cover the minimum reserve requirements. At December 31, 2022, this level was 2% of computable
liabilities. On November 24, 2011, Regulation (EU) No 1358/2011 came into effect, requiring 1% for
additional computable liabilities (time deposits of over two years drawable subject to a notice period
of more than two years, sales under repurchase agreements and securities other than shares with
20
maturities of over two years). This amendment was applied following the maintenance period that
started on January 18, 2012.
At December 2022 and 2021, and throughout financial years of 2022 and 2021, ICO complied with
minimum ratios required by applicable Spanish regulations.
1.7.3 Capital management
The Group considers as capital, for management purposes, Tier 1 and Tier 2 computable regulated
by the legislation which is applicable to it for solvency purposes (EU Regulation 575/2013).
In this sense, regulatory capital requirements are incorporated directly in the management, thereof in
order to maintain at all times a solvency ratio not below the minimum established for the entity by
Bank of Spain. This objective is met through a proper capital planning.
1.8 Post-balance sheet events
In accordance with Additional Provision of Law 24/2001, of 27 December, on Tax, Administrative and
Social Security measures, amended by aforementioned Law 42/2006, the amounts recovered
following the repayment by Central Government of the debts incurred with ICO as a result of certain
credit and guarantee facilities granted by the former Entidades Oficiales de Crédito and the Institute
itself, will form part of the Institute’s equity. The amount estimated for 2022 totals 207 thousand Euros,
which will be registered in 2023.
In 2023, the Instituto de Crédito Oficial, as a State Financial Agency, has capitalised by government
order new credit lines for businesses and individuals in order to provide more liquidity to the Spanish
credit system and to address other needs within the framework of the Institute’s objectives. The main
lines approved are the following:
- ICO Companies and Entrepreneurs Facility: this ICO line provides finance to freelances and
companies performing its investments within the country and that need to fulfil their liquidity
needs. Individuals and property owner communities can also take advantage of this line for
housing restoration.
- ICO SGR/SAECA Guarantee Facility: this ICO line provides finance to freelances and Spanish
or mixed companies, which resources are mainly located in Spain, within a Reciprocal
Guarantee Company (SGR for its initials in Spanish) or the state-owned corporation of
Caución Agraria (SAECA for its initials in Spanish).
- ICO– MAPA SGR/SAECA Guarantee facility: financing for the activity’s general needs, in view
of the profitability loss caused by drought and other adverse weather events.
- ICO Commercial Facility: this ICO line provides finance to freelances and Spanish or mixed
companies established in Spain , to obtain liquidity through the advance of the amount of
invoices from their commercial business within the national territory.
- Línea ICO Red.es Acelera: Financing of projects for which the granting of aids by Red.es is
approved, for the experimental development and promotion of digital technologies.
- ICO Red.es Kit Digital facility: financing for the delivery of digitalisation solutions within the
framework of the Kit Digital Programme of Red.es.
- ICO – MITMA Sustainable Mobility facility: complementary financing for beneficiaries of
competitive tender calls launched by the Ministry to decarbonise and digitalise the mobility and
21
transportation, charged to NextGenerationEU funds.
- ICO – MITMA Rehabilitation of Residential Buildings facility: financing aimed to carry out
rehabilitation works in housing buildings. Operations will have a MITMA surety.
- ICO International Facility: this ICO line provides finance to freelances and Spanish or mixed
companies with resources mainly Spanish performing productive investments overseas and/or
that need to fulfil its liquidity needs.
- ICO Exporters Facility: this ICO line provides finance to freelances and Spanish companies
that have a need of liquidity, and help them though advances in bills coming from its export
activity.
- ICO International Channel Facility: Financing to support the internationalisation process for
self-employed professionals and companies. The main difference between this product and
ICO International Facility and ICO Exporters Facility is that the loans are applied for at local
banks or international institutions that have a central office in the country where the investment
projects or export activities are carried out.
As every year, during January 2023, ICO and credit institutions that submitted the application for
membership of these credit lines handled the contracts’ drafting and signatures.
No significant events other than those described in the previous paragraphs have occurred since the
end of the reporting period (December 31, 2022) until the date these consolidated annual accounts
were issued (March 28, 2023).
1.9 Information per business segment
The Group’s activity is the granting of credit lines and direct loans. Therefore, in accordance with
relevant legislation, it is considered that the information regarding the segmentation of operations into
different lines of business at ICO is not relevant.
In addition, the Group develops its activity both inside and outside the Spanish territory. All operations
are granted to fund Spanish interests.
1.10 ‘ICO Direct’ lending activities
On June 2010, ICO launched a new business segment known as “ICO Direct”, designed to provide
financing to self-employed individuals, SMEs, and non-profit entities residing in Spain (which have
been operating for more than one year) in order to make new investments in machinery, furniture, IT
equipment and buildings. This business segment complements ICO’s normal lending activities
conducted through mediation lines to credit institutions and represents a broadening of the finance
channels aimed at SMEs and self-employed individuals. ICO Direct line was renewed for 2011 and
2012, finishing at June 2012.
Transactions derived from ICO Direct activities were formally processed and administered by Banco
Santander (BS) and Banco Bilbao Vizcaya Argentaria (BBVA). These credit institutions were awarded
in the public tender held by ICO for this purpose.
The balance at December 31, 2022 of total net assets was of 35 thousand Euros (174 thousand Euros
at December 31, 2021). Net results generated in 2022 have amounted to 3,816 thousand Euros (3,728
thousand Euros in 2021).
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1.11 ICO local corporation lending activity in 2011
The 2011 ICO-Local Corporation Facility started as a consequence of Royal Decree-Law designed to
foster the stability of public accounts and social protection approved in July 2011 by the Spanish
Council of Ministers. Its aim was to alleviate the problems of many self-employed professionals and
small businesses that, in light of the struggling economy, were suffering from major problems settling
their charging rights on supplies, works and services provided to local entities.
This facility was designed to provide local corporations (local and municipal governments) with
liquidity to settle their pending invoices until April 30, 2011. It was mostly designed to help them repay
debts with self-employed individuals and SMEs based on the age of certifications or documents.
ICO-Local Corporation Facility was in operation from July 2011 to November 2011. During this time,
the facility enabled 1,029 local, regional and inter-island town councils through Spain to settle 222,975
outstanding invoices, accounting a total amount of 967 million Euros for supplies, constructions and
services provided by 38,338 self-employed individuals and SMEs during 2011. The formalisation and
administration of the 2011 ICO-Local Corporation Facility operation is carried out through several
EECC added to the project.
At December 31, 2022, the balance of these assets (classified as doubtful assets) has been of 2,370
thousand Euros (2,557 thousand Euros at December 31, 2021).
This line is guaranteed to the Institute with the Participation in State Income (PTE for its initials in
Spanish) of the borrowing EELL. The reduction in the outstanding balance of this line, from the
beginning of it and until December 31, 2022, under the PTE, is 62.97 million Euros (62.79 million
Euros at December 31, 2021). Out of the 1,029 hosted entities to December 31, 2021, a total of 409
entities have had to resort to the PTE. At December 31, 2022, PTE deductions are still being claimed
to 8 EELL, for an outstanding amount of 2.4 million Euros.
2. ACCOUNTING PRINCIPLES, POLICIES AND VALUATION METHODS APPLIED
During the development of the Group’s consolidated annual accounts for the year ended at December
31, 2022, the following accounting principles, policies and valuation methods have been applied:
a) Going concern principle
In preparing the financial statements, it has been considered that the management of the Institute will
continue in a foreseeable future. Therefore, the application of accounting standards is not designed
to determine the net asset value for the purpose of global or partial transfer in the event of liquidation.
b) Accruals principle
The present annual accounts, except in relation to the statements of cash flows, have been elaborated
based on the current flow of goods and services, regardless of their date of payment or collection.
c) Other general principles
The annual accounts have been prepared under the historical cost approach, but modified due to the
revaluation, if any, of land and buildings (only at January 1, 2004) (Note 13), available for sale financial
assets and financial assets and liabilities (including derivatives) at fair value.
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2.1 Shareholdings
2.1.1 Group Companies
Subsidiaries are those over which the Institute has control. It is understood that an entity controls an
investee when it is exposed, or has rights, to variable returns about its involvement with the investee
and has the ability to affect those returns through the power exercised over the investee.
Consideration as subsidiaries requires:
- Power: An investor has power over an investee when the investor has existing rights that give
it the current ability to direct the relevant activities; i.e., the activities that significantly affect the
investee’s returns;
- Returns: An investor is exposed, or has rights, to variable returns from its involvement with the
investee when the investor’s returns from its involvement have the potential to vary as a result
of the investee’s performance. The investor’s returns can be only positive, only negative or
both positive and negative;
- Link between power and returns: An investor controls an investee if the investor not only has
power over the investee and exposure or rights to variable returns from its involvement with
the investee, but also has the ability to use its power to affect the investor’s returns from its
involvement with the investee.
These subsidiaries’ annual accounts are consolidated with the Institute’s in application of the global
integration method, as defined on the regulation. Consequently, all balances derived from
transactions between significant companies consolidated through this method have been eliminated
in the consolidation process. The Institute, the Group’s parent company, represents 99% of it.
Furthermore, shareholding by third parties, if any, in:
• The Group’s equity is presented on caption “Minority shareholders” of the consolidated
balance sheet, there not being any balance at December 31, 2022 and 2021.
• Consolidated results of the year are presented on caption “Results attributed to minority
shareholders” of the consolidated profit and loss account, there not being any balance at
December 31, 2022 and 2021.
The consolidation of results generated by subsidiaries acquired on a year only takes into
account those related to the period comprised from the acquisition date and the year’s closing
date.
Annex I provides relevant information on these entities, all of which close their financial year
at December 31.
2.1.2 Associates
Associates are entities over which the Institute holds significant influence, although they are not part
of a decision unit together with the Institute nor are they under joint control. Normally, significant
influence generally accompanies a direct or indirect shareholding of 20% or more of the voting rights.
Shareholdings in associates are presented in these consolidated annual accounts under the heading
“Investments in subsidiaries, joint ventures and associates – Associates” in the consolidated balance
sheet and are valued at acquisition costs, adjusted impairment that they may have undergone.
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Results generated from operations between the associate and Group Companies are written off from
the percentage represented by the Group’s shareholding on the associate.
Results obtained in the year by the associate, after the abovementioned write-off, increase or reduce,
as applicable, the value of the investment on the consolidated annual accounts. The amount of these
results is registered on the caption of “Profit/(loss) in entities valued through the equity method” of the
consolidated profit and loss account (Note 27).
Variations in the associate’s valuation adjustments, following the acquisition date, are registered as
increase or decrease of the investment value. The amount of these variations has been registered on
caption “Other accumulated comprehensive income” as valuation adjustments of the consolidated
equity.
Annex I provides relevant information on these entities.
2.2 Financial instruments
2.2.1 Initial recognition of financial instruments
Financial instruments are initially recognised in the balance sheet when the Group becomes part of
the relevant contract, in accordance with the terms of that contract. Specifically, debt instruments such
as loans and deposits in cash are recognised as from the date on which, the legal right to receive or
the legal obligation to pay the cash is generated, respectively. In general, financial derivatives are
recognised on the date they have been contracted.
Purchases and sales of financial assets arranged through conventional contracts, understood as
those contracts under the parties’ reciprocal obligations must be fulfilled with a timeframe established
by regulations or market conventions and which may not be settled by differences, such as stock
market contracts or currency forwards, are accounted for from the date on which the benefits, risks,
rights and duties inherent in all ownership are transferred to the acquirer. Depending on the type of
financial asset, purchased or sold, this may be the date of the contract or the date of settlement or
delivery. Specifically, transactions effected in the foreign exchange spot market are recognised at the
settlement date, transactions affected using equity instruments traded in Spanish securities markets
are recorded at the contract date and transactions affected using debt instruments traded in Spanish
securities markets are recognised at the settlement date.
2.2.2 Transfers and disposal of financial instruments
Transfers of financial instruments are recorded taking into account the way in which risks and benefits
associated with the transferred financial instruments are transferred, based on the following criteria:
- If risks and benefits are substantially transferred to third parties, as in unconditional sales,
sales and repurchase at fair value at the date of the acquisition, sales of financial assets with
a purchase option or sales gained issued deeply out of money, the securitisation of assets in
which the grantor retains no subordinate financing or grant any credit enhancement to the new
owners, etc., the transferred financial instrument is removed off from the balance sheet,
recognising both any right or obligation retained or created as a result of the transfer.
- If risks and benefits associated with the transferred financial instrument are retained, such as
sales of financial assets with repurchase agreements for a fixed price or the sale price plus
interest, the loan contracts of values in which the borrower must return the same or similar
assets, and so on., the transferred financial instrument is not removed off from the balance
sheet and continues being measured with the same criteria used before the transfer. However,
the associated financial liability by an equal amount to the consideration received is
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recognised, which is then valued at amortised cost, the transferred financial asset income, but
not recognised and the new financial liability costs.
- If neither the risks and benefits associated with the transferred financial instrument are
transferred nor substantially retained, such as sales of financial assets with a purchase option
bought or sold that are neither inside nor outside money, securitisations in which grantor
assumes a subordinated financing or other credit enhancements for a share of transferred
assets, and so on, distinction is made between:
- If the Entity does not retain control over the transferred financial instrument, in which case
it is removed off from the balance sheet and recognises any right or obligation retained or
created as a result of the transfer.
- If the Entity retains control over the transferred financial instrument, in which case it
continues recognising it on the balance sheet at an amount equal to its exposure to value
fluctuations that can experience and a financial liability associated to an amount equal to
the consideration received is recognised. Such liabilities are subsequently valued at
amortised cost, unless it meets the requirements to be classified as financial liabilities at
fair value through profit or loss. To calculate the amount of financial liabilities, the amount
of its financial instruments (such as asset-backed securities and loans) that constitutes
funding for the entity to which financial assets have been transferred will be deducted, in
the exact amount as these financial instruments finance transferred assets specifically.
The net amount between transferred assets and associated liabilities will be the amortised
cost of the rights and obligations retained, if the transferred asset is measured at
amortised cost, or fair value of the rights and obligations retained, if the transferred asset
is measured at its fair value.
Therefore, financial assets are only removed from the balance sheet when the generated cash
flows have been extinguished or when the implicit risks and benefits have been transferred to
third parties.
Similarly, financial liabilities are only removed off the balance sheet when generated
obligations have been extinguished or when they are purchased with the purpose of being
cancelled or repositioned again.
2.2.3 Fair value and amortised cost of financial instruments
Financial assets
The fair value of a financial instrument at a given date is understood as the amount at which it may
be purchased or sold at that same date between some informed parties, in an arm’s length
transaction. The most objective and common reference value for a financial instrument’s fair value is
the price that would be paid in an organised, transparent and deep market (“quoted price” or “market
price”).
In the absence of a market price for a specific financial instrument, its fair value is estimated on the
basis of recent transactions involving similar instruments or, if failing this, using valuation techniques
that have been accepted from the international financial community, taking into account the specific
features of the instrument to be measured and, above all, the different types of associated risks.
Specifically, the fair value of a held-for-trading derivative financial instrument traded in organised,
transparent and deep markets is the same as their daily market price. If, in exceptional circumstances,
the price cannot be established on a given date, they are measured using similar methods to those
applied to derivatives not traded in organised markets.
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The fair value of derivatives not traded in organised markets, or traded in organised markets that are
not deep or transparent, is equal to the sum of the future cash flows generated by the instrument,
discounted at the measurement date (“present value” or “theoretical close”), employing valuation
techniques accepted by the financial markets: “net present value” (NPV), option pricing models, etc.
Amortised cost is the acquisition cost of a financial asset or adjusted liability (upward or downward)
for capital and interest repayments and, when applicable, for the (higher or lower) portion (recognised
in the profit and loss account applying the effective interest method) of the difference between the
initial amount and the repayment value of the financial instruments. The amortised cost of financial
assets also includes impairment adjustments that may have occurred.
The effective interest rate is the discount rate that brings the initial value of a financial instrument
exactly into line with total estimated cash flows through its residual life. In the case of fixed-income
financial instruments, the effective interest rate is equal to the contractual rate defined on acquisition,
adjusted for commissions and transaction costs that, in accordance with the provisions of Bank of
Spain Circular 4/2017, must be included in the calculation of the effective interest rate The effective
interest rate for variable-rate financial instruments is estimated in the same way as for fixed-income
transactions, and is recalculated at each interest review date stated in the contract, taking into
consideration changes in the transaction’s future cash flows.
Other entities’ shareholdings, whose fair value cannot be determined objectively and financial
derivatives that have this instrument as its underlying assets and are settled by their delivery, are kept
at cost, adjusted, where appropriate, by impairment losses experienced.
Variations in financial assets amounts are registered, in general, with a counterpart in the profit and
loss account, differentiating the ones that are caused by the accrual of interest and similar items that
are recorded in the heading of “Interest and similar income”, and those corresponding to other causes
that are recorded by the net amount under the heading of “Gains or losses on financial assets and
liabilities” of the profit and loss account.
However, changes in instruments’ value included under the portfolio of financial assets valued at fair
value through other comprehensive income are temporarily recorded on caption “Other accumulated
comprehensive income”, unless they come from exchange differences. Amounts on caption “Other
accumulated comprehensive income” for changes in the fair value of these financial instruments
remain part of net equity until they are removed from balance sheet’s assets where they are
originated, moment when they are registered against a profit and loss account, unless they are
financial instruments which valuation changes are never reclassified to the profit and loss account.
Also, value changes of the items included under the heading “Non-current assets held for sale” are
recorded under “Other accumulated comprehensive income” as valuation adjustments in consolidated
equity.
Related to financial instruments, valuations at fair value reflected in the annual accounts are classified
using the following fair value ranking:
i) Level I: reasonable values are obtained from quoted prices (not adjusted) in active markets
for the same instrument.
ii) Level II: fair values are obtained from valuation techniques in active markets for similar
instruments, recent transaction prices or expected cash flows, or other valuation techniques
in which all significant inputs are based, directly or indirectly, on observable market data.
27
iii) Level III: fair values are obtained from valuation techniques in which some significant inputs
are not based on observable market data.
In financial assets designated as hedged items and hedging accounting, valuation differences are
recorded taking into account the following criteria:
- In fair value hedges, the differences occurring in hedging items and in hedged items, in relation
to the type of hedged risk are recognised directly in profit and loss account.
- Differences in valuation related to inefficiency of cash flows hedging and net foreign
investments are sent directly to the profit and loss account.
- In cash flow hedges, the valuation differences arising on the effective hedging of the hedging
items are temporarily registered under the heading of ‘Other accumulated comprehensive
income’ as adjustment in net equity.
- In net foreign investments hedging, valuation differences arising on the effective hedging of
the hedging items are temporarily registered under the heading of ‘Other accumulated
comprehensive income’ as adjustment in net equity.
In the last two cases, valuation differences are not included in results until hedged item’s gains or
losses are recorded in the profit and loss account or until the hedged item’s expiration date.
In interest rate risk’s fair value hedges of a financial instruments portfolio, gains or losses that arise
when assessing the hedging instruments are recognised directly in the profit and loss account,
whereas the gains or losses in the amount covered fair value changes, regarding the hedged risk, are
recognised in “Other accumulated comprehensive income” as adjustment in financial assets by macro
hedging.
In interest rate risk cash flows hedging of a financial instruments portfolio, the effective part of the
hedging instrument’s value fluctuation is recorded temporarily in “Other accumulated comprehensive
income” as adjustment in net equity until expected transactions occur, being then recorded in the
profit and loss account. The ineffective portion of the hedging derivative’s value fluctuation is directly
registered on the profit and loss account.
Financial liabilities
Financial liabilities are recorded at amortised cost, as defined for financial assets in the note above,
except in the following cases:
- Financial liabilities included in captions ‘Financial liabilities held for trading’ and ‘Financial
liabilities at fair value through profit or loss’, are recorded at fair value, as defined for financial
assets in the note above. Financial liabilities covered by fair value hedging operations are
adjusted, being registered those fair value variations in relation to the hedged risk covered by
the hedge operation.
- Financial derivatives whose underlying assets are equity instruments whose fair value cannot
be determined in a sufficiently objective and be settled by delivery of these contracts are
valued at cost.
Financial liabilities amount’s variations are recorded, in general, offset by the profit and loss account,
differentiating between those that are caused by interest accrual and similar items that are recorded
in the heading of “Interest and similar income”, and those corresponding to other causes, which are
recorded under the heading ‘Gains or losses on financial assets and liabilities measured at fair value
28
through profit or loss’ of the consolidated profit and loss account.
Financial liabilities designated as hedged items and hedging accounting valuation differences, are
recorded taking into account the above criteria for financial assets, included in the previous note.
2.2.4 Classification and valuation of financial assets and liabilities
Financial instruments are classified into the following categories in the Institute’s balance sheet:
- Central bank and credit institutions deposits, which are cash balances and amounts held in
Bank of Spain, other central banks and other credit institutions;
- Financial assets and liabilities at fair value through profit or loss: this category is made up with
financial instruments classified as trading portfolio and other financial assets and liabilities
classified at fair value through profit or loss:
• Financial assets are those financial assets included in the trading portfolio acquired in
order to be realised in the short term or which form part of a portfolio of identified financial
instruments for which there is evidence of recent actions taken to obtain short-term
gains. Also, derivative financial instruments not designated as hedge instruments are
considered as part of this category, including instruments segregated from hybrid
financial instruments in accordance with applicable accounting rules.
• Financial liabilities are those liabilities included in the trading portfolio issued in order to
be repurchased in the near future or that form part of a portfolio of financial instruments
identified or jointly managed for which there is evidence of recent actions to obtain short-
term gains, short positions in securities arising from sales of assets acquired under non-
optional repurchase agreements and loans of securities, and derivative financial
instruments not denominated as hedge instruments, including segregated from hybrid
financial instruments. The fact that a financial liability is used to finance trading assets
does not entail its own inclusion in this category.
• Other financial assets or liabilities at fair value through profit or loss are the following:
- Financial assets that, not being included in the Trading portfolio, are considered
as hybrid financial assets and are valued at fair value, and those that are jointly
managed with Liabilities under insurance contracts valued at their fair value or with
financial derivatives whose purpose and effect is to reduce its exposure to
fluctuations in fair value or which are jointly managed with financial liabilities and
derivatives in order to reduce the overall exposure to interest rate risk.
- Financial liabilities designated at its initial recognition by the entity or when
recognising them more relevant information is obtained because:
- With it, inconsistencies in the recognition or appreciation arising from the
asset or liabilities valuation or recognising the gains and losses will be
deleted or significantly reduced, using different criteria.
- A group of financial liabilities or both financial assets and liabilities is
managed and their performance is evaluated based on their fair value,
according to a risk management or investment information strategy.
Documented information about groups is issued also on the basis of the fair
value to the key Management staff.
29
- Assets valued at amortised cost. This category includes the following:
• Debt securities with fixed maturities and cash flows of a determined or determinable
amount. Debt securities included in this category are initially valued at fair value, adjusted
for transaction costs directly attributable to the acquisition of the financial asset, which are
recognised in the profit and loss account using the effective interest method, defined in
applicable accounting legislation as of Bank of Spain, 4/2020. They are subsequently
valuated at amortised cost, based on the effective interest ratios.
• Loans and receivables: this category includes financing provided to third parties arising
from the ordinary credit and loan activities carried out by the Institute and debts incurred
by asset buyers and by service users. It also includes financial lease transactions in which
entities act as lessors.
Financial assets included in this category are initially carried at fair value, adjusted for
commissions and transaction costs directly attributable to the acquisition of the financial asset
and which, under applicable accounting legislation as of Bank of Spain, 4/2020, must be
recognised in the profit and loss account using the effective interest rate method. Once these
assets are acquired, they are valued at amortised cost.
Assets acquired at discount are registered for the amount paid and the difference between the
repayment value and that cash amount is recognised as a financial income, applying the
effective interest rate method until maturity.
The accrued interest for assets included in this category, calculated using the effective interest
rate method, is recognised in the caption “Interest and similar income” in the profit and loss
account. Exchange differences on securities denominated in foreign currency, other than the
euro included in this portfolio, are accounted as it is mentioned in Note 2.4. Possible
impairment losses on these securities are recorded as indicated in Note 2.7. Debt securities
included in fair-value hedging are recorded as mentioned in Note 2.3.
- Financial assets at fair value through other comprehensive income: this category includes debt
securities not classified as instruments at amortised cost or at fair value through profit or loss,
owned by the Institute, as well as equity instruments owned by the Institute corresponding to
entities which are not subsidiaries, joint ventures or associated entities, which have not been
classified as at fair value through profit or loss.
Instruments included in this category are initially measured at fair value, adjusted for
transaction costs directly related to the acquisition of the financial asset, which are recognised
in the profit and loss account using the effective interest rate method defined in applicable
accounting legislation as of Bank of Spain, 4/2020, to maturity, unless the financial assets
have no fixed maturities. In such cases, they are taken to the profit and loss account, when
they become impaired or are written off the balance sheet. Subsequently, financial assets
included in this category are valued at fair value.
Nonetheless, equity instruments whose fair value cannot be determined in a sufficiently
objective way are valued at cost in these annual accounts, net for impairment calculated as
explained in Note 2.7.
Products corresponding to interests or dividends accrued from these financial assets are
registered with counterpart on captions “Interests and similar income” (calculated using the
effective interest rate method) and “Dividends income” in the profit and loss account,
respectively. Impairment losses on these instruments are recorded as mentioned in Note 2.7.
Exchange differences on financial assets denominated in foreign currency other than the euro
30
are accounted as mentioned in Note 2.4. Changes in fair value of financial assets covered by
fair-value hedges are stated as mentioned in Note 2.3.
The remaining changes in the fair value of financial assets from acquisition are registered with
counterpart in the Institute’s equity under caption “Other accumulated comprehensive income”
as valuation adjustments, until the financial asset is written off, moment at which the balance
registered on such caption is booked on the profit and loss account under caption “Profit and
loss for write-off of financial assets and liabilities valued at fair value through profit or loss”.
- Financial liabilities at amortised cost: This category of financial instruments includes financial
liabilities that are not included in any of the previous categories.
Financial liabilities included in this category are initially carried at fair value, adjusted for
transaction costs directly attributable to the issue of the financial liability, which will be
recognised in the profit and loss account using the effective interest rate method, defined in
applicable accounting legislation (Bank of Spain Circular 4/2017) to maturity. Subsequently
they are measured at amortised cost, calculated by applying the effective interest rate method
defined in applicable accounting legislation (Bank of Spain Circular 4/2017).
The interest accrued on these assets, calculated using the effective interest rate method, is
recognised in the caption “Interest and similar charges” in the profit and loss account.
Exchange differences on securities denominated in foreign currency, other than the euro
included in this portfolio, are accounted as mentioned in Note 2.4. Financial liabilities included
in fair-value hedging are recorded as mentioned in Note 2.3.
Nevertheless, those financial instruments that must be classified as non-current assets held for sale,
in accordance with the provisions of Rule Thirty-Four of Circular 4/2017, Bank of Spain, are included
in the annual accounts as explained in Note 2.16.
The classification of financial instruments in these categories will be based in two elements: (i) the
entity’s business model to manage financial assets; (ii) the characteristics of financial assets’
contractual cash flows:
- A financial asset is classified on the portfolio of financial assets at amortised cost when
two conditions are met: (i) it is managed with a business model which objective is to hold
financial assets to perceive contractual cash flows; and (ii) contractual conditions lead to
cash flows at specified dates, which always are payments of principal and interests on
the amount of the outstanding principal;
- A financial asset is classified on the portfolio of financial assets at fair value through other
comprehensive income when the two following conditions are met: (i) it is managed with
a business model which objective combines the perception of the financial assets’
contractual cash flows and the sale; (ii) contractual conditions lead to cash flows at
specified dates, which always are payments of principal and interests on the amount of
the outstanding principal;
- A financial asset is classified on the portfolio of financial assets held for trading or financial
assets obligatorily at fair value through profit or loss, as long as, due to the entity’s
business model for their management or to the characteristics of its contractual cash
flows, it cannot be classified in any of the portfolios above.
Nonetheless, the entity shall opt, at initial recognition and in an irrevocable manner, for
including on the portfolio of financial assets at fair value through other comprehensive
income investments in equity instruments which should not be classified as held for
31
trading and which would be classified as financial assets obligatorily at fair value through
profit or loss. This option will be exercised on an instrument basis.
Also, the entity shall opt, at initial recognition and in an irrevocable manner, for
designating any financial asset at fair value through profit or loss if thus valuation or
recognition incoherencies are eliminated or significantly reduced (also called «accounting
asymmetry») which would otherwise derive from the valuation of assets or liabilities, or
recognition of profit or loss, on different bases. When there are accounting asymmetries,
this option shall be exercised regardless of the entity’s business model for its
management and the characteristics of the contractual cash flows.
Additionally, and regardless of the above, the entity shall opt, at initial recognition or
subsequently, for designating any financial asset as belonging to the portfolio of financial
assets at fair value through profit or loss, as long as requirements established on Circular
4/2017 are met.
Reclassifications between financial instruments portfolios are made exclusively, according to the
following assumptions:
o When an entity changes its business model for the management of financial assets, it will
reclassify all financial assets according to the following sections. Such reclassification will be
prospectively performed from the reclassification date, not requiring a restatement of
previously recognised profit, loss or interests. In general, changes in the business model are
rare.
o If the entity reclassifies a debt instrument from the portfolio of amortised cost into fair value
through profit or loss, the entity must estimate its fair value at reclassification date. Any profit
or loss generated for the difference between the previous amortised cost and the fair value
will be recognised on the profit and loss account. If the entity reclassifies a debt instrument
from the portfolio of fair value through profit or loss into amortised cost, the asset’s fair value
at reclassification date will be its new gross carrying amount.
o If the entity reclassifies a debt instrument from the portfolio of amortised cost into fair value
through other comprehensive income, the entity must estimate its fair value at reclassification
date. Any loss or profit generated for differences between the prior amortised cost and the
fair value will be recognised in other comprehensive income. The effective interest rate and
the estimate of expected credit losses will not be adjusted as a consequence of the
reclassification.
o If a debt instrument is reclassified from the portfolio of fair value through other comprehensive
income into amortised cost, the financial asset will be reclassified at the fair value at
reclassification date. The accumulated profit or loss at reclassification date in other
accumulated comprehensive income of equity will be cancelled using as counterpart the
asset’s carrying amount at reclassification date. Thus, the debt instrument will be valued at
reclassification date as if it had been valued at amortised cost. The effective interest rate and
the estimate of expected credit losses will not be adjusted as a result of the reclassification.
o If the entity reclassifies a debt instrument from the portfolio of fair value through profit or loss
to fair value through other comprehensive income, the financial asset will continue being
valued at fair value, without modification of the registration of previously registered value
changes.
o If the entity reclassifies a debt instrument from the portfolio of fair value through other
comprehensive income into fair value through profit or loss, the financial asset will continue
32
being valued at fair value. The profit or loss previously accumulated in «other accumulated
comprehensive income» of equity will be transferred to profit or loss of the period at
reclassification date.
o When the investment in a subsidiary, joint venture or associate is no longer classified as
such, the retained investment, if any, will be measured at its fair value at reclassification date,
recognising all profits or losses generated for the difference between its carrying amount
prior to the reclassification and such fair value in profit or loss or in other comprehensive
income, as applicable, based on the subsequent valuation of the retained investment.
o The investment in an entity prior to its qualification as subsidiary, joint venture or associate
will be valued at fair value until the date when control, joint control or significant influence is
obtained. At this last date, the entity must estimate the fair value of the prior investment,
recognising any profit or loss generated for the difference between its carrying amount prior
to the reclassification and such fair value, in profit or loss or in other comprehensive income,
as applicable. Where applicable, the accumulated profit or loss in other accumulated
comprehensive income of equity will be maintained until the investment is written off from
the balance sheet, moment at which it will be reclassified into an item of reserves.
o The entity will not reclassify any financial liability.
o For the purpose of sections above, changes derived from the following circumstances are
not considered as reclassifications:
• When an element that previously was a designated and efficient hedging
instrument in a cash flow hedging or net investment hedging in a foreign business
ceases complying with requirements to be considered as such.
• When an element becomes a designated and efficient hedging instrument in a
cash flow hedging or net investment hedging in a foreign business.
• When there are changes in the valuation of financial instruments because they are
designated, or cease being designated, at fair value through profit or loss.
There has been no reclassification during 2022 or 2021.
2.3 Financial derivatives
Financial derivatives are instruments that provide a loss or gain, and allow, under certain conditions,
the compensation of the totality or part of the credit and / or market risks associated to transactions
and balances, using interest rate and certain rates, individual securities prices, exchange rate cross-
currency or other similar references as underlying assets. The Institute uses financial derivatives
traded in bilateral organised or negotiated markets being the counterpart out of organised markets
(OTC).
The Group uses financial derivatives as part of its strategy to reduce its exposure to interest rate,
foreign and market exchange rate, among others. When these operations meet certain requirements
of the Rules Thirty-first and thirty-second of Circular 4/2017, Bank of Spain such operations are
considered as “hedging”.
When the Group designates a transaction as a hedge, it does so from the initial moment of the
transactions or the instruments included in those hedges, that hedge being appropriately documented.
When documenting these hedging transactions, the instrument or instruments hedged and hedging
instrument or instruments are properly identified together with the nature of the risk which is intended
to be covered and the criteria or methods followed by the Group to measure the efficiency of the
hedge over its life, taking into account the risk that it must cover.
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The Group only applies hedge accounting for hedges that are considered highly effective over their
entire lives. A Hedge is considered highly effective if during the envisaged term any changes in fair
value or cash flows attributed to the risk covered in the hedging of the financial instrument or
instruments hedged, are virtually fully offset by the changes in fair value or cash flows, as appropriate,
of the hedging instrument or instruments.
In order to measure the efficiency of hedging defined as such, the Group analyses whether from the
beginning until the end of the defined hedging period, changes in fair value or cash flows of the hedged
item, which may be attributed to the hedged risk may prospectively, be expected to be offset almost
completely by changes in fair value or cash flows, as appropriate, of the hedging instrument or
instruments and that retrospectively the results of the hedge have fluctuated in a measurement range
of 80% to 125% with regard to the results of the hedged item.
Hedging transactions carried out by the Group are classified into the following categories:
- Fair-value hedges: They cover the exposure to changes in the fair value of financial assets
and liabilities or firm commitments, or an identified portion of these assets, liabilities or
commitments, attributable to a specific risk, provided that they affect the consolidated profit
and loss account.
- Cash-flow hedges: they cover changes in cash-flow that are attributable to a specific risk
associated with a financial asset or liability or a highly-probable planned transaction, which
may affect the consolidated profit and loss account.
Measurement differences are recorded in accordance with the following criteria, when referring
specifically to financial instruments designated as hedged components and book hedges:
- Fair-value hedges: They cover the exposure to changes in the fair value of financial assets
and liabilities or firm commitments, or an identified portion of these assets, liabilities or
commitments, attributable to a specific risk, provided that they affect the consolidated profit
and loss account.
- Cash flows hedges: valuation differences arisen on the efficient hedging portion of hedging
elements are transitorily registered on caption “Other accumulated comprehensive income” as
valuation adjustments for cash flows hedged. Hedged financial instruments in this kind of
hedging operations are registered according to criteria explained on Note 2.2 without any
modification for the fact of being considered as such hedged instruments.
In the last case, measurement differences are not recognised as results until the gains or losses on
the hedged item are recorded in the profit and loss account, or until maturity.
Differences in the valuation of the hedge instrument, corresponding to the inefficient part of the
hedging cash flow operations, are directly registered as “Gains or losses on financial assets and
liabilities measured at fair value” in the consolidated profit and loss account.
The Group interrupts hedge accounting when the hedging instrument expires or is sold, when a hedge
no longer meets the criteria for hedge accounting or when the transaction ceases to be classed as a
hedge.
Where fair-value hedge accounting is interrupted as stated in the preceding paragraph, in the case of
hedged items carried at amortised cost, the value adjustments made for hedge accounting purposes
are recognised in the profit and loss account until the maturity date of the hedged items, applying the
effective interest rate as recalculated on the interruption date.
In the situations in which a cash-flow hedge transaction is interrupted, the accumulated gain or loss
34
from the hedge is registered under the heading “Other accumulated comprehensive income” in the
balance sheet and it will remain under this heading until the planned hedge transaction takes place,
time at which it will be taken to the consolidated profit and loss account, or the cost of acquiring the
asset or liability to be recorded will be adjusted, in the event that the hedged component is a planned
transaction that culminates with the recording of a financial asset or liability. In the event of planned
transactions, when expected not to take place, the entry made under “Other accumulated
comprehensive income” relating to that transaction is immediately recognised in the profit and loss
account.
2.4 Foreign currency transactions and functional currency
The Group’s functional currency is the Euro. Therefore, all balances and transactions denominated in
currencies other than the euro are considered denominated in foreign currency.
Set out below is the equivalent value of financial assets and liabilities denominated in foreign currency
held by ICO, as Group’s parent company, at December 31, 2022 and 2021 (in thousands of Euros):
2022
2021
Assets
Liabilities
Assets
Liabilities
Pounds Sterling
380 614
529 340
438 109
1 070 233
US Dollars
2 406 034
7 228 720
2 262 411
9 439 591
Swiss Francs
8
258 079
11
245 988
Japanese Yens
741
35 687
800
99 860
Other currencies
435 683
61 838
190 516
66 324
3 223 080
8 113 664
2 891 847
10 921 996
The equivalent value in Euros of assets and liabilities denominated in foreign currency (in thousands
of Euros), classified by nature, recorded by the Institute, at December 31, 2022 and 2021 is as follows:
2022
2021
Assets
Liabilities
Assets
Liabilities
Loans to Credit Institutions
1 284 125
1 191 461
-
Loans to Customers
1 924 671
1 682 310
-
Other financial assets
14 284
18 076
-
Deposits in Credit Institutions
2 865 741
-
2 269 222
Debt securities issued
5 247 278
-
8 650 215
Other financial liabilities
645
-
2 529
3 223 080
8 113 664
2 891 847
10 921 996
When initially recognised, debtor and creditor balances accounted in foreign currency are converted
to the functional currency using the spot exchange rate at the date of recognition, understood as the
exchange rate for an immediate delivery. After initial recognition, the following rules are applied to
translate balances registered in foreign currency to the functional currency:
i) Monetary assets and liabilities are translated at the year-end exchange rate, understood as
the average spot exchange rate at the date to which the annual accounts refer.
ii) Non-monetary items valued at historic cost are translated at the exchange rate on the date of
acquisition.
iii) Non-monetary items measured at fair value are converted to the exchange rate on the date its
fair value is determined.
iv) Income and expenses are converted by applying the exchange rate existing on the transaction
date. Nonetheless, the average exchange rate for the period is used for all transactions carried
35
out in that period, unless there have been significant fluctuations. Depreciation/ amortisation
are translated at the exchange rate applied to the relevant asset.
Exchange differences arising from conversion of debtor and creditor balances denominated in foreign
currency are generally recorded in the consolidated profit and loss account. Nonetheless, in the case
of exchange differences that arise from non-monetary items measured at fair value, for which the fair-
value adjustment is recorded under “Other accumulated comprehensive income”, the component of
the exchange rate relating to the revaluation of the non-monetary element is broken down.
Exchange rates used by the Group to convert balances denominated in the main foreign currencies
in which it operates, for the purpose of the elaboration of the consolidated annual accounts, are the
market rates at December 31, 2022 and 2021 published by the European Central Bank at each of
those dates.
The net amount of exchange differences arising from the conversion of receivables and payables
denominated in foreign currency arises up to 4,038 thousand Euros profit at December 31, 2021
(5,619 thousand Euros losses at December 31, 2021).
2.5 Recognition of income and expenses
Below, there is a summary of the most significant accounting policies used by the Group to recognise
income and expenses:
2.5.1 Interest income and expense, dividends and similar items
In general, interest income and expense and similar items are accounted on an accruals basis,
applying the effective interest rate method defined in applicable legislation. Dividends received from
other companies are recognised when consolidated companies become entitled to receive them.
2.5.2 Commissions, fees and similar items
Income and expense related to commissions and similar fees, which should not be included in the
calculation of the effective interest rate of operations and/or do not form part of the acquisition cost of
financial assets or liabilities, except for those carried at fair value through profit or loss, are recognised
in the consolidated profit and loss account using different methods depending on their nature. The
most significant methods used are explained below:
- Amounts associated with the acquisition of financial assets and liabilities carried at fair value
through profit or loss are recognised in the profit and loss account at the payment date.
- Amounts arising from long-term transactions or services are recognised in the profit and loss
account over the term of the transactions or services.
- Amounts relating to a one-off event are recorded in the profit and loss account when that event
takes place.
2.5.3 Non-financial income and expenses
These amounts are accounted on an accruals basis.
2.5.4 Deferred collections and payments
They are registered on accounts by the amount resulting from financially updating at market rates
expected cash flows.
36
2.6 Offsetting of balances
Only debtor and creditor balances arising from transactions which, under contract or legislation,
provide the possibility to offset and exist in the company, to be settled at their net amount, or
simultaneously realised and paid, are offset and therefore presented in the consolidated balance
sheet at their net amount.
2.7 Impairment of financial assets
The carrying value of financial assets is generally adjusted against the consolidated profit and loss
account when there is objective evidence that there are impairment losses. This is the case where:
- For debt instruments, understood as loans and debt securities, when, following their initial
recognition, there is an event or combined effect of several events which have a negative
impact on the relevant future cash flows.
- For equity instruments, when following their initial recognition, there is an event or the
combined effect of several events, making it impossible to recover their carrying value.
As a general rule, impairment financial instruments value correction is charged to the profit and loss
account of the period in which such impairment takes place and the recovery of previously recorded
impairment losses, if takes place, are recognised in the profit and loss account of the period during
which the deterioration is eliminated or reduced. In the event that the recovery of any amount in
respect of the impairment recorded is considered impossible, such impairment is written off from the
balance sheet, although the Group may carry out the necessary actions to attempt to secure collection
until the definitive extinguishment of its debt claims due to lapsing, remission or other reasons.
Debt instruments and contingent risks portfolios, regardless of their owner, warranty or
instrumentation, are analysed to determine the credit risk to which the Group is exposed and to
estimate hedging requirements for impairment in value. For the annual accounts preparation, the
Group classifies its operations in terms of its credit risk by analysing, separately, the insolvency risk
due to the customer and country risk to which they are exposed.
Debt instrument’s future cash flows estimated are all amounts, principal and interest, the Group
believes will receive during the instrument’s life. All relevant information which provides data about
the possibility of future recovery of contractual cash flows that is available at the time of annual
accounts elaboration is considered in this estimate. Also, in estimating instruments with security’s
future cash flows, are taken into account the flows that would result from its realisation, less the
amount of costs for its acquisition and subsequent sale, irrespective of the probability of the
guarantee.
In the calculation of the present value of estimated future cash flows, the instrument’s original effective
interest rate is used as the update rate, if contract rate is fixed, or the effective interest rate on the
date to which the statements relate determined according to financial conditions of the contract, if
variable.
In the case of debt instruments measured at amortised cost, the amount of impairment losses incurred
is equal to the negative difference between the carrying value and the current value of future estimated
cash flows, using the original effective interest rate as the adjustment rate, if that rate is fixed, or the
effective interest rate at the date of the annual accounts calculated in accordance with the terms of
the contract, when a variable ratio, in the case of listed debt instruments, market value may be used
as a substitute, provided that it is enough reliable to consider it to be representative of the value the
Group will recover.
Objective evidence of impairment will be determined individually for all debt instruments that are
37
significant, and individually or collectively for the groups of debt instruments which are not individually
significant. When a specific instrument cannot be included in any group of assets with similar risk
characteristics, it will be analysed solely on an individual basis to determine whether it is impaired
and, if appropriate, estimate the impairment loss.
The collective assessment of a group of financial assets to estimate impairment losses is as follows:
- Debt instruments are included in groups with similar credit risk characteristics, indicative of
debtor ability to pay all amounts, principal and interest, in accordance with contractual terms.
The characteristics of credit risk, which are taken into account in order to group together
assets, are, for example, the type of instrument, the debtor’s sector of activity, the geographic
area of activity, type of guarantee, age of amounts overdue and any other factor that may be
relevant when estimating future cash flows.
- Future cash flows in each group of debt instruments are estimated based on the Group’s
experience of historical losses for instruments with similar credit risk characteristics to those
of the respective group, following the necessary adjustments to adapt historical data to current
market conditions.
- Impairment losses in each group are the difference between the carrying value of all the
group’s debt instruments and the present value of its estimated future cash flows.
Debt instruments not measured at fair value through changes in the consolidated profit and loss
account, contingent risks and commitments, are classified based on the insolvency risk attributable
to the client or the transaction, in the categories defined by the Annex IX from the Bank of Spain’s
Circular 4/2017. For debt instruments not classified as normal risk, estimates are made regarding the
specific impairment hedges necessary based on the criteria established in the above mentioned
regulation, bearing in mind the age of the unpaid amounts, the guarantees provided and the client’s
financial situation and, if appropriate, the guarantors.
Similarly, these financial instruments are analysed to determine the credit risk deriving from country
risk, understood to be the risk affecting clients resident in a certain country due to circumstances other
than normal commercial risks.
In addition to the specific impairment hedges indicated above, the Group hedges against losses
inherent to debt instruments not measured at fair value through consolidated profit or loss and
contingent risks classified as normal through group hedges, calculated based on historical impairment
and other familiar circumstances at the time of evaluation that are related to inherent losses incurred
at the date of the annual accounts, calculated using statistical methods, that have yet to be assigned
to specific transactions.
In this sense, the Group has used the parameters established by the Bank of Spain, based on its
sector experience and information, which determine the method and amount to be used to cover
inherent impairment losses incurred in debt instruments and contingent risks classified as normal
risks, which are changed regularly on the basis of the development of the data in question. This
method of determining the hedging for impairment losses is based on the application of certain
percentages set in the applicable accounting legislation, which vary based on the risk classification of
financial instruments as established in the applicable regulation, and which change depending on the
risk classification of the financial instruments established by the abovementioned regulation.
38
In general, impairment of debt instruments is calculated by applying the following percentages to the
outstanding risk not covered by the amount to be recovered from the effective collateral, based on
the risk segment to which the operation belongs and the seniority of past due amounts:
From 90
days to 6
months
From 6 to
9 months
From 9
months to 1
year
From 1
year to 15
months
From 15 to
18 months
From 18 to
21 months
More than 21
months
Non-credit institutions and individual
entrepreneurs
Special Financing
Construc. and property develop.
70
75
85
90
95
100
100
Construc. civil work
55
65
70
80
95
100
100
Other espec. financing
55
65
75
90
95
100
100
Non-special Financing
Large companies
55
65
75
90
95
100
100
SMEs
65
70
75
85
90
95
100
Individual entrepreneurs
35
45
60
65
80
95
100
Houses
House purchase
Main residence unpaid (LTV) <80%
guarantee
45
50
65
70
85
95
100
Main residence unpaid (LTV) >80%
guarantee
45
50
65
70
85
95
100
Secondary residence
45
50
65
70
85
95
100
Consumer credit (inc. credit card debts)
55
65
80
85
95
100
100
Other
55
65
80
85
95
100
100
Generic provisions for operations classified as normal risk, will be different to that calculated for
regular risk in the watch-list. Both are calculated by applying the following percentages to the
outstanding exposure not covered with effective guarantees:
Normal
risk
Normal risk in watch-
list
Non-credit institutions and individual
entrepreneurs
Special Financing
Construc. and property develop.
1.9
30.0
Construc. civil work
2.0
18.8
Other especial financing
0.6
9.6
Non-special Financing
Large companies
0.6
9.6
SMEs
1.1
17.8
Individual entrepreneurs
1.4
13.9
Home
Home purchase
Main home unpaid (LTV) <80%
guarantee
0.7
18.0
Main home unpaid (LTV) >80%
guarantee
0.7
18.0
Secondary residence
0.7
18.0
Consumer credit
1.8
20.2
Which from: credit card debts
1.0
11.6
Other
1.8
20.2
In estimating effective collateral, for the purpose of calculating hedges, the following estimated
discounts on the reference value of such collateral will be applied:
TYPE OF REAL GUARANTEE
Discount over
reference value
(%)
Mortgage guarantees (first charge)
Buildings and finished building elements
Homes
30
Offices, commercial premises and warehouses
40
Other
45
Urban and developable land ordered
40
Other immovable property
45
Posted collateral of financial instruments
Money deposits
0
Other marketable financial instruments
10
Other non-marketable financial instruments
20
39
Other real guarantees (for example. second
mortgages, movable assets)
50
The Institute has constituted the corresponding provisions at December 31, 2022 with extreme
caution, and thus to be able to strengthen its balance sheet, with a detailed analysis of each borrower,
when needed, and taking into account uncertainties underlying the financing, due to the
macroeconomic environment.
In the case of real estate assets foreclosed or received in payment of debts, for the purposes of
valuation of the hedging that may correspond, the following discounts will be applied on the reference
value for said assets:
TYPE OF FORECLOSED PROPERTIES
Discount over
reference value
(%)
Buildings and finished building elements
Homes
25
Offices, commercial premises and warehouses
30
Other
32
Urban and developable land ordered
35
Other immovable property
40
The recognition in the consolidated profit and loss account of the accrued interests on the base of the
contractual terms is interrupted for all the instruments of debt qualified individually and for those that
had calculated collective losses because of the deterioration for having amounts conquered with an
antiquity top to three months.
The amount of impairment losses incurred in debt securities and equity instruments included under
Financial assets at fair value through other comprehensive income is equal to the positive difference
between their acquisition costs, adjusted to any repayment of the principal, and their fair value less
any impairment loss previously recognised in the profit and loss account.
When there is objective evidence that the decline in fair value is attributable to impairment, the latent
losses, recognised directly under ‘Other accumulated comprehensive income’ as adjustment in net
equity, are recorded immediately in the profit and loss account. If, subsequently, all or part of the
impairment losses are recovered, the amount involved is recognised, in the case of debt securities,
in the profit and loss account for the recovery period, and, in the case of equity instruments, under
‘Other accumulated comprehensive income’ as adjustment in net equity.
For debt and equity instruments classified under non-current assets held for sale, losses recorded
previously under equity are considered to be realised and are recognised in the profit and loss account
at the date of their classification.
For shareholdings in Associates, joint ventures and subsidiaries, the Institute estimates impairment
losses by comparing the recoverable amount with their carrying value. Such impairment losses are
recorded in the profit and loss account for the period in which they arise while subsequent recoveries
are recorded in the profit and loss account for the recovery period.
In the case that the probabilities of recovery any amount recorded, like impairment, were considered
impossible, these are eliminated from the balance sheet, although the Institute could carry out
necessary actions to try to recover, as long as, their rights do not extinguish permanently by expiration,
cancellation or other causes.
40
2.8 Financial guarantees and related provisions
A financial guarantee contract is a contract that requires the issuer to make specified payments to
reimburse the creditor for the loss incurred when a debtor fails to perform specific payment obligation
under the conditions, original or amended of a debt instrument, regardless of their legal form, which
can be, inter alia, of a surety, financial guarantee insurance contract or credit derivative.
The issuer of financial guarantee contracts recognises them under the heading “Other financial
liabilities” at fair value plus transaction costs, which are directly attributable to its issuance, except for
contracts issued by insurance companies.
Initially, the fair value of financial guarantee contracts issued to a third party not connected within a
single transaction in mutual independence conditions, is the premium received plus, presents cash
flows value to receive, using a similar interest rate to the financial assets issued by the Group with
similar term and risk. Simultaneously, it will be recognised as a receivable asset the present value of
future cash flows to be received at the rate of interest mentioned above.
Subsequent to the initial recognition, the contracts are treated according to the following criteria:
i) The financial guarantee’s commissions or bonuses value to receive is updated by recording
the difference in the profit and loss account as financial income.
ii) The value of financial guarantee contracts that have not been qualified as doubtful, is the
initially recognised amount less the part charged to the profit and loss account on straight-line
basis over the expected life of the guarantee or by other criteria, provided that this more
accurately reflects economic risks and benefits of the warranty’s perception.
The classification of financial guarantee contracts as doubtful will imply the respective hedging action
under the heading of “Provisions for contingent exposures and commitments”.
2.9 Accounting for leases
2.9.1 Financial leases
Financial leases are those in which all the risks and rewards substantially carried by the leased asset
are transferred to the lessee.
Whenever the Group acts as lessor of an asset in a financial lease transaction, the sum of the present
values of the amount that will be received from the lessee plus the guaranteed residual value, usually
the purchase option price when the lease terminates, are recorded as financing provided to third
parties. It is therefore included in “Loans and receivables” in the consolidated balance sheet, in
accordance with the nature of the lessee.
When the Group acts as the lessee in a financial lease transaction, the cost of the leased assets is
recorded in the consolidated balance sheet, on the basis of the nature of the asset leased and a
liability is carried in the same amount, which will be the lower between the fair value of the leased
asset and the sum of the present values of the amounts payable to the lessor, plus, if appropriate, the
purchase option exercise price. These assets are depreciated at similar rates to those applied to the
Group’s property, plant and equipment for own use (Note 2.12).
In both cases, the financial income and expense on financial leases is credited and charged,
respectively, to the consolidated profit and loss account captions “Interest and similar income” and
“Interest and similar charges”, applying the effective interest rate method on the lease to estimate its
accrual, calculated according to the applicable regulations.
41
2.9.2 Operating leases
In operating leases, ownership of the leased asset and substantially all risks and rewards of ownership
are retained by the lessor.
Where consolidated companies act as the lessor in operating lease agreements, the acquisition cost
of the leased asset is registered under “Property, plant and equipment” in “Property investments” or
“Other assets assigned under operating lease”, depending on the nature of the leased assets. Such
assets are depreciated in accordance with the policies adopted for similar property, plant and
equipment for own use. The income from lease contracts is recognised in the consolidated profit and
loss account on a straight-line basis in the caption “Other operating income”.
When the Institute acts as lessee in operating lease agreements, a lease liability is included at the
current value of payments to be performed (fixed, variable, exercise of call option, and others), as the
contract’s initial valuation, and a right-of-use asset valued at cost.
2.10 Personnel costs
2.10.1 Short-term remunerations
Short-term remunerations to employees are payments made within twelve months, following the end
of the year in which the employees have rendered services. This remuneration is measured, without
any adjustment, at the amount payable for the services received and recorded, in general, as
personnel costs for the year and a liability accrual account, which is recorded for the difference
between the total expense and the amount already satisfied.
2.10.2 Post-employment commitments
Pension commitments entered into by the Group, referring to those acquired by the Institute with
regard to employees, are reflected in the collective wage agreement in force and correspond to
defined contribution commitments.
The Institute’s employees are members of the Joint Employment System Pension Plan offered by the
State Administration and regulated by the Pension Plan and Fund Regulation Act approved by
Legislative Royal Decree 1/2002 (29 November) and enabling regulations approved by Royal Decree
304/2004 (20 February), which is included in the BBVA Employment Pension Fund, managed by
Gestión de Previsión y Pensiones, Entidad Gestora de Fondos de Pensiones and deposited at BBVA.
As defined contribution commitments, the Institute has assumed annual contributions for employees
that have rendered services for more than two years at 1 May of each year, regardless of whether
they are career civil servants or interim government employees, contracted personnel, temporary
employees or senior management. The following parameters are taken into account when calculating
the annual contribution:
• The professional group to which the employee pertains.
• Length of service (understood to be the number of three-year periods the employee has
worked in the Administration, regardless of the contractual arrangement).
Amounts to be contributed are those approved in the General State Budget for each year. Under the
heading “Personnel costs” of the consolidated profit and loss account, there is no cost registered for
this year at December 31, 2022 and neither for the previous one at December 31, 2021.
42
2.10.3 Death and disability benefits and retirement bonuses
Commitments assumed with personnel for retirement bonuses and death or disability commitments
prior to retirement and other similar items, are estimated by calculating the present value of legal and
implicit obligations at the date of the annual accounts, after deducting any actuarial loss, less any
actuarial gain, the cost of past services yet to be recognised and the fair value of the assets that cover
the commitments, including insurance policies. The entire cost of past services and any actuarial
gains or losses are immediately recognised.
At December 31, 2022 a provision was recorded by the Group for post-employment commitments
amounting to 770 thousand Euros (791 thousand Euros at December 31, 2021).
2.10.4 Severances
Severances are recorded under the heading “Personnel costs” and the accompanying consolidated
profit and loss account crediting the accounts “Provisions for pensions and similar obligations” under
the heading “Provisions” in the accompanying consolidated balance sheet, only when the Group is
demonstrably committed to terminating an employee or group of employees before their normal
retirement date, or to pay remuneration as a result of an offer made as an incentive for the voluntary
rescission of the employees.
At December 31, 2022 and 2021, the Group has not recorded any provisions regarding this aspect
as there is no plan or agreement that would require such an allocation.
2.11 Corporate Income Tax
Corporate income tax is considered as an expense and is recorded under the heading of “Income tax”
of the consolidated profit and loss account.
Income tax expense for the year is calculated as tax payable on taxable income for the year, adjusted
for variations during the year in asset and liability balances arising from temporary differences, tax
credits and allowances, and any tax-loss carry forwards (Note 23).
The Group considers that there is a temporary difference when there is a difference between the
carrying amount and the taxable amount of an asset or liability. The amount attributed to an asset or
liability for tax purposes is considered the tax base. A taxable temporary difference is understood as
the one which will generate a future obligation for the Group to pay to the relevant Administration. A
deductible temporary difference is understood to be the one which will generate for the Group some
reimbursement right or a decrease in the payment to be made to the relevant administration in the
future.
Tax credits and allowances and tax credits for tax-loss carry forwards are amounts that, though
generated on completion of an activity or obtainment of a result, are not applied for tax purposes in
the relevant tax return until the conditions stipulated in tax legislation are fulfilled, and providing the
Institute the probability of application in future years.
Current tax assets and liabilities are amounts that the Institute expects to recover from or pay to the
corresponding tax authorities within 12 months, from the date on which they were recognised.
Deferred tax assets and liabilities are amounts that the Institute expects to recover from or pay to the
corresponding tax authorities in future years.
Deferred tax liabilities are recognised for all taxable temporary differences. Despite the above, no
deferred tax liabilities are recorded based on the recognition of goodwill.
43
The Group only recognises deferred tax assets deriving from deductible temporary differences, tax
credits or allowances or any tax-loss carry forwards, if they meet the following conditions:
- Deferred tax assets are only recognised in the case that the Group considers it likely to have
enough future taxable against which they may be offset.
- In the case of deferred tax assets deriving from tax losses, they have arisen from identified
causes that are unlikely to be repeated.
No deferred tax assets or liabilities are recognised when an asset is initially recorded, when it is not
deriving from a business combination and when, at the time of recognition, there was no effect on
book or taxable profits.
At the time of each accounting closing, deferred tax assets and liabilities are reviewed in order to
verify that they remain valid and that any relevant adjustments are made in accordance with the results
of the analysis performed.
2.12 Property, plant and equipment
2.12.1 Property, plant and equipment for own use
Property, plant and equipment for own use includes those assets that are owned or acquired under
financial leases that the Institute holds for its own current or future use for administrative purposes or
for the production or supply of assets and when they are expected to be used for more than one
financial year. Among other things, this category includes property, plant and equipment received by
the Group for the total or partial settlements of financial assets that represent debt claims against third
parties which are expected to be used on a continuous and internal basis.
Property, plant and equipment for own use is carried in the balance sheet at acquisition cost, which
consists of the fair value of any compensation paid plus any monetary payments made or promised,
less accumulated depreciation and, if appropriate, any estimated losses that result from comparing
the net value of each item with the relevant recoverable amount.
For these purposes, the acquisition cost of foreclosed assets that become part of property, plant and
equipment for own use by the Group, is similar to the net amount of the financial assets exchanged
for foreclosed.
Depreciation is calculated on a straight-line basis based on the acquisition cost of the assets
concerned less any residual value, with the understanding that land on which buildings and other
structures are located, have an undefined life and is therefore not depreciated.
Annual allocations to depreciation of property, plant and equipment are charged against the heading
“Depreciation-Property, plant and equipment” in the consolidated profit and loss account and basically
equals the following depreciation rates (calculated based on the estimated average useful life of the
assets concerned):
Annual percentage
Buildings
2%
Plant
4 to 15%
Furnishings and office equipment
10%
Data – processing equipment
25%
Transport elements
16%
At each accounting closing, the Group determines whether or not there are any internal or external
indications that the net value of its property, plant and equipment exceeds their recoverable value. If
44
so, the book value of the asset concerned is reduced to the recoverable value and future depreciation
charges are adjusted in proportion to the adjusted book value and the new remaining useful life, if a
new estimate is required. This reduction in the book value of property, plant and equipment for own
use is applied, if necessary, by charging the heading “Impairment or reversal of impairment on non -
financial assets” in the consolidated profit and loss account.
Similarly, when there are indications that the value of impaired property, plant and equipment has
been recovered, the Institute recognises the reversal of the impairment loss recorded in prior years
by crediting the heading “Impairment or reversal of impairment on non-financial assets” in the
consolidated profit and loss account and, consequently, adjusts future depreciation charges. Under
no circumstances may the reversal of an impairment loss affecting an asset, increases its book value
above that which it would have had if the impairment losses had not been recognised in prior years.
In addition, the estimated useful life of property, plant and equipment for own use is reviewed at least
on an annual basis in order to detect significant changes in these estimates and, if any are detected,
adjustments will be applied by correcting the depreciation charge made to the consolidated profit and
loss account in future years in accordance with the new estimated useful lives.
Repair and maintenance expenses for property, plant and equipment for own use, are charged
against results of the year in which they are incurred under the heading “Other administration
expenses” in the consolidated profit and loss account. The financial expense incurred as a result of
financing property, plant and equipment for own use is charged against the profit and loss account at
the time of accrual and these expenses do not form part of their acquisition cost.
2.12.2 Property investments
The consolidated balance sheet heading “Property investments” recognises the net value of land,
buildings and other structures that are held for rental or to obtain a capital gain on their sale as a result
of increases in their future market prices.
Criteria applied for recognising the acquisition cost of property investments for depreciation, for the
estimate of their respective useful lives and for recording any possible impairment losses, match with
those described with regard to property, plant and equipment for own use (Note 2.12.1).
2.13 Intangible assets
Intangible assets are considered to be identifiable non-monetary assets that, while not existing
physically, arise as a result of a transaction or have been internally developed by the Group. Only
intangible assets whose cost may be reasonably estimated on an objective basis and which the
Institute deems likely to provide a future financial benefit, are recognised for accounting purposes.
Intangible assets, other than goodwill, are recognised in the balance sheet at their acquisition or
production cost, adjusted to accumulated amortisation and any impairment losses they may have
suffered.
Intangible assets may have an “undefined useful life” when the analysis performed on all relevant
factors leads to the conclusion that there is no foreseeable limit to the period over which they are
expected to generate net cash flows for the Institute, and they have an “definite useful life” in all other
cases.
Intangible assets with an indefinite useful life are not amortised, although at the time of each
accounting closing the Group reviews their respective remaining useful lives in order to ensure that
they continue to be indefinite. If this is not the case, an appropriate action is taken.
45
Intangible assets with a defined life-span are amortised according to some criteria similar to those
applied to property, plant and equipment. The annual amortisation charge for these intangible assets
is carried in the consolidated profit and loss account caption “Amortisation - Intangible assets”.
For intangible assets with both an indefinite and definite useful life, the Group recognises any
impairment in those assets and uses them as a balancing entry “Impairment or reversal of impairment
on non-financial assets” in the consolidated profit and loss account. The methods applied to recognise
impairment losses on these assets and, if appropriate, the recovery of impairment losses, recognised
in prior years, are similar to those applied to property, plant and equipment (Note 2.12.1).
2.14 Provisions and contingent liabilities
When preparing the consolidated annual accounts, the Group differentiates between:
- Provisions: creditor balances that cover obligations that exist in the balance sheet date,
deriving from past events that could give rise to financial losses for the entities. Although such
losses are regarded as probable and are specific in nature, their amount and/or settlement
date cannot be determined.
- Contingent liabilities: possible obligations deriving from past events which may materialise
subject to one or more future events beyond the Group’s control.
The Group’s annual accounts include all significant provisions for obligations classified as probable.
Contingent liabilities are not recognised in the consolidated annual accounts, but information is
provided in accordance with requirements of Circular 4/2017 of Bank of Spain (Note 19).
Provisions are quantified using the best information available about the consequences of the event
that justifies them and are re-estimated at the year end. They are applied to meet the specific
obligations for which they were originally recognised and fully or partially reversed should such
obligations cease to exist or decrease.
At the 2022 and 2021 year end, a number of legal procedures and claims had been initiated against
the Group, arising in the ordinary course of business. The Group’s legal advisors and its directors
understand that the finalisation of these proceedings and claims will not have a significant effect other
than that provided for, if appropriate, in the consolidated annual accounts for the years in which they
finalise.
Accounting provisions that are considered necessary, as stated in the previous criteria, are charged
or credited to the consolidated profit and loss account caption “Provisions expense or reversal of
provisions”.
2.15 Statements of cash flows
The terms employed in the cash-flow statements have the following meanings:
- Cash flows: Inflows and outflows of cash and cash equivalents, understood as short-term
investments which are highly liquid and involve a low risk of changes in value.
- Operating activities: typical credit institution activities and other activities that may not be
classified as investing or financing activities.
- Investing activities: acquisition, sale or disposal through other means of noncurrent assets and
other investments not included in cash and cash equivalents.
- Financing activities: activities that cause changes in the size and composition of equity and
liabilities and do not form part of operating activities.
46
2.16 Non-current assets held for sale and associated liabilities
The caption of “Non-current assets held for sale” of the consolidated balance sheet includes the
carrying value of individual items which sale is highly likely, under these assets’ current conditions,
within the term of one year to be counted from the date of the annual accounts.
When, in exceptional cases, the sale is expected to occur over a period exceeding one year, the
Group assesses the updated sale cost, accounting time value fluctuation under the heading of
“Gains/(Losses) on non-current assets held for sale not classified as discontinued operations” in the
consolidated profit and loss account.
Consequently, the carrying amount of these items, which may be financial or non-financial in nature,
will foreseeable be recovered through their selling price rather than through their continued use.
Specifically, the real estate assets or other non-current assets received by the Group to pay off all or
part of the payment obligations of its debtors regarding to the Group, are deemed non-current assets
held for sale, unless the Group has decided to use these assets on an on-going basis.
Symmetrically, “Liabilities associated with non-current assets held for sale” include the credit balances
associated with groups or for interruption in the operations of the Group.
Non-current assets held for sale are generally measured at the lower of their carrying amount when
they are recognised as such and their fair value, adjusted for estimated cost of sales. While included
in this category, property, plant and equipment, and intangible assets, subject to depreciation and
amortisation by nature, are not depreciated nor amortised.
In the event that the carrying amount exceeds the fair value of the assets, adjusted for cost of sales,
the Institute adjusts the carrying amount of the assets by the amount of the excess and makes a
balancing entry in the caption “Gains/ (Losses) on non-current assets held for sale not classified as
discontinued operations” in the consolidated profit and loss account. In the event that the fair value of
the assets were increased at a later date, the Group reverses the losses previously recorded in the
accounts, increasing the carrying value subject to the limit of the amount prior to their eventual
impairment, against “Gains/ (Losses) on non-current assets held for sale not classified as
discontinued operations” in the consolidated profit and loss account.
The results from the sale of non-current assets held for sale are presented under “Gains/ (Losses) on
non-current assets held for sale not classified as discontinued operations” in the consolidated profit
and loss account.
However, financial assets, assets from employee salaries, deferred tax assets and assets for
insurance contracts that are part of a group of file or an operation in interruption are not valued in
accordance with the previous paragraphs, but in accordance with the principles and rules applicable
to these concepts, which have been explained in the preceding paragraphs of Note 2.
3. CUSTOMER SERVICE
On July 24, 2004, Order ECO 734 regarding customer service operations entered into operation. This
has the purpose of regulating customer services and the defender at banks services and credit
institutions. Regarding this Service, and although the Group is not obligated to have a customer
service department, the Institute attends to all claims and complaints that receives during the course
of its business, as a financial agency. In order to attain the highest quality of service, the Group
decided to create a Unit in December 2006 to centralise the reception, processing, and a response to
47
all complaints and suggestions received from suppliers, users and clients of ICO.
In 2022, a total of 289 complaints were received (537 in 2021), of which were addressed within an
average of 3.2 working days (much lower than the established deadline of 15 working days). 81% of
the total are related to credit transactions in the COVID-19 Surety Lines, and were therefore passed
on to the relevant credit institutions. 16% were related to Mediation Lines, and the remaining 3%
related to other issues, unrelated to products or services managed by ICO.
4. DISTRIBUTION OF RESULTS
The distribution of 2022 results of the Group’s Parent Company, at the date of formulation of these
consolidated annual accounts, has not been established by the Ministry of Economic Affairs and
Digital Transformation. Such distribution will adjust to the Bylaws.
5. RISK EXPOSURE AND OTHER INFORMATION ON THE INSTITUTE, AS GROUP’S
PARENT COMPANY
5.1. Risks. General aspects
Risk is inherent to financial activity. Properly measuring, managing and controlling risk must contribute
to attaining adequate margins and to the maintenance of an entity's solvency based on the confidence
of clients, investors and employees.
Without any intention of exhaustively classifying the risks faced by a financial institution, they may be
classified into four categories: Liquidity risk, market risk, credit risk and operating risk.
• Liquidity risk: The risk incurred as a result of an absence of sufficient liquid resources to comply
with obligations. This situation could be thanks to the inadequate assets and liabilities maturity
structure, or due to the exceptional market crisis situation.
• Market risk: Covers the influence on the income statement and equity exercised by adverse
changes in relevant financial variables, such as domestic or foreign currency interest rates,
exchange rates, share prices, etc. This risk may be subdivided into two large groups: Balance
sheet or structural market risk and market risk affecting trading portfolios.
• Credit risk: This one refers to the risk of not fully recovering the principal and interests related
to our investments within the estimated periods. This risk may also be subdivided into two
broad groups: Counterparty risks with banking institutions and credit risk regarding investment
transactions.
• Operating risk: Incurred as a result of administrative, internal, accounting, computer, legal or
external errors due to unforeseen circumstances.
As a credit institution, the ICO is exposed to these types of risks, which must be identified, measured
and monitored in order to operate efficiently. This is done according to the Risk Policy Manual
approved by the General Board, which contains the different methods, applicable legislation,
procedures and organisational structure.
5.2. Risks – Organisational structure
In order to cover the entire risk spectrum, within its organisational structure, the Institute (according
to Presidential Organisational Circular 5/2022 of 1 December), has created specialised units under
48
the Directorate for Risk, which reports to the General Directorate for Risk and Finance.
The Directorate for Risk’s functions include, among others, drafting and proposing internal risk policies
and methods for analysing, managing and monitoring the Institute’s financial and credit risks,
assessing the admissibility of ICO credit risk and overseeing ICO’s adaptation to national and
international risk regulations, while driving, coordinating and supervising the performance of the units
under its remit.
The specialised Risk areas are Methodology and Acceptance department and the Global Risks
Control area, each one with specific duties.
The primary duties of the Global Risk Control area are the following:
• Preparing, proposing and controlling financial risk measurement methodologies applied by the
Institute.
• Overseeing the correct compliance of the limits of financial risks and policies previously
approved.
• Elaborating regulatory reports on interest rate, exchange rate and liquidity.
• Analyse, monitor and review periodically credit counterparty lines, analyse them, and monitor
levels with the mediating entities and counterparts.
• Defining and reviewing measurement, back-testing and stress-testing systems.
• Proposing criteria for market valuation of new financial products, establishing methodologies,
risk measurement and potential risk (Add-on).
• Analysing the adaptation of national and international legislation regarding risks within its
competency.
• Value at market price new products and structures and their potential risk (Add-on).
• Supervise the correct application of approved methodologies risks.
• Analysis of credit risk in Liquidity Lines Securitisation Funds operations.
• Propose new Liquidity, Market, Credit and New Products risk limits.
• Reporting and diagnosis of the risk situation for Assets and Liabilities Committee, Operations
Committee, Monitoring Committee and General Council.
• Report statements of interest rate risk, liquidity, large risks and Basel ratios for Bank of Spain.
• Update and maintain the Risk Adjusted Profitability tool (RAR).
• Update and maintain the ICO Price Control tool in RORAC
• Control of Risk Appetite Framework (MAR) indicators, and attending to meeting to report the
situation to the Board.
• Analyse, study and report on ICO’s participation in securitisation operations.
49
The Methodology and Credit Risk department, from which the Risk Methodology and Policies Area
and the ESG Acceptance and Risk Area depends, has the following functions, among others:
• Developing and maintaining applicable methodologies, in order to assess the risk of new products
and regulatory developments linked to the credit risk, developing the corresponding regulations,
as necessary.
• Proposing, maintaining and managing risk assessment and direct credit risk rating tools,
concentration limits per group, country and sector risk. Whenever necessary, providing or
receiving technical assistance to/from other Management units.
• Monitoring the Institute’s Direct Risk classified as normal risk for companies and their economic
groups, the country and sector risk, accounting reclassification of operations in normal risk that
have been impaired, and assisting Management in the documentation and necessary actions to
attend the Monitoring Committee and the Board’s requirements with regard to risks.
• Based on applicable regulations and the market practice, developing, together with the
Acceptance and ESG Risks Area, a model to assess ESG Risks and to include them in the
analysis of direct financing operations that affect the credit risk.
• Analysing risks of direct financing operations, including those that arise with resources from
COVID-19 surety and similar facilities, requiring, together with the assessment of the company’s
risk profile or Project financing, a specific complementary analysis on the financing needs at the
short term, the liquidity position, and levers for actions available in the company to mitigate the
impact derived from the health crisis, and study of refinancing operations.
• Carrying out an analysis of issuer risks (companies) in the Alternative Fixed Income Market
(MARF) and corporate bonds market, as alternative corporate financing instrument, by ICO’s
underwriting of promissory notes and bonds in the different issues. This analysis includes the
valuation of the maximum risk amount to be assumed by the issuer, the issuer’s evolution in the
market and the valuation of the presentation, under the Companies’ Direct Financing Programme,
through MARF debt, or under the corporate bonds programme, in force at each moment.
• Based on applicable regulations and the market practice, developing, together with the
Acceptance and Risks Area, a model to assess ESG Risks and to include them in the analysis of
direct financing operations that affect the credit risk.
The ICO has a team of specialised professionals in each type of risk, each one responsible for his/her
own duties and acting in accordance with the inspirational risk principles, the risk policy manual in
force and existing internal procedures.
5.3 Liquidity risk at ICO
Community legislation and its development in Spain in this matter only establish general requirements
for the measurement, control and management systems of liquidity risk in entities, and are contained
in the following normative texts:
- Directive 2013/36/EU of 26 June, related to the access to the activity of credit institutions and to
the prudential supervision of credit institutions and investment companies.
- Regulation (EU) No. 575/2013 of 26 June, on prudential requirements of credit institutions and
investment services companies, part six.
50
- Implementing Regulation 680/2014 of 16 April, establishing the technical implementing rules in
accordance with Regulation No. 575/2013, chapters 7, 7 bis and 7 ter.
- Law 10/2014 of 28 June, on the management, supervision and solvency of credit institutions,
Articles 41, 42 and Additional Provision Eighth.
- RD 84/2015 of 13 February, which develops Law 10/2014, Article 53.
- Delegated Regulation (EU) 2015/61 of the Commission from October 10, 2014, completing
Regulation 575/2013 with regard to the Liquidity Hedging Requirement (LCR).
- Circular 2/2016 of 2 February, which establishes accounting standards, annual accounts, public
annual accounts and reserved statistical information of securitisation funds that replaces Circular
3/2008 of 22 May (repealed), rule 51, DT6 and Annex VII.
- Execution Regulation (EU) 2016/313 of the Commission, of 1 March, amending the Execution
Regulation (EU) 680/2014 with regard to Additional Control parameters for the purpose of
information on liquidity (ALMM).
- Execution Regulation (EU) 2017/2114, of 9 November, amending Regulation (EU) 680/2014 and
2016-31 with regard to templates and technical instructions on the regulatory statements of
additional parameters of control for the purpose of information on the liquidity risk (ALMM).
- Circular 4/2017 of 27 November, standards 59 and 60.
- Delegated Regulation (EU) 2018/1620 of 13 July, amending several Articles of the Delegated
Regulation (EU) 2015/61, concerning definitions of requirements on qualifications of liquidity levels
and liquid assets.
- Delegated Regulation (EU) 2019/0876 of 20 May, amending Regulation (EU) 575/2013 in several
aspects, among others, definitively regulating the NSFR liquidity risk requirement.
- Execution Regulation (EU) 2020/429 of 14 February, substantially amending Execution Regulation
(EU) 2016/322, concerning technical execution standards concerning the communication of
information for supervision purposes on the Liquidity Coverage requirement (LCR), and also
amending Execution Regulation (EU) 2017/2114, concerning templates and technical instructions
on regulatory statements of additional control parameters for the purpose of information on the
liquidity risk (ALMM)
- Execution Regulation (EU) 2021/451 of the Commission, of December 17, 2020, establishing
technical execution standards for the application of the Regulation (EU) no. 575/2013 of the
European Parliament and the Council in relation to the communication of information for
supervision purposes by entities, and repealing Execution Regulation (EU) no. 680/2014.
- Execution Regulation (EU) 2022/2365 of 2 December, updating the list of ECAI authorised by the
EU, a well as the homogenisation per credit quality levels of the different ratings of each ECAI.
In general, there is no specific requirement for capital for liquidity risk beyond a set of action standards
to be followed (qualitative requirements) contained in Fifty-first Rule of chapter six of risk treatment of
Circular 2/2016 where it is also mentioned the need to report on the actions carried out in the process
of capital self-assessment and supervisory review contained in chapter 5, all in order to assess
whether its internal capital is sufficient to cover its current and future activities.
51
Currently, with the publication of the updated version of the Basel III liquidity and solvency documents:
Global regulatory framework to strengthen banks and banking systems and Basel III: International
framework for measurement, the standardisation and monitoring of liquidity risk is a new step in the
direction of guaranteeing more efficient parameters in the measurement and control of liquidity. As of
January 1, 2013, the Basel Committee published: The liquidity Hedging Ratio and liquidity risk
monitoring tools, which advance the definition and monitoring of the short-term liquidity ratio, and
complemented this work with the publication on January 12, 2014 of the Guidance for Supervisors on
Market-Based Indicators of Liquidity.
In this sense, on January 17, 2015 the Delegate Regulation 2015/61 was published, amending
Regulation CRR 575/2013 of the European Parliament and of the Council is complete with regard to
this ratio (LCR) and by calendar that starts on October 1, 2015 with an obligatory 60%, 70% as of
January 1, 2016, 80% as of January 1, 2017, and which entered fully in effect (100%) from January
1,2018.
On January 2014, “Basel III: Net Stable Financing Ratio” (NSFR) consultation document was
published for the definition and calculation of the ratio of long-term liquidity, which after a consultation
phase, which lasted until April 11, 2014, led to the publication of the final document in October 2014.
As a result, it is necessary to calculate a minimum net stable financing ratio. After the publication, on
June 2019, of Regulation 876/2019 is applicable since the end of June 2021.
During 2013 and following years, the Institute, calculated on a monthly basis, short and long term
liquidity rates, as additional liquidity controls. In every period, the Institute has achieved results that
are within the limits that would be applied in the future.
Furthermore, prospectively throughout 2015 and in following years, based on the document published
by the BIS “Basel III: the Net Stable Financing Ratio” of October 2014, and with definitions and criteria
in force at each moment, the results have been calculated quarterly, which provide the ICO balance
with the introduction of different scenarios handled one year ahead (2023), in relation to the NSFR
ratio.
At ICO, it is perfectly defined an organisational structure responsible for reporting, monitoring and
controlling liquidity risk.
The measurement used to monitor balance sheet liquidity risk is the liquidity gap. The liquidity gap
provides information regarding the mismatches between the inflow and outflow of funds on a daily
basis, for periods of up to 12 months covering all balance sheet and off -balance sheet items that
produce cash flows on the actual date occurring.
Liquidity gaps are measured in one week periods, and one, three and six month’s periods. There is a
percentage over the total of Institute’s liabilities that cannot be exceeded for each period: one week-
period: up to 0.5%, one month period: up to 1%, three month period: up to 2.5% and six month period:
up to 5%.
Short-term liquidity is monitored on a daily basis. On a weekly basis, and at the end of each month,
this monitoring and control of limits takes place with a horizon of 1 week, 1 month, 3 months and 6
months.
The ICO has established quantitative limits and alerts that allow us to get ahead from possible
situations of liquidity tension.
There is also a policy of diversifying sources of basic finances in order to minimise this risk, and a
regular review of liquidity including any projections for new activity, in order to establish needs in terms
of amounts and dates of financing, for an annual financing plan, sufficiently in advance.
52
Likewise, approved by the General Board on February 27, 2018, there is a liquidity Contingency Plan
that establishes a priority order as reference when resorting to financing sources in stress scenarios.
This Contingency Plan was updated and presented, for the last time, to the Committee of Assets and
Liabilities (COAP) last July 2022.
In general, ICO raises liquidity in a variety of ways, including raising the interbank market, repo and
simultaneous liquidity and issuing debt securities in wholesale and retail markets.
It should be noted that the financial crisis that affected international and national markets, rooted in
the US sub-prime market crisis, triggered a sharp downturn by financial markets, causing the
resources for raising financing on which both international and national financial entities rely to decline
sharply. As a result, fund raising on the interbank market or through the issuance of debt securities
was also seriously affected by this crisis.
In this sense, due to the existing situation, decisions have been taken throughout 2022, as done
previously, to adapt ICO to the new circumstances in order to ensure the liquidity needed to meet its
payment commitments on time and to achieve its strategic operating, investment and growth targets.
Thanks to these measures, ICO's management also does not anticipate any liquidity shortages in
2023.
Maturity Analysis of trading and hedging derivatives
The following table shows, by notional, the contractual maturities for euro-denominated derivatives,
recognised as financial assets and financial liabilities at December 31, 2022 and 2021, except for
embedded derivatives in hybrid financial instruments and loan commitments considered financial
derivatives as they can be settled, by adjusting, in cash or with another financial asset, in which the
maturities are deemed essential for understanding the Institute’s cash flow projections:
At 31 December 2022:
Thousands of Euros
Up to 1 year
From 1 to 5
years
From 6 to 10
years
From 11 to 15
years
From 16 to 20
years
Total
Derivatives held for trading
145.386
210.951
356.337
-Of which: credit commitments
considered as derivatives
Hedging derivatives
4.602.312
3.477.182
2.198.053
619.739
52.882
10.950.168
4.747.698
3.688.133
2.198.053
619.739
52.882
11.306.505
At 31 December 2021:
Thousands of Euros
Up to 1 year
From 1 to 5
years
From 6 to 10
years
From 11 to 15
years
From 16 to 20
years
Total
Derivatives held for trading
1.021.100
273.500
1.294.600
-Of which: credit commitments
considered as derivatives
Hedging derivatives
11.046.877
2.693.694
2.184.951
617.000
70.689
16.613.212
12.067.977
2.967.194
2.184.951
617.000
70.689
17.907.812
53
In relation to the information included in charts above, the following must be highlighted:
▪ Where a counterparty can choose when an amount should be paid, the derivative is assigned
in the first period, in which the payment to the Institute may be demanded;
▪ The amounts included in the charts, correspond to undiscounted contractual amounts.
Interest-rate swaps are shown at their net amount if settled by differences, loan commitments
considered derivatives at their gross amount and all remaining financial derivatives at their
contractual amount of exchange unsettled by differences;
▪ For derivatives with a non-stated contractual amount at the reporting date, e.g., because they
depend on the performance of an index, the residual maturity, considered for classification
purposes in the preceding tables, was determined based on prevailing conditions at December
31, 2022 and 2021, respectively;
Liquidity GAP analysis
The purpose of the liquidity management is to ensure that the entity maintains appropriate liquidity
levels to cover its needs, both at the short and long terms, optimising the impact that the maintenance
of its liquid funds could have in the profit and loss account.
On a daily basis, the liquidity profile on the balance is monitored for the purpose of control, information
to management, and analysis of funds’ needs for at least the following twelve months, additionally
incorporating scenarios with the analysis of funds’ needs to cover the activity foreseen for such period.
As explained above, ICO’s liquidity management is based on the analysis of the difference between
inflows and outflows generated by contractual maturities of operations of its balance (liquidity gap)
and cash flows generated from activity forecasts. This analysis provides the necessary information
on the volume of funds that will be necessary to gain, resorting to different financing sources available
for the entity.
Moreover, the Institute maintains a buffer of high-quality liquid assets that will allow, where necessary,
obtaining liquidity immediately through its discount on the European Central Bank. The balance of
assets that may be used by the Institute as liquidity reserve has sufficient capacity to cover its negative
liquidity gaps, for two purposes:
- Contribute flexibility when planning the volume and timing of the gaining of necessary funds
to cover liquidity gaps.
- Security buffer to face possible tensions or crisis situations in markets.
The tables below compare liquidity inflows and outflows at different maturities (partial and
accumulated liquidity gaps). Inflows and outflows in foreign currency are shown at their equivalent
value in such currency.
Additionally, the evolution of the balance of liquid assets and their level of coverage over liquidity gaps
are incorporated for the different terms.
54
At 31 December 2022 (thousands of Euros):
Up 1 month
1-3 months
3-6 months
6-12 months
1-2 years
2-5 years
More than 5
years
Inflows equivalent value Euros
3 872 472
980 073
1 679 182
2 230 049
4 242 749
9 811 713
8 215 213
Outflows equivalent value Euros
(3 337 960)
(4 948 520)
(1 464 627)
(3 014 567)
(3 521 332)
(4 696 093)
(4 026 557)
Partial liquidity gaps
534 512
(3 968 447)
214 555
(784 518)
721 417
5 115 620
4 188 656
Accumulated liquidity gaps
5346 512
(3 433 935)
(3 219 380)
(4 003 898)
(3 282 481)
1 833 139
6 021 795
Buffer of highly-liquid assets
3 487 724
3 634 960
4 282 028
4 033 395
3 405 504
1 076 291
-
Difference between buffer and
negative accumulated gaps
n.a.
201 025
1 062 648
29 497
123 023
n.a.
n.a.
Coverage % of buffer over
negative accumulated gaps
n.a.
106%
133%
101%
104%
n.a.
n.a.
At 31 December 2021 (thousands of Euros):
Hasta 1 month
1-3 months
3-6 months
6-12 months
1-2 years
2-5 years
More than 5
years
Inflows equivalent value Euros
14 281 775
4 604 928
4 237 272
4 833 758
7 188 852
14 306 385
9 596 546
Outflows equivalent value Euros
(7 018 343)
(9 247 844)
(4 411 996)
(7 676 236)
(8 940 109)
(9 979 363)
(3 958 298)
Partial liquidity gaps
7 263 432
/4 642 915)
(174 726)
(2 842 479)
(1 751 257)
4 327 021
5 640 248
Accumulated liquidity gaps
7 263 432
2 620 517
2 445 791
(396 688)
(2 147 945)
2 179 076
7 819 324
Buffer of highly-liquid assets
4 247 930
3 383 157
3 038 475
3 915 407
2 454 763
1 232 868
-
Difference between buffer and
negative accumulated gaps
n.a.
n.a.
n.a.
3 518 719
306 818
n.a.
n.a.
Coverage % of buffer over
negative accumulated gaps
n.a.
n.a.
n.a.
987%
114%
n.a.
n.a.
As it may be seen in these charts, negative accumulated liquidity gaps are covered by the available
buffer of liquid assets.
In addition to highly liquid assets, there is another series of eligible pledged assets in the ECB policy
as coverage for provisions of funds in TLTRO III which volume at December 31, 2021 is of 2,995,000
thousand Euros.
In relation to the liquidity hedging ratio, a chart is presented below with quarterly averages of the ratio
based on observations at the end of the month in the twelve previous months for each quarter of the
period of 2022, indicating the averages of total liquid assets and averages of net liquidity outflows,
liquidity outflows and liquidity inflows.
LIQUIDITY COVERAGE RATIO (LCR) 2022
Quarterly average (% and thousands of Euros)
1Q
2Q
3Q
4Q
LCR RATIO
348.62%
231.10%
301.96%
327.39%
TOTAL LIQUID ASSETS
11 543 626
8 829 832
6 460 429
6 135 091
NET LIQUIDITY OUTFLOWS
3 330 255
3 803 032
2 184 838
2 233 751
Liquidity outflows
(7 063 337)
(7 654 479)
(6 639 563)
(5 778 281)
Liquidity inflows
3 733 083
4 052 189
4 454 725
3 544 530
55
Lastly, the following information chart shows the net stable financing ratio at the end of each calendar
quarter of the period of 2022, additionally showing the stable financing available at the end of each
quarter and the financing required at those dates.
NET STABLE FINANCING RATIO (NSFR) 2022
Quarterly average (% and thousands of Euros)
1Q
2Q
3Q
4Q
NSFR RATIO
121.31%
110.82%
110.39%
116.09%
AVAILABLE STABLE FINANCING
20 214 603
19 023 954
18 625 223
18 758 955
REQUIRED STABLE FINANCING
16 664 101
17 167 085
16 871 696
16 159 037
5.4. Market risk at ICO
As indicated above, it is possible to distinguish two major groups within this risk: balance sheet or
structural market risk, and the trading portfolio risk. In accordance with its internal policy, ICO is
currently attempting to minimise trading portfolios and hold only those that, following the current
accounting legislation, do not allow their classification as hedging or investment. Accordingly, market
risk results almost exclusively from ordinary activities.
1) There are two basic criteria through which exposure to changes in interest and exchange
rates is revealed: Profitability and Solvency:
Profitability: At the ICO this, mainly derives from the income statement and therefore the
relevant variable here is the Interest Margin or Financial Margin.
Solvency: A company's equity is the primary guarantee for lenders. The value of this capital
or equity is the main criterion for measuring solvency.
Using these considerations, the ICO has implemented a system for measuring market risk
based on three pillars: a) Calculation of the sensitivity of the annual Financial Margin. b)
Calculation of the sensitivity of equity and c) Calculation of hypothetical trading portfolios’
“Value at Risk”, if any exist.
2) Methodology. In order to measure balance sheet risks relating to the Financial Margin, the
weighted partial maturity gap method was used before 2015, calculated as the difference
between asset and liability volume and off-balance sheet transactions that mature or renew
interest rates within the following 12 months, weighted by the period affecting the Margin.
In order to measure the sensitivity of Equity, the duration gap method was used before 2015.
The duration gap is obtained as the difference between the duration of assets and liabilities,
and once the difference is obtained, the sensitivity gap may be calculated.
Both methods were replaced in mid-2014 by other simulations based on Interest Income and
Net Asset.
Regarding the Value at Risk, the methodology to be used will be determined by the type of
portfolio involved and may be based on parametric, historical simulation or Monte Carlo
methodology.
3) Risk degree. The decision regarding the degree of risk assumed by ICO is the Senior
Management’s responsibility, which based on the proposal of the Directorate for Risks and
Accounting, establishes the acceptable limits based on the particular characteristics of the
ICO. These limits are reviewed regularly.
56
For the purpose of assessing a sensitivity limit of the Financial Margin, it will be estimated
based on implicit rates, calculated on the basis of the market curve and on the one on which
increases or decreases are applied by +/- 200 bps, applying in the decreasing scenario a floor
in -1%. The difference between both calculations, in absolute value, will be the estimated
sensitivity, which amount cannot imply a decrease of the simulated Financial Margin above
35% of the Gross Margin, provided that it does not exceed 65% of the Financial Margin
established in the annual budget. in any case, a reduction of 35 million Euros shall be admitted
as limit.
In order to determine the sensitivity of the Financial Margin for variations of the exchange rate
in currencies Euro/US Dollar and Euro/Pound Sterling, variations of +/- 10% will be assumed.
The exchange rate risk shall not exceed, in any case, 25% of the global limit established for
the Financial Margin.
As a result of applying these movements of +/- 200 bps, with these shifts in interest rates, the
sensitivity of the balance of ICO to December 31, 20202was -58.137 million Euros in total,
distributed as follows: -52.281 Euros for the balance in Euros, -1.921 thousand Euros of the
balance in US Dollars, and -0thousand Euros of the balance in British Pounds Sterling.
Exchange rate (with variations of +/-10% on exchange in USD/EUR and GBP/EUR) was
-3,641 million Euros in Dollars and -294 thousand Euros in Pounds.
Likewise, the sensitivity of the ICO’s Financial Margin at December 31, 2021 was of 8,273
million Euros, representing 23.64% of the self-imposed limit of -35 million Euros (in force at
such moment), with the following distribution: -4.350 for interest rate of the balance sheet in
Euros, -0.802 for interest rate of US Dollar, and -0.630 for interest rate of the balance sheet in
Pound Sterling. Per exchange rate (variations of +/-10% in interest rates USD/EUR and
GBP/EUR), it was of -2.097 million Euros in Dollars and -394 thousand Euros in Pounds.
For the purpose of establishing a limit in the sensitivity of the net asset value, current values
of our balance will be calculated through a market curve and another to which increases or
decreases are applied by +/- 200 bps with a floor, in the scenario of decrease of rates, by -1%
for immediate maturities, which floor will increase in 5 bps per year, until 0% is reached for
maturities in 20 or more years. Such absolute floor is displacement. The difference between
both values will be considered as the sensitivity of the net asset value of our balance in
absolute value. The percentage (%) implied by this variation on the net asset value shall not
represent a decrease above 10% of the estimated net asset value.
In order to determine the sensitivity of the net asset value for exchange rate variations in
currencies Euro/US Dollar and Euros/Pound Sterling, movements of +/- 10% will be assumed.
At December 31, 2022, the values of the sensitivity of the ICO Net Asset reached
-4.23% in value added with a distribution on balances as follows: -3.69% for Euro interest rate,
-0.23% in the US Dollar, and -0.05% in the British Pound. Exchange rate for Dollar presented
a sensitivity of -0.25% and -0.00% for Pounds.
At December 31, 2021 sensitivity values of ICO’s Net Asset Value were of -3.08% with a
balance distribution of: -2,42% for interest rate of Euro, -0,21% in the balance of US Dollars
and -0.03% in the balance of Pound Sterling. Per exchange rate, sensibilities were of -0.36%
in Dollars and -0.06% in Pounds.
In addition to the abovementioned sensibilities and results, the ICO has established a regular
system integrated with the application for the risk measurement, management and control, in
order to verify the impact that could derive from different scenarios of evolution of relevant
financial variables in the Financial Margin or in the Net Asset Value and, on a monthly basis,
other sensitivity estimates are performed, based on different assumptions of variations of
57
interest rates. For instance, we note the sensitivity based on estimates of variation of interest
rates provided by the Service of Studies at a one-month horizon, variations of the 5-year
historical series of variations of interest rates or a stressed variation (6 times), historical
variations, conversion to a positive rate curve or inversion of the curve.
Moreover, on a quarterly basis, and following EBA guidelines of interest rate risk management
of the balance in activities other than negotiation GL/2018/02, the variation of the Economic
Value of Equity (EVE) is calculated at least for each currency, when assets or liabilities
denominated in such currency represent 5% or more of total financial assets (excluding
property, plant and equipment) or financial liabilities of the banking book, or less than 5% if
the sum of assets or liabilities included in the calculation is below 90% of total financial assets
o financial liabilities of the banking book, in each of the 6 scenarios marked by it (parallel
movement upwards or downwards of 200 basic points, positivisation, flattening, rising short
rates, falling short rates).
4) Risk modification. The last step for efficient risk management is the ability to modify out
maturity and duration gaps in order to bring them into line with desired risk values at any given
moment, using balance sheet or off-balance sheet instruments based on market opportunities
and in accordance with the management decisions taken within the authority granted for this
purpose or the Balance Management Department, the General Finance and Strategy
Management or the Operations Committee.
The main currencies used by ICO to present its balance sheet at December 31, 2022 are the
Euro and the US Dollar.
If we look at the assets of the balance sheet, the Euro concentrates approximately 89.13% of
the total, the US Dollar being of 7.96%, while other currencies distribute the remaining amount.
Liabilities concentrate around 94.34% of the total balance sheet, with a total of approximately
64.62% in Euros, and 29.72% in US Dollars.
For 2021 closing, the ICO’s main currencies in its activity also were the Euro and the US Dollar.
In this case, both of them together represented around 98.18% of total assets, where the Euro
represented 92.28% and the Dollar the remaining 5.90%, while they represent 92.26% of
liabilities, distributed in 63.10% in Euro and 29.16% in Dollar
Regarding currencies other than the euro and Dollar with which the Institute operates, its balance
sheets are virtually saved from interest and exchange rate risks either because the operation involves
financing obtained in the currency concerned and converted to Euros using a derivative instrument
that completely covers all currency flows, or because the financial of a certain asset is designed to
avoid these risks.
5.5. Credit risk at ICO
As has already been mentioned about credit risk, there are two broad groups: Counterparty and
country risk.
The first group includes transactions with credit institutions, both on and off the balance sheet.
Monitoring activities are carried out by using a system that integrates the administration of
transactions and the risks deriving from them in real time, providing operators with current information
regarding counterparty credit lines available at any given moment.
The competent bodies at ICO have defined and approved a method for consuming counterparty credit
lines based on the evaluation of the transactions at market prices plus a potential future or add-on
58
risk, that is measured as a percentage of the nominal value of the transaction, calculated as a potential
maximum loss of 95% of confidence over the life of the transaction. The methodology is periodically
reviewed, and the add-ons are adjusted at least on a half-yearly basis.
The basic criteria for establishing counterparty lines are also approved by ICO's General Board on a
half-yearly basis and is performed an individualised analysis of them. These counterparty lines are
subdivided into two broad groups as a result of the operating characteristics of the ICO. The first of
the counterparty lines is related to cash transactions. The other counterparty line is related to
mediation transactions, operations in which the ICO finances several investment projects through
framework programmes arranged with several entities such as, for example, lines of Businesses and
Entrepreneurs or Internationalisation.
Transactions involving derivatives contracted by ICO have counterparties with high credit ratings, so
that a very high percentage of these, almost 100%, maintain an Agency rating investment grade.
These counterparty institutions operate at the national and international level.
ICO’s activities with credit institutions, in the area of both second-floor and direct facilities, are carried
out with counterparties that, in almost 92% of cases, have an investment grade rating.
The ICO has structured several stages of evaluation and control relating to company credit risk:
Acceptance, Monitoring and Recovery.
At the Acceptance stage, the Institute performs an analysis of companies and transactions based on
an on-going concern evaluation, guarantees are analysed in order to issue an opinion about the risk
and the potential client, which is the basis for taking decisions by the Operations Committee or
General Board, as appropriate.
The Monitoring process has the purpose of making the Institute’s credit portfolio to achieve the highest
quality, i.e., ensures that our loans are being repaid on a timely basis, on the agreed dates. The basic
monitoring unit is the client, not the transaction, such that any incident aff ecting a transaction affects
the rating of a client and its group. This is achieved by a permanent control, with periodic reviews of
the economic and financial situation of the same and keeping support tools updated for decision-
making and it allow for detect warning signs; as well as promoting action plans against problematic
risks in order to maximise the repayment of financing granted.
Under the heading regarding credit risk, special mention must be made to the so-called country risk.
Country risk refers to the solvency of all counterparties characterised as pertaining to an area
geographically, politically and legally defined as a State.
In this sense, ICO has approved a methodology for measuring country risk that follows the legislation
and complies with the objective of evaluating countries by group risk based on multiple criteria,
thereby allowing for a defined policy when recording provisions for that country risk, evaluating direct
loan transactions and segmenting the non-resident loan portfolio. Rating agency and OECD-CESCE
evaluations are used as a source of information when classifying countries into risk groups.
5.6. Operating risk at ICO
Measuring and controlling operating is increasingly important, especially bearing in mind the Capital
Accord (Basel III). The risk deriving from inadequate processes, incorrect records, system failures,
legal risks or the risk of loss inherent to the formalisation of transactions is included.
In this area, certain tools have been developed to facilitate the task of covering operating risk.
Specifically, these tools consist of the policies covering the monthly monitoring of the control panel or
activity indicators, the development of processes and internal procedures, the definition of client and
59
operations monitoring and internal control of incidents, or the existing contingency plan. It is important
to mention that the regular controls applied to procedures and operations are performed by inter nal
and external auditors.
5.7 Credit risk exposure with companies
5.7.1 Classification per sector
Taking into account a classification by sector, the distribution of the risk exposure (*) is as follows:
Millions of Euros
2022
2021
Amount
% s/total
Amount
% s/total
Property investment
413
4%
452
4%
Construction of social housing for sale
5
0%
5
0%
Construction of social housing for rent
298
3%
323
3%
Acquisition and development of land
101
1%
117
1%
Others
9
0%
7
0%
Investment property, plant and equipment
8,161
70%
8,512
72%
Renewable energies
1,742
15%
1,407
12%
Water infrastructures
93
1%
118
1%
Electricity infrastructures
1,053
9%
1,831
15%
Gas and fossil fuel infrastructures
939
8%
714
6%
Transport infrastructures
3,016
26%
3,232
27%
Tourism and leisure
151
1%
134
1%
Social-health infrastructures
89
1%
86
1%
Telecommunications
108
1%
100
1%
Audio-visual production and exhibition
32
0%
27
0%
Business parks and other constructions
30
0%
22
0%
Other
661
6%
635
6%
Research and Development material investment
247
2%
206
2%
ICO Finance lines AA.CC. Agencies
-
-
-
-
Acquisitions of companies
603
5%
628
5%
General corporate needs
1,421
12%
834
7%
Restructuring of liabilities
407
3%
709
6%
General State Budgets
673
6%
764
6%
11,678
100%
11,899
100%
(*) Including customer loans and advances without valuation adjustments or impairment losses (except for “other financial assets”). Also
includes financial guarantees for customers and debt securities of resident Public Administrations classified as loans and advances
receivable.
At December 31, 2022 and 2021 the total exposure is mainly concentrated in the sector of “Investment
property, plant and equipment”, which account for 70% of total risk in 2022 (72% in 2021). Also, the
weight over the total risk of sectors “Transport Infrastructures” (26% of the total in 2022 and 27% in
2021), “Renewable energies” (15% of total balance in 2022 and 12% in 2021) and “Gas infrastructures
and hydrocarbons”, 8% of total risk in 2022 (6% in 2021), is to be noted.
5.7.2 Classification by geographic location of financial investments
The total risk at December 31, 2022 is distributed as follows: 69% in transactions financing
investments in Spain amounting to 8,108 million Euros (72% at 2021 with 8,608 million Euros) and
31% in transactions aimed at financing investment projects in other countries.
The risk distribution for investment projects in the national territory per Autonomous Communities in
2022 is the following: Catalonia with 6%, Valencia and Madrid with 5%, and Andalusia with 2% (7%,
5%, 6%, 5% and 3%, in 2021, respectively).
60
Transactions taking place in the international market at December 31, 2022 and 2021 are distributed
as follows:
Millions of Euros
2022
2021
Amount
Percentage
Amount
Percentage
European Economic Community
1,126
32%
1,168
35%
Latin America
858
24%
827
25%
United States
246
7%
146
4%
Rest of Europe (non-EU)
30
1%
30
1%
Other
1,308
36%
1,120
35%
3,568
100%
3,291
100%
5.8 Information on payment deferrals to suppliers
The information required by the third additional Provision of Law 15/2010, of 5 July, is detailed below:
2022
2021
(Days)
Average payment period to suppliers
6.75
6.75
Ratio of paid operations
7
7
Ratio of operations payable
3.5
3.5
(Thousands of Euros)
Total settled payments
30,649
30,266
Total outstanding payments
1,744
666
Amount paid in a period below the maximum established
in default regulations
30,649
30,266
(No. invoices)
Invoices paid in a period below the maximum established in
default regulations
3,160
2,659
(Percentage)
Amount paid in a period below the maximum established
in default regulations over total amount of payments to
suppliers
100%
100%
paid in a period below the maximum established in default
regulations over total invoices to suppliers
100%
100%
By virtue of Law 3/2004, the maximum payment term is of 30 days, extendable if agreed by the parties,
to a limit of 60 calendar days.
The third additional provision of Law 15/2010 of 5 July, amending Law 3/2004 of 29 December,
establishing measures against late payment in commercial transactions, amended by the final second
provision of Law 31/2014, of 3 December, and article 9 of Law 18/2022, of 28 September, establishes
61
the duty of unlisted companies that cannot present abridged annual accounts to expressly include in
the notes on their financial statements the average payment period to suppliers, the monetary volume
and number of invoices paid in a period below the maximum established by default regulations, and
their percentage over the total number of invoices and the total monetary amount of payments to
suppliers.
For the purpose of an appropriate understanding of the information contained in this note, as
established on ICAC Resolution of January 29, 2016, on information concerning late payment to
suppliers in commercial transactions to be included in the Notes to annual accounts, it should be
noted that "Suppliers" are understood as those who, by nature, are trade payables due to suppliers
of goods and services.
Given ICO’s core business (financial activity), the information presented in this Note concerning late
payment, is exclusively related to payments to services suppliers and sundry suppliers to ICO other
than depositors and holders of ICO securities. With the latter, the contractual and legal payment
deadlines of both liabilities due to demand and with deferred payment have been met dutifully. Nor is
any information provided concerning payments to suppliers excluded from the scope of this
mandatory disclosure pursuant to the provisions of the aforementioned ICAC Resolution, such as
suppliers of fixed assets that are not considered to be trade creditors. When elaborating the
information above, payments corresponding to intercompany credits and debits have been excluded.
For the purpose of elaborating this information, and based on the nature of the Entity’s activities and
operations, when calculating the days of payment and outstanding payment days, the period between
the date of invoice (which in practice is usually the same as or very close to the date of receipt of the
goods or services from the supplier) and the date of actual payment or the year-end date, respectively,
has been taken into account.
5.9 Risk concentration and other specific regulations of the ICO
At December 31, 2022 and 2021, the Group is exempt from the limits on large exposures set out in
the applicable regulations (Part IV of EU Regulation 575/2013 and Circular 3/2008 of the Bank of
Spain, respectively), according the provisions of the bylaws of the Institute.
Royal Decree-Law 12/2012, of March 31, 2012, established the treatment of exposures to credit
institutions resident in EU Member States.
5.10 Information on construction and property development finance and associated
foreclosed properties
Regarding property risk portfolio policies and strategies, the Institute has acceptance processes with
specific policies for this type of product (e.g., experienced developers, percentages of accredited
sales, data on rental demand by independent experts), assessing the economic and financial
feasibility of projects.
Payments for certified work are subsequently validated and controlled, construction progress is
monitored and sales are controlled.
In addition, studies have been conducted to detect the reasons behind the payment difficulties of
customers that have not paid in order to suggest solutions that allow transactions to be completed
successfully.
62
Information on construction and property development finance is as follows:
Finance granted for construction and property development and related hedges:
2022
2021
Gross
amount
Excess over
value of
collateral
Specific
allowance
Gross amount
Excess over
value of
collateral
Specific
allowance
Property financing
415 527
-
182 991
445 717
-
198 244
Out of which doubtful
96 570
-
94 156
102 905
-
100 312
Memorandum item
Defaulted assets
-
-
-
-
-
-
Thousands of Euros
2022
2021
Memorandum item:
Total loans to clients, excluding public administrations
8 539 773
8 427 818
Total assets
29 774 943
37 766 136
Total general allowance for normal risk
192 885
145 886
Total finance for construction and property development at December 31, 2022 represents 1.40% of
the total balance sheet (1.18% at December 31, 2020).
- Finance for construction and property development (gross amounts):
Thousands of Euros
2022
2021
1 Without mortgage collateral
101 679
115 800
2 With mortgage collateral
313 849
329 917
2.1 Finished buildings
305 665
324 324
2.1.1 Homes
305 665
324 324
2.1.2 Other
-
-
2.2 Buildings under constructions
8 184
5 593
2.2.1 Homes
8 184
5 593
2.2.2 Other
-
-
2.3 Land
-
-
2.3.1 Developed land
-
-
2.3.2 Other land
TOTAL
415 527
445 717
- Home purchase loans:
Thousands of Euros
2022
2021
Gross
amount
Of which:
doubtful
Gross amount
Of which:
doubtful
Home loans
12 371
-
11 864
-
Without mortgage collateral
11 790
-
11 154
-
With mortgage collateral
581
-
710
-
-
63
- Home purchase loans with collateral mortgage (percentage of risk on latest appraisal
available, LTV):
At 31 December 2022:
Thousands of Euros
LTV<40%
40%<LTV<60%
60%<LTV<80%
80%<LTV<100%
LTV>100%
Gross amount
302
73
206
-
-
- Of which doubtful
At 31 December 2021:
Thousands of Euros
LTV<40%
40%<LTV<60%
60%<LTV<80%
80%<LTV<100%
LTV>100%
Gross amount
435
-
275
-
-
- Of which doubtful
- Foreclosed assets received as the settlement of debts from construction and property
development loans.
None of the foreclosed assets on the Institute’s balance sheet (Note 17) comes from financing
granted to construction companies and property developers, or mortgage loans to households
for home purchases, nor do they consist on equity instruments, investments and finance to
non-consolidated companies holding the assets.
5.11 Information related to Institute’s refinanced and restructured operations
Presented in the next table, there is the detailed information related to those refinanced and
restructured operations as of December 31,, 2022 and 2021 (gross amounts), as requirement of Bank
of Spain 6/2013 Circular, about financial public and reserved information rules:
At December 31, 2022 (gross amounts, in thousands of Euros):
With real
guarantee
No real
guarantee
TOTAL
amounts
TOTAL hedging
Public Administrations
-
101 679
101 679
57 185
Doubtful
38 435
38 435
38 435
Finance companies (finance assets)
-
-
-
-
Doubtful
Non Finance companies and Industrial
Business
303 375
120 046
423 421
189 963
Doubtful
167 412
26 460
193 872
174 977
Non-doubtful
8 617
-
8 617
5 960
Property doubtful
4 822
-
4 822
4 822
Rest of individuals
229
40
269
-
TOTALS
303 604
221 765
525 369
247 148
64
At December 31, 2021 (gross amounts, in thousands of Euros):
With real
guarantee
No real
guarantee
TOTAL
amounts
TOTAL hedging
Public Administrations
40 428
75 372
115 800
62 928
Doubtful
40 428
-
40 428
Finance companies (finance assets)
-
-
-
-
Doubtful
Non Finance companies and Industrial
Business
377 919
37 291
415 210
211 988
Doubtful
214 311
11 342
225 653
202 491
Non-doubtful
38 986
-
38 986
5 808
Property doubtful
118 487
-
118 487
113 406
Rest of individuals
351
-
351
-
TOTALS
418 698
112 663
531 361
274 916
6. CASH, DEPOSITS AT CENTRAL BANKS AND DEMAND DEPOSITS
The composition of this caption of the consolidated balance sheet at December 31, 2022 and 2021 is the
following:
Thousands of Euros
2022
2021
Cash at hand
7
5
Cash in Bank of Spain
2 557 390
9 344 958
Mandatory to comply with minimum reserve ratios
2 557 390
9 344 958
Other demand deposits
80 092
34 682
2 637 489
9 379 645
7. FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING
The total balance under this heading in the consolidated balance sheets at December 31, 2022 and
2021 is made up of trading derivatives.
Transactions involving trading derivatives are mainly related to instruments with which the Institute
manages balance sheet positions globally, but which do not meet the requirements to be designated
hedging and are therefore classified in the trading portfolio.
Below, there is a breakdown classified by type of derivative, of the fair value of the Group’s trading
derivatives and their notional value (amount on which future payments and collections of these
derivatives are based) at December 31, 2022 and 2021:
Thousands of Euros
Notional
Assets
Liabilities
2022
2021
2022
2021
2022
2021
By type of market
Organised markets
-
-
-
-
-
-
Non – organised markets
356 337
1 294 600
30 637
10 701
29 714
10 580
356 337
1 294 600
30 637
10 701
29 714
10 580
By type of product
Swaps
356 337
1 294 600
30 637
10 701
29 714
10 580
65
356 337
1 294 600
30 637
10 701
29 714
10 580
By counterparty
Credit institutions
233 288
1 147 217
348
-
29 714
10 580
Other credit institutions
-
-
-
-
-
-
Other sectors
123 049
147 383
30 289
10 701
-
-
356 337
1 294 600
30 637
10 701
29 714
10 580
By type of risk
Exchange risk
221 264
257 282
30 481
9 411
29 580
8 541
Interest rate risk
135 073
1 037 318
156
1 290
134
2 039
356 337
1 294 600
30 637
10 701
29 714
10 580
The fair value has been calculated for the 100% of the cases, both in 2022 and 2021, taking the
implicit curve of the money markets and the public debt as a reference.
At December 31,
2022 and 2021 the trading portfolio classification, stated at fair value and taking the
hierarchical order into account as shown in Note 2.2.3, is as follows:
Thousands of Euros
2022
2021
Level I
Level II
Level III
Level I
Level II
Level III
Derivatives held for trading of assets
-
30 637
-
-
10 701
-
Derivatives held for trading of liabilities
-
29 714
-
-
10 580
-
The following chart shows amounts registered on profit and loss accounts of 2022 and 2021 (Note
30) for variations in the fair value of the Institute’s financial instruments included on the trading
portfolio, corresponding to unrealised capital gains and losses, distinguishing between financial
instruments which fair value is determined by taking as reference listings published in active markets
(Level 1), is estimated using a valuation technique which variables are obtained from data observable
in the market (Level 2) and others (Level 3):
Thousands of Euros
2021
2020
Profit
Loss
Net
Profit
Loss
Net
Level 1
-
-
-
-
-
-
Level 2
81 400
(81 141)
(259)
147 721
147 357
364
Level 3
-
-
-
-
-
-
In 2022 and 2021, changes in the fair value of derivatives classified as level 2 were solely the result
of purchase, sales and changes in fair value arising from the application of the valuation techniques
described, with no reclassifications between levels.
66
8. FINANCIAL ASSETS NOT HELD FOR TRADING OBLIGATORILY VALUED AT FAIR VALUE
THROUGH PROFIT OR LOSS
The breakdown of the amount included in this chapter, in the balance sheet at December 31, 2022
and 2021, is as follows:
Thousands of Euros
2022
2021
Equity instruments
-
-
Debt securities
-
-
At December 31, 2022 and 2021, this caption includes a debt instrument, classified as doubtful risk,
with accounting hedging of 100% (amount of 40,167 thousand Euros); therefore, it is fully recorded
as provision in both years.
In 2022, no results have been registered for the fair value valuation in the Profit and Loss Account of
an amount for this concept (none in 2021) (Note 31).
9. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
The detail of this caption of the balance sheet at December 31, 2022 and 2021, per investment, is the
following:
Thousands of Euros
2022
2021
Equity instruments:
FONDICO Pyme (1)
106 212
97 273
FONDICO Infraestructuras II (2)
114 840
131 392
FONDICO Global (3)
994 168
748 437
FONDICO Next Tech (4)
20 893
123
FONS MEDITERRANEA FCR (5)
3 549
6 330
FONDO MARGUERITTE MEH (6)
42 019
72 504
FONDO AFS CESCE (7)
12 040
8 579
FEI (8)
29 627
21 667
SWIFT (9)
6
6
EDW (10)
194
195
INVESTMENTS GROUP QUABIT (11)
-
-
INVESTMENTS CELTIC ROADS WATERFORD (12)
-
-
MARGUERITTE III INVEST EU FUND (13)
1 483
-
1 325 031
1 086 506
Debt securities (14)
1 135 160
1 150 639
2 460 191
2 237 145
The balance, net of the tax effect, of caption “Other accumulated comprehensive income” as changes
in the fair value of these financial instruments at December 31, 2022 and 2021, is the following (Note
21):
Thousands of Euros
2022
2021
Debt instruments
(28 313)
3 640
Equity instruments
349 635
134 557
321 322
138 197
67
Variations, during 2022 and 2021, in the caption of Financial assets at fair value through other
comprehensive income are shown below:
Thousands of Euros
2022
2021
Initial balance
2 237 145
1 618 994
Purchase additions
310 006
2 625 740
Sales and amortisations
308 000
(2 061 564)
Variations for changes in fair value (Note 21)
221 051
60 565
Allocation impairment provision
-
(8 767)
Variations for impairment losses (application)
(11)
2 177
Closing balance
2 460 191
2 237 145
(1) FONDICO Pyme. Venture capital fund constituted on May 1993 and in which the Institute is
the sole participant, managed by Axis Participaciones Empresariales. No net contributions in
2022. In 2021, the Institute made a new contribution to the Fund by 15,025 thousand Euros.
The amount payable and committed by ICO is of 58,000 thousand Euros at December 31,
2022.
(2) FONDICO Infraestructuras. Venture capital fund constituted on 2019, fully invested by the
Institute and managed by Axis Participaciones Empresariales. In 2022, the Institute’s
contributions amounted to 32,472 thousand Euros (19,000 thousand Euros in 2021) and
returns of 61,000 thousand Euros (no returns in 2021). The amount payable and committed
by ICO is of 50,000 thousand Euros at December 31, 2022.
(3) FONDICO Global. Venture capital fund created in 2014, fully invested by the Institute and
managed by Axis Participaciones Empresariales. In 2022, the Institute’s contributions
amounted to 210,000 thousand Euros (160,000 thousand Euros in 2021). In 2022, the Fund
has decreased equity through refund of contributions by 247,000 thousand Euros (124,000
thousand Euros in 2021). The amount committed by ICO and to be reimbursed amounts to
586,000 thousand Euros at December 31, 2022 (679,000 thousand Euros at December 31,
2021).
(4) FONDICO Next Tech. Venture capital fund created in 2021, wholly owned by the Institute and
managed by Axis Participaciones Empresariales. In 2022, the Institute’s contributions
amounted to 24,300 thousand Euros (965 thousand Euros in 2021). The amount payable and
committed by ICO is of 103,000 thousand Euros at December 31, 2022.
(5) FONS MEDITERRANEA. Fund constituted in October 2005 and in which the Institute
participates with other public and private entities. The Fund was created to invest in projects
developed by Spanish companies in the African Maghreb. The allocations for this fund have
a provision hedging of 30% of the total real capital (without including fair value changes)
amounting 1,270 thousand Euros at December 31, 2022 (1,270 thousand Euros at December
31, 2020). No net contributions in 2022 or 2021.
(6) FONDO MARGUERITTE MEH. With the participation of leading European public credit
institutions, this is a European equity fund which seeks to promote investment in
infrastructures, in order to implement the key policies of the European Union in the fight against
climate change, with the aim of combining the principle of return to investors based on market
policies and the objectives set by public policies. The Fund is managed by ICO, although the
final result from its eventual liquidation would not affect the Institute’s balance sheet, since it
is fully guaranteed by the Spanish Ministry of Tax, which provides funds to finance the Fund.
68
In 2022, contributions amounted to 630 thousand Euros (no contributions in 2021) and no
returns of participations were registered (no returns in 2021).
(7) FONDO AFS CESCE. Participation of 9.96% in Fondo AFS Sicav, which main activity is the
discount of commercial invoices with CESCE guarantee. In 2022, contributions amounted to
1,500 thousand Euros (none in 2021). In 2022, there has not been any return of contributions
(none in 2021).
(8) FEI. Participation equal to 0.66% of the total of the European Investment Fund, at December
31, 2022 (0.66% at December 31, 2021). There have not been any contributions at 2022 or
2021. At December 31, 2022, an amount remained payable by 39,200 thousand Euros (23,500
thousand Euros at December 31, 2021).
SWIFT. Participation of the Institute in 1 share of this entity as a full member of the same from
2008.
(9) EDW. A 3.57% participation in European Datawarehouse GmbHG, from March 2012.
(10) PARTICIPACIONES GROUP QUABIT. In 2019, as payment for several loan operations, ICO
foreclosed several shares of QUABIT group, for a foreclosure amount of 5,700 thousand
Euros. In 2022, part of them were disposed of, for an amount of 311 thousand Euros. These
shares are fully covered by accounting provisions, and therefore their net value is null
(provision of 4,846 thousand Euros at December 31, 2022).
(11) PARTICIPACIONES CELTIC ROADS WATERFORD. In 2021, the ICO was awarded a
number of shares in this entity in payment for various loan operations, for a net awarding
amount of 6,589 thousand Euros. These participations are 100% covered by accounting
provisions (provision of 6,589 thousand Euros at December 31, 2022).
(12) FONDO MARGUERITTE III INVEST EU. At the end of 2022, ICO acquired shares in this
fund, for an amount of 1,483 thousand Euros, as Implementing Partner of the European
Commission, within InvestEU, the European Commission’s Guarantee Programme. This
investment is guaranteed by the EC to ICO by 50%.
(13) As part of its liquidity management policy and business models, the ICO is able to invest in
debt instruments, classified as financial assets at fair value through other comprehensive
income. In general, they are fixed income securities, issued by the State (Public Debt).
The detail of these assets per maturities is the following:
Thousands of Euros
2022
2021
Maturity up to 1 year
448 520
-
Maturity from 1 to 2 years
531 671
458 238
Maturity from 2 to 3 years
154 969
565 842
Maturity over 3 years
-
126 559
1 135 160
1 150 639
69
At December 31, 2022 and 2021, the classification of financial assets at fair value through other
comprehensive income, taking the hierarchical level into account as shown in Note 2.2.3., is as
follows:
Thousands of Euros
2022
2021
Level I
Level II
Level III
Level I
Level II
Level III
Debt securities
1 135 160
1 150 639
Equity instruments
1 325 031
1 086 506
During 2022, the Institute has not registered on the income statement results from the write-off of
financial assets at fair value through other comprehensive income (none in 2021) (Note 28).
10. FINANCIAL ASSETS AT AMORTISED COST
The composition of this caption on the consolidated balance sheets at December 31, 2022 and 2021
is the following (including impairment losses and other valuation adjustments):
Thousands of Euros
2022
2021
Debt securities (Note 10.1)
6 781 025
6 889 673
Loans and advances:
17 085 646
18 437 628
Credit institutions (Note 10.2)
6 911 989
7 724 368
Customers (Note 10.3)
10 173 657
10 713 260
23 866 671
25 327 301
The variation of impairment losses registered for the credit risk coverage and their accumulated
amount at the beginning and closing of 2022 and 2021 of the portfolio of financial assets at amortised
cost has been the following:
Thousands of Euros
Provision for
Country risk
Provision for
doubtful risk
and normal risk
in watch-list
Provision for
normal risk
Total
Balance at 1 January 2021
2 848
581 514
96 830
681 192
Allocations charged to results
196
25 212
49 758
75 166
Recoveries against results
(2 321)
(79 003)
(799)
(82 123)
Application of funds
-
(27 949)
-
(27 949)
Other variations
-
-
-
-
Adjustments for exchange differences
174
(41)
97
230
Balance at 31 December 2021
897
499 733
145 886
646 516
Allocations charged to results
1 025
26 894
47 562
75 481
Recoveries against results
-
(56 818)
(475)
(57 293)
Application of funds
(16 077)
(16 077)
Other variations
Adjustments for exchange differences
(3)
(97)
(88)
(188)
Balance at 31 December 2022
1 919
453 635
192 885
648 439
70
The following table details provisions for doubtful risks and normal risks in watch-list based on
determination criteria:
Thousands of Euros
2022
2021
Provision for doubtful risks (with defaults):
328 666
355 631
Default
16 456
17 210
Other than default
312 210
338 421
Provision for normal risk in watch-list
124 969
144 102
TOTALS
453 635
499 733
The provision for normal risk in watch-list corresponds to credit assets for an amount of 626,319
thousand Euros at December 31, 2021 (741,024 thousand Euros at December 31, 2021).
The table below provides a breakdown of financial assets classified as loans and receivables
considered impaired due to their credit risk at December 31, 2022 and 2021, by counterparty and
period elapsed from the amount unpaid at said dates and the age of the risk. Impaired assets
guaranteed by the State are disclosed in Note 10.3.
Impaired assets at 31 December 2022
Thousands of Euros
Without
delay
3-6
month
s
6-9
months
9-12
months
12-15
months
15-18
months
18-21
month
s
More than
21 months
TOTAL
By counterparty category -
Non-financial companies
359 189
421
-
-
-
-
-
16 162
375 772
Impaired assets at 31 December 2021
Thousands of Euros
Without
delay
3-6
month
s
6-9
months
9-12
months
12-15
months
15-18
months
18-21
month
s
More than
21 months
TOTAL
By counterparty category -
Non-financial companies
390 457
194
-
-
-
-
-
17 104
407 755
As of December 31, 2021 there is a balance of assets impaired by country risk of 91,641 thousand
Euros, with a hedging per country risk of 1,919 thousand Euros (28,852 thousand Euros at December
31, 2021 with a hedging of 897 thousand Euros).
The amount of non-impaired past due assets for 2022 and 2021 was of 32,339 thousand Euros and
16,347 thousand Euros, respectively, with an age in both years of between one and three months.
The movement of the impaired financial assets derecognised from the asset when their recovery is
deemed to be remote (failed) is as follows:
Thousands of Euros
2022
2021
Opening balance
1 525 753
1 658 430
Additions:
1 392
36 994
Balance recovery
1 392
22 644
Other causes
-
14 350
Recoveries:
(67 686)
(172 437)
71
Cash collection without additional financing
(41 656)
(50 246)
Asset allocation
Others
(26 030)
(122 191)
Definitive write-offs: other causes:
Net variation for exchange difference
2 223
2 766
Closing balance
1 461 682
1 525 753
The net amount included on the accompanying consolidated profit and loss account of 2022 and 2021
as a consequence of the variation of assets which recovery is deemed remote (failed assets) amounts
to profits by 41,656 thousand Euros and 50,201 thousand Euros, respectively (caption “Impairment
or reversal of impairment on financial assets”).
10.1 Debt securities
The caption “Debt securities” includes the amount of fixed-income financial assets valued at amortised
cost, and supported with securities.
At the end of 2013, the Institute’s Operations Committee approved the document Annex V to the ICO
Contract Mediation lines framework 2015, to regulate the conditions and operations to which the
conversion operation is subject to the conversion to bonds of loans made by Entities in ICO lines in
2015. Such approval included the general specifications for conversion susceptible lines, amounts,
interest accruals, eligible entities, schedule and compensation to credit institutions were included.
Debt securities resulting from the conversion of loans mediation are also included in the heading “Debt
securities”.
The composition of this caption of the consolidated balance sheet at December 31, 2022 and 2021,
based on the counterparty category, is the following:
Thousands of Euros
2022
2021
Per counterparty category -
Resident Public Administrations
4 537 261
5 444 417
Resident Credit Institutions
2 270
3 394
Other resident sectors
2 034 102
1 260 802
Other non-resident sectors
207 392
181 060
6 781 025
6 889 673
The detail per maturity terms at December 31, 2022 and 2021 is the following:
Thousands of Euros
2022
2021
Per maturity
Up to 1 year
1 552 664
3 050 281
From 1 to 2 years
303 174
1 216 829
From 2 to 3 years
548 999
285 439
From 3 to 4 years
331 955
353 323
From 4 to 5 years
2 024 225
264 239
More than 5 years
2 020 008
1 719 562
6 781 025
6 889 673
At December 31, 2022, these assets accrued an annual interest rate of 0.92% (0.53% at December
31, 2021).
72
Interest accrued by these assets in 2022 and 2021 amounted to 60,526 thousand Euros and 41,396
thousand Euros, respectively, included under caption “Interests and similar income” of the profit and
loss account (Note 24).
The Institute has coverage for credit risk at December 31, 2022 (normal risk) of 42,522 thousand
Euros for these assets (21,651 thousand Euros at December 31, 2021).
In 2021, the ICO was awarded debt securities in payment for several loan operations, for an awarding
amount of 2,177 thousand Euros. These securities, classified as doubtful assets, are fully covered by
accounting provisions, and therefore their net value is nil.
Variations undergone during 2022 and 2021 in caption of Debt securities at amortised cost are the
following:
Thousands of Euros
2022
2021
Opening balance
6 889 673
7 347 498
Purchase additions
6 003 297
2 819 753
Variations for impairment losses
(20 870)
(14 516)
Amortisations and sales
(6 091 075)
(3 263 062)
Closing balance
6 781 025
6 889 673
At December 31, 2022, the Institute has not registered results from financial operations derived from
the write-off of assets included in the caption of “Debt securities” for an amount of 172 thousand Euros
(no results at December 31, 2021) (Note 29).
10.2 Loans and advances to Credit Institutions
The composition of this caption of the consolidated balance sheet at December 31, 2022 and 2021 is
the following:
Thousands of Euros
2022
2021
By nature -
Deposits in credit institutions (Note 10.2.1)
661 014
661 771
National mediation loans (Note 10.2.2)
5 184 441
6 130 929
International mediation loans (Note 10.2.3)
1 051 361
931 123
Other loans to credit institutions (Note 10.2.4)
3 819
8 002
6 900 635
7 731 825
(4 006)
(3 016)
Impairment losses
15 360
(4 441)
6 911 989
7 724 368
(*) Valuation adjustments mainly correspond to the accrual of interests and similar revenues, as well as a correction for financial
commissions.
73
10.2.1 Deposits in credit institutions
The following table details the balance of “Deposits in credit institutions”, grouped by maturity, at
December 31, 2022 and 2021:
Thousands of Euros
2022
2021
Up to 1 year
661 014
661 771
From 1 to 2 years
-
-
From 2 to 3 years
-
-
From 3 to 4 years
-
-
From 4 to 5 years
-
-
More than 5 years
-
-
661 014
661 771
During 2022, the caption “Deposits in credit institutions” accrued an average annual interest of 0.77%
(-0.30% during 2021). All deposits included are time deposits as of December 31, 2022 and 2021.
Interests accrued during 2022 and 2021 for these loans have amounted a total of 4,475 and (1,763)
thousand Euros, respectively, which are included under the heading “Interest and similar charges” of
the consolidated profit and loss account (Note 25).
10.2.2 National mediation loans
These operations in the Group, implanted since 1993, has the aim to help finance small and medium
enterprises in the national territory. These lines are instrumented through loans granted by the
Institute to various credit institutions, which formalise loans with the respective companies. Thus, each
year, different lines are approved for different amounts and objectives, always focusing on the Spanish
SMEs.
In general, in these lines, the Group does not assume any risk of insolvency of final borrowers.
Occasionally, the ICO, as the Group’s parent company, assumed a part of the risk in certain liquidity
lines 2009-2012, with no risk exposure at December 31, 2022 and 2021. During the years 2022 and
2021 no new lines have been approved in which the Institute assumes risk from final borrowers.
The detail of the balance of national mediation loans at December 31, 2022 and 2021 per years of
maturity is the following:
Thousands of Euros
2022
2021
Up to 1 year
1 510 188
2.011.747
From 1 to 2 years
1 121 629
1.359.034
From 2 to 3 years
785 381
920.470
From 3 to 4 years
579 293
571.806
From 4 to 5 years
391 803
403.195
More than 5 years
796 147
864.677
5 184 441
6 130 929
At December 31, 2022 and 2021, mediation loans accrued an annual average interest rate of 0.95%
and 0.64%, respectively.
Interests accrued during 2022 and 2021 for national mediation loans have amounted to 39,592 and
42,587 thousand Euros, respectively, included on caption “Interests and similar income” of the profit
and loss account (Note 24).
74
10.2.3 International mediation loans
International mediation loans are a new activity in the Group, launched in 2018, in order to support
the internationalisation of the Spanish company through financing banks, instead of through
investment.
The detail of the balance of international mediation loans at December 31, 2022 and 2021 detailed
per years of maturity is the following:
Thousands of Euros
2022
2021
Up to 1 year
205 045
216.037
From 1 to 2 years
209 092
126.947
From 2 to 3 years
109 576
129.946
From 3 to 4 years
88 025
101.369
From 4 to 5 years
61 890
70.453
More than 5 years
377 733
286.371
1 051 361
931 123
At December 31, 2022 and 2021, international mediation loans accrued an annual average interest
rate of 0.95% and 0.64%, respectively.
Interests accrued during 2022 and 2021 by international mediation loans have amounted to 21,981
thousand Euros and 9,101 thousand Euros, respectively, which are included in the caption "Interests
and similar income” of the consolidated profit and loss account (Note 24).
This caption includes an amount of impairment losses, for risk of bad debt (normal credit risk and
country risk), for a total amount of 4,006 thousand Euros (3,016 thousand Euros at December 31,
2021) (Note 10.2).
10.2.4 Other loans to credit institutions
This caption includes balances for direct loan operations (without mediation) to credit institutions,
resident and non-resident.
The detail of the balance of these loans at December 31, 2022 and 2021 detailed per years of maturity
is the following:
Thousands of Euros
2022
2021
Up to 1 year
2 539
4.309
From 1 to 2 years
1 280
2.455
From 2 to 3 years
-
1.238
From 3 to 4 years
-
-
From 4 to 5 years
-
-
More than 5 years
-
-
3 819
8 002
At December 31, 2022 and 2021, loans to credit institutions accrued an annual average interest rate
of 0.33% and -0.30%, respectively.
Interests accrued during 2022 and 2021 by these loans have amounted to 22 thousand Euros and 10
thousand Euros, respectively, included on caption “Interests and similar income” of the consolidated
profit and loss account (Note 24).
75
10.3 Customer loans and advances
The composition of this caption of the consolidated balance sheet at December 31, 2022 and 2021,
based on the counterparty category, is the following:
Thousands of Euros
2022
2021
Counterparty category -
Resident Public Administrations
1 639 593
2 212 678
Non-resident Public Administrations
89 852
167 919
Other resident sectors
7 285 523
7 481 816
Other non-resident sectors
1 703 318
1 377 052
Other financial assets
25 055
29 628
10 743 341
11 269 093
Impairment losses
(601 911)
(621 849)
Other valuation adjustments (interests accrued and commissions)
32 227
66 016
10 173 657
10 713 260
The value of certain investments in some Economic Interest Groupings is included in “Other resident
sectors” (20,695 thousand Euros at December 31, 2022 and 17,806 thousand Euros at December
31, 2021) considering that are assured-return structures. Profitability of these shares has a fiscal-
financial component due to the fact that these entities negative taxable bases are included in the
Institute’s taxable base. In order to adjust the fiscal-financial profits obtained along with the final result
determined for the investment, a provision is registered annually on the Income tax heading in the
consolidated income statement (22,707 thousand Euros at December 31, 2022, 14,923 thousand
Euros at December 31, 2021) (Notes 19 and 23).
Interests accrued, during 2022 and 2021, for these loans have amounted to 181,789 thousand Euros
and 127,804 thousand Euros, respectively, which are included on caption "Interests and similar
income” of the consolidated profit and loss account (Note 24).
Of the above balances, information is provided below regarding transactions guaranteed by the Public
Sector, set out by counterparty and type of instrument, included under “Other resident sectors” and
“Resident Public Administrations”, which are classified under the heading ‘Customer loans and
advances’ at December 31, 2022 and 2021:
Thousands of Euros
2022
2021
Balances included under “Resident Public Administrations”
Loans to the national government
1 010 415
1 476 973
Loans to regional governments
629 178
735 705
Valuation adjustments
(120 789)
(124 183)
1 518 804
2 088 495
Balances included under “Other resident sectors”
Doubtful assets
5 294
5 400
Loans to other public entities
1 888 578
2 149 358
Loans to other sectors
161 751
134 025
2 055 623
2 288 783
Total operations guaranteed by the State
3 574 427
4 377 278
76
The breakdown of “Loans to the national government”, excluding valuation adjustments, is as follows
at December 31, 2022 and 2021:
Thousands of Euros
2022
2021
Loans to the State and its Autonomous Entities
1 008 901
1 475 009
Accounts receivable from the Public Treasury
1 514
1 964
1 010 415
1 476 973
The caption of “Accounts receivable from the Public Treasury” includes amounts liquidated by the
Group to the Public Treasury, pending from being effective under the concept of Subsidiaries, for the
adjustment of interest rates differentials in mediation loans. These accounts, which are carried at their
nominal value, do not accrue any interest.
Interest and similar income contributed to the consolidated profit and loss by public sector entities for
2022 and 2021 (Note 24) are the following:
Thousands of Euros
2022
2021
Central government
Regional governments
Other public sector entities
9 322
4 613
20 162
7 726
6 610
16 586
34 097
30 922
The breakdown of the main amounts of loans included under the heading ‘Customer loans and
advances’, including measurement adjustments, and set out by maturity date at December 31, 2022
and 2021, is as follows:
Thousands of Euros
2022
2021
Maturities
Up to 1 year
1 489 245
1.343.331
From 1 to 2 years
1 344 673
886.246
From 2 to 3 years
1 262 703
1.307.310
From 3 to 4 years
1 154 056
1.511.308
From 4 to 5 years
1 270 986
1.281.432
More than 5 years
4 253 905
5.005 482
10 775 568
11 335 109
At December 31, 2022 and 2021, loans to clients accrued an annual average interest rate of 1.58%
and 0.98%, respectively.
At December 31, 2022, the Group has not registered profits or losses on the consolidated income
statement for financial operations derived from the write-off of assets included on caption “Loans and
receivables” (neither at December 31, 2021) (Note 29).
11. HEDGING DERIVATIVES
This caption in the accompanying consolidated balance sheet records the hedging instruments carried
at fair value in accordance with the explanation provided in Note 2.3.
Derivatives contracted and the hedged items were fundamentally the following:
- Interest-rate swaps, which hedge financial instruments remunerated at a rate other than the
Euribor, mainly issues from the Group.
- Exchange hedges, which cover changes in fair value and cash flows relating to several
77
financial instruments.
Measurement methods used to determine the fair value of derivatives have been the discounted-
cash-flow method, to measure interest rate derivatives and exchange risk derivatives.
Total notional values of derivatives and fair values of financial derivatives designated as “Hedging
derivatives” at December 31, 2022 and 2021, by counterparty and risk (all contracted in non-organised
OTC markets), are as follows:
Thousands of Euros
Notional
Assets
Liabilities
2022
2021
2022
2021
2022
2021
By type of hedging
Fair value hedges
6 240 506
10 691 453
348 572
433 655
200 090
76 949
Cash flow hedges
4 709 662
5 921 759
90 250
21 354
365 529
254 122
10 950 168
16 613 212
438 822
455 009
565 619
331 071
By type of product
Swaps
10 950 168
16 613 212
438 822
455 009
565 619
331 071
10 950 168
16 613 212
438 822
455 009
565 619
331 071
By counterparty
Credit institutions
10 950 168
16 613 212
438 822
455 009
565 619
331 071
Other credit institutions
-
-
-
-
-
-
Other sectors
-
-
-
-
-
-
10 950 168
16 613 212
438 822
455 009
565 619
331 071
By type of risk
Risk of exchange
5 780 660
11 672 765
191 002
368 356
319 081
222 099
Interest rate risk
5 169 508
4 940 447
247 820
86 653
246 538
108 972
10 950 168
16 613 212
438 822
455 009
565 619
331 071
At December 31, 2022 and 2021, the classification of hedging derivatives, valued at fair value, based
on level hierarchies established on Note 2.2.3., is the following:
Thousands of Euros
2022
2021
Level I
Level II
Level III
Level I
Level II
Level III
Assets hedging derivatives
-
438 822
-
-
455 009
-
Liabilities hedging derivatives
-
565 619
-
-
331 071
-
The fair value of these items has been calculated in 100% of the cases, both in 2021 and in 2020,
taking as reference the implicit curves of the money.
Once the IFRS 13 of January 1, 2013 has become effective, the Group included for the derivative
instruments valuation, the corresponding risk valuation adjustments from counterparties and its own
(Notes 7 and 30).
78
12. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
The variation of this caption of the consolidated balance sheets during 2022 and 2021 is the following:
Thousands of Euros
Associates
Balance at 1 January 2021
69 346
Additions
3 306
Withdrawals
-
Other variations
3 625
Impairment
-
Balance at 31 December 2021
76 277
Additions
4 867
Withdrawals
Other variations
3 420
Impairment
Balance at 31 December 2022
84 564
Annex I contains a breakdown of shareholdings, as well as the most relevant information regarding
these interests at December 31, 2022 and 2021.
The caption “Other variations” includes consolidation adjustments.
13. PROPERTY, PLANT AND EQUIPMENT
The variation during 2022 and 2021 in accounts of property, plant and equipment and their
corresponding accumulated amortisation, has been the following:
Thousands of Euros
Buildings of own
use
Furniture, vehicle
and other assets
Property
investments
Total
Cost
Balances at 1 January 2022
114 933
16 785
131 718
Additions
1 017
194
1 211
Disposals and other write-offs
(595)
(595)
Balances at 31 December 2022
115 950
16 384
132 334
Accumulated amortisation -
Balances at 1 January 2022
38 425
8 597
47 022
Allocations
1 814
758
2 572
Transfers and other variations
(1 000)
(1 000)
Balances at 31 December 2022
40 239
8 355
48 594
Impairment losses
At 31 December 2022
-
651
-
651
Net property, plant and equipment
Balances at 31 December 2022
75 711
7 378
83 089
Cost
Balances at 1 January 2021
114 605
16 473
131 078
Additions
328
350
678
Disposals and other write-offs
(38)
(38)
Balances at 31 December 2021
114 933
16 785
131 718
Accumulated amortisation -
79
Balances at 1 January 2021
36 702
8 335
45 037
Allocations
1 723
300
2 023
Transfers and other variations
(38)
(38)
Balances at 31 December 2021
38 425
8 597
47 022
Impairment losses
At 31 December 2021
-
651
-
651
Net property, plant and equipment
Balances at 31 December 2021
76 508
7 537
84 045
At December 31, 2022, there are fully-depreciated property, plant and equipment for own use for a
gross amount of 19,673 thousand Euros (18,488 thousand Euros at December 31, 2021).
In compliance with Institute’s policy, as the Group’s parent company, all property, plant and equipment
are insured at December 31, 2022 and 2021.
Transitional Provision One, section B).6 of Bank of Spain Circular 4/2004, allows any asset recorded
under Property, plant and equipment to be carried at its fair value. To implement this measurement
adjustment, the Group carried out the relevant appraisals of property used in operations, which
allowed the value of the Group’s property, plant and equipment to be increased by 53,106 thousand
Euros. A restatement reserve was recorded for the resulting capital gain, net of the tax effect. The
restated book value will be applied as an attributed cost at that date.
The revaluation reserve at December 31, 2022 amounted to 18,026 thousand Euros (19,036 thousand
Euros at December 31, 2021) (Note 20).
The table below presents the fair value of certain items of the Group’s property, plant and equipment
at December 31, 2022 and 2021 by category, along with the related carrying amounts at those dates:
Thousands of Euros
2022
2021
Carrying value
Fair value
Carrying value
Fair value
Property, plant and equipment for own use
83 089
113 025
84 045
109 151
Buildings
75 256
105 192
76 058
101 164
Other
7 378
7 378
7 537
7 537
Fixed assets under construction
455
455
450
450
Property investments
-
-
-
-
The fair value of property, plant and equipment in the preceding table was estimated as follows:
- For those assets for which an updated appraisal by a Bank of Spain-approved value is not
available, fair value was determined based on estimates made by the entity using market data
relating to trends in prices of similar assets.
- For those assets for which an updated appraisal by a Bank of Spain-approved value is
available, fair value was determined based on the appraisal as provided for in the Ministerial
Order 805/2003.
All properties for own use were appraised by a Bank of Spain approved appraiser using the
comparison approach, at December 31, 2022 and 2021.
80
14. INTANGIBLE ASSETS
The breakdown of Intangible assets in the consolidated balance sheet at December 31, 2022 and
2021 relates exclusively to the account named ‘other intangible assets’.
Thousands of Euros
Estimated useful life
2022
2021
With indefinite useful life
-
-
-
With defined useful life
3 to 10 years
52 406
48 703
Gross total
52 406
48 703
Of which:
Internal developments
3 years
46 215
42 997
Remainder
10 years
6 191
5 706
Accumulated depreciation
(43 403)
(40 011)
Impairment losses
(2 137)
(2 137)
6 866
6 555
All intangible assets at December 31, 2022 and 2021 related to computer software. Fully amortised
intangible assets at December 31, 2022 amounted to 42,096 thousand Euros (36,418 thousand Euros
at December 31, 2021).
15. TAX ASSETS AND TAX LIABILITIES
The detail of Tax Assets and Tax Liabilities at December 31, 2022 and 2021 is the following:
Thousands of Euros
Assets
Liabilities
2022
2021
2022
2021
Current taxes:
4 330
32 435
1 493
6 748
Corporate income tax (Note 23)
3 847
32 258
-
5 810
VAT
483
177
31
35
Personal income tax withholdings
-
-
1 041
553
Social Security contributions
-
-
421
350
Deferred taxes:
174 345
152 472
153 641
75 159
Impairment losses on credits, loans and discounts
91 761
81 787
-
Measurement of cash-flow hedges (Note 21)
82 584
70 685
-
-
Restatement of property
-
-
15 932
15 932
Restatement of financial assets at fair value through OCI (Note 21)
-
-
137 709
59 227
178 675
184 907
155 134
81 907
Variations undergone, during 2022 and 2021, on balances of deferred tax assets and liabilities are
shown below:
Thousands of Euros
Assets
Liabilities
2022
2021
2022
2021
Opening balance
152 472
148 123
75 159
49 203
Impairment losses on credits, loans and discounts
9 974
20 641
-
-
Valuation of cash flow hedges (Note 21)
11 899
(16 292)
-
-
Restatement of property
-
-
-
Restatement of financial assets held for sale (Note 21)
-
78 482
25 956
Closing balance
174 345
152 472
153 641
75 159
81
16. OTHER ASSETS AND OTHER LIABILITIES
The composition of this caption in the consolidated balance sheet at December 31, 2022 and 2021 is
the following:
Thousands of Euros
OTHER ASSETS
2022
2021
Other assets
5 108
17 719
Accruals
10 798
11 132
15 906
28 851
The heading “Accruals” includes, among other items, the accrual of fees receivable by the Group, for
the Management of Operational mechanisms Fund for the Financing of Payments to Suppliers and
operational management of Autonomous Region Liquidity Fund and for the operational management
of the Financing Fund to Autonomous Communities (Note 1.1). In 2022, the overall amount of these
fees receivable for ICO is 5 million Euros per year (5 million Euros at December 31, 2021), also
recorded in the consolidated income statement for these amounts within the section of 'Fee and
commission income'“ (Note 27).
This caption also includes commissions paid by the ICO for the COVID guarantee of operations owned
by the Group (paid to the Fund RDL 12/95, by virtue of applicable regulations) and to be accrued in
the Institute’s consolidated income statement (2,141 thousand Euros at December 31, 2022 and
2,877 thousand Euros at December 31, 2021).
The composition of the balance of “Other liabilities” of the balance sheet at December 31, 2022 and
2021 is the following:
OTHER LIABILITIES
Thousands of Euros
2022
2021
Other liabilities
1 235
1 025
Accruals
63 331
39 414
64 566
40 439
Under the heading “Accruals” includes the amounts accrued and unpaid, for commissions to be paid
to credit institutions by the concepts of “rappel 2022 mediation lines” by 750 thousand Euros (500
thousand Euros in 2021). It also includes fees for the management of COVID sureties, which have
82
17. NON-CURRENT ASSETS HELD FOR SALE
The totality of the balance in this caption corresponds to foreclosed assets. None of these foreclosed
assets recorded on this heading at December 31, 2021 and December 31, 2020 comes from any
funding related neither to Property development land nor to any other property development business.
Movements for years 2022 and 2021 in the balances under this balance sheet heading are shown
below:
Thousands of Euros
Cost
Impairment
Total
Balance at 1 January 2021
65 916
(65 916)
-
Additions
119
(119)
-
Withdrawals/Applications
(3 431)
3 431
-
Transfers
-
Balance at 31 December 2021
62 604
(62 604)
-
Additions
1 882
(1 882)
-
Withdrawals/Applications
(4 026)
4 026
-
Transfers
Balance at 31 December 2022
60 460
(60 460)
-
Out of the total amount of “Non-current assets held for sale” at December 31, 2022 and 2021, 48,678
thousand Euros correspond to a single asset, which is fully provisioned.
In 2022, impairment allocations of these non-financial assets have been registered, for an amount of
78 thousand Euros (81 thousand Euros in 2021).
In 2022, profits from the sale of non-current assets held for sale were registered, for an amount of
1,468 thousand Euros (profits of 1,848 thousand Euros in 2021).
The Institute’s Board of Directors body gives its approval annually to the Disinvestment Plan referred
to these assets.
Pursuant to the standard 60
th
of Circular 4/2017 of the Bank of Spain, non-current assets held for sale
are classified into broad categories: soil, urban and urbanising splitting rustic and constructions,
distinguishing between residential, industrial and commercial uses. On the following chart are
included Appraisal Companies, its methodology to appraise the assets and the amount given to each
of it (company/agency):
RESIDENTIAL USE BUILDINGS
Thousands of € last
appraisal
Appraiser
Appraisal methodology
6
ALIA TASACIONES
COMPARISON
31
COHISPANIA
COMPARISON
585
EUROVALORACIONES
COMPARISON
69
EUROVALORACIONES
COST
9
GESVALT
COMPARISON
5
JLL
COST
13
JUDICIAL
COMPARISON
379
GROUP TASVALOR
COMPARISON
1,097
83
TERTIARY USE BUILDINGS
Thousands of € last
appraisal
Appraiser
Appraisal methodology
784
EUROVALORACIONES
COMPARISON
81
EUROVALORACIONES
COST
30
EUROVALORACIONES
RESIDUAL DYNAMIC
14
JLL
COMPARISON
909
RUSTIC LAND
Thousands of € last
appraisal
Appraiser
Appraisal methodology
31
EUROVALORACIONES
RENT UPDATE
91
EUROVALORACIONES
COMPARISON
38
GROUP TASVALOR
RENT UPDATE
43
GROUP TASVALOR
COMPARISON
203
URBAN AND DEVELOPABLE LANDS
Thousands of € last
appraisal
Appraiser
Appraisal methodology
6,117
EUROVALORACIONES
RESIDUAL DYNAMIC
105
GROUP TASVALOR
RESIDUAL DYNAMIC
44
GROUP TASVALOR
OTHER
40
UVE VALORACIONES
RESIDUAL DYNAMIC
6,306
TOTAL
8,515
18. FINANCIAL LIABILITIES AT AMORTISED COST
The items that make up the balances recorded under this consolidated balance sheet heading are as
follows:
Thousands of Euros
2022
2021
Counterparty categories
Deposits from Central Banks (Note 18.1)
2 961 320
3 444 351
Deposits from credit institutions (Note 18.2)
4 656 697
5 894 436
Deposits from customers (Note 18.3)
366 292
842 093
Issued debt securities (Note 18.4)
13 374 254
20 087 210
Other financial liabilities (Note 18.5)
247 302
258 541
Monetary market operations (Note 18.6)
28 174
-
21 634 039
30 526 631
18.1 Deposits in Central Banks
In 2019 and 2020, ICO, as parent company, responded to several LTRO and TLTRO calls from the
European Central Bank. The amount of this caption corresponds to such operations.
84
18.2 Deposits in credit institutions
The composition of this caption of the balance sheets at December 31, 2022 and 2021 based on the
nature of operations is the following:
Thousands of Euros
2022
2021
By nature:
Loans from the European Investment Bank
3 970 102
4 476 130
Interbank loans
159 392
178 645
Loans from other credit institutions
526 848
1 211 001
Valuation adjustments – accruals
(245)
28 660
4 656 097
5 894 436
Interbank deposits fall due within less than one year from December 31, 2022 and 2021, respectively.
Loans from the European Investment Bank present the following final repayment schedule:
Thousands of Euros
2022
2021
Up to 1 year
822 513
1.377.669
From 1 to 2 years
591 713
808.872
From 2 to 3 years
811 362
579.904
From 3 to 4 years
454 854
782.349
From 4 to 5 years
137 281
440.059
More than 5 years
1 152 379
487.277
3 970 102
4 476 130
The breakdown by maturity date of “Loans from other credit institutions” is as follows:
Thousands of Euros
2022
2021
Up to 1 year
78 750
853.338
From 1 to 2 years
78 750
59.042
From 2 to 3 years
78 750
77.493
From 3 to 4 years
30 000
77.493
From 4 to 5 years
198 760
47.972
More than 5 years
61 838
95.663
526 848
1 211 001
18.3 Customer deposits
The composition of this caption of the consolidated balance sheets at December 31, 2022 and 2021
based on the sector is the following:
Thousands of Euros
2022
2021
By counterparty category
Public Administrations
348 650
659 130
Other resident sector (1)
17.131
182 923
Other non-resident sectors
-
-
Valuation adjustments – accruals
511
40
366 292
842 093
(1) Out of which, at December 31, 2022 and 2021, 17,131 thousand Euros and 169,423 thousand Euros, respectively, were demand
accounts
85
At December 31, 2022 and 2021, the detail by nature of the balance registered on “Public
Administrations” is the following:
Thousands of Euros
2022
2021
Reciprocal Interest Adjustment Agreement (C.A.R.I.)
8 634
25 304
Public Administration Current Accounts and other items
340 016
633 826
348 650
659 130
18.4 Issued debt securities
The detail of this caption at December 31, 2022 and 2021 is the following:
Thousands of Euros
2022
2021
Bonds and debentures issued
13 351 201
20 070 571
Valuation adjustments (*)
23 053
16 639
13 374 254
20 087 210
(*) Including transaction costs and value corrections for accounting hedging
Variations of this caption, during 2022 and 2021, have been the following:
Thousands of Euros
2022
2021
Opening balance
20 070 571
15 049 917
Issues
23 490 046
28 023 011
Amortisations and depreciations
(30 648 144)
(23 529 344)
Exchange differences
438 728
526 987
Closing balance
13 351 201
20 070 571
Detailed below are debenture issues outstanding at December 31, 2022 and 2021, grouped per
currency:
Thousands of Euros
Number of issues
2022
2021
Currency
2022
2021
59
89
US Dollar
4 575 090
7 511 081
61
63
Euro
7 683 423
10 414 189
1
1
Swiss Franc
253 884
241 990
10
23
Australia Dollar
452 347
948 978
0
1
Sweden Krone
-
48 779
10
10
Pound Sterling
350 909
867 205
1
1
Yen
35 548
38 349
13 351 201
20 070 571
A breakdown of each issue may be consulted on the Institute's webpage (www.ico.es), as the
dominant entity of the Group, in “Investments - Issues of reference”.
In 2022, the total financial cost of debenture loans in both Euros and foreign currency recorded under
the heading ‘Interest and similar charges’ in the consolidated income statement was 562,607
86
thousand Euros, which is an average annual interest rate of 3.65% (0.51% with the effect of
accounting hedges). In 2021, financial costs amounted 241,044 thousand Euros, which was an
average annual interest rate of 2.40% (0.59% with accounting hedges) (Note 25).
As of 2022, the Institute has recorded results for financial operations derived from the repurchase of
financial liabilities at amortised cost (bonds and debentures issued by the ICO), with profits of 947
thousand Euros (losses of 356 thousand Euros in 2021), included on caption 'Gains or losses on
financial assets and liabilities not measured at fair value through profit or loss, net’ (Note 29).
18.5 Other financial liabilities
The composition of this caption of the consolidated balance sheets at December 31, 2022 and 2021
is the following:
Thousands of Euros
2022
2021
Treasury Funds
170 495
239 391
Other concepts
76 807
19 150
247 302
258 541
“Treasury funds” include funds received by the Group and repayable under the attaching terms of
each. Detailed information on the lines associated with each of these funds can be found on the
Institute’s website www.ico.es .
Funds associated with the most important lines are the following:
- Línea FOMIT – Renove Turismo (FOMIT - Tourism line): this line is to provide financial support
to financial projects aimed to renovation and modernisation of infrastructure and tourist
destinations.
- Línea Préstamos Renta Universidad: this line is to guarantee a future income for postgraduate
studies as a Doctorate or a Master’s degree for 2011-2012.
- Línea Futur E: This line is to provide incentives for projects in support of sustainable tourism,
helping to redirect current tourist activity with a view to sustainability and ecological efficiency,
taking into account variables related to the environment and sustainable development, in order
consolidate the position of Spanish tourism at the vanguard of the rational use of energy, the
use of renewable energies, the reduction of the water footprint, and waste management.
Unlike other of the Group’s mediation lines, which are funded through market fundraising by ICO, the
financial funds designated to these operations are provided directly by the state, being instrumented
through Institute’s opened accounts on behalf of the correspondent Ministries. These funds balance,
corresponds to the amount provided by formal transactions that are also listed under the heading of
‘Loans and receivables’ (net amounts, less unamortised willing), so that amount plus the balance of
the associated current account (which reflects the balance of the above lines) is always equal to the
amount received by the Institute for the provisioning of the line.
87
Balances at December 31, 2022 and 2021 of such funds are shown below:
Thousands of Euros
2022
2021
FOMIT – Renove Turismo
28 012
49 903
Préstamos Renta Universidad
80 717
93 684
Futur E
511
4 336
Others
138 062
110 618
247 302
258 541
18.6 Monetary market operations
This caption includes temporary assignments of assets, entirely securities representing Public Debt.
19. PROVISIONS
At December 31, 2022 and 2021 the detail of this caption of the accompanying consolidated balance
sheet is the following:
Thousands of Euros
2022
2021
Provisions for pensions and similar obligations
770
791
Provisions for contingent risks and commitments
59 396
48 716
Other provisions
1 704 654
1 340 867
1 764 820
1 390 374
The composition of the caption of “Other provisions” of the consolidated balance sheets at December
31, 2022 and 2021 is the following:
Thousands of Euros
2022
2021
Fund Royal Decree – Law 12/1995
1 672 132
1 316 127
Fund for amounts recovered from BBVA
200
160
Fund Prestige Facility
8 297
8 312
Fund to compensate AIE shareholdings results (Note 10.3)
22 707
14 923
Other funds
1 318
1 345
1 704 654
1 340 867
Royal Decree- Law 12/1995
Royal Decree- Law 12/1995 (28 December), published in the Official State Gazette (BOE) on 30
December 1995 and taking effect on January 1, 1996, it is stipulated that Instituto de Crédito Oficial
would create, by charging the resources obtained from the State Loan referred to by Section 4.1 of
the Council of Ministers Resolution (11 December 1987), a Fund totalling a maximum of 150,253
thousands of Euros to provide provisions and charge the amounts relating to doubtful and default
loans that could arise in the future from the activities listed in Note 1, in accordance with the
regulations in force for credit institutions. Additional Provision 4 of Law 66/1997 (30 December) on
Tax, Administrative and Social Order Measures stipulated that notwithstanding the application of
these regulations, the Council of Ministers or the CDGAE could authorise the ICO to charge the
Special provision Fund established under RDL 12/1995 for any defaults arising during the course of
its business, provided that they did not receive any specific coverage in the General State Budgets.
88
This Fund was created in 1996 under the heading “Other Provisions”.
Those loans or transactions that, in view of the relevant terms and conditions, require the application
of this Fund are provided for by charge to the same. The Group’s income statement is therefore not
affected.
Since they are already provided for through this Fund, the loans covered by the same are not therefore
included in the calculation of the general and specific bad debt provision.
The Fund is credited, in addition to the initial allocation, with future allocations that the Instituto de
Crédito Oficial makes out of profits obtained and any made or authorised by the State when assuming
or offsetting losses, or through any other appropriate system . Similarly, the Fund is credited with the
amounts of recoveries obtained from loans for which provisions have been recorded or any that have
been declared to be in default and charged against the fund, that in 2022 and 2021 amounted to 15
thousand Euros and 5 thousand Euros, respectively and the income obtained on the management of
the funds assigned to the Fund itself, in 2022 and 2021, amounted to (7,688) thousand Euros and
(5,073) thousand Euros, respectively.
In accordance with the provisions of Law 12/1996 (30 December) on the General State Budget, in
1997 an additional 150,253 thousand Euros was allocated to this Fund by charging the Ordinary State
Loan.
In 2004 another allocation totalling 249,500 thousand Euros was charged against the State Loan
granted to ICO in accordance with the Council of Ministers Resolution dated at July 30, 2004.
As a consequence of the COVID-19 health crisis and of the implementation of the State’s surety lines
to support the private sector’s financing, the financial entities pay surety commissions to ICO which,
by virtue of procedures established for such purpose, are registered as direct credits to the Fund RDL
12/95. Also, costs for the necessary contracts entered into by the Institute to manage this activity are
also charged to the Fund RDL 12/95. The purpose of these allocations is to face future defaults that
may derive from the execution of granted sureties and which, in any case, shall not affect the
Institute’s equity (in case of insufficiency of funds, the State shall directly provide ICO with the
necessary amounts).
This fund’s variations in 2022 and 2021 included on caption of “Other provisions” of the consolidated
balance sheet at December 31, 2022 and 2021 are the following:
Thousands of Euros
Balance at 1 January 2021
626 471
Capitalisation of interests
(5 073)
State Contributions
-
Application ICO results 2020
70 188
Loan recoveries (principal and interests)
1
Applications
-
Credits COVID lines commissions (net of contracting expenses)
624 540
Balance at 31 December 2021
1 316 127
Capitalisation of interests
(7 688)
State Contributions
-
Application ICO results 2021
122 960
Loan recoveries (principal and interests)
1 227
Applications
-
Credits COVID lines commissions (net of contracting expenses)
239 506
Balance at 31 December 2022
1 672 132
89
In 2022, an extraordinary contribution to the Fund of 122,960 thousand Euros has been registered,
as part of the net profit distributed by ICO for 2021.
Fund for amounts recovered from BBVA
An additional provision Eleven of Law 24/2001 (27 December) on Tax, Administrative and Social
Order Measures, was applied by the Institute, the Group's Parent entity, in 2001 and 2002, with regard
to the heading “Funds for amounts recovered from BBVA”, to allocate part of its equity to cancel an
amount owed to the Institute by the State as a result of certain loans and guarantees granted by the
former Official Credit Institutions and secured by the State.
Nonetheless, the management of the transactions affected by the cancellation process has meant
that ICO continues receiving collections pertaining to these loans, which, following the prudence
accounting principle, are not generally registered as income in the income statement. For those
accounted as income, in 2022, there is a provision by 200 thousand Euros (160 thousand Euros at
December 31, 2021).
Prestige Line Fund
The Prestige Line Fund has its origins in the ROL 7/2002, 22 November, which authorises to charge
on the Fund Special Provision 12/1995 ROL, the default amounts from loans Prestige line, with credit
to this fund specific provision.
Fund to offset results AIE shareholding results
Heading Fund to offset AIE shareholdings includes the provision in order to adjust its profit to the
transactions performance conducted through the Economic Interest Groupings (Note 10.3). This
provision has been recognised under the rubric of corporate income tax of the income account for an
amount of 7,785 thousand Euros and 8,922 thousand Euros, respectively in the years 2022 and 2021
(Note 23).
The following chart shows variations of the caption of Provisions in 2022 and 2021:
Thousands of Euros
Provision for
taxes
Fund for
pensions and
similar
obligations
Provisions for
risks and
contingent
commitments
Other
provisions
Total
Balances at 1 January 2021
-
656
27 855
658 234
686 745
Allocations (1)
-
135
20 730
5 220
26 085
Recoveries (1)
-
-
(143)
(180)
(323)
Application of funds
-
-
-
-
-
Transfers and other variations (2)
-
-
65
677 592
677 657
Exchange differences
-
-
210
-
210
Balances at 31 December 2021
-
791
48 717
1 340 866
1 390 374
Allocations (1)
-
-
15 537
8 194
23 971
Recoveries (1)
-
(21)
(4 818)
-
(4 839)
Application of funds
-
-
-
-
-
Transfers and other variations (2)
-
-
-
355 594
355 594
Exchange differences
-
-
(40)
-
(40)
Balances at 31 December 2022
-
770
59 396
1 704 654
1 764 820
(1) Transfers and other movements mainly include credits to the Fund RDL 12/95 for the collection of commissions for COVID-
19 sureties (239,506 thousand Euros at December 31, 2022 and 624,540 thousand Euros at December 31, 2021) and for
the provision to the Fund to offset results from investments in AIE (Note 23) (7,785 thousand Euros at December 31, 2022
90
and 8,922 thousand Euros at December 31, 2021).
20. OWN FUNDS
The reconciliation of the opening and closing carrying value in 2022 and 2021 of the heading “Equity”
in the consolidated balance sheets is the following:
Thousands of Euros
Share Capital
Restatement
reserves
Other
reserves
Profit/(loss)
Total
Balance at 1 January 2021
4 314 204
19 948
953 017
79 092
5 366 261
Distribution of results
(79 092)
(79 092)
Other variations of reserves
(912)
9 774
8 862
Profit/(loss) for the period
139 861
139 861
Other variations
276
276
Balance at 31 December 2021
4 314 480
19 036
962 791
139 861
5 436 168
Distribution of results
(139 861)
(139 861)
Other variations of reserves
(910)
17 955
17 045
Profit/(loss) for the period
146 832
146 832
Other variations
207
207
Balance at 31 December 2022
4 314 687
18 126
980 746
146 832
5 460 391
At December 31, 2022, the caption of “Distribution of results” includes an amount of 122,960 thousand
Euros (70,188 thousand Euros at December 31, 2021), as part of the distribution of previous year’s
results, for contribution to the Fund RDL 12/95 (Note 19).
The caption of “other variations” mainly includes the annual contribution to equity, by virtue of Law
24/2001, of 27 December, for an amount of 207 thousand Euros in 2022 (276 thousand Euros in
2021). According to the Additional Eleventh Provision of such Law, amounts recovered after the
cancellation of debts contracted by the State with the ICO, as a consequence of certain credits and
sureties granted by former Official Credit Entities and by the Institute will become part of the Institute’s
equity.
20.1 Reserves of fully or proportionally consolidated entities
The detail per consolidated companies of balances of the equity caption “Equity – Reserves –
Accumulated reserves” of the consolidated balances sheets at December 31, 2022 and 2021, in the
portion of such balance originated from the consolidation process and excluding revaluation reserves,
detailed per fully or proportionally consolidated companies on the consolidated financial statements,
is the following:
Thousands of Euros
2022
2021
AXIS Participaciones Empresariales, S.A.
29 804
16 665
Instituto de Crédito Oficial
925 172
924 262
954 976
940 927
20.2 Reserves of entities valued through the equity method
The detail per consolidated companies of balances of the equity caption “Equity – Reserves –
Reserves of entities valued through the equity method” of the consolidated balance sheets at
December 31, 2022 and 2021, in the portion of such balance revealed as part of the consolidation
91
process, detailed per company valued through the equity method in the consolidated financial
statements, is the following:
Thousands of Euros
2022
2021
COFIDES, Compañía Española de Financiación del Desarrollo, S.A.
25 715
21 807
CERSA, Compañía Española de Reafianzamiento, S.A.
55
57
Other entities
-
-
25 770
21 864
21. OTHER ACCUMULATED COMPREHENSIVE INCOME (valuation adjustments)
The balance of this caption detailed by gross and net amount of the tax effect is the following:
Thousands of Euros
2022
2021
Gross
Tax effect (Note
15)
Net
Gross
Tax effect (Note
15)
Net
Financial assets at fair value
through other comprehensive
income (Note 9)
459 032
(137 710)
321 322
197 425
(59 228)
138 197
Cash flow hedging of assets and
liabilities
(275 279)
82 584
(192 695)
(235 615)
70 684
(164 931)
TOTAL
183 753
(55 126)
128 627
(38 190)
11 456
(26 734)
records the net amount of changes in the fair value of the assets at fair value through OCI that, in
accordance with Note 2.2.4, must be included as part of the Institution's equity. The second account
Thousands of Euros
2022
2021
Opening balance
(26 734)
(125.315)
Change in fair value of financial assets at fair value through other comprehensive income
(Note 9)
183 125
60 565
Reclassification to financial assets at fair value through profit or loss
Cash flow hedges
(27 764)
38 016
Closing balance
128 627
(26 734)
22. GRANTED GUARANTEES AND CONTINGENT COMMITMENTS
These headings in the balance sheets record the amounts that ICO must pay on behalf of third parties
in the event that the obligated parties do not do so, in response to commitments acquired during the
normal course of its business (granted guarantees) and amounts available to third parties (contingent
commitments).
92
The detail of this caption at December 31, 2022 and 2021 is the following:
Thousands of Euros
2022
2021
Granted guarantees
Financial guarantees
557 812
528 275
557 812
528 275
Granted contingent commitments
Available by third parties:
Credit institutions
223 259
473 654
Public Administrations sector
1 966 824
1 739 361
Other resident sectors
1 029 980
1 130 718
Non-resident sector
337 399
189 070
Other contingent commitments
79 998
93 716
Subscribed values pending disbursement:
835 933
702 500
4 473 393
4 329 019
5 031 205
4 857 294
Income obtained from guarantee instruments (guarantees and other sureties) are recorded under the
heading “Commissions received” in the consolidated income statement.
23. TAX POSITION
The Institute is effectively taxed for the Corporate Income Tax, under general regime, since 1999
(previously, it was exempt, by virtue of specific regulations).
The reconciliation of the accounting Institute’s profit, as the Parent firm of ICO, as the Group’s parent
company, for 2022 and 2021 with the corporate income tax basis is as follows:
Thousands of Euros
2022
2021
Accounting profit before income tax
178 112
171 698
Permanent differences
Foreign taxes paid
482
554
Non-accounted accounting income
-
Tax-loss carry forwards attributed to invested companies
(36 023)
(38 096)
Deductible expenses from previous years
142 571
134 156
Temporary differences:
Due to impairment losses and provision non-deductible
67 378
84 614
Due to the reversal of temporary differences arising in other years
(34 128)
(15 814)
33 250
68 800
Tax assessment basis
175 821
202 956
Gross tax payable (30%)
52 746
60 887
Deductions and allowances
(395)
(431)
Withholdings and interim payments
(56 198)
(54 646)
Tax payable (Note 15)
(3 847)
5 810
Corporate income tax
42 376
39 816
Adjustments CIT expense allocated investees’ bases (Note 19)
7 785
8 922
Other adjustments
Corporate income tax expense
50 161
48 738
93
In the year, the allocation of tax losses carried forward in the AIE, in which ICO invests in different
capital proportions, is incorporated: 36,023 thousand Euros in 2022 (allocation of tax losses by 38,096
thousand Euros in 2021). The allocation of basis has been based on information supplied by the
entities. It was decided to allocate these concepts in the same year of the closing of AIE’s balances.
There are no tax losses carried forward at 2022 closing.
No tax incentive deductions applied in the year 2022 nor in 2021. There is an international double tax
deduction (taxes borne) amounting to 395 thousand Euros and 431 thousand Euros, respectively.
There are not international double taxation deductions at 2022 closing.
There are no changes in the methods used to depreciate/amortise fixed assets owing to exceptional
causes.
Taxes and other tax obligations applicable to the Institute are open to inspection by the tax authorities
during last four years.
Due to the possible interpretations of tax legislation that may be afforded to some transactions,
basically related to new subject ability to corporate income tax following the full exemption from the
same, there could be certain contingent tax liabilities. However, in the opinion of the Institute's tax
managers, the possibility of these liabilities crystallising is remote and in any event, the tax debt that
may derive from them would not significantly affect the accompanying annual accounts.
24. INTERESTS AND SIMILAR INCOME
The detail of interests and similar income of 2022 and 2021, based on their origin, is the following:
Thousands of Euros
2022
2021
Financial assets at fair value through other comprehensive income
204
99
Financial assets at amortised cost
Derivatives, hedge accounting
322 656
(7 876)
224 924
(12 173)
Other assets
254
312
Interests and similar income from liabilities
10 778
39 029
326 016
252 191
25. INTERESTS AND SIMILAR CHARGES
The detail of this caption of the profit and loss account during 2022 and 2021 is the following:
Thousands of Euros
2022
2021
Financial liabilities at amortised cost
Derivatives, hedge accounting
Other liabilities
665 632
(487 030)
-
306 947
(181 953)
-
Interests and similar charges from assets
21 668
22 646
200 270
147 640
26. INCOME FROM DIVIDENDS
The totality of yields obtained for this concept corresponds to the variable income portfolio, for an
amount of 480 thousand Euros in 2022 (18 thousand Euros in 2021).
94
27. PROFIT/(LOSS) FROM ENTITIES VALUED THROUGH THE EQUITY METHOD
The totality of results from entities valued through the equity method, included on this caption of the
consolidated profit and loss account, amounts in 2022 and 2021 to profits by 3,269 thousand Euros
and profits by 3,961 thousand Euros, respectively. Annex I includes the detail of shareholdings, as
well as their most relevant data at December 31, 2022 and 2021.
28. FEE AND COMMISSION INCOME AND EXPENSES
The detail of this caption of the consolidated profit and loss account is the following:
Thousands of Euros
2022
2021
Commissions received
Contingent risks
6 462
5 319
Availability commissions
5 875
3 219
Management commissions COVID sureties
7 482
6 946
Other commissions
42 689
42 418
62 508
57 902
Commissions paid
Signature risk
(5 834)
(96)
Other commissions
(3 191)
(7 697)
(9 025)
(7 793)
Net Commissions for the year
53 483
50 109
The heading “Other commissions” of commissions income, at December 31, 2022, includes 5,000
thousand Euros related to commissions of the Autonomous Communities’ Financing Fund and of the
Local Entities’ Financing Fund, for the management of both funds (5,000 thousand Euros at
December 31, 2021) (Note 16).
29. GAINS OR LOSSES ON FINANCIAL ASSETS AND LIABILITIES NOT MEASURED AT FAIR
VALUE THROUGH PROFIT OR LOSS, NET
The detail of this caption of the consolidated profit and loss account, based on the origin of its items
is the following:
Thousands of Euros
2022
2021
Financial assets at fair value through other comprehensive income (Note 9)
-
-
Financial assets at amortised cost, loans and receivables (Note 10.3)
-
-
Financial assets at amortised cost, debt securities (Note 10.1)
172
-
Financial liabilities at amortised cost (Note 18.4)
947
(356)
1 119
(356)
95
30. PROFIT OR LOSS ON FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING, NET
The detail of this caption of the consolidated profit and loss account, based on the origin of its items
is the following:
Thousands of Euros
2022
2021
Trading derivatives (Note 7)
(259)
364
(259)
364
Following the entry into force of IFRS 13 (January 1, 2013), the Group did not incorporate the
corresponding adjustment for counterparty and equity credit risk (CVA-DVA) for the valuation of the
derivative instruments. The adjustment made under this heading (including this caption) at December
31, 2022 amounts to profits by 1,452 thousand Euros (profits of 357 thousand Euros at December 31,
2021).
31. PROFIT OR LOSS FOR FINANCIAL ASSETS AND LIABILITIES OBLIGATORILY AT FAIR
VALUE THROUGH PROFIT OR LOSS, NET
The detail of this caption of the profit and loss account is the following:
Thousands of Euros
2022
2021
Equity instruments at fair value through profit or loss (Note 8)
-
-
-
-
32. PROFIT OR LOSS RESULTING FROM HEDGE ACCOUNTING, NET
The detail of this caption of the profit and loss account is the following:
Thousands of Euros
2022
2021
Hedging derivatives (Note 11)
44 683
42 386
44 683
42 386
This caption includes results from the variation of fair value both of hedging elements and of hedged
elements.
33. OTHER OPERATING INCOME. OTHER OPERATING EXPENSES
The detail of this caption of the consolidated profit and loss account is the following:
Thousands of Euros
OTHER OPERATING INCOME
2022
2021
Income from exploitation of estates
818
34
Other concepts (*)
149
800
967
834
(*) It mainly includes expenses recovered from returns of supplies and advances performed for the management of assets by BBVA
Thousands of Euros
OTHER OPERATING EXPENSES
2022
2021
Other concepts
(1)
(1)
(1)
(1)
34. PERSONNEL COSTS
The composition of this caption of the consolidated profit and loss account of 2022 and 2021 is the
following:
Thousands of Euros
2022
2021
Wages and salaries
18 388
17 879
Employee benefits expense
4 256
4 218
Other expenses
1 598
1 515
24 242
23 612
The number of the Group’s employees at December 31, 2022 and 2021, distributed per professional
categories and gender, has been the following:
Payroll distribution
Men
Women
2022
2021
2022
2021
Management
13
13
17
16
Managers and technicians
114
110
155
151
Administrative staff
6
7
49
48
133
130
221
215
The average number of the Group’s employees in 2022 and 2021, distributed per professional
categories and gender, has been the following:
Payroll average distribution
Men
Women
2022
2021
2022
2021
Management
13
13
16
16
Managers and technicians
108
112
152
151
Administrative staff
7
8
48
46
128
133
216
213
The average number of the Group’s employees, in 2022, with disability above 33% has been of 4
persons (4 persons in 2020).
Remunerations and other benefits for the General Board
In 2022 and 2021, the Group recorded in the consolidated income statement 134 thousand Euros and
127 thousand Euros (on the section of “Other administration expenses”), respectively, in respect of
remuneration accrued by the members of the General Board in respect of wages, allowances and
other remunerations. These were paid to the Treasury, according to the applicable regulation law, in
the case of General Board members considered as Senior Positions in the Civil Service.
96
97
Remunerations perceived by the President and Senior Management of the Institute, as the Group’s
parent company, during 2022 and 2021, are the following:
Financial year 2022:
Salaries and wages
Thousands of Euros
Other
No. persons
Fixed
Variable
Remunerations
Thousands of
Euros
Total
Thousands of Euros
6
720
95
18
833
Financial year 2021:
Salaries and wages
Thousands of Euros
Other
No. persons
Fixed
Variable
Remunerations
Thousands of
Euros
Total
Thousands of
Euros
6
695
70
17
782
At December 31, 2022 and 2021 there were no loans granted to the executive members of the Group’s
General Board. At December 31, 2022, loans granted under internal regulations on loans to staff, had
an outstanding amount of 13,100 thousand Euros and the average interest rate was 2.51% (12,524
thousand Euros at December 31, 2021, with an average interest rate of 2.51%).
In addition, at such date, no pension or life insurance obligations had been acquired with regard to
current or former members of the General Board.
35. OTHER ADMINISTRATION EXPENSES
The detail of this caption of the consolidated profit and loss account is the following:
Thousands of Euros
2022
2021
Buildings, installations and materials
973
713
Computers
5 409
4 979
Communications
2 210
2 089
Advertising and publicity
2 646
1 427
Rates and taxes
1 500
1 573
Other general administration expenses
8 360
8 167
21 098
18 948
Audit expenses
The annual accounts audit has been made by the General Intervention of the State Administration
(IGAE for its initials in Spanish). Consequently, there are no remunerations to auditors for this concept,
as they are assumed by the General Intervention (Ministry of Treasury and Public Administrations).
The amount invoiced by Mazars Auditores S.L.P. for the audit of CERSA and COFIDES, Group’s
associates, of 2022 and 2021, which is attributable to the Group’s consolidation (that is to say, fees
accrued for the Group’s shareholding percentage in CERSA) is of 11 thousand Euros in 2022 and 12
thousand Euros in 2021.
98
The amount invoiced by companies under the Mazars trademark (who audit, by virtue of a contract
formalised with the IGAE to deliver a collaboration service in the performance of the audit of the annual
accounts of 2022 and 2021), for audit-related services delivered to the ICO amounted to 10 thousand
Euros (5 thousand Euros for audit services of the individual annual accounts and 5 thousand Euros
for the consolidated accounts); the amount invoiced for non-audit services during 2022 has been of
42.5 thousand Euros, taxes not included (42.5 thousand Euros in 2021).
36. FAIR VALUE
As mentioned above, financial assets are recorded on the balance sheet at fair value, except for loans
and receivables and equity instruments whose market value cannot be estimated reliably.
In the same way, financial liabilities are recorded on the balance sheet at amortised cost, except those
included in the trading portfolio.
Part of the assets registered under “loans and receivables” and liabilities registered under the heading
“Financial Liabilities at amortised cost”, from the consolidated balance at December 31, 2022 and
2021, are accounted at variable rate, with an annual revision of that rate, so their fair value coming
from movements of interest rates, it is not significantly different from the one registered in the
consolidated balance. The fair value of these has been obtained using a weighted average maturity
and a weighted average rate through which it has proceeded to calculate the fair value using discount
flows. The value calculated for these operations at December 31, 2022 and 2021, for the Institute as
the Group’s parent company, is as follows:
Thousands of Euros
Carrying value
Fair value
ASSETS
2022
2021
2022
2021
Financial assets at amortised cost
23 866 671
25 327 301
23 994 327
25 694 336
LIABILITIES
Financial liabilities at amortised cost
21 681 827
30 558 851
21 759 973
30 605 063
Fair value has been calculated, in all cases, both in 2022 and in 2021, taking as reference implicit
curves in monetary and Public Debt markets.
37. OPERATIONS WITH SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES
The Company’s balances at December 2022 and 2021 related to Joint Ventures and Associates are
as follows:
CERSA
- Deposits to customers (financial liabilities at amortised cost): 216,988 thousand Euros at
December 31, 2022 (110,500 thousand Euros at December 31, 2021).
38. EXPLANATION ADDED FOR TRANSLATION TO ENGLISH
These consolidated financial statements are presented on the basis of the regulatory
99
financial reporting framework applicable to the Group (see Note 2). Certain accounting
practices applied by the Group that conform to that regulatory framework may not conform to
other generally accepted accounting principles and rules. In the event of a discrepancy, the
Spanish-language version prevails.
100
INSTITUTO DE CRÉDITO OFICIAL
MANAGEMENT REPORT
Financial environment and frame of action
The Spanish economy maintained the pace of growth in 2022, despite the adverse
environment.
In the set of 2022, the Spanish economy maintained the strong economic growth registered in 2021
(5.5% with regard to the previous year). The important advance of the GDP has been surprising, in a
year marked by the outbreak of the Ukraine war, the high inflation and increases of interest rates,
while the activity recovered after the Covid-19 crisis. Indeed, the growth has exceeded the successive
forecasts by the different bodies and reflects a greater resilience, backed by measures adopted to
face the energy crisis, the strong upturn of tourism and the dynamism of private consumption, also
backed by the positive evolution of the labour market. For 2023, the economic growth is expected to
continue, although at a slower pace, due to the lower global growth, the still high inflation, and high
interest rates, although the Spanish economy will continue leading the growth among the large
Eurozone countries.
Throughout 2022, the GDP increased by 5.5%, which was also the rate growth registered in 2021,
thus extending the recovery path after the GDP fall in 2020. The growth in 2022 was founded over an
expansive behaviour both of domestic demand, which summed a positive contribution of 2.8
percentage points (pp), although it was lower by 2.4 pp than in 2021, and of the foreign sector, which
had a positive contribution of 2.6, much higher than the contribution in 2021 (0.3 pp). Within the
domestic demand, in 2022, the private consumption and the investment in machinery and capital
goods continued growing at high rates, and the investment in properties increased again. On the other
hand, the public expense decreased in 2022, after the increases registered in 2021 and 2020 to face
the Covid-19 crisis.
Concerning the labour market, after the recovery in 2021 of pre-pandemic employment levels, the
labour market continued showing its strength during 2022. According to the data of the Active
Population Survey (EPA), in 2022, 279,000 work posts were created, equivalent to an employment
increase of 1.4%. The unemployment rate was of 12.9% in the fourth quarter of 2022, against the rate
of 13.3% in the fourth quarter of 2021. Thus, in 2022, the dynamism in the employment creation
observed in 2021 continued, although with certain moderation with regard to that year’s vigour. In
terms of the number of workers registered in the Social Security, the data are also positive, exceeding
the pre-pandemic levels since mid-2021, and with an increase of registration in 2022 of 2.4% with
regard to 2021, i.e., an increase of 471,000 registered workers.
In the set of the Eurozone, the growth was lower than in Spain, in particular by 3.5% in 2022,
moderating its growth with regard to 2021 (5.2%). Despite the delicate context, the home consumption
and investment mainly boosted the advance of the activity.
In 2022, the inflation continued escalating in a generalised manner among the economies, as
observed throughout 2021, as a consequence of the effects from the bottlenecks of supplies and the
increase of the energy prices, but aggravated with the outbreak of the war in Ukraine. The inflation
upturn intensified to unprecedented levels in several decades in the different jurisdictions, given the
acceleration of energy prices and the cost increase of many raw materials, although these started to
slightly moderate at the end of the summer, in Spain, and since November in the Eurozone, thanks
to measures implemented and to the lower pressure of some of the causes. In Spain, the average
inflation was of 8.4% in 2022, after reaching 3.1% in 2021, and the general CPI closed 2022 with a y-
o-y rate of 5.7% at December. Similarly, the underlying CPI (excluding energy goods and unprocessed
food, which are components with a greater price variability) also showed an upward trend and above
101
2021, closing the year in 7%, with an annual average of 5.2%. In the Eurozone, the trend was similar
to Spain. The underlying rate of the Eurozone closed 2022 in levels as high as Spain (6.9% in the
Eurozone); however, the general inflation rate was higher in the Eurozone at the end of 2022 (9.2%),
given that the moderation of the last months of the year was greater in Spain.
The main analysists and institutions’ forecasts, both in Spain and for the set of the Eurozone, point
that, in 2023, inflationary pressures will continue to weaken and the path of price moderation that
started at the end of 2022 will redirect prices during 2023, although still at levels above the monetary
policy objectives.
The ECB started a standardisation process of its monetary policy in 2022 with overwhelming
increases of interest rates, among other measures.
In this context of ongoing increase of the inflation and high inflation expectations at the mid term, and
as the economies recovered from the most acute phase of the pandemic, the Governing Council of
the ECB started the progressive standardisation process of its monetary policy in 2022.
The first step was the withdrawal of the extraordinary monetary stimulus implemented at the beginning
of the pandemic, for which, on March 2022, the net asset purchases ended within the PEPP
(Pandemic Emergency Purchase Programme) framework.
On June, the ECB Board concluded that the conditions established in the forward guidance to start
increasing interest rates had been met, and communicated their intention to increase rates on July,
and again on September, and announced that net purchases in the framework of the asset purchase
programme (APP) would end at the beginning of July. That month, official rates increased by 50 basic
points, the first increase of interest rates in 11 years, and the Board announced the new Transmission
Protection Instrument, TPI. In particular, the TPI guarantees the fluent transfer of the policy’s
guidelines to all countries within the Eurozone, and the volume of purchases in the framework of the
TPI depends on the seriousness of risks to transfer the policy.
On September, the Board approved an unprecedented increase of 75 basic points, which was applied
again on October. These rises were due to excessively high inflation levels and that would probably
remain above the ECB’s objective of 2% at the mid term, during an extended period of time.
The Governing Council also decided, on its meeting of October, to modify the conditions of the third
series of targeted longer-term refinancing operations (TLTRO III) and decided to establish the
remuneration of minimum reserves in the interest rate of the ECB’s deposit facility.
At the end of 2022, the ECB increased again its official rates in 50 basic points and announced the
beginning of the reduction of its security holdings acquired under the APP programme from March
2023.
Lastly, the ECB decided on its meeting of February 2023 to apply the same increase as at December
(50 basic points) to its three official interest rates. With that decision, the interest rate of the main
financing operations and interest rates of the marginal credit facility and of the deposit facility amount
to 3.00%, 3.25% and 2.50%, respectively, with effect from February 8, 2023.
Also, the ECB has anticipated that, on its coming March meeting, official interest rates will be
additionally increased by 50 basic points, responding to pressures on the underlying high inflation.
After the March meeting, the ECB indicates that the future path of its monetary policy will be assessed.
In any case, the ECB expects maintaining rates at restrictive levels to reduce inflation over time, by
moderating the demand, to an objective of 2% at the mid-term. Moreover, these high rates will allow
preventing a persistent upward shift of inflation expectations.
102
Additionally, the majority of Central Banks have also carried out a forceful turn in the direction of their
monetary policy, making 2022 a turning point year that has put an end to more than a decade of low
rates and of ultra-accommodative policies in most economies. In particular, in the USA, the Federal
Reserve made its first increase of rates on May 2022 and, since June, the balance reduction process
started. After successive interest rate increases, on February 2023, they range from 4.50% to 4.75%.
In the United Kingdom, the Bank of England applied its first rate increase on December 2021 and,
after consecutive increases, on February 2023 rates of reference amount to 4%.
At institutional level, during 2022, the management of European funds from the instrument Next
Generation EU (NGEU), which aims mobilising unprecedented resources to boost the economic
growth, continued. The Member States have continued presenting their plans to use the resources
made available, which have been accompanied by the corresponding disbursements. In the specific
case of Spain, in 2022, the second disbursement was perceived, for an amount of 12,000 million
Euros, and on November the third disbursement was formally requested, for a value of 6,000 million
Euros, linked to the compliance with 29 milestones and objectives (23 milestones and 6 objectives),
that had been complied with throughout the first half of 2022. On February 2023, the European
Commission has authorised this third disbursement and, thus, Spain became the first Member State
that received the authorisation for the third disbursement, bringing to light that it is the most advanced
country in the fund execution.
On December 2022, the Government approved the addendum to the Recovery Plan, which will allow
additionally mobilising more than 94,300 million Euros to boost the country’s strategic
reindustrialisation, and which incorporates three important developments: assigning additional
transfers corresponding to Spain, entailing additional grants of 7,700 million, assigning loans of the
Recovery and Resilience Mechanism, from which Spain may request up to a maximum of 84,000
million Euros from the European Commission, and assigning funds of the REPowerEU Plan, which
objective is saving energy, increasing clean energy production, and diversifying European energy
sources, with an assignment of 2,600 million Euros. The addendum will continue ambitious reforms
and investments of the Recovery Plan, in line with its objectives (ecologic transition, digital
transformation, social and territorial cohesion and gender equality), focusing on the strategic
autonomy through strategic projects, known as PERTE. The Government expects these funds to have
an effect over the Spanish GDP close to 3 percentage points in 2023, increasing in 2024 to 3.5 pp
with the sum both of reforms and of investments linked to funds.
Interest rates applied to companies increased in 2022 as a consequence of the monetary
policy’s standardisation process
The ECB’s official rate increases, within a context of a quicker standardisation of the monetary policy
in the Eurozone than expected, in view of the strong inflation increase, have been reflected in interest
rates applied to households and companies during 2022, as these have undergone increases, in
particular during the second half of the year. Thus, the average interest rate applied to the companies
in operations of less than 1 million Euros, which may be taken as approximation of the rate applied to
SMEs, increased from 1.59% at December 2021 to 3.49% at December 2022. This interest rate was
maintained throughout the year below the rate applied in Germany to these same operations and,
also, this differential with Germany has increased to a greater extent in the last months of the year as
a consequence of the higher rate increase in Germany. Thus, the Spanish rate is 54 basic points
below the German rate at December 2022, while at December 2021 it was of 32 basic points. In
comparison with the average of the set of the Eurozone, the differential was lower, throughout 2022,
but the differential was negative every month, except in January; thus, on December 2022, the
Spanish rate was 21 basic points below the European average.
Interest rates for operations of a lower amount (up to 250 thousand Euros) also increased in 2022,
from 1.69% at December 2021 to 3.53% at December 2022, also remaining below the German rate
throughout the year, so that, at December, the Spanish rate was 68 basic points lower. Additionally,
103
the Spanish interest rate was also lower than the Eurozone rate in these operations throughout the
year, being 35 basic points lower at December.
Concerning the financial sector activity, during 2022, the volume of new companies’ loan operations
grew by 19.9%, with regard to 2021; however, this growth slowed down, towards the end of the year.
Operations below 250 thousand Euros increased by 15.7% with regard to the previous year; those
below 1 million increased by 14.1% in 2022; and operations above 1 million increased even further,
by 25.7%.
In any case, total credit exposure with companies remain virtually stable during 2022, according to
Bank of Spain data.
Non-performing loans continued decreasing in 2022
Non-performing loan ratio the Spanish credit institutions continued reducing in 2022. On December
2022, it amounted to 3.5% with regard to 4.3% at December 2021. Thus, the ratio reached its lowest
rate since December 2008. This decrease is explained by the intensification of the fall of the volume
of credit rated as doubtful. In relation to credit to productive activities, this ratio amounted to 4.43%
(at September 2022).
Activity
The Institute works to contribute added value to the financing of the Spanish business fabric and to
respond to the needs and challenges posed by the different economic scenarios in a flexible manner,
in order to contribute to the sustainable growth, the employment generation, and the wealth
distribution through its three main functions:
o National Promotion Bank: to boost the economic growth and the business activity.
o Financial Economic Policy Instrument: in order to channel the European Union (EU) funds in
their different modalities and to collaborate with Administration bodies, to transfer resources
towards the companies in order to reach economic policy and sector objectives.
o State’s Financial Agent: managing on behalf of the State different funds and instruments of a
different nature and purpose, as well as carrying out functions entrusted in the different
economic scenarios to provide an efficient response to the companies’ financing needs.
o All of the Institute’s actions in 2022 are framed within its Strategy 2022-2027 and take as
reference the EU Financial Framework 2021-2027 and the Recovery, Transformation and
Resilience Plan, which articulate the Government’s economic policy around green and digital
transition, social and territorial cohesion and equality.
As National Promotion Bank, the Instituto has a comprehensive catalogue of bank financing
products, guarantees and complementary financing for all types of companies and entities, adapted
to their needs and aimed to boost their activity both in Spain an in international markets.
This offer is specified in different instruments designed by ICO to accompany and provide support to
Spanish companies, articulated through the fund distribution in collaboration with credit institutions
operating in Spain (ICO mediation lines) and through the different financing programmes and
guarantees in which the Instituto acts directly with the clients.
The financing and issue of ICO guarantees to companies, entrepreneurs and territorial administrations
during 2022 amounts to 5,034,233 thousand Euros. 31.0% of this amount (1,560,965 thousand Euros)
corresponds to credit disposals made through the different ICO mediation lines, by means of 12,394
104
operations; 70% aimed to micro-SMEs (companies up to nine workers) and 38% correspond to loans
for an amount equal or below 25,000 Euros.
Two differentiated strategic areas of action are distinguished in the mediation activity:
o National: to finance business activities and investment projects related to the activity in Spain.
In 2022, 11,247 operations have been granted, for an amount of 1,181,750 thousand Euros,
representing 76% of the total amount of mediation lines.
o International: these lines are aimed to finance the internationalisation and exporting activity of
Spanish companies. In 2022, 1,147 operations have been granted, for an amount of 379,215
thousand Euros, in the different lines.
Concerning the direct activity, during 2022, ICO has complemented financing operations through
loans and issue of sureties with the acquisition of other corporate debt instruments.
In particular, bonds issued by Spanish companies to facilitate the financing to carry out investment
plans at the mid and long term (corporate bonds); project bonds, as financing instrument linked to
large infrastructure operations; and bonds and business promissory notes issued through the
Alternative Fixed-Income Market (MARF), aimed to ease the access to financing of issuers,
particularly of SMEs, to cover their short and mid-term liquidity needs.
By means of these direct financing modalities and guarantees, during 2022, funds have been
disposed of and sureties have been issued, for an amount of 3,473,268 thousand Euros, attending
the companies’ investment and liquidity needs, and continuing with the promotion of large long-term
investment projects both in Spain and abroad, as a complement to the private initiative. The detail of
direct activity volumes made available to the companies is the following:
o Through the direct banking activity, loans and credits have been disposed of, for an amount
of 1,774,826 thousand Euros, and sureties have been issued, for an amount of 141,474
thousand Euros.
o Through the direct complementary activity, corporate bonds and MARF bonds at mid and long
term have been acquired, for an amount of 354,790 thousand Euros, and MARF promissory
notes at short term, for an amount of 1,202,178 thousand Euros.
Another of the Institute’s main strategic lines of action as National Promotion Bank is carried out
through AXIS, the venture capital subsidiary of the ICO Group. Axis acts in public-private
collaboration with the venture capital sector in all activity fields. Currently, commitments have been
assumed to manage up to 9,000 million Euros in its four funds: Fond-ICO Global, Fond-ICO Next
Tech, Fond-ICO SMEs, and Fond-ICO Sustainability and Infrastructures. These commitments will
allow a joint mobilisation of public and private resources of more than 18,000 million Euros in the next
five years, based on the private sector’s capacity to absorb resources and materialise projects.
Fond-ICO Global is the first public venture capital “fund of funds” created in Spain, which objective is
to promote the creation of private management venture capital funds that carry out investments in
Spanish companies, in order to facilitate alternative financing lines, complementary to banking lines,
and to promote their capitalisation and growth.
This fund, with an initial allocation of 1,200 million Euros, has been extended, given its positive
evolution, and currently reaches 4,500 million Euros.
On September 2022, the board of directors of AXIS approved the launch of the 15
th
call of Fond-ICO
Global, where seven funds were selected, in which ICO will invest a maximum of 410 million Euros.
105
Through all the 15 calls resolved until December 31, 2022, investments have been approved for a
maximum amount of 3,427 million Euros, with a target investment volume of 11,474 million Euros in
Spanish companies. For each Euro of public capital invested by Fond-ICO Global, the private funds
will invest a minimum of 3.3 Euros in Spain.
Fond-ICO SMEs, allocated with 250 million Euros, has as objective to boost the business fabric and
create employment through the participation in Spanish SMEs with capital and quasi capital
instruments. It currently focuses on investment in funds that invest in strategic or innovating activity
segments, such as sustainability and social impact or the entrepreneurial ecosystem, also promoting
the financing complementary to banking, through business angels or diversified debt
(crowdlending/crowdfunding).
During 2022 the Board of directors of Axis has approved Fond-ICO SMEs participations by 35,400
thousand Euros.
Through Fond-ICO Infrastructures II, ICO has continued with the objective to invest directly or through
other funds in sustainable infrastructure projects in Spain and abroad with Spanish companies,
contributing to national objectives for ecologic transition. The fund provides financing to companies
through minority shares in capital, subordinated debt and participating loans.
During 2022, the Board of directors of Axis has approved participations through this fund by 55,000
thousand Euros.
On July 2021, AXIS and the State’s Secretary for Digitalisation and Artificial Intelligence (SEDIA)
launched Fond-ICO Next Tech. This fund makes investments in funds, corporate vehicles and
companies that boost innovating high-impact digital projects and the investment in growing companies
(scale-ups).
The board of directors of AXIS has approved in 2022 the fund’s capital increase in 1,500 million Euros,
reaching an amount of 2,000 million Euros.
The objective of Fond-ICO Next Tech is to invest both in funds (venture capital funds, corporate funds
or other investment vehicles) and in Spanish growing companies of the technological sector. The
objective is to mobilise joint resources in public-private collaboration of 4,000 million Euros (half of
public funds and the other half of private investment) in an initial period of four years.
In 2022, ICO has approved the participation of Fond-ICO Next Tech in three funds, reaching a public
investment of 270 million Euros that will mobilise investments in public-private collaboration in Spain
of at least 540 million Euros in digital companies and projects.
Also, in 2022, the participation of Fond-ICO Next Tech in the European Tech Champions Initiative
(ETCI) was approved, where Spain will contribute 1,000 million Euros to a new European fund that
will provide financing to European emerging companies to create an entrepreneur ecosystem that will
allow the development of cutting-edge projects with global power.
As Financial Economic Policy Instrument, ICO supports the Spanish economy in two ways: enhancing
its role as a channel of EU resources in their different modalities and developing functions entrusted
to implement the Government’s economic policy measures.
The Institute uses its different fund distribution mechanisms as National Promotion Bank to boost the
recovery, transformation and strengthening process of the growth model of Spain, according to
priorities defined in the Recovery, Transformation and Resilience Plan approved by the Government
and in line with the Next Generation EU Programme and the Multiannual Financial Framework 2021-
2027 of the European Union.
106
For this purpose, ICO cooperates by channelling financial resources associated to economic policy
measures together with Ministries, Autonomous Communities, Local Corporations and their
dependent bodies and channels European Union resources towards Spanish companies and projects
with Spanish interest.
In its role as State Financial Agency, ICO manages official funds and financing instruments to
exportation and development, facilitates the sustainability of autonomic and local administrations and,
since 2020, through an efficient public-private collaboration model, manages on behalf of the State
the public surety lines implemented as a consequence of the health crisis of the COVID 19 and the
war in Ukraine.
Concerning the activity managed by surety lines associated to the COVID-19 crisis, the State has
guaranteed 108,073,024 thousand Euros from the beginning to the end of the validity of the lines on
June 30, 2022, with the following distribution:
o Liquidity loans facility, for a guaranteed amount of 92,880,311 thousand Euros, corresponding
to 1,020,575 loans for an amount of 122,377,914 thousand Euros. 98% correspond to
freelancers and SMEs.
o Investment loans facility. 171,909 operations were granted, for an amount of 18,358,748
thousand Euros, with a guaranteed amount of 14,306,600 thousand Euros.
o Guarantee facility for MARF promissory note issues. 858,536 thousand Euros were
guaranteed, corresponding to 119 issues which nominal amounted to 1,255,300 thousand
Euros.
During 2021 and 2022, the management of new surety operations requested by credit institutions has
been complemented with the ICO’s implementation of different measures agreed by the Government
in relation to previously formalised surety operations. In particular, Royal Decrees Law 34/2020, of 17
November, and 5/2021, of 12 March, established extraordinary measures to support the business
solvency, aimed to continue protecting the productive fabric and prevent a structural impact in the
economy and the employment.
Through these measures, the reimbursement term for guaranteed operations was extended, and a
Code of Best Practices was approved, which is allowing ICO to accompany credit institutions in
restricting processes of the financial debt with public guarantee. Some of these measures, such as
the reduction of debt through transfers, remains in force until June 30, 2023.
Additionally, the Council of Ministers, on meeting held on June 21, 2022, adopted an agreement to
allow the extension of the term of guarantees granted to freelancers and businesses, charged to ICO
COVID surety facilities, after June 30, after the expiry of the deadline of the Temporary State Aid
Framework approved by the European Commission. The extension of the deadline may be requested
for the entire life of the operations.
Moreover, Royal Decree-Law 6/2022, of 29 March, adopting urgent measures in the framework of the
National Plan of response to the economic and social consequences of the war in Ukraine, establishes
that the Ministry of Economic Affairs and Digital Transformation may grant sureties for an amount up
to 10,000 million Euros for the partial coverage, on behalf of the State, of the financing granted by
credit institutions to businesses and freelancers.
The Council of Ministers adopted in 2022 the following agreements, in relation to this Surety facility:
to establish the terms and conditions of a first tranche, for an amount up to 5,000 million Euros charged
to the surety facility, aimed to guarantee the financing granted to businesses and freelancers and to
incorporate some changes in the facility’s conditions to adapt it to the European Union’s temporary
107
state aid framework, among which is the extension of the term to file for sureties until December 1,
2023.
Finally, the Council of Ministers of December 27, 2022 agreed a new package of measures to respond
to the impact of the war in Ukraine during 2023. Among the agreed measures is a second tranche of
the surety facility, for an amount of 500 million Euros, which will allow gas-intensive industries to
obtain financing with a public surety of up to 90%.
The guaranteed amount at December 2022 closing is of 649,122 thousand Euros, corresponding to
3,999 loan operations for an amount of 838,860 thousand Euros.
In addition to sureties of the facilities for the COVID-19 and Ukraine crisis, in 2022, the Institute has
continued managing on behalf of the State other funds and instruments in three areas of action:
financing the State’s peripheric administration through Territorial Funds of Autonomous Communities
and Local Entities, on behalf of the Ministry of Finance; promoting the Spanish companies’
internationalisation through the Fund for the Business Internationalisation (FIEM) and the Reciprocal
Interest Adjustment Agreement (CARI), on behalf of the Ministry of Industry, Trade and Tourism; and
the financial cooperation to the development, through the Development Promotion Fund
(FONPRODE) and the Water Fund (FCAS), on behalf of the Spanish Agency of International
Cooperation to Development (AECID).
At the end of the financial year 2022, the total balance managed by ICO corresponding to these funds
is of 198,951 million Euros:
o The Financing Fund for Autonomous Communities has an outstanding balance of 185,779
million Euros.
o State funds for the internationalisation and financial cooperation to the development (CARI,
FIEM, FONPRODE and FCAS) present a joint balance of 6,920 million Euros.
o The Financing Fund to Local Entities has closed 2022 with a balance of 6,252 million Euros.
Fundraising
The Institute finances its activity at the mid and long term mainly through debt issues in capital markets
and through bilateral loans of multilateral credit institutions. The ICO is not financed through the
General State Budgets and does not gain deposits from individuals.
During 2022, resources were obtained at mid and long term, for an amount of 4,329 million Euros.
Out of this amount, 1,000 million Euros through two issues of sustainable bonds: one of green bonds
and another of social bonds.
On May, the four issue of green bonds was launched, for an amount of 500 million Euros. Raised
funds will be applied to financing Spanish companies’ sustainable projects to boost the ecologic
transition. The operation rises to 2,000 million Euros the global volume issued by ICO in green bonds
and consolidates the Institute’s commitment to the market development for this typology of
transactions.
On September, the ninth issue of social bonds was launched, for an amount of 500 million Euros.
Funds obtained will be applied to financing, in public-private collaboration, projects that promote the
social and territorial cohesion and generate a positive impact in the employment.
ICO continues consolidating as role as issuer of reference in the market of sustainable bonds, with
thirteen transactions (nine social and four green transactions) for a global amount of 6,550 million
108
Euros, until December 2022. Through these issues, ICO commits to promote investments that
generate a positive social and environmental impact, in line with objectives established in the
Recovery, Transformation and Resilience Plan.
Balance sheet
ICO Group occupies a prominent position within the Spanish financial system and has an important
role in the Spanish economy.
The Institute’s balance sheet reaches 29,802,910 thousand Euros at 2022 closing (37,790,436
thousand Euros at 2021 closing). The cause of the variation with regard to the previous year mainly
responds to a reduction of the caption of cash, deposits at central banks and demand deposits.
The outstanding amount of financial assets at amortised cost has amounted to 23,866,671 thousand
Euros (25,327,301 thousand Euros at December 31, 2021):
• Loans to credit institutions amount to 6,911,989 thousand Euros (7,724,368 thousand Euros
in 2021). This caption mainly includes outstanding balances from mediation operations.
• Loans to customers close the year with a balance of 10,173,657 thousand Euros with regard
to 10,713,260 thousand Euros in the previous year.
• Debt securities amount to 6,781,025 thousand Euros; 6,889,673 thousand Euros at 2021
closing.
The outstanding balance of the portfolio of debt securities at fair value through other comprehensive
income, aimed to cover possible liquidity needs, amounts to 1,135,160 thousand Euros (1,150,639
thousand Euros at December 31, 2021) and the balance of equity instruments is of 1,325,031
thousand Euros (1,086,506 thousand Euros at 2021 closing). This caption mainly includes the
Institute’s shares in venture capital funds managed by AXIS Participaciones Empresariales
S.G.E.I.C., S.A., S.M.E, managing entity fully owned by Instituto de Crédito Oficial.
During 2022, there has been a decrease of the balance of financial liabilities at amortised cost, closing
the year in 21,634,039 thousand Euros (30,526,631 thousand Euros in 2021).
Equity in ICO amounts to 5,589,018 thousand Euros at 2022 closing, 18.75% of the balance sheet.
The Institute’s solvency coefficient at year-end closing amounts to 33.70%, much higher than
regulatory minimums.
Risk management policy
The Institute’s actions with regard to liquidity, market, credit and operational risk management are
described on the corresponding Notes 5.3 to 5.6.
Results
Net interest income at the end of December 2022 amounted to 125,746 thousand Euros, an increase
of 21,195 thousand Euros with regard to 2021.
In the same line, gross margin in 2022 has increased, with regard to 2021 (233,525 thousand Euros
and 207,485 thousand Euros, respectively).
Operating expenses (administration and depreciation) amounted to 51,002 thousand Euros, above
figures in 2021 (47,342 thousand Euros).
109
It should be noted that the financial year 2022 ended with net provision allocations of 3,517 thousand
Euros and a reversal of the value of financial assets not measured at fair value of 23,468 thousand
Euros.
As a result, profit before tax amounted to 203,865 thousand Euros.
Research and development expenses
No research or development activities were carried out in 2021.
Treasury stock
Not applicable to the Institute.
Personnel
The ICO Group’s average payroll, in 2022, amounts to 344 employees, with regard to 346 in 2021.
Post-balance sheet events
The coming years will be crucial to consolidate the process of recovery, transformation and
strengthening of Spain’s growth model, as well as to deal with the economic consequences that may
arise from the war in Ukraine. The priorities of the European Union, embodied in the Multiannual
Financial Framework 2021-2027 and the European recovery plan Next Generation EU, have been
transferred to our country through the Recovery, Transformation and Resilience Plan. The Plan, in
which ICO is expected to gain a relevant role as loan conduit, constitutes a roadmap aimed to achieve
sustainable inclusive growth through a consistent and coordinated strategy, from the time standpoint
and also in relation to the set of national and community economic policy instruments.
The transformations that our economy will undergo in the coming years mean that companies will
have to rely on different financing sources, which will require the mobilisation of financial resources in
different modalities.
In this area, the ICO Group will have to play a very important role in collaboration with the private
banking system, consolidating the process of recovery and transformation of the Spanish economy,
environmental and social sustainability, as well as business growth as a source of innovation,
competitiveness and job creation.
Other significant events that occurred after the reporting date are detailed in Note 1.8.
Non-financial information statement
By virtue of Law 11/2018 of 28 December, on non-financial information and diversity, the Institute has
elaborated the non-financial information statement related to 2022, which is included as a separate
document accompanying the management report of 2022, in compliance with article 44 of the Code
of Commerce.
110
The relevant information on shares in associates and subsidiaries at December 31, 2022 and 2021 is the following:
At 31 December 2022:
Shareholding%
Investment’s carrying
value
Entity’s details
Address
Activity
Direct
Indirect
Total
Gross
Impairment
Net
Assets
Equity
Results
Associates
CERSA, Compañía Española de
Reafianzamiento, S.A.
Paseo de la Castellana
151 - Madrid
Supporting
guarantee of
guarantee operations
granted by the SGR
24. 39%
-
24. 39%
47 060
-
47 060
817 669
647 074
-
COFIDES, Compañía Española
de Financiación del Desarrollo,
S.A.
Príncipe de Vergara,
132 - Madrid
Financial support to
private projects with
Spanish interest
performed in
developing countries
20.31%
-
20.31%
8 466
-
8 466
191 444
184 516
16 099
Subsidiaries
55 526
-
55 526
AXIS Participaciones
Empresariales Sociedad Gestora
de Entidades de Capital Riesgo,
S.A.
Los Madrazo, 38
- Madrid
Financial
investments
100.00%
-
100.00%
1 940
-
1 940
48 657
47 356
20 612
57 466
-
57 466
Non-audited economic information, referring to 31 December 2022
111
At 31 December 2021:
Shareholding%
Investment’s carrying value
Entity’s details
Address
Activity
Direct
Indirect
Total
Gross
Impairment
Net
Assets
Equity
Results
Associates
CERSA, Compañía Española de
Reafianzamiento, S.A.
Paseo de la
Castellana
151 - Madrid
Supporting
guarantee of
guarantee
operations granted
by the SS.GG.RR.
24. 34%
-
24. 34%
42 193
-
42 193
654 482
501 474
-
COFIDES, Compañía Española
de Financiación del Desarrollo,
S.A.
Príncipe de Vergara,
132 - Madrid
Financial support to
private projects with
Spanish interest
performed in
developing countries
20.31%
-
20.31%
8 466
-
8 466
174 369
167 580
18 490
Subsidiaries
50 659
-
50 659
AXIS Participaciones
Empresariales Sociedad Gestora
de Entidades de Capital Riesgo,
S.A.
Los Madrazo, 38
- Madrid
Financial
investments
100.00%
-
100.00%
1 940
-
1 940
32 841
31 752
18 146
52 599
-
52 599
Non-audited economic information, referring to 31 December 2021
112
Annex II
ANNUAL BANKING REPORT
The present Annual Banking Report has been prepared in compliance with Article 87 of Law 10/2014,
of 26 June, on the regulation, supervision and solvency of credit institutions. According to this Article,
from January 1, 2016, credit institutions must provide Bank of Spain and annually publish, as a report
accompanying the audited financial statements according to the regulation on auditing, per country
where they are established, the following consolidated information for each year:
a) Denomination, nature and geographic location of the activity.
b) Turnover.
c) Number of FTE employees.
d) Gross profit/(loss) before tax.
e) Income tax.
f) Public grants or aids received.
The criteria used in the preparation of the annual banking report of 2022 and 2021 are detailed below:
a) Denomination, nature and geographic location of the activity
This information is available on Section 1 of the Group’s Notes to the Consolidated Financial
Statements. In the case of Instituto de Crédito Oficial, the main activity developed by the Group is the
direct and mediation credit activity, developing such activity exclusively under Spanish jurisdiction,
not having establishments or subsidiaries outside our borders.
b) Turnover
For the purpose of the present report, turnover is total net operating results, as defined and presented
on the consolidated profit and loss account that is part of the Group’s consolidated annual accounts.
c) Number of FTE employees
Data on FTE employees have been obtained from the Group’s average payroll.
d) Gross profit/(loss) before tax
For the purpose of the present report, gross profit/(loss) before tax is profit/(loss) before tax, as defined
and presented on the Group’s consolidated profit and loss account.
e) Income tax
The corresponding amount of accrued tax has been included and registered on the caption of income
tax of the consolidated profit and loss account.
113
f) Public grants or aids received
In the context of information requested by the legislation in force, this term has been interpreted as
any aid or grant in line with the Guidelines of Estate’s Aids of the European Commission and, in such
context, the Group companies have not received any public grant or aid in 2021 or 2020.
The detail of the information corresponding to 2022 and 2021 is the following (amounts in thousands
of Euros):
At 31 December 2022:
Thousands of Euros
JURISDICTION
Turnover
Average no.
Employees
Gross profit/(loss)
before tax
Income tax
Spain
233 525
344
203 865
(57 033)
At 31 December 2021:
Thousands of Euros
JURISDICTION
Turnover
Average no.
Employees
Gross profit/(loss)
before tax
Income tax
Spain
207 485
346
194 670
(54 809)
At December 31, 2022, the Group’s return on assets (ROA) (net consolidated profit divided by total
average assets) has been estimated at 0.38%.
VERIFICATION REPORT
REQUIRED BY
SPANISH LAW 11/2018
Amending the Spanish Commercial Code, the consolidated text of the Spanish Capital Companies Act approved by Spanish
Royal Legislative Decree 1/2010 of 2
nd
July, and Spanish Act 22/2015 of 20
th
July on Accounts Auditing, in relation to non-
financial information and diversity.
Company: Grupo ICO
Date: 5
th
April 2023.
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Company
Grupo ICO
Report subject to verification
Non-Financial Information Statement 2022
Report Edition
2022
On-site verification dates
13
th
and 14
th
of March 2022
Final report edition date
5th of April 2023.
Verifiers
Ms. Rut Ballesteros Gil – Corporate and Compliance Auditor.
Confidentiality
All the information, data and documents to which CAVALA Gabinete de Asesoría Empresarial
S.L. has had access during the verification process is fully confidential, having made exclusive use of
said information for the purposes of verification.
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TABLE OF CONTENTS
1
Scope
.....................................................................................................................................................
4
2
Declaration of independence............................................................................. 5
3
Summary of activities carried out...................................................................... 5
3.1
Directorates and Departments interviewed. .......................................................................... 5
3.2
Additional documentation analysed ...................................................................................... 7
4
Analysis of the stakeholder participation process. .............................................. 7
5.
Verification Content. Indicators. ....................................................................... 8
6.
Conclusions
........................................................................................................................................
16
7.
Opinion on Verification................................................................................... 17
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1
Scope
The purpose of this Report is to describe the systematic approach to the verification of the information included
in the non-financial information statement of Grupo ICO, in accordance with the requirements established in
Spanish Law 11/2018 applicable to the organisation, containing the results obtained and the recommendations
identified for future consideration.
The verification carried out has been based on the indications set out in the articles of the applicable law, as
well as on the principles of quality and contents of the non-financial reporting prescribed by Spanish Law
11/2018, whether they are national frameworks, European Union frameworks (Eco-Management and Audit
Scheme (EMAS) adapted to our legal system through Spanish Royal Decree 239/2013, of 5
th
April), or in
international frameworks (United Nations Global Compact, the United Nations Sustainable Development Goals,
the Paris Agreement on Climate Change, the Guiding Principles on Business and Human Rights implementing
the United Nations framework to "protect, respect and remedy", the Organisation for Economic Cooperation
and Development (OECD) Guidelines for Multinational Companies, the ISO 26000 standard of the International
Standards Organisation, the SA8000 standard of International Social Responsibility, the Tripartite Declaration of
Principles Concerning Multinational Enterprises and Social Policy of the International Labour Organisation, the
GRI's Global Reporting Initiative (GRI Sustainability Reporting Standards).
The methodology followed is governed by the internal procedures of CAVALA Gabinete de Asesoría Empresarial
SL (hereinafter CAVALA), based on conventional and international conformity assessment, verification and
sampling techniques that allow sufficient confidence to be obtained in the veracity of the information and its
relevance as a basis for the professional judgement of the verification team. Some prescribers taken into
account were ISO (Conformity assessment. General principles and requirements for validation and verification
bodies. ISO/IEC 17029:2019), the Spanish Institute of Chartered Accountants (Action Guide 47 on Non-Financial
Information Status Verification Assignments) and the International Auditing and Assurance Standards Board,
IAASB (ISAE 3000).
The corporate sustainability reporting obligations prescribed by Directive (EU) 2022/2464 of the European
Parliament and of the Council of 14
th
December 2022 amending Regulation (EU) No. 537/2014, Directive
2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU as regards sustainability reporting by companies
are not verified. Nor Regulation (EU) 2020/852 of the European Parliament and of the Council of 18
th
June 2020
on establishing a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088,
specifically its Article 8 on company transparency in non-financial statements.
The purpose of the verification is to check:
✓
The veracity of the information submitted, the traceability of the data and the reliability of the contents.
✓
The level of quality and representativeness of the data and information, as well as the sources on which
they are based.
✓
Adaptation to the content required by Spanish Law 11/2018 through the necessary issues to be included
in a defined system of indicators with a sufficient degree of materiality.
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2
Declaration of independence
The contents and opinions expressed in this validation report are the sole responsibility of CAVALA.
The CAVALA staff who have carried out this verification process have acted with complete independence, and
there are no links that could have conditioned their work or that could influence the conclusions obtained.
The verification team assigned by CAVALA has the necessary experience and skills to carry out the verification
of the report according to the indicated standards and has verified the necessary evidence to ensure the
adequacy of the report.
3
Summary of activities carried out
The verification process has been completed as of the date of this report, and the activities carried out are
summarised below:
1. Documentary verification of the non-financial information statement (NFIS) and on-site verification
planning.
2. On-site verification of evidence according to a sample conformity assessment system in which shared
evidence is analysed.
3. Interviews and requests for clarification, where appropriate.
4. Final editing of verification report, if applicable.
5. Verifier's opinion drafting.
3.1 1 Directorates and Departments interviewed
Representative
Role/Position
Ms. Blanca Navarro Pérez
Director of Strategy and Sustainability
Mr. Carlos Gómez Fernández
Head of Studies and Evaluation Service
Mr. Gonzalo Morán González
Head of Organisation and Quality Area
Ms. Eva Corroto Fernández
Studies and Evaluation Service Technician
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P 6 of 17
Ms. Caridad Noreña Fanconi
Head of Regulatory Compliance Area
Mr. José Manuel Fernández Rodríguez
Regulatory Compliance Technician
Ms. Begoña Gómez Hernández
Studies and Evaluation Service Technician
Mr. Enrique Sánchez Iniesta
Human Resources and CSR Department
Mr. Antonio Olea Arranz
Human Resources and CSR Department
Ms. Mª Dolores Martelo
Head of Labour Relations Area
Ms. Susana Pérez
Labour Relations Area Technician
Ms. Camino Molina
Head of the Human Capital and CSR Area
Ms. Mª Ángela de Miguel López
Human Capital and CSR Area Technician
Mr. Raúl Rubio
General Services and Heritage Area
Technician
Mr. Gabriel Urbano
General Services and Heritage Area
Technician
Ms. Beatriz Aragón
Head of AXIS Area
Ms. Carmen Varela
Head of the Customer Service Area
Mr. Rafael Mayor
Information Management Area Technician
Ms. Ana Camarero
Head of the Sustainability Development Area
Ms. Esther Hernández
Head of the Sustainability
Methodologies Area
Mr. Daniel Martínez Teruel
Sustainability Development Area
Technician
Mr. Lucinio Muñoz
Director of the ICO Foundation
Mr. Mª José Cortés
ICO Foundation Technician
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3.2 Additional documentation analysed
Code of conduct.
Sustainability Policy.
Internal Code of Conduct in the Stock Market.
The Institute's Risk Policy Manual and Risk Appetite Framework (RAF).
Money Laundering and Terrorism Financing Prevention Policy (PE-06).
Data Protection Policy.
Quality, environmental and family-responsible company certifications.
II Equality Plan.
Evidence from the Concilia area in PortICO.
Protocol against sexual and gender-based harassment.
Procedure for the identification and evaluation of environmental aspects.
Environmental Aspects Control Record 2021 (FGA OP-01.01).
PGI PL-01: Identification and evaluation of environmental aspects.
Manual of Good Environmental Practices.
Documentation on SPA preventive modality.
Accident rate report.
Organisation chart in force.
Annual customer service report.
List of identification and evaluation of environmental aspects.
Externalisation policy.
Coordination of business activities (INS-26).
Management and Control of Environmental Aspects (PGI OP-01).
MITECO 2022 Carbon Footprint Calculator.
4
Analysis of the stakeholder participation process.
In chapter 1.4 Materiality analysis, Grupo ICO reports the materiality work carried out on which it has based the
content design of its NFIS. Verified materiality report dated February 2023. The responses to 480 surveys of the
following stakeholders have been taken into consideration: Employees, Freelancers and Companies of all sizes,
Financial institutions, Analysts, Consultants, Auditors, Investors, Business and Sectoral Associations, Public
Administrations, Social Organisations and the media.
Strong point: The double materiality work carried out to identify the material issues of Grupo ICO by applying
the impact perspective of the new GRI standards.
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Strong point: The glossary of acronyms included to facilitate clarity and understanding of the document for its
users.
5.
Verification Content. Indicators.
The information subject to verification in accordance with Spanish Law 11/2018 is set out below.
GROUP BUSINESS MODEL
Business environment
The business environment of Grupo ICO is described in chapter 1 of the document "The Grupo
ICO, its strategy and its environment", as well as in chapter 1.8 "Economic and financial
performance environment".
Organisation and Structure
The Grupo ICO is constituted in accordance with the information provided in section 1.1.
Composition". Information on the governance model of the three companies that make up Grupo
ICO is provided in section 1.3. Governance and Management Structure; information on the
organisation and structure of each company is available in section 7. Organisational charts.
Markets in which it
operates
The markets in which Grupo ICO operates are described in chapter 2. "Our model for contributing
value to society: Driving sustainable growth". Verified ICO mediation lines in Spain 2022 by company
size, confirmed with the Information Management Area report dated 26.01.23 and support activities
for large investment projects, verified in accordance with the 2023 Annual Report.
Objectives and strategies
The Group's objectives and strategies are reported in section 1.5. Grupo ICO's strategy. Verified by
contrast with the information Strategy 2022-2027 publicly available on the Group's website.
Main factors and trends
that may affect its future
development
Reported in section 1.8. "Economic and financial performance environment".
POLICIES
Environmental
In section 4.3. Specific ethical and responsible management tools, the existence of i) Sustainability
Policy is reported. This policy has been verified with approval date in 2020. ii) Corporate Social
Responsibility Policy. This policy has been verified with approval date of 27
th
February 2020. iii)
Environmental Policy. Verified environmental policy with approval date of 17/11/2020.
Human rights
In section 3.2.1. Human rights reports on ICO's commitment to respect human rights through various
initiatives. Grupo ICO's adherence to the Equator Principles since October 2016, to the Global
Compact since 31
st
May 2005, and the existence of the Code of Ethics and Conduct has been
verified.
Fight against corruption
and bribery. Code of
Ethics
ICO adheres to the United Nations Global Compact. Grupo ICO's adherence to the Global Compact since
31st May 2005 has been verified. Existence of a code of conduct in force, approved in December 2015,
available on the website
https://www.ico. es/en/w eb/gu est/pol% C3 % ADticas-intern as-de-funcionam i en to
and the ICP's Internal Code of Conduct in the Stock Market of February 2017.
In 2022, there were no incidents of non-compliance with the Internal Code of Conduct in the stock market.
Personnel management
Chapter 5 Human team and diversity management provides information on ICO's commitments to
employees, which is documented in section VI of its Sustainability Policy. Verified according to the
document approved in February 2020.
DUE DILIGENCE PROCEDURES. Risk management. Identified short, medium and long-term impacts and risks
associated with the Group's activities. Measures taken.
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Environmental
Section 4.4.5. Certifications reports on the existence of an environmental management system
certified according to the ISO 14001 model. Verified ISO 14001 certification of the
environmental management system issued by European Quality Assurance dated 16/09/21 and
valid until 2024.
Human rights
Section 3.2.1. Human rights reports on ICO's commitment to respect human rights through
various initiatives. Grupo ICO's adherence to the Equator Principles since October 2016, to the
Global Compact since 31
st
May 2005, and the existence of the Code of Ethics and Conduct has
been verified.
In addition, there are prerequisites that ensure respect for human rights in the operations of
Grupo ICO (Public Sector Contracts Law, as well as the list of exclusion of fundable activities).
Existence of a channel for external reporting, complaints or suggestions is available to
stakeholders. The Ethics Channel is only available internally.
Fight against corruption and
bribery. Code of Ethics
ICO adheres to the United Nations Global Compact. Grupo ICO's adherence to the Global Compact
since 31
st
May 2005 has been verified.
Existence of a code of conduct in force, approved in December 2015.
Section 4.3. Specific tools for ethical and responsible management reports on the existence of the
Code of Conduct, the Internal Code of Conduct for the Stock Market (date of approval 22/02/17
and last update 22/02/22) and the Ethics Channel. In 2022, one complaint was registered through
the Ethics Channel and dealt with. Verified instruction on Ethics Channel of 12/04/2012. In 2022,
there were no incidents of non-compliance with the Internal Code of Conduct in the stock market.
Personnel management.
Equality Plan Measures
Section 4.4.5. Certifications reports that the company has an EFR 1000-1 work-life balance
management system certified by the MasFamilia Foundation. Verified Concilia area in
PORTICO, and certificate dated 05/12/14. Verified certificate dated 20th April 2021.
In addition, there is a health and safety system in accordance with current legislation
(verified preventive modality according to the hiring of the external prevention service MPE
Occupational Risk Prevention Group), system of action against COVID-19 certificate no. COV-
2021/0030 valid until April 2023, training plan and equality plan. Verification of the existence
of its II Equality Plan dated December 2019.
Existence of an external communication channel for complaints and claims regarding work-
life balance. In addition, the ethics channel exists and is available. The functionality of both
channels through PORTICO has been verified.
ENVIRONMENTAL INDICATORS. Comparable, material, relevant and reliable.
Current and foreseeable
effects of the company's
activities on the
environment and, if
applicable, on health and
safety.
In section 4.4. Main results of internal management, Grupo ICO reports on the environmental
implications of the activity (consumption of natural resources, atmospheric emissions, waste
generation and protection of biodiversity). Verified identification and evaluation of
environmental aspects carried out in accordance with its procedure PGI PL-01: Identification and
evaluation of environmental aspects.
In section 5.6 on Health and Safety, Grupo ICO reports on the effects on people's health and
safety at work. Verified preventive SPA modality according to the agreement of 27
th
June 2020
and payment of invoice number 30841.
Environmental assessment or
certification procedures
Section 4.4.5 Certifications, refers to the existence of an environmental management system
certified according to the ISO 14001 model. Verified certification of the ISO 14001 environmental
management system issued on 16/09/2021, valid until 15/09/2024.
Resources dedicated to
environmental risk
prevention
Section 4.4.5 Certifications reports that there is a general services and heritage unit for the
environmental management of Grupo ICO. However, it is stated that, since the environmental
impact is not significant, there is no specific item in the income and expenditure budget to cover
environmental damage. Verified organisational chart and existence of the aforementioned
management unit (section 7).
Application of the
precautionary principle
Section 4.4.5 Certifications reports on the application of the precautionary principle, which is
articulated with compliance with the requirements of the ISO 14001 management system model,
and the control and monitoring of this environmental management system, which corresponds
to the general services and heritage unit.
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Verified certification of the environmental management system issued on 16/09/2021, valid until
15/09/2024.
Amount of provisions and
guarantees for
environmental risks
Section 4.4.5 Certifications reports that, since the environmental impact is not significant, there is
no specific item in the income and expenditure budget to cover environmental damage.
Pollution:
ATMOSPHERIC
Measures to prevent, reduce
or repair carbon emissions
that seriously affect the
environment.
In section 4.4.3 Pollution. Emissions. Internal carbon footprint, Grupo ICO reports the calculation of
its carbon footprint. Results have been verified.
Pollution: NOISE
Measures to prevent, reduce or
repair emissions.
In section 5.3. Pollution, it is stated that the products and services offered by Grupo ICO do not
generate noise pollution that could seriously affect the environment and that for this reason no
measures have been established.
Pollution: LIGHT
Measures to prevent, reduce or
repair emissions.
In section 5.3. Pollution, it is stated that the products and services offered by Grupo ICO do not
generate light pollution that could seriously affect the environment and for this reason no measures
have been established.
Circular economy and waste
prevention and
management:
Measures for prevention,
recycling, reuse, other forms
of waste recovery and
disposal.
Actions to combat food
waste.
Section 4.4.2 Circular economy and waste management reports on the waste segregation process
through environmental islands and paper and toner reduction measures. Waste management
indicators verified.
Sustainable use of
resources: WATER
Water consumption and
water supply according to
local limitations.
Section 4.4.1 Responsible use of natural resources reports on water consumption and water
supplies, and also refers to awareness campaigns as a measure to improve the efficiency of water
consumption. Verified water consumption 2022.
Sustainable use of resources:
RAW MATERIALS
The consumption of raw
materials and the measures
taken to improve the
efficiency of their use.
Section 4.4.1 Responsible use of natural resources reports on the consumption of raw materials
(paper). The measures adopted to improve the efficiency of their use are described in section 4.4.2
Circular economy and waste management.
Sustainable use of
resources: ENERGY
Section 4.4.1 Responsible use of natural resources reports on energy consumption. Section 4.4.2
Circular economy and waste management refers to the programming of printers as an energy
saving measure. The measure has been verified in accordance with the technical specifications for
the hiring of the ICO's reprographics and printing service, in an open procedure subject to
harmonised regulation.
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Direct and indirect energy
consumption, measures taken
to improve energy efficiency
and the use of renewable
energies.
The use of renewable energies is reported. Existence of solar panels that feed their
energy production into the general grid. Verified production in 2022.
Climate change:
See pollution verification comments: ATMOSPHERIC.
Biodiversity
protection:
Measures taken to
preserve or restore
biodiversity; impacts
caused by activities or
operations in
protected areas
Section 4.4.1 Responsible use of natural resources reports that ICO operates in a single
headquarters in Madrid that does not generate negative impacts on biodiversity, and that
therefore, ICO's environmental management system does not consider the establishment of
measures to preserve or restore biodiversity, impacts caused by activities or operations in
protected areas.
PERSONNEL-RELATED INDICATORS. Comparable, material, relevant and reliable.
Employment:
1.
Total number and
distribution of
employees by gender,
age, country and
professional
classification.
2.
Total number and
distribution of types of
employment contract,
average annual number
of permanent contracts,
temporary contracts and
part-time contracts by
gender, age and
profession al
classification.
3.
Number of dismissals
by gender, age and
professional
classification.
4.
Average wages and
their evolution broken
down by gender, age
and professional
classification.
5.
Wage Gap.
6.
Salary of equal or
average jobs in society.
1.
The total average and distribution of workers by country, age, gender and professional
classification is reported in letter A. Workforce distribution (section 4.1. Workforce data, heading
1). The data is verified and in accordance with the organisation's personnel management database
(Copy Staff data by months 2022_for CSR) in section 5.1. Staff data, section 5.1. Staff distribution.
2.
The types of contracts envisaged are permanent, temporary and part-time. The total number
of types of employment contracts, average annual number of permanent contracts, temporary
contracts and part-time contracts, absolute value and percentage by age, gender, and
professional classification are reported (section 5.2 Types of contracts, section A). The number
and distribution of permanent full-time contracts are verified and are in accordance with the
registry Copy Staff Data by months 2022_for CSR.
3.
The number and distribution of dismissals is reported by gender and professional classification
(section 5.1. Staff data, section A. Distribution of staff). There were no redundancies in 2022.
There were no dismissals at AXIS or the ICO Foundation.
4.
The average salary of men and women by professional classification and age is reported
(section 5.3 Average salaries and wage gap, heading 1). The data is verified and found to be in
accordance.
5.
In section 5.3 Average salaries and wage gap (section B), the wage gap by professional category
is reported, alluding to the fact that there is no difference between positions of equal value and
professional groups. The total wage gap of the company is provided.
6.
Section 5.3 Average salaries and wage gap (section 1) reports on the average salary of the
companies. The averages of the three organisations (ICO Salaries and AXI communication and ICO
Foundation) are verified.
7.
The total salary earned in 2022 by all ICO directors (excluding the president) is reported, not
the average salary of directors broken down by gender.
The gross annual salary of the president for the financial year 2022 amounts to €145,693.80
(compared to €140,766.92 for the previous year), an amount that includes all the salary to be
received for the performance of duties, except for the seniority that may correspond to him in
accordance with the regulations in force and including, if applicable, any other payment in kind.
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7.
Average salary of
directors and
executives, including
variable pay, expenses,
compensation,
payments to long-term
savings schemes and
any other payments
broken down by gender.
8.
Work disconnection
policies.
9.
Employees with
disabilities.
Each Directorate-General post received a gross annual salary of €132,962 for the year 2022
(compared to €132,524.96 for the financial year 2021). Information verified and found to be in
accordance.
8.
Section 5.5 Work-life balance, 2. Implementation of digital disconnection policies in the
workplace reports that this right is included in the Remote Work Plan. Verification of the existence
of this Plan in accordance with the President's Resolution approving the internal procedure for
Grupo ICO's remote work plan application management system, and agreeing on its publicity and
effects, within the framework of the energy saving and efficiency measures plan for the AGE and
the state institutional public sector entities dated 10
th
October 2022.
9.
In chapter 5.1. Staff data, section 3, Employees with disabilities. Verified data on the workforce
with disabilities (5 people broken down by gender). And indirect employment generated (6 contracts
with EEC, 16 people entered into these contracts, 8 men and 8 women).
Organisation of work:
1.
Organisation of working time
.
2.
Number of absenteeism
hours.
3.
Measures aimed at facilitating
the enjoyment of work-life
balance and encouraging the
co-responsible exercise of
work-life balance by both
progenitors
1.
Section 5.4 Work organisation reports on the organisation of Grupo ICO's working time and on the
working arrangements distributed between remote working and face-to-face, part-time, continuous
and reduced working hours. The data was verified and found to be in accordance.
2.
Section 5.6. Health and Safety, under Sick leave and absenteeism reports the hours of
absenteeism that have occurred during 2022 and 2021, a total of 24,310 (compared to 24,331 hours
in 2021). Total absenteeism rate rises by 5%, absenteeism rises in women and falls among men. Data
verified with internal HR information source.
3. Section 4.5 Work-life balance reports on measures aimed at facilitating the enjoyment of work-
life balance, as well as measures to promote the co-responsibility of both progenitors. Verified
internal communication on own work-life balance measures, message to promote co-responsibility
and the Red Cross study on the subject.
Grupo ICO is certified as a Family-Responsible Company by the MasFamilia EFR 1000-1 Foundation.
Verified certificate dated 04/12/2014. And certification of the system acting against COVID-19.
Verified certificate dated 20
th
April 2021.
Health and security:
1.
Occupational safety and
health (OSH) conditions.
2.
Work accidents,
frequency and severity,
broken down by gender.
3.
Occupational illnesses
broken down by gender.
1.
Section 5.6 Health and Safety reports on Grupo ICO's occupational health and safety con ditions.
Verified contract with the external prevention service in force for three years from 27
th
June 2020,
for the technical modalities and health surveillance.
2.
Section 5.6 Health and safety reports on work accidents broken down by gender (under Sick Leave
and Absenteeism), occupational illnesses and frequency and severity rates. Figures and data verified
according to the FREMAP 2022 accident rate report.
3.
Section 5.6 Health and safety reports that there have been no occupational illnesses in 2022.
Social relations:
1. Organisation of social
dialogue, including
procedures for
informing, consulting
and negotiating with
staff;
1.
Section 4.7 Social relations, A. Organisation of social dialogue reports on the form of social
dialogue established between ICO and its staff. Verified performance reports of the Health and
Safety Committee dated 17/03/22, 29/06/22, 15/9/22 and 30/11/22.
2.
Section 5.7 Social relations, B. Procedures for informing, consulting and negotiating with staff, 1.
Percentage of employees covered by collective agreements by country reports that 80% of
employees are covered by collective agreements (1% less than last year), excluding the president,
the management team and the professional middle-management group. After verification, this data
is in accordance.
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2.
Percentage of
employees covered by
collective agreements
by country;
3.
Assessment of collective
agreements,
particularly in the field
of health and safety at
work.
3. Section 4.7 Social relations, B. Procedures for informing, consulting and negotiating with staff, 2. Review
of collective agreements, particularly in the field of health and safety at work reports on actions in the field
of health and safety at work carried out in 2021.
Training:
1.
Policies
implemented
2.
Training hours by
professional category.
1.
Section 4.8 Training, A. Policies implemented in the field of training reports that the
commitments to training people are included in the company's sustainability policy. The existence
of training policies and the plan are verified.
2.
In section 4.8 Training, A. Policies implemented in the field of training reports on the training
hours by professional category. Data on training hours for the category of technicians and
managers is verified. In relation to training hours, the ICO Foundation reports on the number of
training activities carried out, not on training hours by professional category.
Universal accessibility for
people with disabilities.
Section 5.9 Universal accessibility for people with disabilities states that "it has adapted facilities,
tools and workstations to allow accessibility for people with reduced mobility or with other types
of functional disability who carry out their professional activity at the ICO or who visit the
facilities". Furthermore, the ICO Museum has the Accessible Tourism badge awarded to the ICO
Museum and that the ICO corporate portal complies with Spanish Royal Decree 1112/2018, of
7
th
September, on Accessibility of Public Sector Websites and Applications for Mobile Devices.
Verified emblem of 18
th
July 2016 and evidence of compliance with the aforementioned Spanish
Royal Decree in accordance with the Babel report dated May 2021.
Equality:
1.
Measures taken to
promote equal
treatment and
opportunities for
women and men.
2.
Equality plans.
3.
Measures taken to
promote employment.
4.
Protocols against sexual
and gender-based
harassment.
Section 5.10 Equality and diversity reports on the company's situation concerning respect for the
principle of equal treatment and opportunities between women and men, measures for the
empowerment of women, protocols against sexual and gender-based harassment and measures
promoted to promote employment. Verified existence of the II Equality Plan, which was approved
in December 2019 and protocol against sexual and gender-based harassment approved on 23-09-
2011 and last revised on 14-03-2017.
Non-discrimination and
diversity management
1.
Integration and
universal accessibility
for people with
disabilities
2.
Diversity management
policies
3.
Non-discrimination
policies
1.
Section 5.9 Universal accessibility for people with disabilities reports on policies on accessibility
for people with disabilities and the integration of people with disabilities.
2.
Verified sustainability policy and information regarding diversity in the governing body. Equality
and diversity in the General Council. As of 31
st
December 2021 there were 5 women on the ICO
General Council (46%). 75% of independent directors are represented by women.
3.
Verified existence of Code of Conduct (approval date December 2015), Sustainability Policy
(approval date 27
th
February 2020) and Ethics Channel.
HUMAN RIGHTS INDICATORS. Comparable, material, relevant and reliable.
Human rights due diligence
procedures:
Section 3.2.1. Human rights reports on due diligence mechanisms. Verified Sustainability policy,
adherence to international principles and initiatives to respect human rights, reporting channel
and Protocol for the prevention of and action against workplace, sexual or gender-based
harassment.
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Code]: B 84855436
Page 15 of 17
- Prevention of human
rights violations risks.
- Measures to mitigate,
manage and repair
potential abuses.
There were no complaints or cases of human rights violations during 2022.
Handling of complaints of
human rights violations cases.
Existence of an ethics channel as a mechanism for employees to report potentially significant
irregularities with respect to the Code of Ethics and Conduct confidentially, not anonymously. In
2022, only one complaint was registered through the Ethics Channel. Verified operation.
In addition, there is a public channel for complaints, suggestions and queries. No complaints
related to human rights violations were registered in 2022. Verified operation.
Promotion and compliance with
the provisions of the International
Labour Organisation's
fundamental conventions relating
to respect for freedom of
association and the right to
collective bargaining; the
elimination of discrimination in
employment and occupation; the
elimination of forced or
compulsory labour; the effective
abolition of child labour.
Reported in the Respect for Human Rights block. Verification of Grupo ICO's adherence to the
Global Compact since 31
st
May 2005, Code of Conduct (date of approval December 2015),
Sustainability Policy (date of approval 27
th
February 2020) and Protocol for the prevention of and
action against workplace, sexual or gender-based harassment (approved 23/9/11 and last
updated 14/3/17).
ANTI-CORRUPTION AND ANTI-BRIBERY INDICATORS
Comparable, material, relevant and reliable.
Measures taken to
prevent corruption and
bribery.
Measures to prevent corruption and bribery are reported in section 4.3. Specific ethical and
responsible management tools. The existence of the Code of Conduct, a Money Laundering
Prevention Policy (December 2022) and the updating of the Internal Code of Conduct (February
2022) have been verified. In addition, there is a welcome system for sending the Code of Ethics
and Conduct to new recruits.
Measures to combat money
laundering.
Measures to combat money laundering are reported in section 4.3. Specific ethical and
responsible management tools. The existence of the Code of Conduct, a Money Laundering
Prevention Policy (December 2022) and the updating of the Internal Code of Conduct (February
2022) are verified.
The training "Prevention of money laundering: Beneficial Owner in Legal Entities" given to 149
people has been verified.
No money laundering cases were reported in 2022.
Contributions to foundations
and non-profit organisations.
The ICO Foundation only receives funds from the ICO.
Section 3.2.5. Corporate volunteering reports on Grupo ICO's contributions to various foundations
and non-profit organisations. Contributions to the GMP Foundation (€1,750) and Clowns Without
Borders Foundation (€5,500) have been verified.
INDICATORS RELATING TO SOCIETY. Comparable, material, relevant and reliable.
Company commitments to
sustainable development.
Section 2.1. Frames of reference reports on Grupo ICO's global and sectoral commitments to
sustainable development. Verified adherence to the Global Compact since 31
st
May 2005, to the
Equator Principles, and the operation of its initiative with the Spanish Global Compact Network
and with the support of the High Commissioner for the 2030 Agenda,
icopymeods.ico.es.
Impact of the company's
activity on employment and
local development.
See sections relating to 2.3. Positive macroeconomic impact on the Spanish economy (impact on
GDP and employment). Contributions to the employee by Mediation Line and by ICO 2022 Direct
Funding have been verified, in accordance with its own calculation methodology created in
November 2018.
CAVALA Gabinete de Asesoría Empresarial SL. - C/ Avelino Montero Ríos 1(28039) Madrid – Tel. 915340407 - CIF [Spanish Tax
Code]: B 84855436
Page 16 of 17
In addition, staffing data (section 5.1. Staffing data) and data on purchases from suppliers were
verified. During the 2022 financial year, payments were made to suppliers in the amount of 35.8
million euros. Verified figure.
Impact of the company's
activity on local populations
and the area.
Reported in section 2.2. In its funding activity: Support for the productive fabric. Verified
information on the catalogue of products and initiatives of Grupo ICO, ICO Mediation Lines in
Spain by company size, direct activity 2022, number of municipalities in Spain funded with ICO
Mediation Lines.
Relations with local
community stakeholders and
methods of dialogue.
Relations with local community stakeholders and methods of dialogue revolve around the Fund
for Financing Local Authorities (FFELL, in its Spanish acronym). See also information in the section
CAPILLARITY, WIDE TERRITORIAL DISTRIBUTION AND SUPPORT FOR ECONOMIC CONVERGENCE.
Verified information on the number of municipalities in Spain funded with ICO Mediation Lines.
Associations and sponsorships.
Section 1.7. Public-private partnerships and collaborations reports on the different relationship
groups that Grupo ICO has. Specifically, section 3.2.4. reports on sustainability. Collaboration with
associations on sustainability. Verified initiative to promote the SDGs in SMEs icopymeods.ico.es
ICO's continued membership of the Spanish Sustainable Finance Observatory (OFISO, in its
Spanish acronym) and membership of FORETICA has been verified, as well as ICO's leadership in
the implementation of the CSR Action Group for public companies. Its adherence to the UN
Women's Empowerment Principles and the International Capital Market Association (ICMA)
have been verified imacgroup.org.
Subcontracting and suppliers
- Purchasing policy including
social, gender equality and
environmental issues.
- Monitoring and auditing
systems and their results.
Section 3.2.2. Suppliers reports on the public procurement condition governing Grupo ICO
purchases in accordance with Spanish Law 9/2017 on Public Sector Contracts for both the
selection and supervision of suppliers. Economic and local purchasing indicators have been
verified.
Consumers:
- Consumer health and safety
measures.
- Complaint systems,
complaints received and their
resolution.
Section 3.2.3. Customers reports that Grupo ICO's activity has no impact on the health of
consumers. Consumer safety is managed through its specific ethical and responsible
management tools (see section 4.3.).
Section 3.2.3. Customers reports on the complaints system, complaints received and their
resolution. The procedure and operation of the system has been verified through the customer
service report for the year 2021.
Tax information:
- Benefits obtained by country.
- Taxes on benefits paid.
- Public subsidies received.
Section 3.2.6. Tax and subsidy information reports on the consolidated profits obtained in Spain
which amount to 203.86 million euros, compared to the work-life balance sheet audited by
MAZARS. Verified data obtained from the accounts.
57.03 million euros paid for taxes on profits. Verified data obtained from the accounts.
The ICO Foundation prepares its accounts separately from Grupo ICO's other entities. The profit
before taxes in 2022 was €339,769.28. The Foundation does not pay tax on the profits arising
from its foundational activities, by virtue of the provisions of Spanish Law 49/2002, of 23
rd
December, on the Tax Regime for Non-Profit Entities and Tax Incentives for Patronage. Verified
result with the definitive accounting information.
Public subsidies: The ICO Foundation received a subsidy of €60,000 from the Spanish Ministry of
Transport, Mobility and Urban Agenda under the Spanish General State Budget Act for 2022,
within the budget application 17.10.261O. 78714 "Capital transfers to Families and Non-Profit
Institutions". Verified according to the collaboration agreement of 26/22/2021. ICO and AXIS do
not receive public subsidies. Verified data obtained from the accounts.
Any other significant
information.
No further significant information is included.
CAVALA Gabinete de Asesoría Empresarial SL. - C/ Avelino Montero Ríos 1(28039) Madrid – Tel. 915340407 - CIF [Spanish Tax
Code]: B 84855436
Page 17 of 17
6.
Conclusions
The main results obtained are as follows:
Comments
-
This is the second non-financial accountability exerci se carried out by Grupo ICO in accordance with Spanish Law
11/2018.
-
The methodology and option used to carry out the accountability exerci se was "in accordan ce" with GRI
standards.
Options for improvemen t
-
Register your Carbon Footprint on MITECO and apply for the Calcula stamp.
-
Create an occupational risk prevention policy that reflects the commitment of senior managemen t to the safety
and well-being of employees as stated in the General Code of Conduct (2.2.6.) approved in December 2015.
-
Include the assessment of the significance of food waste in the process of identifying and evaluating
environmental aspects to justify that it is not significant.
Strong points:
-
The double materiality work carried out to identify Grupo ICO's material issues by applying the impact
perspective of the new GRI standards.
-
The relationship between material sustainability issues, Grupo ICO's strategi c axes, its proposed action plans
and its contributio n to the 2030 Agenda.
-
The impact of the company's activity on employment and local developmen t calculated through the application
of its own methodology for the activity of both the ICO 2022 Mediation Line and ICO 2022 Direct Funding.
-
The glossary of acronyms included to facilitate clarity and understanding of the document for its users.
-
Adherence to the Equator Principles and the United Nations Global Compact.
-
ISO 14001:2015 certifica tion of Grupo ICO's environmental management system.
-
Certifica tion of Grupo ICO as a Family-Respon sible Company.
-
The measure of voluntary access to training during leave of absence, childcare leave or parental leave,
breastfeeding.
CAVALA Gabinete de Asesoría Empresarial SL. - C/ Avelino Montero Ríos 1(28039) Madrid – Tel. 915340407 - CIF [Spanish Tax
Code]: B 84855436
Page 17 of 17
7.
Opinion on Verification
Cavala Gabinete de Asesoría Empresarial S.L.,
declares that as required by
Spanish Law 11/ 2018
The non-financial information has been verified by the independent verifier Cavala Gabinete de Asesoría Empresarial
S.L., regarding its structure, content and sources of information from
GRUPO ICO
And that as a result of this verification process, Cavala Gabinete de Asesoría Empresarial S.L., states that:
•
The structure, scope and content of the organisation's non-financial report COMPLIES with the requirements
established in Spanish Law 11/2018, of 28
th
December, which modifies the Spanish Commercial Code, the
consolidated text of the Spanish Capital Companies Act approved by Spanish Royal Legislative Decree 1/2010, of 2nd
July, and Spanish Law 22/2015, of 20th July, on Accounts Auditing, on non-financial information and diversity. The
content of the non-financial information statement (NFIS) has been prepared IN ACCORDANCE WITH the international
GRI framework (GRI Sustainability Reporting Standards). The corporate sustainability reporting obligations called for
by the Proposal for a Directive of the European Parliament and of the Council amending Directive 2013/34/EU,
Directive 2004/109/EC, Directive 2006/43/EC and Regulation (EU) No 537/2014 as regards corporate sustainability
reporting have not been verified.
• The content of the organisation's non-financial report COMPLIES with the requirements established in Spanish Law
11/2018 on this matter.
• Following the sample verification, no issues have been identified indicating that the information included in the report
for the financial year 1
st
January 2022 to 31
st
December 2022 is materially misstated.
• Likewise, in accordance with the provisions of Spanish Law 11/2018, the organisation has justified the non-inclusion
of information, or the non-application of different non-financial policies or initiatives correctly as follows:
✓
Existence of a specific item to cover the environmental damage in the income and expenditure budget because
Grupo ICO's activity is considered not to have a significant environmental impact.
✓
Establishment of measures to preserve or restore biodiversity, as well as measures to prevent and reduce light
and noise pollution and food waste because these are not significant environmental impacts.
•
The organisation should take into account the comments set out in the verification report linked to this verification
opinion in its next due transparency and accountability exercise to stakeholders.
46930174P
RUT
Digitally signed
by 46930174P
RUT
Date of issue 5
th
April 2023
BALLESTEROS
BALLESTEROS (R:
Sgd.: Ms. Rut Ballesteros Gil
(R:
B84855436)
B84855436)
Date: 2023.04.05
21:03:27 +02'00'
Chief Validator – Cavala Gabinete de Asesoría Empresarial S.L.
NON-FINANCIAL INFORMATION STATEMENT 2022
(Law 11/2018)
March 2023
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
2
Contents
1 THE ICO GROUP, ITS STRATEGY AND ENVIRONMENT ...................................................................... 4
1.1 COMPOSITION.................................................................................................................... 4
1.2 NATURE AND FUNCTIONS .................................................................................................... 4
1.3 GOVERNANCE AND MANAGEMENT STRUCTURE...................................................................... 7
1.4 MATERIALITY ANALYSIS ......................................................................................................18
1.5 ICO GROUP STRATEGY ........................................................................................................23
1.6 ICO INVESTEES ..................................................................................................................26
1.7 PUBLIC-PRIVATE PARTNERSHIPS AND ALLIANCES....................................................................26
1.8 ECONOMIC AND FINANCIAL ENVIRONMENT FOR ACTION ........................................................27
2 OUR MODEL FOR CONTRIBUTING VALUE TO SOCIETY: DRIVING SUSTAINABLE GROWTH.....................30
2.1 REFERENCE FRAMEWORKS..................................................................................................31
2.2 IN ITS FINANCING ACTIVITY: SUPPORT FOR THE PRODUCTIVE FABRIC........................................35
2.3 POSITIVE MACROECONOMIC IMPACT ON THE SPANISH ECONOMY ...........................................49
2.4 THE PRIORITY: DRIVING SUSTAINABILITY IN OUR FUNDING ACTIVITY.........................................50
3 COMMITMENT TO SOCIETY: BEYOND OUR FINANCIAL ACTIVITY ......................................................61
3.1 ICO FOUNDATION. PROMOTING CULTURE AND KNOWLEDGE ..................................................61
3.2 OUR ROLE IN SOCIETY.........................................................................................................66
3.2.1 HUMAN RIGHTS..........................................................................................................66
3.2.2 SUPPLIERS .................................................................................................................67
3.2.3 CLIENTS .....................................................................................................................68
3.2.4 COLLABORATION WITH STAKEHOLDERS ON SUSTAINABILITY ISSUES ..................................69
3.2.5 CORPORATE VOLUNTEERING ........................................................................................71
3.2.6 RESULTS, TAX AND SUBSIDY INFORMATION....................................................................72
4 OUR WAY OF DOING THINGS: RESPONSIBLE MANAGEMENT...........................................................74
4.1 RISK MANAGEMENT: IDENTIFICATION AND MONITORING .......................................................74
4.2 GENERAL INSTRUMENTS FOR RESPONSIBLE MANAGEMENT ....................................................76
4.3 SPECIFIC ETHICAL AND RESPONSIBLE MANAGEMENT TOOLS....................................................77
4.4 MAIN RESULTS OF INTERNAL MANAGEMENT.........................................................................82
4.4.1 RESPONSIBLE USE OF NATURAL RESOURCES ...................................................................82
4.4.2 CIRCULAR ECONOMY AND WASTE MANAGEMENT ..........................................................83
4.4.3 POLLUTION. EMISSIONS. INTERNAL CARBON FOOTPRINT .................................................84
4.4.4 COMMUNICATION FOR SUSTAINABLE GROWTH..............................................................86
4.4.5 CERTIFICATIONS .........................................................................................................88
5 HUMAN RESOURCES AND DIVERSITY MANAGEMENT.....................................................................91
5.1 STAFF DATA ......................................................................................................................91
5.2 CONTRACT MODALITIES......................................................................................................93
5.3 AVERAGE SALARIES AND PAY GAP ........................................................................................95
5.4 WORK ORGANISATION .......................................................................................................97
5.5 WORK-LIFE BALANCE..........................................................................................................99
5.6 HEALTH AND SAFETY ........................................................................................................ 101
5.7 SOCIAL RELATIONS ........................................................................................................... 103
5.8 TRAINING ....................................................................................................................... 104
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
3
5.9 UNIVERSAL ACCESSIBILITY FOR PEOPLE WITH DISABILITIES .................................................... 106
5.10 EQUALITY AND DIVERSITY ................................................................................................. 107
6 ABOUT THE REPORT................................................................................................................ 109
7 ORGANISATIONAL CHART ........................................................................................................ 111
8 TABLE OF CONTENTS LAW 11/2018 AND GRI .............................................................................. 115
ANNEX GLOSSARY OF ABBREVIATIONS.............................................................................................. 126
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
4
1 THE ICO GROUP, ITS STRATEGY AND ENVIRONMENT
1.1 COMPOSITION
The ICO Group is made up of:
• Instituto de Crédito Oficial, Entidad Pública Empresarial (ICO)
• AXIS Participaciones Empresariales, S.G.E.I.C., S.A., S.M.E. (hereinafter referred to as AXIS),
a company wholly owned by ICO
• Fundación ICO, whose sole sponsor is ICO.
ICO Consolidated Group has been defined by considering Group entities as those over which the
Institute has the capacity to exercise control; this capacity is generally, but not exclusively, manifested
by the ownership, directly or indirectly, of 50% or more of the voting rights of the investee entities or,
even if this percentage is lower or zero, if, for example, there are agreements with shareholders of
these entities that give the Institute control. In accordance with the provisions of the regulations,
control is understood to be the power to direct the financial and operational policies of a company, in
order to obtain benefits from its activities.
The annual accounts of the subsidiary are consolidated with those of the Institute using the full
consolidation method as defined in the regulations. Consequently, all significant balances arising from
transactions carried out between the companies consolidated using this method have been eliminated
in the consolidation process.
The Institute, the Group's parent company, accounts for 99% of the Group's consolidated balance
sheet.
All three entities are based in Madrid and therefore only operate in Spain.
1.2 NATURE AND FUNCTIONS
A. Activity
Instituto de Crédito Oficial is a Corporate State-Owned Entity that has the legal status of a credit
institution and is considered a State Financial Agency. It has its own corporate status, assets and
treasury, as well as management autonomy to fulfil its goals. ICO is financed in the capital markets
and through loans. It has the Spanish State's guarantee for the debts and obligations it incurs for
fundraising.
Attached to the Ministry of Economic Affairs and Digital Transformation, the State Secretariat for
Economy and Business Support is responsible for the strategic management of ICO, as well as the
evaluation and control of the results of its activity.
ICO's legal nature and framework, as well as its aims and functions, are defined in its Statutes,
approved by Royal Decree 706/1999, as amended by Law 40/2015 on the Legal Framework of the
Public Sector, Royal Decree 1149/2015 and Royal Decree 390/2011.
The organisation chart is included in point 7 of this document.
➢ Mission
The aims of the Instituto de Crédito Oficial are the support and promotion of economic activities that
contribute to the growth and improvement of the distribution of national wealth and, in particular, those
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
5
which, due to their social, cultural, innovative or ecological importance, deserve to be encouraged, as
defined in Art. 2 of the Statutes.
➢ Vision
These objectives are carried out by the Institute in its triple role as a National Promotional Bank, a
Financial Instrument of Economic Policy and a State Financial Agency.
• To extend the public-private partnership model, strengthening it where possible.
• The capacity to anticipate, adapt and scope its actions to the needs of companies and the self-
employed at all times and to transform the business fabric and economic policy guidelines.
• With a long-term perspective, contributing to the mobilisation of resources needed for
economic transformation, generating added value and transferring the competitive conditions
for resource mobilisation.
• In a relationship of complementarity and coherence with other public policies, generating
synergies.
• In a transversal manner, ICO's activity is structured by elements that permeate all its internal
and external actions, mainly linked to sustainability in a broad sense and digitalisation.
ICO seeks to be a leading international organisation and a national institution of reference in terms of
transparency, solvency and credibility, to be recognised, especially by SMEs and financial institutions,
as an ally for the growth of wealth and employment, and to be made up of a highly qualified, motivated,
efficient and committed team that carries out its functions in an atmosphere of trust and collaboration.
➢ Functions
According to its Statutes, they are as follows:
• Contribute to alleviating the economic effects produced by situations of serious economic crisis,
natural catastrophes or other similar events, in accordance with the instructions of the Council of
Ministers or the Delegate Commission of the Government for Economic Affairs.
• To act as an instrument for the implementation of certain economic policy measures in
accordance with the fundamental lines that are established by the Council of Ministers, the
Delegate Commission of the Government for Economic Affairs or the Minister for Economic Affairs
and Digital Transformation, and subject to the rules and decisions agreed upon by its General
Board.
INSTITUTO DE CRÉDITO OFICIAL, CORPORATE
STATE-OWNED ENTITY (ICO)
NIF (Tax ID): Q-2876002-C
Paseo del Prado, 4.
28014 MADRID
www.ico.es
Twitter @ICOgob
B. AXIS
AXIS is a state limited trading company as provided for in art. 2.2(c) of Law 47/2003, on the General
Budget, in art. 166(c) of Law 33/2003, on the Assets of the Public Administrations, and in art. 111 of
Law 40/2015 on the Legal Framework of the Public Sector.
As stated in its Statutes, the Company’s main corporate purpose is the administration and
management of venture capital funds and the assets of venture capital companies, as well as the
control and management of their risks. In addition, the Company may perform the functions described
in Article 42.4 of Law 22/2014 of 12 November regulating Venture Capital Companies, Other Collective
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
6
Investment Companies and Management Companies of Collective Investment Institutions (hereinafter
"Law 22/2014"). As a complementary activity, the Company may carry out advisory tasks to non-
financial companies defined in Article 7 of Law 22/2014.
Axis acts in the interests of the funds it manages and of its sole participant and shareholder, Instituto
de Crédito Oficial, in the investments and assets of these funds, in accordance with the provisions of
Law 22/2014 and other applicable legislation.
The organisation chart is included in point 7 of this document.
➢ Mission
The purpose of AXIS is to promote the dynamisation and consolidation of the private venture capital
ecosystem, both early-stage: venture capital, incubation and technology transfer and business angels,
as well as expansion, growth and debt, thus supporting the creation and growth of highly innovative
and technology-based companies.
➢ Functions
• Serve as a catalyst for the creation of venture capital entities with a majority of private capital
with the ultimate aim of providing SMEs with alternative financing to bank financing.
• To directly support companies in their expansion plans to contribute to the development of the
business fabric, job creation and the revitalisation of the economy.
• To mobilise the greatest possible amount of private sector resources through investments in
co-investment schemes with other private venture capital funds.
• To improve the quality and security of Spanish infrastructure as a key piece in the country's
economic growth and modernisation.
AXIS PARTICIPACIONES EMPRESARIALES,
S.G.E.I.C, S.A., S.M.E.
NIF (Tax ID): A78290269
c/ Los Madrazo, 38 2ª planta
28014 MADRID
www.axispart.com
C. FUNDACIÓN ICO
Fundación ICO is a state-owned public sector foundation created in 1993 with a permanent character
and non-profit making aim that develops its activity with the main sponsorship of ICO. It has corporate
status and its own assets.
➢ Mission
To contribute to the development of society in areas related to ICO's activity and assets.
➢ Vision
To be a leader in the promotion and dissemination of knowledge, with an international vocation and
on two axes: Sustainable Economy and Finance and Sustainable Art and Architecture.
➢ Functions
In 2022, the Foundation's Economics and Internationalisation areas were merged into a single area,
called Sustainable Economics and Finance.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
7
• Area of Art and Sustainable Architecture: It includes the management, conservation and
dissemination of the ICO Art collections, as well as the management of the ICO Museum and
its temporary exhibitions and catalogues for each exhibition, and the organisation of
educational and inclusive activities that make the ICO Museum a learning space for everyone.
• Area of Sustainable Economy and Finance: It concentrates its action on the following four
thematic areas:
o Financial and Economic Education and dissemination of economic and financial
research and knowledge;
o Sustainability and Circular Economy. Sustainable finance;
o Financing and business growth. Alternative finance;
o Economic and Monetary Union and international economic and financial relations, with
a special focus on Latin America.
FUNDACIÓN ICO
NIF G-80743503
Paseo del Prado, 4.
28014 MADRID
www.fundacionico.es
Twitter: @FundacionICO
The organisation chart is included in point 7 of this document.
1.3 GOVERNANCE AND MANAGEMENT STRUCTURE
The Chairman of ICO is also Chairman of Axis and Fundación ICO.
A. Activity
The governing structure of Instituto de Crédito Oficial is set out in its statutes, approved by Royal
Decree 706/1999, as amended by Law 40/2015 on the Legal Regime of the Public Sector, Royal
Decree 1149/2015 and Royal Decree 390/2011. It is completed by the operating and internal control
bodies, approved by ICO's Chairman within the scope of the powers conferred on him by the Statutes.
The internal rule in force as of 31 December is the Collegiate Bodies Circular 4/2022 and the
Organisational Circular 5/2022, both dated 1 December.
As defined in the Statutes, the governing bodies are the General Board and the Chairman. The rest
are management bodies as defined in the above-mentioned Circular on Collegiate Bodies. These
include the Operations Committee and the Steering and Strategy Committee, whose main functions
are described below. The complete list of bodies is as follows:
ICO FOUNDATION
AXIS
DG FINANCE AND
STRATEGY
DG BUSINESS
DG RISK AND
FINANCIAL CONTROL
DG TECHNICAL AND
RESOURCES
CHAIRMAN
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
8
GOVERNING BODIES
General Board
Chairman
MANAGEMENT BODIES
Steering and Strategy Committee
Operations Committee
Credit Committee
Assets and Liabilities Committee
Monitoring Committee
Committee on International and EU
Affairs
Sustainability Committee
Procurement Committee
Audit and Compliance Committee
Technical Committee on Regulatory
Compliance
Information Security Committee
Business Continuity Committee
Code of Ethics and Conduct Compliance
Committee
GOVERNING BODIES
GENERAL BOARD
The composition of ICO’s General Board, its functions, meetings and agreements are defined in the
Statutes, approved by Royal Decree 706/1999.
Law 40/2015 and Royal Decree 1149/2015 incorporate and develop the role of the General Board's
independent directors, reinforcing the Institute’s autonomy and its alignment with the best European
standards. The figure of the independent director plays a key role in the functioning of the Board, as
he/she has a double vote for the operations of the Institute's financial business, which means that
he/she can obtain a majority.
Structure and composition
The General Board is made up of the Chairman of the entity and ten members and is assisted by the
secretary and, if necessary, by the deputy secretary. The Secretary is not considered to be a Director,
so therefore attends the meetings with the right to speak but not to vote.
Following the amendment by Law 40/2015 to Royal Decree-Law 12/1995 and by Royal Decree
1149/2015 of 18 December, the appointment and removal of the members of the General Board is
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
9
the responsibility of the Council of Ministers, by means of an Agreement, at the proposal of the Minister
of Economic Affairs and Digital Transformation, who shall appoint them from among persons of
recognised prestige and professional competence in the ICO's field of activity.
Members shall be appointed in accordance with the following terms:
• Four members shall be independent, understood as those that are not Public Sector staff. The
independent members’ mandates will be three years, and they can only be re-elected once.
• Six members shall be appointed who are Public Sector staff with recognised competence. A
maximum of two members shall come from the Ministry of Finance and Public Administration,
while at least two public members shall come from the Ministry of Economic Affairs and Digital
Transformation.
As of 31 December 2022, the General Board of ICO consisted of:
NAME
POSITION
BODY
APPOINTMENT
Javier Sánchez
Fuentefría
Director General of
Budgets
Ministry of Finance
and Public
Administration
29.03.2022
Cristina Tarrero
Martos
Director General of
Economic
Programming and
Budgets
Ministry of Transport,
Mobility and Urban
Agenda
29.03.2022
Elena Aparici Vázquez
de Parga
Director General of
Economic Policy
Ministry of Economic
Affairs and Digital
Transformation
18.02.2020
César Veloso Palma
Member of the
Cabinet of the
Minister of Finance
Ministry of Finance
and Public
Administration
05.10.2018
Andrés Barragán
Urbiola
Director of the
Technical and
Financial Analysis
Department
Ministry of Economic
Affairs and Digital
Transformation
28.09.2021
Ignacio Mezquita
Pérez-Andújar
Deputy Director-
General for Foreign
Investment
Ministry of Industry,
Trade and Tourism
22.09.2020
Enrique Feás Costilla
Independent
Director
--
01.11.2021
Silvia Iranzo Gutiérrez
Independent
Director
--
16.11.2018
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
10
Rafael Fernández
Sánchez
Independent
Director
--
11.07.2022
Blanca Montero
Corominas
Independent
Director
--
14.07.2021
José Carlos García de
Quevedo Ruiz
Chairman of ICO
and the Board
Instituto de Crédito
Oficial (ICO)
Royal Decree
683/2018
of 22 June
(BOE 23.06.2018)
Cayetana Lado
Castro-Rial
Board Secretary
Instituto de Crédito
Oficial (ICO)
22.02.2021
Gerardo Harguindey
Valero
Board Deputy
Secretary
Instituto de Crédito
Oficial (ICO)
25.01.2016
Changes to the composition of the General Board in 2022
During the financial year 2022, the following directors left the board:
NAME
POSITION
BODY
DATE OF
TERMINATION
Jaime Iglesias
Quintana
Director General of
Budgets
Ministry of Finance and
Public Administration
02.03.2022
María del Carmen
García Franquelo
Director General of
Economic
Programming and
Budgets
Ministry of Transport,
Mobility and Urban
Agenda
02.03.2022
Clara García
Fernández-Muro
Independent Director
--
11.07.2022
To replace these directors, the following appointments were made:
NAME
POSITION
BODY
APPOINTMENT
Rafael Fernández
Sánchez
Independent
Director
--
11.07.2022
Cristina Tarrero
Martos
Director General of
Economic
Programming and
Budgets
Ministry of Transport,
Mobility and Urban
Agenda
29.03.2022
Javier Sánchez
Fuentefría
Director General of
Budgets
Ministry of Finance
and Public
Administration
29.03.2022
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
11
Equality and diversity in the General Board
As of 31 December 2022, four of the ten members of the ICO's General Board were women (40%).
50% of the independent board members are women.
In terms of age, as of 31 December 2022, 3 directors are under 50 years of age, while 1 director is
over 60 years of age. The average age of the directors at year-end was 52.4 years (55.4 years for
female directors and 50.7 years for male directors).
Although the independent directors represent 36.4% of the board, they have a double vote in the most
important decisions. Consequently, in these cases, independent directors represent 53.3% of the total
possible votes. In this context, women's votes represent 40.0% of the total votes on the Board. On the
basis of age and taking into account the double value of the vote of independent directors, those under
50 years of age hold 20% of the total votes.
Directors’ expenses policy
Royal Decree 462/2002, of 24 May, on compensation due to service, provides for the payment of
compensation for attending meetings of Public Administration and agency collegiate bodies.
In accordance with article 10 of Royal Decree 706/1999, on the adaptation of Instituto de Crédito
Oficial to Law 6/1997, of 14 April, on the organisation and operation of the General State
Administration and approval of its Statutes, the General Board’s members, Secretary and Deputy
Secretary shall be entitled to receive the economic compensation corresponding to their attendance
of meetings, to be determined by the Board itself, according to what is provided for by the regulations
on compensation due to service for Public Administration staff. Notwithstanding the foregoing, when
the director has the status of senior officer, the remuneration for attending board meetings shall be
paid into the Public Treasury.
The per diem for attendance at the Board was 1,089.48 euros, with no difference for reasons of gender
or age. The total accrued in 2022 for the members of the ICO General Board (except for the Chairman)
was 123,111.24 euros (127,469.16 euros in 2021), 68,637.00 euros accrued by men and 54,474.00
euros by women, due to the greater presence of men on the Board. The average annualised
remuneration is identical for women and men: 11,984.28 euros. There is no variable or target-related
remuneration.
The members of the General Board are not beneficiaries of loans or any other social benefit granted
by ICO. They are subject to the rules on incompatibilities and conflicts of interest set out in the
regulations in force.
CHAIRMAN
The Chairman is the chief executive of the entity, with the functions and under the terms provided for
in the Statutes
1
.
Appointed by Agreement of the Council of Ministers of 22 June 2018 (Royal Decree 683/2018), José
Carlos García de Quevedo Ruiz holds a degree in Economics and Business Studies from the
Complutense University of Madrid and is a Commercial Technician and State Economist.
1
https://www.boe.es/buscar/act.php?id=BOE-A-1999-10738
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
12
Previously, he held the position of Executive Director of Invest
in Spain at ICEX, España Exportación e Inversiones, and was
responsible for attracting and promoting direct foreign
investment in Spain and obtaining international financing for
new investment projects.
The positions that he has previously held include Director
General of Trade and Investments in the State Secretariat for
Trade of the Ministry of Economy and Competitiveness, Head
Economic and Trade Advisor at the Permanent Representation
of Spain to the European Union in Brussels and Director
General for Insurance and Pension Funds at the Ministry of
Economy and Finance.
He has been a member of Management Committees and Boards of several companies and funds,
including: ICO, ICEX, CESCE, COFIDES, FIEM, Crédito y Caución, Consorcio de Compensación de
Seguros and Repsol gas
He has written and published several articles about economics, finance, trade and investment and he
speaks at business and professional conferences and forums both in Spain and abroad.
MANAGEMENT BODIES
STEERING AND STRATEGY COMMITTEE
The Steering and Strategy Committee is the body that assists the Chairman in the exercise and
development of the functions and powers belonging to him, and facilitates coordination between ICO's
different Directorates General.
The Steering Committee’s functions, structure and composition are defined in the Chairman’s Circular
concerning management and internal operation and control bodies.
Functions
The Steering and Strategy Committee’s functions are essentially to manage ICO’s actions by
determining, fostering and coordinating:
➢ ICO’s objectives, as well as the management of processes for their implementation.
➢ The Institute’s strategic lines, for which the Operations Commander is responsible for
implementing in concrete actions.
➢ The programmes of action of ICO’s various organisational units, and the evaluation of their
results in order to fulfil ICO’s purposes and functions.
➢ The positioning of ICO at both the national and international level.
➢ Organisational, HR and IT Systems strategies will be discussed in the Steering and Strategy
Committee to achieve greater motivation and professional performance in achieving the
approved objectives.
Structure and composition
The Steering and Strategy Committee is made up of the Chairman, the Institute’s Directors General,
the Department of Legal Counsel, the Department of the Chairman’s Cabinet and the Directorate
General of Axis. As of 31 December 2022, the composition was as follows:
NAME
POSITION
José Carlos García de
Quevedo Ruiz
Chairman
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
13
Antonio Cordero Gómez
Director General of Finance and Strategy
Rosario Casero Echeverri
Director General of Business
Miguel López De Foronda
Perez
Director General of Risks and Financial
Control
José Manuel Pacho Sánchez
Director General of Technical Issues and
Resources
Cayetana Lado Castro-Rial
Director of Legal Counsel
Begoña Amores Serrano
Director of the Department of
Communication and Cabinet
Guillermo Jiménez Gallego
Director General of AXIS
Lucinio Muñoz Muñoz
Director of Fundación ICO
Changes in 2022
During the financial year 2022, there was one replacement in the Chairman's Office. Begoña Amores
Serrano replaced Alfonso Noriega Gómez.
Remuneration system
The Steering and Strategy Committee’s members do not receive specific remuneration for attending
meetings.
ICO’s Chairman holds a "high office" (Law 3/2015 of 30 March 1984, governing the exercise of the
high office of the General State Administration). The remuneration scheme of ICO’s Chairman is
determined by the State Secretariat for Budgets and Expenditure of the Ministry of Finance and Civil
Service. The gross annual remuneration of ICO’ Chairman for the financial year 2022 amounts to
145,693.80 euros, an amount that includes all the remuneration to be received for the performance of
his duties, except for any seniority that may correspond to him in accordance with current legislation
and including, if applicable, any remuneration in kind.
ICO has four Directorate General posts and one Legal Counsel Directorate post which are considered
as "senior management” posts. The remuneration of ICO’s senior management is governed by Royal
Decree 451/2012, of 5 March, which regulates the emoluments of heads and managers in the public
business sector and other entities. The responsibility for setting remuneration lies with the Ministry to
which ICO is attached, which must take into account the basic remuneration and the limits established
in the Ministerial Order of 12 April 2012 of the Ministry of Finance and Public Administrations approving
the classification of public business entities and other entities governed by public law.
The regulations governing the remuneration policy for senior management staff guarantee equal pay
for men and women. The five senior management positions at ICO received an average gross annual
remuneration of 132,962 euros in 2022. These positions, like the rest of the staff, receive food
vouchers, health insurance and life insurance coverage. The amount indicated does not include
amounts received in respect of seniority, if any.
The total remuneration accrued by senior management in 2022, including this remuneration in kind,
except for the seniority that may correspond to the holder of the post in accordance with current
regulations, amounted to 680,369 euros.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
14
OPERATIONS COMMITTEE
This collegiate management body exercises decision-making and counsel powers in the terms and
limits that are assigned to it by the General Board or by the Chairman.
Structure and composition
On 31 December 2022, the composition of the Operations Committee was as follows:
NAME
POSITION
José Carlos García de
Quevedo Ruiz
Chairman
Antonio Cordero Gómez
Director General of Finance and Strategy
Rosario Casero Echeverri
Director General of Business
Miguel López De Foronda
Perez
Director General of Risks and Financial
Control
José Manuel Pacho Sánchez
Director General of Technical Issues and
Resources
B. AXIS
In accordance with Article 13 of the Company's Statutes, the General Meeting of Shareholders, the
Board of Directors and its Chairman hold the powers of governance, administration and representation
of the Company.
BOARD OF DIRECTORS
It is the governing body responsible, among other functions, for the judicial and extrajudicial
representation of the Company and the full management and administration of all matters relating to
the corporate purpose and its assets and business, being empowered to enter into and grant all kinds
of civil and commercial acts and contracts of administration and ownership, whatever the nature of
the assets to which they refer and the person or entity they affect, and to approve investment and
divestment decisions.
According to the Company's statutes, the Board of Directors shall be composed of a minimum of three
and a maximum of nine members.
Composition of the Board as at 31.12.2022:
NAME
POSITION
DATE OF
APPOINTMENT
José Carlos García de
Quevedo Ruiz
Chairman
ICO Chairman
27 June 2018
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
15
Rosario Casero
Echeverri
Deputy Chairman
Chief Investment Officer of ICO
23 July 2018
Blanca Gloria Navarro
Pérez
Member
Director of Strategy and Sustainability
of ICO
19 September
2018
Mª Elena Aranda García
Member
Head of Mediation and SMEs
25 May 2017
Luis Javier Morales
Fernández
Member
Director of Budget and Financial
Control of ICO
25 May 2017
Jaime Cervera Madrazo
Member
Head of ICO’s Operations
Administration Department
29 September
2015
Antonio Bandrés Cajal
Member
ICO Director of International Finance
and EU Affairs
27 April 2017
Begoña Amores
Serrano
Member
Head of the Communications and
Cabinet Department of ICO
14 September
2022
Fernando Hernández
Domínguez
Member
Adviser in the Cabinet of the
Secretary of State for Economic
Affairs and Business Support
19 October 2022
Cayetana Lado Castro-
Rial
Non-Director Secretary
ICO's Legal Counsel Director
22 February 2021
Changes in the composition of the Board during the financial year 2022
Begoña Amores Serrano and Fernando Hernández Domínguez joined the Board in 2022.
Equality and diversity on the Board of Directors
As of 31 December 2022, there were 5 women on the AXIS Board of Directors (55.6%).
Directors’ expenses policy
The members of the Board of Directors receive remuneration for attending Board meetings, except
for the Chairman and Vice-Chairwoman, who, as they hold senior management and senior executive
contracts, respectively, may not receive attendance fees for attending Board meetings, in accordance
with the legislation in force applicable to them in each case. The maximum remuneration for attending
the Board of Directors’ meetings is established by Ministerial Order of the Ministry of Finance.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
16
In 2022, the annual remuneration received by each member of the Board of Directors amounted to
6,809.77 euros, the same amount as in 2021. There is no wage gap between women and men in the
remuneration of the AXIS Board of Directors.
In 2022 the Company did not have any pension obligations towards former or current members of the
Board of Directors and senior management, nor did it have any obligations assumed on their behalf
under guarantee. Nor were there any loans or advances to members of the Board of Directors and
Senior Management.
Incompatibilities
No director of the management company (AXIS) is a director of another company in which AXIS has
an interest through the managed funds.
Prohibitions on the exercise of office
No member of the Board of Directors has informed the Company during 2022 that he or she has been
prosecuted, or that a court order has been issued against him or her, for any of the offences referred
to in Article 213 of the Law on Capital Companies.
COMMITTEES
AUDIT AND CONTROL COMMITTEE. Specialised body set up within the Board of Directors to
provide technical support and assistance in the field of monitoring.
INVESTMENT COMMITTEES. There is one for each of the following funds: FOND-ICOpyme, F.C.R.,
FOND-ICO Next Tech, F.C.R. and FOND-ICO Infraestructuras II, F.I.C.C., whose members are mainly
appointed by Axis or ICO and include at least two independent members. These are the bodies
responsible for giving investment and disinvestment operations the green light before they are
presented to the Board of Directors.
C. FUNDACIÓN ICO F.S.P.
Fundación ICO has two governing bodies: the Board of Trustees and the Executive Committee.
GOVERNING BODIES
BOARD OF TRUSTEES
It is the governing, administrative and representative body of the Foundation. It consists of a minimum
of six members. The Chairman of the Board of Trustees is the Chairman of ICO. It also has a secretary,
a position held by the Secretary of ICO’s General Board.
As of 31 December 2022, the Board of Trustees was made up of nine personalities from the economic,
cultural and scientific world, five of whom are men and four of whom are women.
NAME
POSITION
POST
José Carlos García de
Quevedo Ruiz
Chairman
ICO Chairman
Antonio Cordero Gómez
Deputy
Chairman and
Trustee
Director General of Finance and Strategy,
ICO
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
17
Eva María González Díez
Trustee
Director of the Legal Department of Grupo
Mutua Madrileña
Pedro Nueno Iniesta
Trustee
Technical Architect, Industrial Engineer and
Doctor in Business Administration from
Harvard University
Concepción Osácar
Garaicoechea
Trustee
Managing Partner of Azora
Cecilia Pereira Marimón
Trustee
Commissioner of Xacobeo 2021 and
Managing Director of SA do Plan Xacobeo
Juan José Toribio Dávila
Trustee
Emeritus Professor of Economics and
President of the International Center for
Financial Research (CIIF) of the IESE
Business School
Pablo Vázquez Vega
Trustee
University Professor of Applied Economics
Marta de la Cuesta González
Trustee
Professor of Applied Economics (UNED)
Lucinio Muñoz Muñoz
Non-Trustee
Director of the
Foundation
Director of Fundación ICO
Cayetana Lado Castro-Rial
Non-Trustee
Secretary
Secretary of ICO’s General Board and ICO
Director of Legal Counsel
Changes in the composition of the Board of Trustees during the financial year 2022
The following changes occurred during the financial year 2022:
Alfonso Noriega was removed as trustee and vice-chairman of the board of trustees, while Antonio
Cordero Gómez was appointed trustee and vice-chairman of the board of trustees. Marta de la Cuesta
González was also appointed as trustee.
Equality and diversity in the Board of Trustees
As of 31 December 2022, there were 4 women on the Board of Trustees of Fundación ICO (44%).
Per diem policy of the members of the Board of Trustees
The members of the Board of Trustees do not receive any economic retribution in the performance of
their duties.
COMMITTEES
EXECUTIVE COMMITTEE. The Executive Committee is the body in charge of studying and proposing
Fundación ICO's programmes and specific actions to the Board of Trustees. It is set up as a resolution
and agreement body in those matters that for reasons of urgency so require, except for the approval
of accounts, action plan and functions attributed to the Board of Trustees that cannot be delegated.
The Executive Committee is chaired by the Chairman of the Board of Trustees and consists of a
minimum of three trustees and a maximum of five.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
18
As of 31 December 2022, the Executive Committee was composed of the following members of the
Board of Trustees:
NAME
POSITION
José Carlos García de Quevedo
Ruiz
Chairman
Eva María González Díez
Member
Pablo Vázquez Vega
Member
Antonio Cordero Gómez
Member
The Director of Fundación ICO attends the meetings of the Executive Committee, with the right to
speak but not to vote.
Changes in the composition of the Executive Committee during the financial year 2022
During the 2022 financial year, there was a change in the composition of the Executive Committee,
with Antonio Cordero replacing Alfonso Noriega.
ART ADVISORY COMMITTEE. Its functions are to advise on the design of the programming of the
Museo ICO museum. It consists of:
➢ Franscico Javier Martín Ramiro, Director General for Housing and Land Secretary General
of the Urban Agenda and Housing. Ministry of Transport, Mobility and Urban Agenda.
➢ Museo Nacional Centro de Arte Reina Sofía, represented by its Director, Manuel J. Borja-
Villel.
➢ Martha Thorne, Associate Dean of External Relations at IE School of Architecture and Design.
➢ Jorge Ribalta, photographer and exhibition curator.
ADVISORY COMMITTEE OF FUNDACIÓN ICO – BECAS CHINA PROGRAMME. Its functions are
to advise on the evaluation and selection of scholarship candidates. It consists of:
➢ Taciana Fisac Badell, Professor of East Asian Studies, specialising in Chinese Language and
Literature, and Director of the Centre for East Asian Studies at the Autonomous University of
Madrid.
➢ Ana Wang Wu, CEO of Fenix Globe Consulting (Spain-Asia). Former Director for Asia-Pacific
at Banco Santander.
➢ Javier Serra Guevara, Director General of Business Internationalisation of ICEX España
Exportaciones e Inversiones. Economic and Commercial Adviser in Beijing during the years
2002 - 2007 and 2010 - 2016.
1.4 MATERIALITY ANALYSIS
The ICO Group has conducted a materiality study that starts with an exhaustive process of internal
and external analysis to identify relevant aspects, trends and reference frameworks.
In line with the best standards in the field, the study is carried out from a dual materiality and impact
assessment perspective. The methodology takes into account, on the one hand, the actual and
potential impacts of the Group's activity externally (outward) and the actual and potential impacts that
material issues may have on the Group (inward).
ʹͲʹʹ Ǧ
19
An essential element of the analysis is stakeholder consultation, which has been carried out in a
formalised way through surveys. Responses from 480 surveys were taken into consideration. The
stakeholders taken into consideration were the following:
x Workers
x The Self-employed and companies of all sizes
x Financial Institutions
x Analysts, consultants, auditors
x Investors
x Business and sectoral associations
x Public Administrations
x Social organisations
x Media.
This formalised consultation exercise complements the Group's regular approach to stakeholder
engagement, which is carried out on an ongoing basis through different channels as detailed in the
document.
In addition, an exercise has been carried out to identify the impacts associated with each of the issues
on the economy, the environment and people. Taking into account the severity and probability of
occurrence, a prioritisation of issues is established through the results of both the outside -in and
inside-out exercise.
Based on the methodology used, 17 issues have been identified that have exceeded the materiality
threshold and are therefore considered material issues for the ICO Group
MATERIAL TOPICS
ICO GROUP 2022
DESCRIPTION
TM1 - Good Corporate
Governance,
Transparency and
Business Ethics
Maintaining good corporate governance, ethics and transparency requirements builds
trusting relationships with the institution and reduces reputational risks.
The management of this aspect has a direct impact on investors, as proper risk
management provides security and protection of their capital. For other stakeholders,
Context
Understand the
context of the
organisation
through
documentation
study and
benchmark
analysis
(comparables and
financial sector)
Stakeholders
A formal
stakeholder
consultation
process has been
carried out
through a survey
Direction
The importance
of each topic for
the ICO Group
has been
assessed in the
Steering
Committee
Impact
The different
impacts of the
different material
issues have been
assessed
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
20
such as employees or society, this aspect translates into greater job stability and
wealth generation.
TM2- Financial and non-
financial risk
management
Appropriate risk management favours the confidence of the different stakeholders
towards the entity, offers peace of mind to investors and customers by protecting and
creating value to achieve the proposed objectives, improves its competitiveness,
shows the organisation's proactivity and enhances its reputation.
TM3 - Sustainable
financing linked to ESG
criteria
The integration of ESG (Environmental, Social and Governance) criteria in ICO's
activity, together with traditional financial and risk criteria, allows us to offer
customers long-term financing, investment and savings products that contribute to
preventing and mitigating climate change, fostering the transition to a carbon-neutral
economy and promoting social development, with the consequent positive impact on
all stakeholders and the environment.
TM4- Economic
Solvency and
Resilience
Maintaining a good performance in this aspect has an impact on all of the entity's
stakeholders, generating value, wealth and security for them.
TM5 - Privacy, data
protection and cyber-
security
Implementing a rigorous privacy and data protection policy is essential to guarantee
customers, investors and society in general control over their personal data, its use
and destination in order to prevent its unlawful and harmful processing of their
personal rights and freedoms. In addition, boosting cyber security enables all
employees to work safely and securely, directly impacting their productivity.
TM6 - Digital
transformation and
innovation
Digitalisation is one of the main vectors for promoting competitiveness, productivity,
sustainable economic growth and job creation, as well as providing the productive
fabric with greater resilience to face future shocks and dynamism to take advantage
of new opportunities. ICO provides the Spanish business community with different
mechanisms to promote the investments needed to undertake the digital
transformation of companies, especially SMEs and start-ups, and industry in terms of
R&D&I. It is also a relevant aspect for the rest of the stakeholders as it contributes to
fostering social cohesion.
TM7 - Public-Private
Partnership
As stated in SDG 17, public-private partnerships are essential to improve the
effectiveness and impact of business activity, as well as to accelerate progress
towards the Sustainable Development Goals set out in the 2030 Agenda, which
directly impacts all stakeholders.
TM8 - Support for the
productive fabric and
value creation
Support for the productive fabric is a key enabler for boosting our country's economic
activity and promoting shared prosperity. It has a direct impact on job creation,
financial stability and the stimulation of economic activity through the various
financial formulas and initiatives made available to companies and the self-employed.
TM9- Respect for
Human Rights
Respect for human rights must be at the heart of the sustainability strategy of any
organisation, regardless of its size and sector. The 2030 Agenda is closely linked to
human rights, so avoiding impacts on those rights in the value chain and with
stakeholders can be synonymous with important contributions to the SDGs.
Human rights are necessary to protect and preserve the humanity of each individual
to ensure that all people can live a life of dignity.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
21
TM10 -Customer
Experience and
Satisfaction
Offering a service that meets customer demands has a direct impact on building long-
term relationships. In the rest of the stakeholders, the impact on investors stands out,
where quality and excellence translate into higher profitability. For their part,
employees and suppliers perceive a high level of demand and need for specialisation.
The bank's good performance in these areas has a direct impact on stakeholders by
maintaining their confidence in the ICO and protecting their interests.
TM11 - Talent
management, training
and development of its
professionals
Attracting and retaining talent, in turn, helps to ensure good financial results for
investors and a higher level of service, resulting from high levels of employee
satisfaction. It also has an impact on improving employee performance, behaviour
and the working environment, which leads to increased staff satisfaction and
therefore overall productivity. Training activities have a direct impact on ICO
employees, enabling them to grow professionally and providing them with the tools
they need to achieve their professional goals. In turn, specialisation leads to higher
profitability through better results and an improvement in the level of service
perceived by customers.
TM12 - Employee safety,
health and welfare
The objective of implementing Occupational Health and Safety is to anticipate,
recognise, evaluate and control risks that may affect the safety and health of the
organisation's employees, which directly impacts on promoting the maintenance of
the physical, mental and social well-being of employees.
TM13- Diversity,
inclusion and equal
opportunities
A diverse and inclusive work environment makes employees feel happier and more
confident, improving their well-being, self-esteem and pride in belonging. It also has a
direct impact on under-represented groups, as inclusion is the basis of a society's
prosperity, of its economic, political and social development.
TM14 - Financial
education
Education is a basic pillar for financial inclusion and for the protection of users of
financial services. By teaching financial concepts, it helps people make better
decisions on how to manage their resources, thus contributing to the safety and
security of their finances. It has a direct impact on improving understanding of
economic concepts, reducing information asymmetries between customers and
providers of financial services, protecting the most vulnerable through targeted
approaches and supporting market stability.
TM15 - Social
engagement and
community impact
Carrying out activities under the prism of social commitment and positive impact on
the community contributes to the development of local economies and different
collectives, through the generation of employment and financial empowerment. It
also improves the image that customers have of the institution as a responsible
institution, has an impact on its positioning, intensifies the relationship and
commitment with its employees, increases the likelihood of finding new investors and
improves its relationship with all stakeholders.
TM16 - Protecting the
environment, combating
climate change and
energy transition
Focusing the purpose of the operations financed and to be financed in the coming
years, among others, on green finance related to sustainable mobility; the
development of renewable energies, renewable hydrogen; energy efficiency; the
circular economy, water treatment, improved energy efficiency and sustainability of
buildings, improved accessibility in buildings/housing, urban and rural regeneration
and renovation, transport infrastructure projects or construction and rehabilitation of
social or affordable housing, has a direct impact on the environment and society.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
22
TM 17 - Just ecological
transition
Contributing to a just ecological transition is a key line of action proposed by the
International Labour Organisation and the United Nations Framework Convention on
Climate Change, to maximise benefits in activity and employment and minimise the
negative impacts of the ecological transition and decarbonisation.
These material issues have been prioritised according to the criteria of impact and relevance, resulting
in the following materiality matrix where the aspects furthest away from the source are those to be
considered as most relevant for the organisation.
There is a relationship between the material issues and the strategic axes and action plans
contemplated on to the Sustainable Development Goals, as can be seen in the following summary
table of the most significant ones.
Catalogue of
material themes
2022
STRATEGIC AXIS 2022-2027
SDG
TM1
EJE 4. - Governance
TM2
TM9
TM7
AXIS 1 - Business growth
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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AXIS 3 - Digitalisation
TM4
AXIS 1- Business growth
AXIS 4 - Governance
TM3
AXIS 1 - Business growth
AXIS 3 - Sustainable finance
TM5
AXIS 2– Digitalisation
AXIS 4 - Governance
TM6
TM10
TM8
AXIS 1 - Business growth
AXIS 2 - Digitalisation
AXIS 3 - Sustainable Finance
TM16
EJE 3. - Sustainable finance
TM17
TM11
EJE 4. - Governance
TM12
TM13
TM15
EJE 4. - Governance
TM14
This materiality study was discussed in the Sustainability Committee and, when incorporated into this
document, will be approved in the terms described in section 6.
With regard to the year 2021, there has been an update of the material issues considered until then.
It moves from seven more general topics (with some subtopics) to the catalogue of 17 discussed
above, by updating the methodology to respond to existing and expected standards, formalising
communication with stakeholders and assessing impacts in a more sophisticated way.
1.5 ICO GROUP STRATEGY
ICO Group Strategy 2022-2027
The ICO Group's Strategy for the period 2022-2027 was approved by the General Board in 2021. It is
structured around the ICO as a credit institution, AXIS, as a private equity fund management entity
ʹͲʹʹ Ǧ
24
wholly owned by the ICO, and the ICO Foundation, as a state public foundation that carries out its
activities under the sole sponsorship of the Instituto de Crédito Oficial.
The ICO Group has demonstrated its capacity to anticipate and adapt in order to support the
business fabric, contributing to the achievement of economic policy objectives and driving growth, job
creation and the transformation of the Spanish economy.
Over the coming years, ICO will continue to provide an effective response to the needs of Spanish
companies, in order to collaborate in promoting the process of recovery, transformation and
strengthening of Spain's growth model, in accordance with the priorities defined in the Spanish
Government's Recovery, Transformation and Resilience Plan, and in line with the Next
Generation EU Programme and the European Union's Multiannual Financial Framework 2021-
2027.
The ICO Group's Strategy 2022-2027 establishes 4 strategic axes and 20 action plans to contribute
to the mobilisation of resources at national level and from the EU through a broad and flexible set
of financial instruments, in collaboration with the private sector and the rest of the Public
Administrations, to enable the development of transformational and driving business projects to
consolidate the process of recovery and transformation of the Spanish economy towards a more
sustainable and digital growth model , with a greater capacity for innovation, competitiveness
and generation of quality employment.
Business growth and
competitiveness
. Boosting
the business growth,
competitiveness, and resilience of
the Spanish economy and the
generation of employment.
Digital Transformation.
Boosting the digital
transformation of the Spanish
productive fabric
Sustainable finance.
Promoting the ecological transition
and the environmental, social and
governance (ESG) sustainability of
the Spanish business fabric.
Corporate Governance.
Strengthening governance and
digital/technological resources, driving
organisational transformation and
expanding institutional, communication
and CSR activity
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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Our purpose
The Strategy 2022-2027 in figures
During the period 2022-2027, the ICO Group aims to channel 17 billion euros directly with its own
resources and mobilise more than 60 billion euros in public-private partnerships to contribute
to the transformation of the growth model of the Spanish economy and the business fabric and entities
of the social economy.
At least 40% of all new operations in the period 2022-2027 will be sustainable.
The ICO is financed through various instruments
in the capital markets and always under market
criteria, not through the General State Budget. It
has the explicit, irrevocable, unconditional and
direct guarantee of the Spanish State for the
debts and obligations it incurs by raising funds.
ICO's objective is to be present in the capital
markets through its regular issues, mainly
through green and social bonds.
Facilitating public-
private collaboration
between the ICO and
the Spanish financial
and business sector
Financing business
growth and job creation
Facilitating the
internationalisation of
companies
Channelling European
funds towards the
Spanish business fabric
Financing the
transformation of the
economy towards a
sustainable growth
model
Promoting digitalisation
and innovation in
Spanish companies.
Collaborating with
other public
administrations at all
levels and with the
European Union
Boosting and
consolidating the
private venture capital
fund ecosystem
Offering
complementary
financing
Channel
17 billion
euros
Mobilise
+60 billion
euros
+40% new
sustainable
operations
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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1.6 ICO INVESTEES
Instituto de Crédito Oficial has shareholdings in the following entities:
➢ Axis Participaciones Empresariales SGEIC, S.A. S.M.E. (AXIS), venture capital fund manager
established in 1986. ICO owns 100% of the share capital.
➢ Compañía Española de Reafianzamiento, S.A (CERSA). ICO owns 24.39% of the share
capital. This is a state-owned trading company, attached to the Ministry of Industry, Trade and
Tourism. Its goal is to make it easier for SMEs and the self-employed to obtain all kinds of
financing, especially start-up companies and smaller companies. CERSA provides support
through its refinancing to the Sistema de Garantía Recíprocas (Mutual Guarantee System) in
Spain, consisting of CERSA itself, 20 Guarantee Associations and SAECA.
➢ Compañía Española de Financiación del Desarrollo, COFIDES, S.A, S.M.E. ICO holds
20.31% of the share capital. This is a state-owned trading company, attached to the Ministry of
Industry, Trade and Tourism. It aims to finance private and viable investment projects overseas
in the medium- and long-term where there is some kind of Spanish interest, in order to contribute,
with profitability criteria, both to the development of recipient countries of investments, as well as
to the internationalisation of the economy and Spanish companies.
➢ The European Investment Fund (EIF). ICO has been a partner since its foundation in 1994 and
currently has a holding of 0.66% in the capital. The main shareholder is the EIB. Its main objective
is to facilitate financing for SMEs in Europe through venture capital and debt products, such as
portfolio guarantees and securitisation.
➢ European Datawharehouse (EDW), GmbH. ICO's shareholding is 3.57%. EDW is a repository
of securitisations registered with ESMA and the FCA that collects data on the loans that make up
securitised portfolios for use by investors and other market participants in their analysis, providing
the market with greater transparency. Through EDW data, users can analyse underlying portfolios
and compare portfolios systematically.
➢ Society for Worldwide Interbank Financial Telecommunication, SCRL (SWIFT). ICO has had
a stake in this company since 2008. SWIFT was created in 1986 under Belgian law, which aims
to provide a secure network that allows financial institutions around the world to send and receive
information on financial transactions. The society has around 2,400 partners worldwide, of which
27 are Spanish financial institutions. This participation allows ICO to use this platform to perform
financial transactions in a secure, standardised and reliable environment.
1.7 PUBLIC-PRIVATE PARTNERSHIPS AND ALLIANCES
Collaboration with other economic agents is a hallmark of the ICO Group's activity. Such alliances can
be grouped into several clusters:
• Business alliances for the better distribution of financial products: this includes agreements
with intermediary financial institutions, collaboration with other banks in syndicated loans, the
network of collaborating agents, agreements with foreign institutions within the framework of the
International Channel, liability agreements with international institutions for better financing and
collaboration with Funds participating in initiatives promoted by AXIS.
• Sustainability partnerships. The ICO Group plays a very active role in relevant sustainability
partnerships, as detailed in point 3.2.4 below
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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• Also very relevant are the agreements with other Spanish public sector entities for the launch
of joint sectoral initiatives as detailed in this document, in many cases to channel funds within the
framework of the Recovery, Transformation and Resilience Plan.
• For their part, agreements with European institutions are an essential part of the ICO Group's
role in channelling funds, in the context of the Multiannual Financial Framework in force at any
given time, with initiatives such as the management of InvestEU guarantees, among others.
• There is also a permanent dialogue and collaboration with business and sectoral associations
and third-sector entities. The process of dialogue with chambers of commerce, general and
sectoral business associations, bank employers' associations and third-sector associations or
entities allows a channel of communication and cooperation to be established so that information
on the ICO Group's activity is known and disseminated, and to gather concerns. Also through the
establishment of partnerships that are translated into concrete initiatives.
• In general, there is also fluid collaboration in formal and informal forums with other national
promotional banks at the international level, which has led to joint initiatives in different areas. It
also participates in international associations such as NEFI (The Network of European Financial
Institutions for Small and Medium Sized Enterprises) or ELTI (European Long-Term Investors
Association) where joint initiatives and collaborations are promoted in their fields of action.
Information on agreements signed by the ICO within the framework of Law 40/2015 of 1 October is
available on the Transparency Portal accessible from the ICO website
2
.
In short, the ICO Group's network of alliances and contacts allows for a variety of formal and informal
communication channels with different stakeholders.
1.8 ECONOMIC AND FINANCIAL ENVIRONMENT FOR ACTION
The general economic and financial situation in which the ICO Group carries out its activity is very
relevant insofar as it is the context in which it has to develop its activities, but at the same time it
determines, to a large extent, the guidelines that the Group adopts to provide the best response at all
times to the needs of the Spanish economy and its productive fabric.
The Spanish economy maintained the pace of growth in 2022 despite the adverse environment.
In 2022 as a whole, the Spanish economy maintained the strong economic growth recorded in 2021
(5.5% compared to the previous year). The significant rise in GDP came during a year marked by the
outbreak of war in Ukraine, causing a rise in inflation and interest rate hikes, while activity was still
recovering after the Covid-19 crisis. In fact, growth has been above successive forecasts by different
agencies and reflects greater resilience supported by the measures taken to tackle the energy crisis,
the strong rebound in tourism and the dynamism of private consumption, also supported by the
positive evolution of the labour market.
In 2022 as a whole, GDP grew by 5.5%, which was also the growth rate recorded in 2021, thus
extending the recovery path after the fall in GDP in 2020. Growth in 2022 was underpinned by an
expansionary performance of both domestic demand and the external sector. Within domestic
demand in 2022, the private consumption and investment in machinery and equipment continued to
grow at high rates and construction investment returned to growth. In contrast, public spending
decreased in 2022 after increases in 2021 and 2020 to cope with the Covid-19 crisis.
With regard to the labour market, after pre-pandemic employment levels were recovered in 2021, the
labour market continued to show strength during 2022 according to both the EPA and the data on
enrolment and registered unemployment.
2
https://www.ico.es/web/guest/contratos-convenios-y-subvenciones
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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2022 was marked by inflation
In 2022, inflation continued to escalate across the board among economies, which had already been
observed throughout 2021 as a result of the effects of supply bottlenecks and rising energy prices, but
which was exacerbated by the outbreak of war in Ukraine. The pick-up in inflation intensified to levels
not seen in several decades in the different jurisdictions due to the acceleration of energy prices and
the rise in the price of many commodities, although it began to moderate slightly at the end of the
summer in Spain and, since November, in the Eurozone thanks to the measures implemented and
the reduced pressures from some of the causes. The forecasts of the main analysts and institutions
for both Spain and the Eurozone as a whole suggest that, in 2023, inflationary pressures will continue
to weaken and that the path of price moderation initiated in the last part of 2022 will bring prices back
to levels above the monetary policy targets during 2023, although still at levels above the monetary
policy targets.
The ECB began the process of normalising its monetary policy in 2022 with sharp interest rate
hikes, among other measures.
Against this background of continued increases in inflation and elevated medium-term inflation
expectations, and as economies recovered from the most acute phase of the pandemic crisis, the
Governing Council of the ECB initiated the process of gradual normalisation of its monetary policy in
2022. This process began with the withdrawal of the extraordinary monetary stimulus implemented
during the pandemic, as net asset purchases under the PEPP ended in March 2022. In June, the ECB
Council concluded that the conditions for starting interest rate hikes had been met, announcing its
intention to raise rates from the summer onwards and to end the purchases. Successive hikes brought
the benchmark rate to 2.5% by the end of 2022, while the holdings of securities in the purchase
programme were already being reduced. In 2023, monetary tightening has continued as the ECB
plans to keep rates at restrictive levels in order, through moderating demand, to bring inflation down
over time to the medium-term target of 2%. These high rates will also help to avoid a persistent upward
drift in inflation expectations.
This new monetary context has an impact on ICO's financial activity, both from the point of view of the
cost of its liabilities and of their pass-through to intermediaries and end customers.
In addition, most central banks have also made a sharp shift in the direction of monetary policy, making
2022 a turning point, ending more than a decade of low rates and ultra-accommodative policies in
most economies.
The momentum of European funds continues
At the institutional level, the management of European funds from the Next Generation EU (NGEU)
instrument, which aims to mobilise unprecedented resources to boost economic growth, continued
during 2022. In the case of Spain, the second disbursement of 12 billion euros was received in 2022
and the third disbursement of 6 billion euros was formally requested in November, linked to the
fulfilment of 29 milestones and targets (23 milestones and 6 targets), which had been met during the
first half of 2022. In February 2023, the European Commission authorised this third disbursement,
making Spain the first Member State to receive authorisation for the third disbursement,
demonstrating that it is the most advanced country in the implementation of the funds. In December
2022, the Government approved the addendum to the Recovery Plan, which will mobilise more than
94.3 billion euros to boost the country's strategic reindustrialisation and which incorporates three
important new features: allocating the additional transfers corresponding to Spain, which means
additional subsidies of 7.7 billion euros; allocating the loans from the Recovery and Resilience
Mechanism, of which Spain may request up to 84 billion euros from the European Commission; and
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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allocating funds from the REPowerEU Plan, which aims to save energy, increase the production of
clean energy and diversify Europe's energy sources, with an allocation of 2.6 billion euros. The
addendum will continue the ambitious reforms and investments of the Recovery Plan, in line with the
strategic objectives of the Recovery Plan (green transition, digital transformation, social and territorial
cohesion and gender equality) with a focus on strategic autonomy through strategic projects, known
as PERTE.
The ICO Group plays a very important role as it participates in different instruments associated with
these funds, as discussed in the following pages.
Government forecasts anticipate that these funds will have an impact on Spanish GDP of close to 3
percentage points in 2023, which would increase in 2024 to 3.5 pp with the sum of both the reforms
and the investments linked to the funds.
Business rates increased in 2022 as a result of monetary policy normalisation process
The tightening of monetary policy has been reflected in the interest rates applied to households and
firms during 2022, as they have been rising especially during the second part of the year. Thus, the
average interest rate applied to companies in transactions of less than 1 million euros, which can be
taken as an approximation of the interest rate applied to SMEs, went from 1.59% in December 2021
to 3.49% in December 2022.
Interest rates for smaller transactions (up to 250 thousand euros) also increased in 2022. This rate
increased from 1.69% in December 2021 to 3.53% in December 2022.
In terms of financial sector activity during 2022, the volume of new business lending grew by 19.9%
compared to 2021, however, some slowdown in growth was observed towards the end of the year.
Transactions of less than 250 thousand euros increased by 15.7% compared to the previous year,
transactions of less than 1 million increased by 14.1% in 2022 and transactions of more than 1 million
recorded an even higher increase of 25.7%.
Against this background, bank asset quality has not deteriorated. The NPL ratio of Spanish credit
institutions continued to decline in 2022. In December 2022, it stood at 3.5% compared to 4.3% in
December 2021. NPL assets thus stood at their lowest rate since December 2008. This decrease is
explained by an intensification of the fall in the volume of credit classified as doubtful. In relation to
credit to productive activities, this ratio stood at 4.43% (data as of September 2022).
The demand for corporate credit as perceived by banks in the bank lending survey did not change
significantly during 2022, however, what did tighten were the approval criteria according to the same
source. By 2023, this behaviour is expected to continue.
. The extraordinary injection of liquidity provided by the State guarantee lines managed by ICO
launched in 2020 continues to have an impact on the Spanish business fabric and the financial sector,
having made it possible to maintain activity and employment in Spain and to face the challenges of
the present from a better position.
The new context of higher interest rates and the withdrawal of the abundant liquidity provided by
monetary stimulus is both a challenge and an opportunity for ICO as part of the Spanish financial
system. In its role through intermediary entities, the ICO will continue to transfer advantageous
conditions so that financing continues to flow towards the productive fabric, while at the same time it
will continue to provide direct financing through the different modalities with greater emphasis on
priority activities in accordance with the reference frameworks and the Group's Strategy. Also through
the other initiatives and activities.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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2 OUR MODEL FOR CONTRIBUTING VALUE TO SOCIETY: DRIVING
SUSTAINABLE GROWTH
Economic transformation
The ICO Group's activity has always had a transformative vocation towards the Spanish productive
fabric, as an economic policy tool with the capacity to drive sustainable economic growth through the
different financial initiatives that support companies and the self-employed in their business growth,
investments and in the ecological and digital transition, with a greater capacity to create quality
employment.
Global approach
To this end, the ICO Group develops financing and collaboration schemes with the private sector and
other public administrations and bodies to improve or develop its instruments, products and new
initiatives, making them available to Spanish companies of all sectors and sizes for their activities and
investments both in Spain and in international markets.
Adaptation and anticipation
The capacity to adapt and anticipate the needs of the Spanish economy has been demonstrated in
the different stages our economy has gone through. The best example of our vocation for rapid,
effective and efficient support was the deployment, in record time, of the State guarantee lines in the
framework of the Covid-19 pandemic, which constituted an unprecedented model of public-private
collaboration, with more than one million operations guaranteed and more than 140 billion euros
mobilised.
Through a variety of instruments
In addition to the traditional products, different initiatives have been incorporated in an attempt to
respond to the needs of the moment. Specific products for specific purposes complement the general
financial offer, which has also been adapted and made more flexible according to the moment. It can
also act as a channel for European or national resources or as a state fund manager.
Long-term vision
Our activity responds to the needs of the moment, but does not forget the long-term objectives. The
consolidation of the process of recovery and transformation of the Spanish economy, with the
boost to the ecological transition and digital transformation, as well as the promotion of environmental
and social sustainability and governance, in line with the Sustainable Development Goals, are
essential elements of our actions. Not forgetting the objective of business growth as a source of
innovation, competitiveness and job creation.
Contribution to the economy and society
This has a positive impact on society at large and on communities. Not only through financial
instruments but also through a range of other initiatives with a positive social impact.
Sustainability
Sustainability and the transition to a low-carbon, more resource-efficient and circular economy that
safeguards climate balance, biodiversity and human rights are key to ensuring long-term
competitiveness and our development as a society.
For this reason, for the ICO Group, sustainability, which takes into account environmental, social and
corporate governance factors, is a basic pillar integrated in all its activity in a transversal manner, both
in its asset and liability operations and in the internal management of the organisation, from the
perspective of governance and corporate social responsibility. ICO's sustainability commitments are
set out in the 2020 Sustainability Policy, which will be reviewed and updated during 2023.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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2.1 REFERENCE FRAMEWORKS
The ICO Group, its activity and its strategic orientations discussed in
previous sections are consistent with the various frameworks of reference
that the Group has adopted as its own: The European Union's priorities,
embodied in the EU's Multiannual Financial Framework 2021-2027 and
the European recovery plan Next Generation EU, will drive profound
economic transformations. Its translation to Spain, through the Recovery,
Transformation and Resilience Plan and its Addendum, also determines the direction of our
country's economic policy in the short, medium and long term, to which the ICO Group will contribute
and support in a decisive manner.
In addition, Law 7/2021 of 20 May on climate change and energy
transition defines the National Integrated Energy and Climate Plan as
the national strategic planning tool that integrates energy and climate
policy.
There are also a number of thematic or sectoral economic policy guidelines to which the ICO Group
contributes through its activity. Initiatives, such as the Plan for the Internationalisation of the Spanish
Economy 2021-2027, Digital Spain 2026 and the National Circular Economy Strategy, determine the
priorities and actions planned in these areas.
More specifically, in the area of sustainability, the ICO Group takes the multiple global, EU and national
initiatives as a reference when defining its sustainability objectives and strategy.
GLOBAL FRAMEWORKS
GLOBAL FINANCIAL SECTOR FRAMEWORKS
Sustainable Development Goals: 17
interconnected global goals designed
to "achieve a better and more
sustainable future for all". 2015 UN
Resolution called Agenda 2030
Global Compact - Through the UN
mandate to promote the SDGs in the
business sector
The Paris Agreement: COP 21
art. 2c.
"to bring financial flows to a
level consistent with a trajectory
leading to low-emission climate-
resilient development"
United Nations Climate Change
Conferences (COP)
COP25 (Madrid), COP26 (Glasgow),
COP27 (Egypt), COP28 (Dubai)
UN - Environment Programme: the
coherent implementation of the
environmental dimension of
sustainable development in the UN
system
Coalition of Finance Ministers for
Climate Action (CAPE) - forum of
economic policymakers to lead the
climate response
ʹͲʹʹ Ǧ
32
At the European Union level, initiatives with a sustainable component are
very important, as well as their translation into specific instruments in which
the ICO Group can play a relevant role. Firstly, the European Green Deal is
a major regional commitment that will transform the EU, ensuring that:
x no net greenhouse gas emissions by 2050
Î Target 55 - at least 55% by 2030
x economic growth is decoupled from the use of fossil resources
x no people or places are left behind
More specifically, REPowerEU is the European Commission's plan to make
Europe independent of Russian fossil fuels well before 2030. It is a plan to:
save energy, produce clean energy and diversify our energy supplies.
To boost growth in the aftermath of the covid-19 crisis, Next Generation EU was
launched, an exceptional temporary recovery instrument approved in 2020,
endowed with €750 billion for all Member States. The two largest instruments of
which it is composed are:
x The Resilience and Recovery Mechanism (MRR)
x The REACT-EU Fund
Î Invest EU: attracting private investment in support of a sustainable recovery and
contributing to building a greener, more digital and resilient
European economy, where ICO has a relevant role as an
accredited Implementing Partner of the European Commission.
Also at the European level, there are a number of reference frameworks of
relevance to the financial sector. Firstly, it is necessary to mention the
European Union Taxonomy: which is the European Commission's regulatory
development that aims to link the financial sector to the achievement of the
objectives of decarbonisation of the European economy.
UNEP - financial sector
: alliance of banks, insurers, and investors to catalyse
financial activity for sustainable development
Ne twor
k
k o
f
f Centra
l
l Bank
s
s an
d
d Supervisor
s
s fo
r
r Greenin
g
g th
e
e Financia
l
l System
:
:
it aims
to contribute to strengthening the global response needed to meet the objectives
of the Paris Agreement.
Tas
k
k Forc
e
e o
n
n Climat
e
e Disclosure
. Dissemination of information on climate risks and
opportunities
Base
l
l Committe
e
e o
n
n Bankin
g
g Supervisio
n
n - Hig
h
h Leve
l
l Tas
k
k Forc
e
e o
n
n Climate-relate
d
d
Financia
l
l Risks
. Studies on transmission channels and impact of climate risks on the
banking sector
Equato
r
r Principles:
a framework for environmental risk management in Project
Finance
ICMA:
International Capital Market Association. Green Bond (GBP), Social Bond
(SBP), Sustainability Linked Bond (SLBP) and Sustainable Bond (SBG) Standards
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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It defines sustainable as an economic activity that contributes substantially to the achievement of one
or more of the six environmental objectives: climate change mitigation; climate change adaptation;
use of water and marine resources; transition to a circular economy; pollution control; and protection
of biodiversity. This initiative is part of the European Commission's Sustainable Finance Action Plan,
which is the strategy for the financial system to support the EU's climate and sustainable development
agenda.
Other bodies, such as the European Banking Authority, have established their Sustainable
Finance Roadmap which defines the objectives and agenda for the achievement of mandates and
supervisory requirements in ESG risk management. The European Central Bank, for its part, has
established its Climate Center, whose work focuses on three objectives: (i) managing climate risks,
(ii) supporting the green transition, and (iii) driving broader actions, such as engagement and
knowledge generation.
The recent adoption of the Corporate Sustainability
Reporting Directive(CSRD) in December 2022 is a very
relevant frame of reference that should be taken into
consideration even if it is not yet fully implemented. The standards EFRAG is
working on are also a reference for the entire financial sector.
There are also a number of working groups to promote sustainability, many of which the ICO Group
is a member and which are discussed below. We highlight here FinResp, which is the Centre for
Sustainable and Responsible Finance in Spain, which seeks to contribute to a more sustainable and
responsible economic and financial activity, or Spainsif, an association that promotes sustainable
investment.
Finally, the Collective Commitment for Climate Action, signed during COP 25 in
Madrid in 2019 by the Spanish banking associations and ICO, is relevant. This is a
commitment to reduce the carbon footprint on banks' balance sheets.
All these frameworks, initiatives, agreements and plans are taken into
consideration by the ICO Group when designing its strategic lines and when deploying its initiatives
and products, as well as in the methodologies followed for the presentation of sustainability and impact
indicators.
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THE ICO GROUP AND THE SUSTAINABLE DEVELOPMENT GOALS
The 2030 Agenda and the Sustainable Development Goals must be fundamental pillars of all public
action. The ICO Group aligns its actions fully with these objectives, both at the level of its financial
activity, in other initiatives with external projection as well as in its internal management.
By the nature of our core business, the direct impact of our activities stems from one
main purpose: to contribute as much as possible to SDG8 on decent work and
sustainable economic growth.
Support for projects and activities that promote SDG8 is
complemented by the contribution to other relevant SDGs through different
actions, such as 7 and 13, which are particularly relevant to our financial
activity. In any case, all the SDGs to which we contribute are interconnected
and mark the roadmap that the ICO Group offers towards sustainability and
social responsibility.
Our main contribution is made through direct and intermediated financing activity. This contribution
is quantified under heading 2.3. This is the main contribution which is complemented by other
activities, as described in sections 2.2 and 2.4, as well as internal management in chapters 4 and
5 of this document.
In addition, and in order to encourage SMEs to know, apply and promote the Sustainable
Development Goals, in 2019 a joint initiative was launched with the Spanish Global Compact
Network and with the support of the High Commissioner for the 2030 Agenda
https://icopymeods.ico.es/ . This initiative aims to involve Spanish SMEs in their alignment with the
SDGs, as well as the business opportunities it can bring them.
With this initiative, the ICO Group takes another step forward in its commitment to the sustainability
of Spanish SMEs, informing them of the changes that companies must adopt to align themselves
with the 2030 Agenda, offering a series of resources to build a strategy oriented towards the SDGs.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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2.2 IN ITS FINANCING ACTIVITY: SUPPORT FOR THE PRODUCTIVE FABRIC
As part of its current strategy, the ICO Group carries out its activities with significant positive impacts
on the Spanish economy in general and on the productive fabric in particular. These positive effects
are multiple, varied and interrelated. The most important of these are presented below.
➢ SUPPORTING ALL COMPANIES THROUGH ITS BROAD PORTFOLIO OF PRODUCTS AND
INITIATIVES
ICO GROUP PRODUCTS AND INITIATIVES
National Promotion Bank
Financing of companies, SMEs and the self-employed in Spain and internationally
Financial Instrument for Economic Policy
As a channel for EU resources and the implementation of government economic policy
measures.
ICO Mediation Lines (second-floor facilities)
Digitisation
National
ICO RED.es Kit Digital (Digital Kit)
ICO Companies and Entrepreneurs
ICO Red.es Acelera (‘Accelerate’)
ICO SGR/SAECA Guarantee
Fond-ICO Next Tech
MAPA-ICO SAECA SGR/SAECA Guarantee
ICO-RTVE Agreement
ICO Trade Credit
ICO Red.es Acelera
Sustainability
ICO Red.es Kit Digital
ICO-MITMA Sustainable Mobility Line/Programme
ICO MITMA Sustainable Mobility
Housing and Urban and Rural Regeneration Programme
ICO Residential building refurbishment
ICO-MITMA line Residential building refurbishment
guarantees
International
ICO Water Projects Financing Programme
ICO International
ICO Exporters
Business growth and competitiveness
ICO International Channel
ICO - FOCIT line (Tourism Competitiveness Fund) (in process)
MAPA - ICO - SAECA Line / SRG/SAECA GUARANTEE
Direct loans and guarantees
National
EU Programmes
Corporate loans
CEF - Alternative Fuels Infrastructure Facility (AFIF)
Institutional loans
Connecting Europe Facility (CEF) - CONNECT
National guarantees
InvestEU Programme
International
Corporate loans
Other PRTR-related initiatives
Institutional loans
International guarantees
State Finance Agency
Management of funds on behalf of the State (off-balance sheet)
Supplementary funding
ICO Guarantee Lines COVID-19
Corporate bonds
Guarantee Lines Ukraine
Project bonds
Internationalisation
MARF bonds
FIEM
MARF Promissory Notes
CARI
Asset-backed securities
Development Cooperation
FONPRODE
Private Equity (AXIS)
FCAS
Fond-ICO Global
Territorial Funds
FOND-ICO PYME
Autonomous Communities
Fond-ICO Infrastructure / ESG
CCLL
Fond-ICO Next Tech
The ICO Group offers a comprehensive range of financing and guarantees through which it contributes
to promoting viable business projects, favouring the growth of companies, their long-term investments
and their international activity, with the aim of fostering sustainable growth, job creation and the
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
36
distribution of wealth. This wide range is dynamic and adaptable to the needs of each moment, with
the launch of new products or the modification of existing ones to best serve the productive fabric.
Through its wide range of products and financing initiatives, ICO Group supports companies of all
sizes, especially SMEs, the self-employed and entrepreneurs, providing full geographical and sectoral
coverage, with special attention to sectors and companies aligned with ICO's strategic axes, with the
priorities of the Spanish Government's Recovery, Transformation and Resilience Plan, the Next
Generation EU Programme and the European Union's Multiannual Financial Framework 2021-2027.
The ICO Group has added new financing modalities to its catalogue, aimed at sustainability, energy
transition and digital transformation.
The ICO Group's activity is largely carried out through strong public-private partnerships with the
financial and business sector, which allows it to mobilise greater resources and generate synergies
and added value.
➢ WITH A SPECIAL FOCUS ON SMES AND, WITHIN THEM, ON SMALLER ONES
✓ 12,388 operations financed in 2022 with ICO Mediation Lines in Spain
✓ 99% of operations to companies with less than 250 employees
✓ 70% of operations to companies with less than 10 employees
A large part of the ICO Group's financing is aimed at small and medium-sized enterprises and the
self-employed in all sectors, since most of the business fabric in Spain is made up of this type of
company. Specifically, SMEs and the self-employed accounted for 99.8% of the total number of
companies in Spain and generated 64% of total business employment, with data as of 31 December
2022. Moreover, bank loans are the main source of financing for smaller Spanish companies, and
they may find it more difficult to access external financing, especially in times of worsening economic
prospects or with a tightening of the conditions applied to bank loans.
PROVISIONS FOR ICO MEDIATION LINES IN SPAIN 2022 BY COMPANY SIZE (*)
COMPANY SIZE
No. of OPERATIONS
% OF TOTAL LOANS
Less than 10 employees
8,659
70%
Between 10 and 49 employees
2,827
23%
Between 50 and 149 employees
603
5%
Between 150 and 249 employees
150
1%
More than 250 employees
149
1%
Total
12,388
100%
* Excluding International Channel (6 operations)
Simplicity of processing and favourable terms and conditions are characteristic of the ICO Mediation
Lines. The catalogue of Mediation lines is constantly evolving and adapting to the needs of companies
and the self-employed, with traditional lines such as Companies and Entrepreneurs and other newly
launched lines with specific objectives, which are discussed below.
In its national mediation activity, the ICO reinforces its commitment to sustainable financing with
the approval of the following three new lines of credit that contribute directly to sustainability. They are
explained in more detail in the Sustainability section of this document.
- ICO MAPA SGR / SAECA Guarantee line: positive social impact through its support for
economic sectors affected by drought and other climatic risks.
- ICO MITMA Sustainable Mobility Line: positive environmental impact through its contribution
to the implementation of low-emission zones, transformation of public transport towards zero
emissions and, in general, contributing to sustainable mobility.
- ICO residential building refurbishment line: positive environmental impact through its
contribution to improving the energy efficiency of residential buildings.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
37
➢ ALSO SUPPORTING LARGE INVESTMENT PROJECTS
✓ 3.856 million in provisions in 2022, largely for major projects
✓ Strong support for direct financing of operations with a sustainable component
The ICO, as a national promotional bank, offers direct financing on its own account to Spanish
companies for the development of large long-term investment projects, both in Spain and abroad,
always respecting the principle of complementarity with private initiative, supporting the maintenance
and promotion of economic activities that contribute to growth and the improvement of the distribution
of national wealth and, in particular, those which, due to their social, cultural, innovative or ecological
importance, deserve to be encouraged.
It should be noted that ICO's direct financing activity for larger companies has a drag and pull effect
on the value and supply chains of Spanish content, expanding the activities of medium-sized
companies and SMEs, mobilising additional complementary financing resources and the contribution
of companies' own funds.
The ICO's product catalogue includes complementary financing instruments so that companies can
diversify the means of obtaining resources to carry out their development plans and boost their growth.
Through the development of these instruments, ICO contributes added value to corporate financing,
expanding the range of products on offer and promoting additional sources of financing. These
products are detailed below.
The ICO's new financing activity and issuance of own-account guarantees for companies,
entrepreneurs and local authorities amounted to 5,417 million euros in 2022, of which 1,561 million
euros were drawn down through ICO Mediation Lines and 3,856 million euros were drawn down
through direct activity (including direct loans, guarantees, corporate bonds, project bonds, MARF
bonds and notes, and securitisation bonds, both nationally and internationally).
DIRECT ACTIVITY
Provisions 2022
Millions of euros
Direct loans and guarantees
1,916
National
1,145
Corporate loans
829
Institutional loans
297
National guarantees
19
International
771
Corporate loans
633
Institutional loans
16
International guarantees
122
Supplementary funding
1,939
Corporate bonds
319
Project bonds
25
Asset-backed securities
383
MARF bonds
10
MARF Promissory Notes
1,202
TOTAL
3,856
ICO's direct financing activity contributes to its commitment to sustainable economic
development, both nationally and internationally, aligning itself with the 17 Sustainable Development
Goals of the United Nations 2030 Agenda, with the Paris Climate Agreement (COP 21), with the United
Nations Guiding Principles on Business and Human Rights and with the EU Sustainable Finance
Action Plan, among others, all of which have been signed by Spain and implemented at European
and national level.
Within the framework of direct financing to large companies, ICO has various financial
instruments specifically designed to encourage investment in activities that contribute to the
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
38
achievement of sustainability objectives, such as green and social loans, loans linked to
sustainability objectives, the acquisition of sustainable bonds or green securitisations.
In 2022, the ICO continued to promote sustainability by approving direct financing operations with
a positive environmental and social impact. Further details on the sustainability component of our
financing activity can be found in the Sustainability section of this document.
➢ PROMOTING MEDIUM- AND LONG-TERM FINANCING
✓ 85% of new formalisations in 2022 are medium to long term
One of the main added values of the ICO focuses on trying to boost long-term financing for companies
and the self-employed, so that they have sufficient financial leeway to undertake projects that generate
sustainable growth, competitiveness and stable, quality employment. ICO facilitates access to this
type of financing, which may be more difficult for some companies.
The new direct financing (including own guarantees) and ICO Mediation formalised during 2022, with
maturities of 4 years or more, represents a high percentage of the total new lending activity formalised
in the medium and long term, having reached 85% in 2022 and above 80% in the last 5 years. This
figure shows the strong contribution of the ICO in boosting long-term investment by Spanish
companies that may find it more difficult to finance themselves at longer maturities.
It is worth noting that, overall, the provisions of the ICO Mediation Lines are carried out especially in
the medium and long term (94% of the total in 2022), which defines ICO's commitment to contribute
to the financing of companies of all sizes with a long-term perspective.
➢ CAPILLARITY, BROAD TERRITORIAL DISTRIBUTION AND SUPPORT FOR ECONOMIC
CONVERGENCE:
✓ 53% Mediation + Direct in Spain to Autonomous Regions with <GDP per capita
✓ 40% Mediation + Direct in Spain to Autonomous Regions with >unemployment rate
✓ +2,300 municipalities in Spain financed with ICO Mediation Lines
✓ Supporting territorial cohesion through social/affordable housing programmes
One of ICO's main objectives is to provide financing to all Spanish regions, intensifying social and
territorial cohesion programmes, such as the construction or rehabilitation of social rental housing with
Autonomous Communities and Local Corporations, and promoting initiatives, in public-private
collaboration, in those regions most affected by depopulation to finance projects that contribute to
reducing the territorial gap.
ICO's financing through the ICO Mediation Lines and direct financing in Spain has reached all Spanish
regions during 2022. From the point of view of the contribution to economic development and cohesion
88%
81%
86%
93%
85%
72%
76%
80%
84%
88%
92%
96%
2018 2019 2020 2021 2022
New lending activity entered into for terms of 4 years or more (including guarantees) over total new lending
activity entered into in the medium to long term (including guarantees)
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
39
between territories, it should be noted that 728 million of the Mediation lines were channelled to
companies located in Autonomous Communities with a GDP per capita below the national average in
2021, which represents 57% of the total amount made available. Regarding regions with above-
average unemployment rates in 2022, Mediation provisions amounted to 472 million euros, which
represents 37% of the total distributed in Spain.
ICO Mediation Lines 2022*. Amounts available
Amount (Millions €)
%/Total
To regions with lower GDP per capita than average
728
57%
To regions with a higher unemployment rate than average
472
37%
* Does not include International Channel
As for the regional distribution of ICO's direct financing to Spanish companies at the end of 2022, an
amount of 1,389 million euros, representing 51% of total financing, was allocated to Autonomous
Communities with a GDP per capita below the national average and an amount of 1,123 million euros,
representing 42% of the total, to those with an unemployment rate above the national average.
Direct Financing 2022*. Amounts available
Amount (Millions €)
%/Total
To regions with lower GDP per capita than average
1,389
51%
To regions with a higher unemployment rate than average
1,123
42%
* Excluding asset-backed securities
In the total of intermediated and direct financing, an amount of 2,117 million euros, representing 53%
of the total drawn down, has been directed to regions with a GDP per capita below the Spanish
average and an amount of 1,595 million euros, representing 40% of the total drawn down, to those
with a higher than average unemployment rate.
ICO Mediation + Direct Financing Lines 2022*. Amounts available
Amount (Millions €)
%/Total
To regions with lower GDP per capita than average
2,117
53%
To regions with a higher unemployment rate than average
1,595
40%
* Excludes International Channel and asset-backed securities
ICO has extensive experience in financing projects to increase the stock of social or affordable rental
housing in different Spanish autonomous communities with the aim, among others, of offering the
most vulnerable social groups better options for access to housing. This funding is provided through
collaboration agreements and housing agreements with the Ministry responsible at any given time.
ICO also has specific programmes and initiatives to support territorial cohesion and sustainable
activity, such as the ICO-Housing and Urban and Rural Regeneration Programme, which enables it
to finance projects aimed at, among other things, promoting the construction, rehabilitation and
conservation of rental housing, improving energy efficiency, decarbonisation, housing sustainability,
improving accessibility to housing and the regeneration and renovation of urban and rural areas. The
granting of direct ICO financing is additional to the aid that, where appropriate, is granted under the
State Housing Plan 2022-2025, the Programmes in force within the general framework of the
Recovery, Transformation and Resilience Plan or other Programmes that may be approved in the field
of housing.
➢ BROAD SECTORAL DISTRIBUTION
✓ All sectors of activity are covered by ICO financing
✓ Special attention in 2022 to sectors most affected by the current economic context,
drought and war in Ukraine
The funds lent through ICO Mediation Lines in 2022 have had a broad sectoral distribution, with a
greater contribution (51% of the total amount drawn down and 56% of total operations) to those
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
40
sectors most affected by the consequences of the drought in Spain, such as agriculture, livestock and
fisheries, as well as those most affected by the consequences of the current economic context and
the war in Ukraine, with more energy-intensive activities such as transport, construction and
infrastructure, industrial products and the chemical industry.
ICO MEDIATION PROVISIONS 2022. ACTIVITY SECTOR
Amount
(millions of euros)
% W/O
AMOUNT
No. of
OPERATIONS
% W/O FINANCING
AGRICULTURE, LIVESTOCK AND FISHING
128
10.1%
2,325
18.8%
TOURISM, LEISURE AND CULTURE
127
10.0%
1,285
10.4%
TRANSPORT AND LOGISTICS
109
8.6%
1,285
10.4%
CONSTRUCTION AND INFRASTRUCTURE
101
8.0%
1,021
8.2%
CAPITAL GOODS AND INDUSTRIAL PRODUCTS
90
7.1%
817
6.6%
CHEMICAL INDUSTRY
88
6.9%
180
1.5%
OTHER SECTORS
625
49.3%
5,475
44.2%
TOTAL
1,268
100.00%
12,388
100.00%
* Does not include International Channel
As for the distribution by sector through direct activity, in 2022 it also shows a wide diversity of
economic activities, with a greater weight in activities that require large investment projects, such as
the construction and infrastructure sectors, as well as those that promote the energy transition, thus
avoiding greenhouse gas emissions, such as the energy and environment-related sectors.
DIRECT ACTIVITY PROVISIONS 2022*. ACTIVITY SECTOR
Amount
(millions of euros)
%/Total
CONSTRUCTION AND INFRASTRUCTURE
717
20.6%
ENERGY
498
14.3%
BUSINESS, PROFESSIONAL AND ADMINISTRATIVE SERVICES
448
12.9%
ENVIRONMENT
426
12.3%
OTHER SECTORS
1,383
39.9%
TOTAL
3,473
100.0%
* Excluding asset-backed securities
➢ BOOSTING INTERNATIONALISATION
✓ 2,039 million approved in 2022 of direct activity + mediation
✓ 29% of total new activity formalised for outward investment by 2022
Boosting the international activity of Spanish companies and attracting foreign investment is one of
ICO's priorities, helping to strengthen the foreign sector and consolidating its role as a driving force in
the growth, recovery and transformation of the Spanish economy. In fact, ICO is part of and actively
contributes to the Strategy for the Internationalisation of the Spanish Economy 2017-2027.
ICO offers a comprehensive range of financing to promote the international activity of companies of
all sizes and in all sectors, their export and investment activity, including the ICO Mediation Lines (ICO
International, ICO Exporters and ICO International Channel), direct activity for companies through
structuring, syndications, Project Finance and corporate debt acquisitions, and the important role of
the Institute in granting guarantees in international bidding processes.
The weight of operations formalised for investment outside Spain has been above 28% in recent
years, taking into account both direct activity and activity carried out through the ICO Mediation Lines.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
41
In terms of ICO's direct activity, new approvals of direct
international financing (with international guarantees) amounted to 1,261 million euros at the end of
2022, the purpose of which is to promote projects abroad.
As for ICO's intermediary activity through financial institutions, an amount of 778 million euros has
been approved in 2022, earmarked for investments outside the national territory. The following Lines
are aimed at the internationalisation of Spanish companies:
- ICO International Line, which is aimed at financing investment projects and/or general business
needs of the self-employed, companies and Spanish public and private entities, both those domiciled
in Spain and those domiciled abroad, with Spanish interest and repayment terms of up to 20 years.
- ICO Exporters line, which provides short-term financing to the self-employed and companies for
advances on invoices from the company's commercial activity abroad, as well as the company's
liquidity needs to cover the costs of production and preparation of the goods or services to be sold
abroad.
- ICO International Channel Line, which has become increasingly important in ICO's
internationalisation activity, with an amount of 293 million euros available in 2022 in 6 contracts with
6 international entities, whose scope of application is located in the LATAM and NAFTA (free trade
area between Canada, the United States and Mexico) geographic areas. The aim of the ICO
International Channel Line is to promote the activity and financing of projects of companies with
Spanish interest with international presence in third markets, through intermediation with institutions.
This programme shifts the operating scheme of ICO Lines to multilateral, public promotional or private
banks located abroad. This facilitates the application process for companies and incorporates the
institution's knowledge of the local market as an added value. In addition, it allows Spanish companies
operating in third markets to finance their projects in local currency in the countries where the
investment projects or commercial activity is carried out.
Functional diagram
35%
34%
28%
29%
20%
25%
30%
35%
40%
2.019 2020 2021 2022
International activity (with guarantees): Formalisations
Peso actividad internacional sobre total actividad ICO (Formalizaciones)
Internationalisation
Approved 2022
Millions of
euros
2,039
Direct activity (with
endorsements)
1,261
ICO Mediation Lines
778
International
Financial
Institution
Activity
Local
Bank
Company
Local
Bank
Company
Company
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
42
Since the launch of this funding programme in 2015, a volume of close to €3.3 billion has been
approved through 31 operations corresponding to 16 different counterparties. The cumulative amount
formalised under the programme is €3.1 bn euros and the volume drawn down is €1.9bn.
➢ PROMOTING DIGITISATION
✓ 7.4 billion euros mobilisable, in public-private partnership, towards Spanish companies
investing in digital transformation
One of the strategic axes of the ICO Group is to provide financing to the Spanish productive fabric to
make the investments they need in their digital transformation process, which will allow them to
increase their competitiveness, productivity, resilience and territorial and social cohesion.
The ICO Group has experience in financing and channelling resources, in public-private collaboration
with the financial sector and the Administration, aimed at the digital transformation of economic activity
in Spain, particularly SMEs. All of this is in line with the European digital strategy and the Spain Digital
Agenda 2026.
Within the ICO Group's extensive catalogue of products and initiatives, the following, more specific to
digital transformation, should be highlighted:
ʹͲʹʹ Ǧ
43
Product of the ICO Group Purpose
Endowment
Millions of euros
ICO
-Red.es Kit Digital Line
Non
-repayable aid for small enterprises, micro-
enterprises and the self
-employed
Collaboration between Red.es and the ICO to promote access to ICO financing
through financial institutions for beneficiary companies and digitalisation agents,
for those projects that have received
aid from Red.es within the Digital Kit
Programme.
3,000 M€
ICO-Red.es ‘Acelera’ Line
ICO will finance up to 100% of the amount of the
project approved by Red.es minus the amount of the
grant advance
Loans through an ICO Mediation Line in collaboration with financial institutions to
finance the digitalisation process of SMEs and establish measures to support the
creation of technological solutions for their digitalisation
Up to 300 M €
Next Tech Fund
Holdings and underwriting commitments in companies
and funds specialising in digital and artificial
intelligence sectors
Venture capital fund to promote the development of innovative high-impact
digital projects and investment in scale
-ups in collaboration with SEDIA, with the
pote
ntial to mobilise up to €4 billion in public-private partnerships with the
Spanish venture capital sector.
2,000 M€
ICO
-RTVE Agreement
ICO direct financing programme for the production of new audiovisual works, such
as feature and short films, films for television, documentaries and animated series
and other European works of a cultural nature
Up to 100 M €
¾ DEPLOYING SPANISH AND EUROPEAN INITIATIVES
9 +25 billion euros with existing initiatives and addendum to the RTR Plan (Spanish
Recovery, Transformation and Resilience Plan) to channel budgetary resources and
European funds into public-private partnerships
ICO has experience in products that combine financing with the granting of aid or subsidies or
guarantees (blending) from national and European bodies, multiplying the effect and creating
synergies when it comes to promoting certain activities and mobilising financial resources to make
them available to companies and investment and transformation projects.
ICO promotes collaboration with sectoral Ministries, Autonomous Communities and their dependent
bodies in channelling budgetary resources and European funds in support of the business fabric,
within the framework of the Recovery, Transformation and Resilience Plan.
The ICO Group has extensive experience in channelling European funds (such as the Juncker Plan),
collaborating with the European Commission, the EIB and the EIF in mobilising European resources
for companies and projects of Spanish interest. It is worth mentioning ICO's accreditation in 2020 as
an Implementing Partner of the European Commission, which has since enabled it to finance projects
ICO-Red Accelerate SME
(300 million euros in aid)
Accelerating the digitalisation process
of SMEs and establish measures to
support the creation of technological
solutions for their digitalisation
ICO-Red.es Kit Digital
(3,000 million euros in aid)
Accelerating the digital transformation
process of SMEs and the self-employed
ICO-MITMA Sustainable
Mobility (1,460 million euros in aid)
Implementing of low-emission zones
and digital and sustainable
transformation of transport. Financing
for companies and municipalities
ICO-MITMA Housing
Renovation
(1.1 billion euros in guarantees)
Encouraging refurbishment works in
residential buildings that contribute to
improving energy efficiency
ICO-Tourism FOCIT (220 million
euros in aid) - in the pipeline-.
Digitalisation, innovation and
modernisation of tourism enterprises
for energy efficiency and circular
economy projects
ICO-MAPA SAECA (Line=220
million euros; Guarantees=20 million
euros)
)
Financing for general business needs
following loss of profit due to drought
and other adverse climaticphenomena
Initiatives aligned with the Recovery, Transformation and Resilience Plan
ʹͲʹʹ Ǧ
44
through the Connecting Europe Facility (CEF), CEF - Alternative Fuels Infrastructure Facility (AFIF)
and InvestEU.
The addendum to the Recovery, Transformation and Resilience Plan presented by the Spanish
government in December 2022 will focus the transfers and loans allocated to Spain on boosting
strategic industrialisation. The ICO Group will channel up to 19 billion euros (15 billion through ICO
and 4 billion through Axis) in financial instruments to finance green investments by companies and
reinforce financial support to SMEs, which will enable them to adapt to the new economic framework
of sustainability and improve their competitiveness.
¾ LEVERAGING NEW FUNDING THROUGH COMPLEMENTARY FINANCE
9 Nearly 2 billion euros of additional funding to be made available in 2022
CEF - Alternative Fuels Infrastructure
Facility (AFIF)
• AFIF combines ICO financing in the
form of equity or debt up to 100%
ofthe project with a minimum of 10
million euros and a grant from the
EC up to 30% of the investment to
finance projects related to the
switch to cleaner alternative fuels
and without dependence on the
EU's external environment, in the
framework of sustainable and
multimodal mobility for the
modernisation of the European
transport network (Ten-T). Funding
will be available, among others, for
alternative refuelling infrastructure
projects (hydrogen, liquefied natural
gas and electricity) and for the
production, storage and transport of
green hydrogen, within the
framework of the Ten-T network.
CEF - CONNECT
• It combines ICOfunding up to 100%
of the project with a minimum of 5
million euros and a grant from the
EC for projects related to digitisation
in the framework of the EU digital
interconnection. The total amount
of the CEF-Connect Programme
2021-2027 amounts to 2 billion
euros and will be used, among
others, for widespread 5G access,
fibre interconnections, high-speed
networks and integrated data
centres.
InvestEU Programme
• EC guarantee for equity or quasi-
equity products, intermediation
financing or direct financing to
facilitate acces s to fina nce for
Spanish companies through 4
windows of action: sustainable
infrastructure, research, innovation
and digitalisation, SMEs, social
investment and training. The
maximum EC guarantee will be 50%
of the investment in direct
ope ra ti ons , u p t o 7 5% i n e qui ty a nd
80% in mediation.
€10 mi ll ions for green
hydrogenproduction
€8.5 millio ns for the
installat ion of 160
electric vehicle charging
points in Spain a nd
Portugal
€20 millio ns for LNG
storage
€15 millions for the
production, storage and
distribution of
renewable hydrogen
CEF- AFIF
approvals 2022
CEF-Connect Work
Program and
Administrative
Agreement unde r
development.
Total amoun t of t he
CEF-Connec t
Programme 2021-2027:
€2.000 millions. ICO
amount: €100 millions
CEF - CONNECT
approvals 2022
A 150 mi ll ion e uros
investment in Span ish
and/or European funds
focused on sustainable
infrastruc ture sec tor s
(50% InvestEU
guarantee)
InvestEU
Programme
approvals 2022
EU Programmes
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
45
In recent years, ICO has promoted other complementary sources of financing, which allow
diversification of financial resources with alternative sources to banking through bonds, promissory
notes and securitisations with the aim of supporting the growth of companies in all sectors and of all
sizes, with a special focus on small and medium-sized enterprises.
These complementary sources of funding include:
CORPORATE
BONDS
Provisions of
1,939 million euros
in 2022
Direct financing programme for companies through the acquisition of bonds and debentures issued
by Spanish companies to finance their medium and long-term investment plans. Preference will be given to
companies that are certified as responsible emitters or listed on sustainability indices, favouring activities and
projects that improve environmental performance.
PROJECT BONDS
Project bond purchase programme as a medium and long-term financing instrument especially linked to large
infrastructure financing operations
MARF BONDS
AND
PROMISSORY
NOTES
ICO's direct financing programme for companies through the subscription of MARF promissory
notes and bonds to inject liquidity and finance the medium and long-term investment plans of Spanish
companies with issuance programmes registered in the Alternative Income Market (MARF).
ASSET-BACKED
SECURITIES
General framework for investing in securitisation assets that have an impact on new lending to the
productive fabric, as well as alignment with its objectives, for example, in terms of sustainability. The ICO requires
as a condition for its participation a commitment from the originating institution to generate new financing for
companies and the self-employed in Spain.
DIRECT ACTIVITY. SUPPLEMENTARY FUNDING
Provision 2022
Millions of euros
Corporate bonds
319
Project bonds
25
MARF bonds
10
MARF Promissory Notes
1,202
Asset-backed securities
383
TOTAL
1,939
➢ MANAGING STATE GUARANTEE LINES
✓ ICO-Covid19 guarantee line: 107.187 billion euros of guarantees granted in 1,192,484
operations to almost 675,000 companies and the self-employed since its launch, with a
positive impact on maintaining activity and employment
✓ Ukraine Guarantee Line: 649 million in guarantees granted in almost 4,000 operations
to more than 3,600 companies during 2022, liquidity tensions due to price increases
The ICO-Covid19 Guarantee Lines to support companies and the self-employed, launched in 2020
by the Spanish Government as a result of the situation generated by the Covid-19 pandemic, have
been managed by ICO, allowing the provision of liquidity and the financing of investments in the
Spanish productive fabric, thus avoiding a negative structural impact on the economy and
employment. In addition, flexibility measures have been adopted within the scope of ICO management
to adapt the conditions of guaranteed loans and improve business solvency, including, among others,
extensions of the maturities of operations, aimed at alleviating the financial burden of the self-
employed, SMEs and companies. The Covid-19 Guarantee Lines, managed by ICO, have constituted
an unprecedented model of public-private collaboration that has enabled close to 675,000 self-
employed workers and companies, mainly SMEs, in 1,192,484 guaranteed operations to access
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
46
financing to cover their liquidity and investment needs, mobilising, in public-private collaboration,
slightly more than 140,000 million euros since its launch, making it the most effective programme in
the European Union as a whole. The deadline for granting these guarantees was 30 June 2022,
although the ICO continues to carry out the financial management of the amounts guaranteed during
the term of the loans.
ICO also manages the Ukraine Guarantee Line, included in the Response Plan to Russia's war in
Ukraine approved by the Spanish government in 2022 and endowed with up to 10,000 million euros
to cover financing granted through financial institutions to companies and the self -employed affected
by liquidity tensions due to the increase in energy and other raw material prices as a result of the war
in Ukraine. During 2022, guarantees for an amount of 649 million euros have been requested, which
has mobilised financing of 839 million euros, through financial institutions, in nearly 4,000 operations
to more than 3,600 companies and self-employed people belonging to all productive sectors, with the
exception of the financial and insurance sector, and which have been affected by the economic effects
of the war in Ukraine. The guarantees will be granted until 31 December 2023.
MANAGING STATE GUARANTEE LINES FOR COMPANIES AND THE SELF-EMPLOYED. Closing data 2022
GUARANTEE LINES
GUARANTEE
REQUESTED
Millions of euros
AMOUNT
MOBILISED
Millions of euros
No. of OPERATIONS
No. of
COMPANIES
ICO- Covid Guarantee Lines19
(from start of Line)
107,187
140,737
1,192,484
674,922
Ukraine Guarantee Line
649
839
3,999
3,638
➢ MANAGING FUNDS ON BEHALF OF THE STATE
✓ 198,951 million managed by ICO on behalf of the State at the end of 2022, in addition to
the State guarantee lines
✓ Support for the internationalisation of Spanish companies, Spanish development
cooperation and the financial sustainability of Autonomous Regions and local entities.
In addition to the management of the aforementioned ICO-Covid19 and Ukraine Guarantee Lines, as
a State Financial Agency, the ICO carries out financial services to manage, off -balance sheet and on
behalf of other Ministries, certain funds and instruments aimed at supporting internationalisation
(through FIEM and CARI), supporting development cooperation (through FONPRODE and FCAS)
and facilitating the sustainability of regional and local administrations (through FFCCAA and
FFEELL).
ʹͲʹʹ Ǧ
47
At the end of 2022, ICO had managed funds on behalf of the State, including the total amounts
formalised under the State Guarantee Lines, with a total balance of 306,787 million euros.
State Financial Agency
Management of funds on behalf of the State (off-balance sheet activity)
2022 Balance
Millions €
ICO Guarantee Lines COVID-19
107,187
Guarantee Lines Ukraine
649
Internationalisation (FIEM + CARI)
6,507
Development Cooperation (FONPRODE + FCAS)
413
Territorial Funds (CCAA + CCLL)
192,031
Total
306,787
¾ ENERGISING THE PRIVATE EQUITY SECTOR
9 Axis manages 4 venture capital funds with 7.15 billion under management
SUPPORT FOR
INTERNALISATION
ICO acts on be half of and under the direction
of the Secre tary of State f or Trade of the
Ministry of Industry, Trade and Tourism.
Within this framework, ICO manages:
Fondo para la
Internacionalización de la
Empresa (FIEM) (Corporate
Internationalisation Fund)
The fun d prom otes the export
operations of Spanish com panies, as
well as Spanish direct investment
abroad, by financing operations and
proje cts of s pecial inte rest for the
internationalisation strategy of the
Spanish econ omy. Financing may also
be made available for the tec hnical
assistance that these operations and
projects nee d, in both developed and
developing countries.
Reciprocal Interest
Adjustment Contract
(CARI)
This is a financial instrumen t tha t
resembles a cer tain ty pe of inte rest,
which aims to promote Spanis h
exports, encouraging the granting of
fixed-interes t loans by financia l
institutions.
SUPPORT FOR
DEVELOPMENT
COOPERATION
ICO acts unde r the inst ructions of the
Secretary of State for Inte rnational
Coope ratio n of t he Min istry of Fo reign
Affairs, EU and Cooperation, managing:
Fund for the Promotion
of Development
(FONPRODE)
Its aim is the eradication of poverty,
the re duct ion of so cial inequa lities and
inequities between people and
communities, gender equality, the
defence of human rights and the
promotion of human and sustainable
development in impoverished
countries.
Cooperation Fund for
Water and Sanitation
(FCAS)
Its purpose is to gran t aid, mainly non-
refundab le and, where appropria te,
loans to finan ce projec ts in the fields of
water an d sani tation, unde r the co-
financing scheme with the national
authorities of Latin America and the
Caribbean.
FINANCIAL SUSTAINABILITY
OF REGIONAL AND LOCAL
GOVERNMENTS
ICO manages in the name and on behalf of
the Ministry of Finance:
Financing Fund for
Autonomous
Communities (FFCCAA)
Its purpose is to provide these
administ rations with liq uid ity. Among
the fu nctions of ICO as financial
manager of the f und a re the
formalisat ion of financial ope rations
with the Autonomous Communit ies
and the provision of tec hnical
instrumentat ion, accounting, cash,
paying agent and monitoring services.
FUND FOR FINANCING
LOCAL ENTITIES (FFEELL)
Its func tion is to provide liquidi ty and
ensure the financial sustainability of
municipalit ies by meeting the ir
financial needs.
ʹͲʹʹ Ǧ
48
The ICO promotes complementary financing for companies through Axis, its 100%-owned venture
capital manager, in public-private partnership. AXIS' activity is carried out through investments in
private equity and venture capital funds aimed at promoting the creation and growth of companies
throughout the entire investment life cycle, from the early stages (business angels, incubation,
technology transfer), to start-up, scale-up, expansion and growth capital (equity) and debt. Axis
currently manages four funds registered with the CNMV, (Spanish Securities and Exchange
Commission), whose sole participant is the ICO, with a total amount of 7.15 billion euros:
During 2022, Axis has approved commitments of 1.79 billion euros through its four funds:
DIRECT ACTIVITY: Private Equity AXIS
Fund size
Millions €
Approved commitments
2022
Millions €
FondICO Global.
4,500
410
FondICO Pyme:
250
35
FondICO Infrastructure / ESG
400
55
FondICO Next Tech*
2,000
1,290
Total
7,150
1,790
* Including the European Tech Champions Initiative (ETCI), to be realised through Fond-ICO Next Tech with an ICO commitment approved in
Dec/2022 of 400 million euros, to be increased to 1 billion euros in 2023.
Axis' actions complement those of the Institute and reinforce the ICO Group's clear positioning in
favour of sustainability. A total amount of 673 million euros in sustainable investments has been
approved in 2022, as explained in more detail in the Sustainability section of this document.
Fond-ICO Global
A fund endowed with 4.5 billion euros. It is the first public venture capital/private equity "fund of funds" created in
Spain and aims to promote the creation of privately managed venture capital funds that invest in Spanish companies
at all stages of their development. Through the 15 Fond-ICO Global calls resolved until the end of 2022, investments
in Spanish companies have been approved for an amount of 3,427 million euros with an invested volume of 11,474
million euros (multiplier of 3.3x).
FOND-ICO PYME
Fund endowed with 250 million euros. Its objective is to invest in funds that invest in strategic or
innovative segments of activity such as sustainability and social impact or the entrepreneurial ecosystem,
also promoting complementary financing to banking through business angels or diversified debt
(crowdlending/crowdfunding).
Fond-ICO Infrastructure ESG
Fund endowed with 400 million euros. It acts as a minority investor facilitating the development and
construction of projects that contribute to a more sustainable and decarbonised economy, prioritising
strategic niches within the energy, mobility, environment and social infrastructure sectors, always seeking
a clear positive impact for people, the climate and the environment.
Fond-ICO Next Tech
2 billion fund with the possibility of mobilising up to 4 billion e uros in publi c-p rivate partnerships with the Spanish
venture capital industry. Fond-ICO Next Tech is a joi nt initia tive of ICO and Axis with the Secreta ry of State for
Digitalisation and Artificial Intel ligence (SEDIA), included in the National Recovery, Transformation and Resilience
Plan, with the aim of promoting the development of innovative, high-im pact digital projects and investment i n scale-
up companies.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
49
2.3 POSITIVE MACROECONOMIC IMPACT ON THE SPANISH ECONOMY
➢ MEDIATION ACTIVITY (SECOND-FLOOR FACILITIES): IMPACT ON GDP AND
EMPLOYMENT
ICO has developed an analysis to quantify the macroeconomic impact of its financing activity. This
analysis, based on a methodology that uses the National Accounts’ Input-Output Tables combined
with statistical and econometric techniques, shows that ICO’s important role in the Spanish financial
sector has a significant impact on the economy, generating a significant contribution to certain
macroeconomic variables such as GDP, exports, investment or employment.
With regard to the impact on economic activity of the financing distributed by the ICO in 2022 through
the Mediation lines, estimates place it at 5,977 million euros in terms of GDP, equivalent to 0.45% of
GDP. In the same way, this financing activity led to 1,294 million euros in investment, representing
0.49% of the total gross fixed capital formation (GFCF) made in Spain in 2018. In relation to exports,
the impact generated by ICO-mediated financing, estimated at 1,426 million euros, represented 0.26%
of the total volume of Spain's exports.
In turn, there is a significant impact on employment. The estimated employment generated and/or
maintained as a result of ICO activity in 2022 through Mediation lines is estimated at 105,950 jobs,
representing 0.56% of the total volume of full-time equivalent employment.
➢ DIRECT FINANCING ACTIVITY: IMPACT ON GDP AND EMPLOYMENT
Using the same methodological procedure, the ICO estimates the impact on certain macroeconomic
variables of its activity as a direct financier.
The estimated impact on economic activity generated by the ICO's direct financing operations
formalised in 2022 is estimated at 10.72 billion euros in terms of GDP, equivalent to 0.81% of GDP.
Similarly, these direct financing operations have meant 2,448 million euros in investment, which
represents 0.92% of the total gross fixed capital formation (GFCF) in Spain in 2022, and have
ICO Mediation Lines 2022 (second-floor facilities)
Contribution to Employment: 105,950 jobs created and/or mantained
(0.56% of total employment in España)
1
(1) Full-time equivalent
73,363
(0.38% of
employment)
69,2%
32,588
(0.17% of
employment
30.8%
INDIRECT (Suppliers
of financial
companies) and
INDUCED
(Consumption by
employees of
financed companies
and suppliers
empleados empresas
financiadas y
proveedores) IMPACT
DIRECT IMPACT
(Companies financed
by ICO lines)
Total
105,950
jobs (0.56%
of
employment
in Spain)
ICO Mediation Lines 2022 (second-floor facilities)
Contribution to GDP: 5,977M€ (0.45% of GDP)
Impact on Investment
1,294 M€ (0.49% of
Investment in Spain)
Impacto en
Exportaciones
1,426 M€ (0.26% os
Spain's Exports)
Impacto on Exports
3,883
(0.29% DGP)
65.0%
2,095
(0.16% PIB)
35.0%
INDIRECT (Suppliers
of financial
companies) and
INDUCED
(Consumption by
employees of
financed companies
and suppliers
empleados
empresas
financiadas y
proveedores)
IMPACT
DIRECT
IMPACT
(Companies
financed by
ICO lines)
Total
5.977 M€
(0.45% of
GDP)
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
50
generated an impact on exports, estimated at 1,705 million euros, which represents 0.31% of the total
volume of Spanish exports.
The quantification, in terms of employment generated and/or maintained as a result of these direct
financing operations, amounts to 160,338 jobs, which represents 0.84% of the total volume of full-time
equivalent employment.
2.4 THE PRIORITY: DRIVING SUSTAINABILITY IN OUR FUNDING ACTIVITY
The ICO as a national promotional bank has, among others, a double challenge:
• Signalling paper. The role of the ICO Group goes beyond the mere financing of investments
for a sustainable economy. In its own activity and in collaboration with other financial actors,
ICO aims to contribute to setting standards and generating benchmarks, both in its operations
(assets) and in the capital market (liabilities), as venture capital, by playing a signalling role
and being at the forefront of the other actors, collaborating with them, accompanying
companies or financial institutions, defining standards, acting as a force that leads the way in
pioneering initiatives and offering our experience to all stakeholders.
• Support for structural change. The ICO Group translates this transformative process into
supporting the evolution of its clients towards a Just and Sustainable transition, acting in all
sectors and business dimensions, facilitating the transition of the business fabric, leaving no
one behind
In recent years, the ICO Group has given a strong impetus to financing companies for sustainable
projects - environmental and social - as a means of promoting the transformation of the Spanish
economy towards a more sustainable and fairer model.
The ICO Group has a Sustainability Policy which establishes a general framework for action that is
complemented by the rest of the internal policies that govern the Institute's activity, such as the
Environmental Policy, the Direct Financing Policy, the CSR Policy, the Equality Plan, the Code of
Ethics and Conduct and the Internal Code of Conduct in the Securities Market.
ICO Group promotes growth through the financing of business activities that contribute to the
generation of employment and economic development, both in Spain and in third countries, aligning
itself, among others, with the 17 Sustainable Development Goals of the United Nations 2030 Agenda,
102,232
(0.54% of
employment)
63,8%
58,106
(0.30% of
employment)
36,2%
INDIRECT (Suppliers of
financial companies) and
INDUCED(Consumption
by employees of financed
companies and suppliers
empleados empresas
financiadas y
proveedores)
IMPACT
ICO Direct Financing2022
Contribution to employment: 160,338 jobs mantained
and/or created (0.84% total employment in Spain)
1
(1) Full-time equivalent
DIRECT
IMPACT
(Companies
financed
directly by
ICO)
Total
160,338
jobs (0.84%
of Spanish
employment)
ICO Direct Financing 2022
Contribution to GDP 10,720 M€ (0.81% of GDP)
Impact on investment
2,448 M€ (0.92% of
Investementin Spain)
Impact on Exports
1,705 M€ (0.31% of Spain's
Exports)
6,786
(0.51% GDP)
63.3%
3.934
(0,30% PIB)
36,7%
INDIRECT (Suppliers
of financial
companies) and
INDUCED
(Consumptionby
employees of
financed companies
and suppliers
empleadosempresas
financiadas y
proveedores)
IMPACT
DIRECT
IMPACT
(Companies
financed
directly by
ICO)
Total
10,720 M€
(0.81% of
GDP)
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
51
with the Paris Climate Agreement (COP 21), with the United Nations Guiding Principles on Business
and Human Rights and with the EU Sustainable Finance Action Plan, all signed by Spain and
implemented at European and national level.
➢ CONTRIBUTING TO SUSTAINABLE BUSINESS FINANCING
✓ At least 40% new sustainable financing by 2022-2027
✓ 4,946 million euros of net balance of direct sustainable operations at the end of 2022
with positive environmental and social impact, 43% of the total direct portfolio
✓ 40,477 million euros of investment mobilised, in public-private partnerships
ICO finances directly, or through financial institutions or Axis (its venture capital manager), projects
that promote the ecological transition and the environmental, social and governance (ESG)
sustainability of the business fabric. The purpose of the operations to be financed focuses, among
others, on sustainable mobility, development of renewable energies, renewable hydrogen, energy
efficiency, circular economy, water treatment, improvement of energy efficiency and sustainability of
buildings, improvement of accessibility in buildings and housing, urban and rural regeneration and
renovation, transport infrastructure projects, hospitals, homes for the elderly or education with public
and private companies and construction and rehabilitation of social or affordable housing.
Detail of the Direct Financing portfolio, total and sustainable, at the end of 2022:
Categorisation
Sustainability
No. of
Operations
Net
balance
(millions €)
Mobilised
Investment
(millions €)
Environment
131
3,721
32.6%
31,772
Climate Change
118
3,589
31.4%
30,374
Water and Marine Resources
12
110
1.0%
1,337
Circular Economy
1
22
0.2%
61
Social
289
1,225
10.7%
8,705
COVID measures
54
814
7.1%
3,110
Subsidised Housing
223
187
1.7%
696
Social and health infrastructure
11
208
1.8%
4,764
Development Cooperation
1
16
0.1%
135
Goals
420
4,946
43.3%
40,477
Not determined
471
6,470
56.7%
76,101
Total
891
11,417
100%
116,578
❖ Eligibility of the loan portfolio under European Taxonomy at the end of 2022 (Green Assets
Ratio)
o 25.71% of exposure to eligible economic activities
o 14.49% exposure to non-eligible economic activities
o 59.80% exposure in borrowers not subject to NFRD
The ICO has voluntarily calculated the percentage of exposure to eligible economic activities in
accordance with the indications set out in Regulation (EU) 2021/2178. The calculation of the ratio is
an approximation of the methodology set out in the above-mentioned Regulation (EU). The main
x 8.53
x 7.1
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
52
improvement compared to the previous year's calculation is based on access to the information
disclosed by the counterparties subject to reporting obligations. For generalist operations, the
percentage of CAPEX eligibility of counterparties has been used. For the finalist operations, an
operation-by-operation analysis has been carried out according to the list of eligible activities defined
in Taxonomy. For the eligibility analysis, only the balance of lending activity has been considered.
❖ New sustainable direct activity in 2022
o 180 sustainable operations approved by 2022
o 2,223 million approved with a positive environmental and social impact, 55% of total
new direct operations
o 15,931 million euros of investment to be mobilised, in public-private partnership
In the framework of direct financing to companies with Spanish interest, ICO relies on the following
financial instruments to incentivise investment in activities that contribute to the achievement of
sustainability objectives: green and social loans, loans linked to sustainability objectives, acquisition
of sustainable bonds and green securitisations.
During 2022, ICO continued to drive sustainability by approving operations with a positive
environmental and social impact. The sustainable share represents 55% of the new direct
operations approved, which translates into a volume of 2,223 million euros of approved financing
and mobilised investment of 15,931 million euros.
The amount of operations approved during 2022 with an environmental impact totals 1,407 million
euros, with a mobilised investment of 10,465 million euros. The largest volume of funding is
concentrated in support for the fight against climate change, with a total amount of 1,402 million euros
allocated.
The amount of approved operations with a social impact totals 816 million euros, with a mobilised
investment of 5.466 million euros. The largest volume of funding, totalling 363 million euros,
corresponds to operations approved to meet liquidity and working capital needs as a result of the
economic impact of COVID-19. Secondly, operations contributing to social inclusion were financed to
the tune of 304 million euros. Finally, within the ICO Housing and Urban and Rural Regeneration
Programme 2022-2025 for the financing of operations that promote social housing, operations
amounting to 149 million euros have been approved.
Detail of new approved direct activity, total and sustainable, at the end of 2022:
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
53
Categorisation Sustainability
No. of
Operations
Amount
(millions €)
%
Mobilised
Investment
(millions €)
Environment
48
1,407
34.6%
10,465
Climate Change
47
1,402
34.5%
10,459
Water and Marine Resources
1
5
0.1%
5
Circular Economy
-
-
-
-
Social
132
816
20.1%
5,466
COVID measures
125
363
8.9%
1,224
Housing
5
149
3.7%
155
Social and health infrastructure
2
304
7.5%
4,087
Development Cooperation
-
-
-
-
Sustainability
180
2,223
54.7%
15,931
Not determined
345
1,843
45.3%
14,970
Total
525
4,066
100%
30,901
During 2022, work has continued on the standardisation of the sustainability information included in
the operations proposal, which includes, among other fields, identification of the contribution to
taxonomy and SDG targets, compliance of sustainable financing with international standards,
compliance with Equator principles, which has been completed on a voluntary basis during this
financial year. In addition, clauses are being incorporated in asset deal contracts to include
sustainability reporting obligations.
❖ New direct activity aligned with SDGs by 2022
o Impact of operations on 11 SDGs
o Decent work, energy transition and sustainable mobility are the most important
ICO's activity is aligned with the sustainability objectives established by the United Nations in the 17
Sustainable Development Goals (SDGs) of the 2030 Agenda.
During 2022, ICO's direct activity has contributed to a large part of the 17 SDGs, with a greater weight
in those SDGs that focus on inclusive and sustainable economic growth, energy and climate transition,
and sustainable mobility:
- SDG 8 Decent work and economic growth, with an approved amount of 2.49 billion euros
and a mobilised investment of 18.058 billion euros.
- SDG 7 Affordable and clean energy, and SDG 13. Climate Action, with an approved amount
of 845 million euros and a mobilised investment of 6,083 million euros.
- SDG 11 Sustainable Cities and Communities, with an approved amount of 376 million euros
and a mobilised investment of 3,058 million euros. This objective is promoted through the
funded sustainable mobility projects, and the operations of the Housing and Urban and Rural
Regeneration Programme.
Detail of new direct activity approved according to SDGs at the end of 2022:
x 7.43
x 6.69
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
54
SDG
Approvals
(millions €)
%
SDG 1
No poverty
-
-
SDG
Mobilised
Investment
(millions €)
SDG 2
Zero hunger
3
0.1%
SDG 8
Decent work
and
18,058
SDG 3
Good health & well-being
25
0.6%
economic
growth
SDG 4
Quality education
5
0.1%
SDG 5
Gender equality
76
1.9%
SDG 6
Clean water and sanitation
3
0.1%
SDG 7
Affordable and clean energy
159
3.9%
SDG 8
Decent work and economic
growth
2,490
61.2%
SDG
Mobilised
Investment
(millions €)
SDG 9
Industry, innovation and
infrastructure
212
5.2%
SDG
7+13
Affordable
and clean
energy
6,083
SDG 10
Reduced inequalities
-
-
Climate
action
SDG 11
Sustainable cities and
communities
376
9.2%
SDG 12
Responsible consumption and
production
33
0.8%
SDG 13
Climate action
686
16.9%
SDG 14
Life below water
-
-
SDG 15
Life on land
-
-
SDG
Mobilised
Investment
(millions €)
SDG 16
Peace, justice and strong
institutions
-
-
SDG
11
Sustainable
cities and
communities
3,058
SDG 17
Partnerships to achieve the
goals
-
-
TOTAL
4,066
100%
❖ ICO lines of credit for sustainability mediation
o 3.88 billion euros mobilisable for sustainable investments, in public-private
partnership
During 2022, ICO has collaborated with other Ministries in the implementation of the following lines to
channel budgetary resources and European funds. ICO's objective in managing the lines, in public-
private collaboration, is to encourage Spanish companies to finance sustainable projects.
+
x 7.25
x 7.19
x 8.13
ʹͲʹʹ Ǧ
55
In addition, at the close of 2022, ICO began processing the ICO-Tourism FOCIT line to finance energy
efficiency and circular economy projects in tourism companies, which is expected to come into
operation in 2023.
The activity of the ICO International Channel Line is aligned with the ICO Group's Strategy and with
ICO's various cross-cutting priority lines of action, including environmental and social sustainability. In
terms of commitment to sustainability, it should be noted that 37% of the cumulative disbursements
of the ICO International Channel Line have been categorised as sustainable at the end of 2022, of
which 30% is environmental and 7% is social. A categorisation by main contributions to SDGs has
also been made, as shown below.
SUSTAINABILITY:
3.88 billion euros
mobilisable for
sustainable financing,
in public-private
partnership
ICO-MAPA-SAECA line
Generating a positive social impact by
supporting economic sectors affected by
drought and other climate risks. The
available aid budget amounts to 20 million
euros, with a total eligible credit of 220
million euros for a total of around 4,300
beneficiaries
ICO-MITMA Sustainable
Mobility Line
Generating a positive
environmental impact through its
contribution to sustainable
mobility. The budget for the
granting of subsidies is 1.46 billion
euros (1 billion euros for
municipalities and 460 million
euros for companies)
ICO Residential Building
Rehabilitation Line
Generating a positive
environmental impact through its
contribution to improving the
energy efficiency of buildings. The
funding will be available to
beneficiaries of NextGenerationEU
funds and will be up to 2.2 billion
euros (1.1 billion euros in
guarantees)
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
56
ICO International Channel Line: Cumulative disbursements and distribution by SDGs
During 2022, ICO has implemented the Sustainability Annex in the 2022 ICO Mediation Lines, which
will allow obtaining sustainability information from SMEs in a very capillary way. In line with ICO's
commitment to financing operations that contribute to the transition towards an inclusive and
environmentally responsible economy, the 2023 ICO Mediation Lines will include the reporting of
information from entities to ICO on the portfolio financed through the Mediation Lines, including
especially data on the sustainability of operations to identify companies and projects aligned with the
goal of sustainable development. During 2022, the reporting of information on sustainable activities
and projects has been voluntary for financial institutions, becoming mandatory in 2023, to encourage
awareness and identification of sustainability in the SME segment, as well as to ensure alignment with
ICO's strategic objectives.
❖ AXIS (venture capital manager of the ICO Group) in the field of sustainability
o 77% sustainable of new AXIS approvals by the end of 2022
o 673 million euros of sustainable approved amount in 2022
Axis' actions complement those of the Institute and reinforce the ICO Group's clear positioning in
favour of sustainability. In the financial year 2022, Axis has approved a total amount of 673.4 million
euros in sustainable investments through venture capital activity.
Axis implements sustainability criteria through the following financial instruments:
Fund
Target achieved in 2022
Approvals
2022
Fond-ICO Global
In its last two calls for proposals, the digitalisation and ESG sustainability criteria of
companies and projects have been included as qualitative criteria to be assessed for
the selection of funds
380*
million
euros
Fond-ICO Infra II
Focused on participation in sustainable infrastructure projects in the transport,
energy, social and service sectors, with a clear positive impact on people, climate
and the environment. During 2022, a total of 50 million euros has been invested in
three funds under Article 9 of the SFRD Regulation (EU), whose investments will be
used for activities and projects contributing to the objectives of Climate Change
Mitigation and/or Transition to a Circular Economy
50 million
euros
911
(60%)
1.038
(63%)
480
(32%)
491
(30%)
117
(8%)
122
(7%)
0
500
1000
1500
2000
2021 2022
Cumulative disbursements (mill. of €)
Not determined Enviroment Social
34%
25%
18%
7%
16%
33%
24%
19%
8%
16%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Acción por el
clima
Energía
asequible y no
contaminante
Ciudades y
comunidades
sostenibles
Agua limpia y
saneamiento
Otros ODS
Distribution by SDGs (%)
2021 2022
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57
Fond-ICO Next Tech
200 million has been approved in 2022 for investment in two sustainable funds. One
of these funds, under Article 9 of the SFDR Regulation (EU), targets sustainable
investments in the Green Tech, AgriTech & Sustainable Food, and Circular Economy
sectors. The other fund, under Article 8 of the SFDR Regulation (EU), is dedicated to
investments in eHealth, financial technology, consumer, new smart mobility,
logistics and energy. Furthermore, 20 million euros has been approved for
investment in companies with business models that have a positive social and/or
environmental impact
220 million
euros
FOND-ICO PYME
In 2022, 20 million euros have been invested in two funds that make investments
with social impact and 3.4 million euros in companies that promote social and/or
environmental sustainability through their activities
23.4
million
euros
* Transactions pending registration as Chapter 8
❖ Channelling European funds on a sustainable basis: InvestEU, CEF and MRR Addendum
o ICO finances renewable hydrogen projects and charging points for electric vehicles
o It also invests in green infrastructure venture capital funds
ICO, as an implementing partner of the EC, collaborates with various ministries, organisations and
entities channelling resources from European programmes, including the European Commission's
InvestEU Programme. Through this European programme, based on guarantees and which includes
sustainable infrastructures (SIW) as one of its main lines of action, ICO will be able to facilitate Spanish
companies' access to financing for sustainable investments.
During 2022, ICO has approved up to 250 million euros in InvestEU Programme initiatives,
participating as an investor in Green Deal Infrastructure Funds (InvestEU for Green Deal Infrastructure
Funds), within the InvestEU SIW window.
One of the investments will consist of ICO's participation with 100 million euros, together with the main
European National Promotional Banks, the EIF and private investors, in the newly created Marguerite
III fund. This fund will be the first operation under the product presented under the InvestEU
programme. In addition, ICO will be able to participate with up to 150 million euros in green funds
under InvestEU's Sustainable Infrastructure Window.
In addition, during 2022 ICO has approved long-term financing operations, which will be submitted to
the European Commission to obtain the CEF-AFIF mechanism subsidy, to finance, among others,
investments linked to the production, storage and distribution of renewable hydrogen, as well as
electric vehicle charging points at stations in Spain and Portugal.
The ICO Group will channel up to 19 billion euros (15 billion through ICO and 4 billion through Fond-
ICO Next Tech managed by Axis) in financial instruments to finance green investments by companies
and reinforce financial support to SMEs, which will enable them to adapt to the new economic
framework of sustainability and improve their competitiveness.
➢ BOOSTING AND EXPANDING THE SPANISH AND EUROPEAN SUSTAINABLE BOND
MARKET
✓ 13 issues until 2022 (4 green and 9 social) for an amount of 6.55 billion euros
✓ Promote projects that generate a positive social and environmental impact
The Institute finances its medium and long-term activity mainly through debt issues in the capital
markets and through bilateral loans from multilateral financial institutions. During 2022, medium- and
long-term funds of 4,329 million euros were raised, of which 1 billion euros were sustainable issues
(23% of the total). ICO channels the funds raised through these operations to the business fabric
through its direct financing programmes, the ICO Mediation Lines and funds managed by AXIS.
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The ICO issued its fourth green bond in May 2022 for an amount of 500 million euros to finance
sustainable projects carried out by Spanish companies that contribute to boosting the ecological
transition. The green bond financed 8 projects in the categories of renewable energies and clean
transport, which will help to avoid the emission of 114,111 tonnes of CO2. The green bond issues
launched by the ICO accumulate an issued volume of 2 billion euros, which strengthens its
commitment to the development of the market for this type of transaction. Thanks to the funds raised
in these operations, ICO has so far promoted 30 renewable energy and clean transport projects by
Spanish companies, which have mobilised an investment of approximately 13 billion euros and will
prevent the emission of more than 692,000 tons of CO2 per year.
In addition, ICO issued its ninth social bond in September 2022 for an amount of 500 million euros,
which will be used to finance, in public-private partnership, projects that promote social and territorial
cohesion and generate a positive impact on employment. The funds obtained through the social
bonus reported in 2022 (eighth) financed 5,004 projects, which allowed the creation or retention of
around 38,000 jobs. In addition to the category of financing to SMEs in regions with below average
GDP per capita, funds have also been allocated to provide financing to companies facing natural or
health disasters, to provide access to health care through the construction of a hospital, to socio-
economic promotion and empowerment through the financing of a project that has provided job
opportunities for more than 300 people with disabilities and, finally, to social housing, with the
construction of 81 homes to incorporate them into the rental market for vulnerable groups.
With these two new issues in 2022, the Institute has issued 9 social bonds totalling 4,550 million
euros and 4 green bonds totalling 2 billion euros, thus consolidating ICO's position as one of the
benchmark issuers in this market at European level.
SUSTAINABLE BONDS:
13 issues up to 2022 (4 green and 9 social) for a total amount of 6.55 billion euros
GREEN BONDS
Emissions
Impact
Sector
4 emissions*
More than 13 billion euros mobilised
Renewable energy
2 billion euros in
total, including 500
million euros in
2022
More than 692,241 mt CO2 avoided
Energy efficiency
30 projects supported
Mobility
Circular economy
Water treatment
SOCIAL BONDS
Emissions
Impact
Sector
9 emissions
69,204 projects funded
Economic and territorial cohesion
4.550 million euros
in total, of which
500 million euros in
2022
444,812 positions created or maintained
Depopulation
300 job opportunities for people with
disabilities
Autonomous Regions with GDP per
capita below the average
81 social housing units
Social housing
1 hospital with a capacity for 339,494 patients
Education
Healthcare
*The fifth green bond was issued in February 2023 for an amount of 500 million euros.
Transparency towards investors remains a cornerstone for ICO. In 2022, the impact reports
corresponding to the social bonus and green bonus issued in 2021 have been published. Through
these reports, ICO provides information to investors about the destination of the funds raised and the
impact generated.
➢ PROMOTING VARIOUS SUSTAINABILITY INITIATIVES
✓ Ensuring a more sustainable and inclusive economic growth model
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❖ Equator Principles
In keeping with its values and its mission to promote a more sustainable economy, ICO signed up to
the Equator Principles in October 2016 with the aim of improving its risk management system for large
financing projects and to identify and mitigate the possible negative impacts on the environment,
people and the climate that these projects could cause.
In the projects it finances, both nationally and internationally, ICO applies the Equator Principles,
categorising projects according to risk and encouraging the implementation of environmental and
social management systems and plans by clients and borrowers in the planning and execution of
projects.
ICO voluntarily adopts the Equator Principles and undertakes to be a benchmark in their management
and compliance, including the publication of all projects financed within its scope, on an annual basis
and following the reporting guidelines indicated in the Principles themselves.
❖ Progress in measuring the carbon footprint of our portfolio - PCAF
In its commitment to decarbonisation, and aware of the weight that greenhouse gas emissions
represent for a credit institution, the ICO Group has begun the process of calculating the carbon
footprint of its lending and investment portfolio, as a first challenge to be able to set targets for reducing
its CO2 emissions. To quantify these financed emissions, the ICO has chosen the PCAF (Partnership
for Carbon Accounting Financials) methodology, based on the GHG Protocol, as it is an internationally
recognised standard. Work is progressing well and is expected to produce quantitative results in 2023.
❖ International Climate Finance Strategy Task Force
ICO is part of the International Climate Finance Strategy working group, whose main objective is to
increase Spain's commitment to international climate finance, with an increase of up to 1.35 billion
euros from 2025. To this end, specific objectives include setting up a working group to identify
cooperation and investment opportunities in developing countries and an inter-ministerial unit to
implement reporting obligations under the EU and the United Nations Framework Convention on
Climate Change (UNFCCC)/Paris Agreement. Spain must send annually to the EU, and every two
years to the UNFCCC, updated information on its climate finance to non-Annex I countries under the
UNFCCC.
❖ Participation in the pilot project of a tool for measuring the contribution to SDGs
ICO has participated, through the Climate Change Office, in the pilot project to evaluate the user
experience of the tool for the contribution of public companies to the 2030 Agenda carried out by the
Ministry of Finance for a systematic alignment of the General State Budgets to the SDGs. Through
this tool, the contributions of different initiatives to the different Goals were systematically assessed
through the proposed methodology.
❖ Joint initiatives with other National Promotional Banks
- Joint Initiative on Circular Economy (JICE): ICO has been part of this initiative since 2019,
together with other national promotional banks (BGK in Poland, CDC in France, CDP in Italy and KfW
in Germany) and the EIB, aiming to prevent and eliminate waste, increase resource efficiency and
foster innovation by promoting circularity in all sectors of the economy. The JICE involves a common
funding commitment for the initiative for the period (2019-2023) of 10 billion euros (2 billion
euros/year). ICO has committed 120 million euros per year and 600 million euros in total.
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- Clean Oceans Initiative (COI): From 2020, ICO will participate in this initiative together with the
EIB, AFD, KFW, CDP and EBRD (new partner from 2022) to support projects in Asia, Africa and Latin
America that reduce ocean pollution, with a special focus on plastics and other solid waste through
projects for the collection, treatment, recovery and recycling of this waste. The initiative was extended
to 4 billion euros in early 2022 (more than double the initial amount). By August 2022, 53 operations
have been formalised between the six partners of the initiative for an amount of 2,104 million euros of
financing, which represents more than 50% of the target achieved (the IOC's target is 4 billion euros
by 2025), with 3 years remaining until the end of the initiative in 2025. By sector, 60% is wastewater
treatment, 21% is solid waste treatment and 19% is storm treatment.
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3 COMMITMENT TO SOCIETY: BEYOND OUR FINANCIAL
ACTIVITY
The ICO Group's activity is eminently financial, and therefore projects its effects on Spanish society
and the Spanish economy mainly through its financial initiatives. These impacts are those developed
above. However, not all of the Group's contribution to society is through its financial products. Through
different initiatives and projects, the ICO Group contributes directly to the development and prosperity
of communities in a sustainable way, not only economically but also socially and culturally. The
Corporate Social Responsibility Policy and the Sustainability Policy specify the Group's strategic
orientations.
The bulk of the Group's non-financial activities with an impact on society are carried out through the
ICO Foundation, whose activity is summarised in the specific section, which has an impact on multiple
fronts of support for culture, knowledge and sustainability in general. But these actions are not
exhausted here, as there are positive contributions through human rights policies, the treatment of
customers and suppliers or specific initiatives such as corporate volunteering. Finally, the ICO Group
also contributes to the support of public expenditure through the generation of profits from its activity
and the payment of the corresponding taxes in Spain.
3.1 ICO FOUNDATION. PROMOTING CULTURE AND KNOWLEDGE
A. AREA OF ART AND SUSTAINABLE ARCHITECTURE
➢ ICO COLLECTIONS (€24.475,10)
The ICO Collections represent the most important artistic contributions of the 20th century in Spain. It
continued to loan its works to national and international cultural institutions in 2022 to further
consolidate the dissemination of this exceptional collection. We also undertook a comprehensive
review of the ICO Collections and implemented the usual preventive conservation actions.
➢ COLLABORATION AGREEMENT WITH THE MUSEO NACIONAL CENTRO DE ARTE
REINA SOFÍA
Within the framework of the collaboration agreement signed by the Fundación ICO and the Reina
Sofía National Museum and Art Centre (MNCARS) on 30 August 2012, which has been extended
twice, seven works from the ICO Collections have been on deposit at the MNCARS since 9 July 2013.
➢ TEMPORARY LOANS
During the year 2022, three requests for temporary loans from the ICO Collections were dealt with.
➢ ICO COLLECTIONS ON THE CER.ES NETWORK
Since 2016, the ICO Collections have been part of the Digital Network of Spanish Museum Collections
(CER.ES). This is a network managed by the Ministry of Education, Culture and Sport, which allows
the online dissemination of the collections belonging to the ICO Collections.(http://ceres.mcu.es).
➢ ICO MUSEUM EXHIBITIONS (€804,675.57)
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The Fundación ICO, in addition to being entrusted by the ICO with the management of its art
collections, is in charge of the temporary exhibition programme of the ICO Museum, which since 2012
has specialised in the research and dissemination of Architecture as an artistic and cultural discipline.
Throughout 2022, the exhibition activity offered to the public at the ICO Museum was as follows:
“Anna Heringer. La belleza esencial” [Anna Heringer. Essential beauty], "Juan Baraja. Contra todo lo
que reluce: efectos del tiempo (PHE22)” [Juan Baraja. Against All That Glitters: Effects of Time
(PHE22)] y “Amaneceres domésticos. Temas de vivienda colectiva en la Europa del siglo XXI”
[Domestic dawns. Collective housing issues in 21st century Europe].
A catalogue was published for all these exhibitions, which were visited by a total of 38,718 people, an
increase of 27% compared to 2021.
➢ 20/XXI. IMAGES OF SPAIN (6.804,65 €)
The conceptual phase of this wide-ranging photographic project, which aims to open a debate on the
current situation in Spain and generate a new and important public heritage, was completed in 2022.
In addition, as a pilot project, the photographer Juan Baraja was commissioned to add 16 works from
his series "Y vasca / Euskal Y" to the ICO Collections.
➢ COMPLEMENTARY ACTIVITIES (€68,687.28) AND INCLUSION AND ACCESSIBILITY
(€57,828.31)
This section includes guided tours and cultural mediation, workshops for schools, families and young
people, and workshops for people with cognitive functional diversity. All these activities are offered to
the interested public free of charge.
Special attention has been devoted to issues of inclusion and accessibility, working on activities
especially with deaf people and people with cognitive diversity, aimed at facilitating access to the ICO
Museum for all types of public. Special mention should also be made of the Empower Parents
programme for families with children with Autism Spectrum Disorder.
B. SUSTAINABLE ECONOMY AND FINANCE AREA
The Economics Area promotes activities aimed at generating and disseminating knowledge in
economic and financial matters, mainly through shared reflection and debate between experts and
agents in these fields, with a special focus on Circular Economy and sustainable finance.
➢ PUBLICATIONS
Classics of Spanish economic thought
During 2022, work was carried out on the preparation of new works within the collections of
classics of international and Spanish economic thought, which will be published in 2023.
EURO Yearbook 2022 (€11,198)
https://www.fundacionico.es/economia/anuarios/anuario del euro
Published under the title "The Euro in 2022. Good Policies, a Gap Year on Reforms".
On 17 February, a presentation was made at a virtual event organised in collaboration with the
European think tank Bruegel, with the participation of the Secretary of State for the Economy
and Business Support, Gonzalo García Andrés, the Governor of the Bank of Spain, Pablo
Hernández de Cos, María Demertzis, Deputy Director of the think tank Bruegel, Fernando
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Fernández, Director of the Yearbook, and the Presidents of the ETF, Jorge Yzaguirre, and of
the ICO Foundation, José Carlos García de Quevedo.
A dissemination campaign was also carried out through social networks and four videos
"Dialogues on the euro" were recorded with the participation of Sofía Rodríguez, Antonio
Carrascosa, Enrique Feás and Ignacio Torreblanca.
In addition to this Yearbook, the website of the Competition Yearbook has also been maintained with
the repository of all issues published from 1996 to 2019 and work has been carried out on two books
on Public Banking and Company Valuation in collaboration with the Fundación de Estudios Bursátiles
y Financieros, to be published in 2023.
Sustainable finance publications (46,251.21€)
Work began on the creation of a new publication, the "ICO Foundation's Sustainable Finance
and Circular Economy Notebooks" through a call for tenders, which was won by International
Financial Analysts (IFA). During 2022, work was carried out on the contents of the first issue,
focusing on the impact of climate risks on the financial sector, which was presented to the
public in January 2023.
The publications are conceived as a biannual publication on relevant and topical issues related
to sustainable finance and the circular economy in Spain and the EU, with a practical and
useful approach for the different audiences, institutions and sectors concerned.
➢ TRAINING
FUNDACIÓN ICO - CHINA SCHOLARSHIP PROGRAMME
Call 2022-23 (*Budget pending the closure of the 2022-23 programme: €192,000)
The Foundation's China Scholarship Programme, initiated in 2003, has trained approximately
400 young Spanish professionals in Chinese language, culture and economy through an
academic and immersion programme, with very good results. As of March 2020, the
Programme was affected by restrictions on international mobility, with courses being held
online and no longer possible to travel to Beijing.
The 2021-22 scholarship holders completed their studies in June 2022.
The 12 students of the 2022-23 call started online classes in September 2022 at the three
universities with which the agreement is maintained. It is expected that during the second
semester, they will finally be able to travel and continue their studies in person.
MUSEOGRAPHY SCHOLARSHIP (12.043,62€)
It has existed as such since 2006. It is aimed at graduates in Art History, with knowledge of
English and, preferably, specialised training in museology and museography.
On 30 November 2022, the two-year period of enjoyment of the Museography Scholarship
ended for Marina Domínguez Natal, who joined the Foundation on 1 December 2020.
The 2022 grant was launched and the management of the whole process was carried out. The
new grant holder joined the Art Department in March 2023 and will spend a full year in training.
E-FP PROGRAMME (*Budget pending closure of the programme: €30,000)
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This collaboration was maintained with the Créate Foundation and the Spanish Chamber of
Commerce, through the contracting of the Programme Coordination services, which ensure
the quality of the contents, the fluidity of contacts between the agents involved, the preparation
and analysis of indicators and attention to the network of mentors.
FINANCIAL EDUCATION (*Budget pending programme closure): €33,000)
It is articulated through two main activities:
- Financial Education Plan
We have collaborated by publicising the Financial Education Day celebrations on social
networks and by participating in the Assembly of Collaborators that took place on 16
September 2022.
- "Training course on financial education for primary school teachers".
Through an agreement signed with the Universitat de Barcelona and the Universitat Autònoma
de Barcelona, work has continued on the creation of the online course aimed at primary school
teachers, in order to provide them with the knowledge and tools that will enable them to teach
the essential concepts of financial education to their pupils.
➢ CIRCULAR ECONOMY (14,410€)
MOOC on circular economy
In December 2022, the MOOC that had opened in March and was aimed at SMEs, carried out
together with UNED (corresponding to the 2021 budget), ended. 542 people have enrolled in
the course, of which 18.82% have completed it (considered a very good completion rate). The
final survey shows a high level of satisfaction.
https://iedra.uned.es/dashboard
Circular economy podcast series
As part of this collaboration with the UNED, a series of podcasts were created in 2022 to bring
the knowledge and tools developed to an even wider audience. They are broadcast on Radio3
and in them, SMEs and funding bodies talk about their experience in two areas: their
contribution and participation in the processes of the circular economy and the aspects linked
to the financing of these processes. They can be heard at https://canal.uned.es/
INSTITUTIONAL PROGRAMMES AND PARTNERSHIPS
Fundación ICO promotes and collaborates in platforms for debate that encourage reflection
and analysis by experts through the creation of work forums and the exchange of experiences
and knowledge on highly specialised subjects, most of which are complementary to the
activities carried out by ICO, thus enhancing the Institute's image.
➢ Training Programme: Sustainable Suppliers (50,000)
Programme created by the UN Global Compact Spain (UN Global Compact), Fundación ICO and
ICEX Spain Export and Investment. This is an international programme aimed at training the
supply chains of large Spanish companies, partners of the initiative in Spain, in the field of
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sustainability, taking as a reference the Ten Principles of the UN Global Compact and the
Sustainable Development Goals (SDGs).
➢ Sustainable finance in Spain: an analysis from a risk and public finance perspective
(12,000€)
This study is carried out with the UCM (Complutense University of Madrid), through the ICEI, and
aims to present an analysis of sustainable finance in Spain, the role of public banking in its
development and to propose a regionalised indicator of direct and indirect financial risks in the
different economic sectors. The Chair, Prof. D. Emilio Cerdá Tena, is the coordinator of the
research team.
➢ Fundación ICO collaborates with Fundación SERES, Fundación Sociedad y Empresa
Responsable, as a partner (€7,900).
SERES activities and products are designed to boost and measure the social impact of business
activity, contributing to the promotion of corporate social engagement. Thus, the SERES Social
Footprint Index© is a methodology that allows companies to identify the relevant (material) social
contributions of their projects, the identification of metrics that enable their comparability and,
above all, provides a framework of transparency in the award criteria for NextGen grants linked to
the value not only of the environmental impact of the projects but also their objective social
contribution.
➢ VII Meeting of Multilatin Companies (12,000€)
Organised by the Fundación Iberoamericana Empresarial, it was held at the headquarters in
Santander on 13, 14 and 15 July 2022. This edition was dedicated to analysing the global
panorama and the main challenges facing Ibero-America in the aftermath of the covid-19
pandemic, given the effects it has had on all aspects of life, highlighting the fundamental role of
multi-Latin companies in the development and integration of the region.
➢ X German-Spanish Forum (620€)
Co-organised by the Liz Mohn Centre of the Bertelsmann Stiftung and Telefónica, with the support
of the ICO Foundation, it was held in Berlin on 18 October under the theme "Building a Digital and
Sustainable Future Together".
The aim of the Forum was to strengthen bilateral ties between the two countries, as well as to
exchange views on the challenges in the fields of sustainability and digitalisation in Europe and to
develop joint solutions to shape this transformation, gaining in competitiveness.
Inaugurated by HM King Felipe and the President of the Federal Republic of Germany, Frank-
Walter Steinmeier, it was part of the official visit of the Spanish monarchs to Germany, which
highlights the excellent relationship between the two countries.
➢ BRUEGEL Membership (50,000€)
The ICO Foundation is a member of this Brussels-based non-profit organisation, whose mission
is to contribute to improving the quality of economic policies through research, analysis and open
debate.
➢ Fundación Carolina (*Budget pending project closure): €45,000)
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In November, a collaboration agreement was signed with the Carolina Foundation with the aim of
holding an international seminar in January 2023, under the title "Spain, the EU and Latin America:
a renewed cooperation for sustainable development", as well as to prepare and publish a book
compiling the sessions and the conclusions.
3.2 OUR ROLE IN SOCIETY
3.2.1 HUMAN RIGHTS
ICO recognises that respect for human rights and, therefore, the protection of people's dignity, well-
being and development, is a basic and unavoidable pillar on which to build and manage all its activities.
As explained in point 4 of this document, in its internal management, the ICO Group ensures the
protection of Human Rights by integrating mechanisms for the Prevention of Money Laundering and
Terrorist Financing, the Internal Code of Conduct in the Securities Market and the Group's Code of
Ethics and Conduct, as well as multiple internal procedures to prevent any type of corruption or
bribery.
ICO also integrates the protection of human rights by providing its staff with appropriate training,
awareness-raising and initiatives. In this respect, ICO is especially and expressly committed to:
• The Universal Declaration of Human Rights and the International Labour Organization
Declaration on Fundamental Principles and Rights at Work.
• Freedom of association and effective recognition of the right to collective bargaining.
• Equal treatment and opportunities between men and women and the fight against all forms of
discrimination.
• Reconciling work, family and personal life.
• Professional development and training.
• Workplace health and safety.
• Balancing professional activity with respect for the environment.
• The socio-occupational inclusion of groups with functional diversity.
• Corporate volunteering.
In its role as a financier, ICO promotes development and social welfare by expressly prohibiting the
financing of any activity that could have the effect of violating human rights. In addition, ICO, in its
commitment to the United Nations Guiding Principles on Business and Human Rights, ensures that
its financing incorporates the protection, respect and redress of potential harm that its financial activity
may cause and will ensure that its borrowers or counterparties do not allocate funds received from
ICO to activities that may be related to the violation of Human Rights.
As a signatory to the Ecuador Principles, it relies on due diligence processes to determine and avoid
the impact of its major funding projects on Human Rights.
In its relationship with suppliers and in compliance with the requirements of the Public Sector
Contracts Law, ICO prohibits the contracting of individuals or legal entities convicted of terrorism,
constitution or integration of a criminal organisation or group, illicit association, illegal financing of
political parties, human trafficking, corruption in business, influence peddling, bribery, fraud, crimes
against the Public Treasury and Social Security, crimes against workers' rights, prevarication,
embezzlement, negotiations prohibited to civil servants or money laundering. Procurement systems
ensure compliance with procurement conditions without the need to have a specific supplier
monitoring and auditing system. No supply chain non-compliance has been detected in 2022.
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In addition, social responsibility criteria are incorporated into contracting and tendering mechanisms
to ensure that suppliers comply with human rights and labour standards.
Within the scope of its business relations and as a complement to its commitment to promote the
SDGs and the 2030 Agenda, it also promotes the 10 Global Compact Principles which, in terms of
Human Rights, determine that companies should support and respect the protection of fundamental
Human Rights within their sphere of influence, and that companies should ensure that their employees
are not complicit in violations of Human Rights.
With regard to its environment and society, ICO's own purpose and the performance of its professional
activity promote the development of people and the positive impact on the sustainable progress of the
economy, fighting against poverty and social differences and, therefore, collaborating in minimising
Human Rights violations.
Specifically, ICO promotes social development and employment through its direct lending activity and
second-floor facilities to support SMEs, entrepreneurs and the self-employed, by issuing social and
green bonds or through the management of financing instruments in its role as the State Financial
Agency.
Finally, the ICO has a channel for external reports, complaints or suggestions, and an Information
area that manages, transfers and resolves, in internal coordination with the necessary departments,
any communications received from third parties and the different stakeholders.
During 2022, no complaints were received in relation to human rights violations in the course of ICO's
business, its business partners or its suppliers.
3.2.2 SUPPLIERS
The ICO Group is governed by Law 9/2017, of 8 November, on Public Sector Contracts, although to
a different extent depending on the legal nature of each of the entities that form part of the ICO Group.
Thus, Instituto de Crédito Oficial and Fundación ICO have the status of contracting authority and do
not have the status of public administration. Therefore, the procurement of both entities is to a large
extent governed by the aforementioned law in the terms established for entities with this status in
accordance with the provisions of articles 316 et seq. of the aforementioned law.
Furthermore, ICO, as a Corporate State-Owned Entity, is subject to centralised procurement rules,
which means that a series of goods and services have been declared centralised by Ministerial Order
EHA/1049/2008, of 10 April, and must be procured through the Directorate General for the
Streamlining and Centralisation of Procurement.
For its part, AXIS does not have the status of contracting authority, and is governed by the provisions
of Articles 321 and 322 of the aforementioned Law. In compliance with this, it has approved the Internal
Contracting Instructions that regulate procurement procedures, guaranteeing the application of the
principles of publicity, competition, transparency, confidentiality, equality and non-discrimination.
In accordance with the provisions of Law 9/2017, of 8 November, on Public Sector Contracts, the ICO
Group analyses whether environmental and social requirements can be incorporated in accordance
with the object of the contract. In this sense, each procedure includes a report from the human capital
and CSR area that analyses the relevance of the possible incorporation of this type of clause.
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The economic and technical solvency of suppliers is analysed in accordance with the provisions of
the Contracts Act and the specifications for each contract, and due diligence procedures are carried
out with suppliers in accordance with the regulations in force.
All tenders and contracts signed are accessible through the Public Procurement Platform.
In 2022, 48 tendering processes were launched for the procurement of goods and services for a total
amount of 35.8 million euros, of which 33.8 million euros corresponded to the 11 tendering processes
subject to harmonised regulation.
During the financial year 2022, payments were made to suppliers amounting to 30.65 million euros,
of which 30.45 million euros corresponded to suppliers resident in Spain (99.3%).
3.2.3 CLIENTS
➢ Measures for the health and safety of consumers
The ICO Group, due to its financial services activity, does not have a significant impact on consumer
health. Therefore, given the nature of the ICO Group's business, there were no significant impacts on
customer health in 2022 through any of the categories of products and services offered. Therefore,
there were no incidents or cases of non-compliance in this area either.
In terms of consumer safety, the only area identified is the protection of consumers' personal data as
described in point 4.3 above
➢ Claims systems, complaints received and their resolution
Communication with our stakeholders and, in particular, with our customers, is considered by the ICO
Group to be one of the main tools for continuous improvement and for gathering information to define
our future lines of action.
The ICO Group, through the centralised action of its information area, has three channels for
communication with the public:
• Written customer service is provided through the corporate website (https://www.ico.es/web/
ico/contact), where those interested may request further information about the products or
express their complaints or suggestions. This tool also allows us to ascertain the actions and
information that the institutions' offices have on the ICO Group's facilities. This tool also
enables clients to learn about other ICO Group activities not necessarily related to financing
products.
• There is a call centre, managed by the firm Konecta, which communicates through telephone
calls, the Click to Call application, and through Web Chat, a communication channel with
customers implemented in 2020.
• The ICO Group has implemented face-to-face customer service to assist all clients who decide
to request information or make their complaints and suggestions directly at the Institute's
premises.
During 2022, there has been an overall decrease in the number of telephone and written contacts
from citizens compared to 2021 (13% overall), as a result of the reduced need for secured funding
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
69
from companies. The increase in interest in the Mediation Lines has meant that the drop was not as
sharp as it was in 2021 compared to 2020.
Face-to-face care experienced a significant increase in 2022 due to the fact that in 2021 it was not
provided until the last quarter of the year due to covid-19 health restrictions.
Support channel
2022
2021
Variation
(%)
In writing
Complaints
289
537
-46%
Requests for information
3,536
5,231
-32%
Suggestions
6
7
-14%
Call Centre
Telephone support
13,708
15,485
-11%
Click to Call
1,713
905
89%
Web chat
2,378
2,235
6%
Direct care
567
152
273%
Total
22,115
24,552
-10%
The financial solvency measures enabled by the Code of Best Practices (CBP) approved by RD-law
5/2021, as well as the extensions approved by the Agreement of the Council of Ministers in June 2022,
have maintained the interest and enquiries of the clients of the Covid-19 Guarantee Line. Telephone
enquiries and petitions on the Business and Entrepreneur Line have increased by almost 40%
compared to 2021, while complaints have been reduced by 60%. Citizens have shown a lot of interest
in it and it seems that, in 2022, banks have offered it to their customers more than in 2021.
The number of incidents reported on the handling of banks has been reduced in 2022 and, as in 2021,
the main problems were related to incidents in the processing and denial of CBP Extensions and
Transfers.
The average response time was 3.2 days for complaints (4.4 in 2021), as they required third-party
checks, and 1.41 days for requests for information (1.75 in 2021).
In addition, an annual survey is conducted among the credit institutions mediating ICO loans to
ascertain their expectations of demand for these products, the reasons for their evolution, and
opportunities for improvement. The latest survey showed that banks expect a greater demand for
credit from the Spanish business community.
3.2.4 COLLABORATION WITH STAKEHOLDERS ON SUSTAINABILITY ISSUES
Specifically, and apart from the joint initiatives mentioned in point 2.4 (Equator Principles, JICE and
CEO), it plays an active role in several associations or groups that promote sustainability in different
areas, as a demonstration of its commitment to sustainability.
Among the agreements with national and international institutions in the field of sustainability, we
would highlight the collaboration with the Spanish Network of the United Nations Global Compact,
of which ICO has been a member since 2005 and signatory of its principles, and has been part of its
executive committee for 8 years, to promote the important work of this organisation in the
dissemination of the SDGs and the Ten Principles of the Global Compact in the areas of human rights,
labour, environment and anti-corruption.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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ICO is also an active member of associations aimed at promoting sustainable finance. Since 2021,
the Institute has been a member of the Spanish Sustainable Finance Observatory (OFISO), a meeting,
information and debate forum for companies, financial institutions, public administrations, investors
and other agents of the financial industry, as well as a platform to give visibility and notoriety to its
commitment to Sustainable Finance. It is also a member of SPAINSIF, where in 2022 ICO was a
member of the Board of Directors and Executive Committee, holding the vice-presidency of Group I,
which represents the group of Financial Institutions. We also participate in FINRESP (Centre for
Responsible and Sustainable Finance), which aims to address the difficulties and needs of the
business community, in particular Spanish SMEs, to contribute positively to the commitments of the
2030 Agenda
In addition, it is a member of FORETICA, from where ICO led the launch
of the CSR Action Group for public companies. In 2022, ICO continued
to co-lead the working group, which has 30 public entities with a vocation
to advance towards the achievement of the 2030 Agenda, in which public companies exchange
knowledge, implement individual and joint actions for the integration of the SDGs and promote best
management practices in the field of Sustainability and CSR. As an additional objective, this Group
aims to serve as an example and guide to act as a driving force and lever for change for the rest of
the economic and social actors. In 2022, the Group directed its efforts towards carbon neutrality in
public companies and towards promoting health and well-being in the workplace
ICO is one of the 18 public companies that signed in 2021 the
collaboration agreement with the Secretary of State for the 2030
Agenda. A collaboration agreement that facilitates the exchange of good
practices in the implementation of the SDGs and their targets, and the
development of joint projects in the field, including certification of goods
and services. In addition, this partnership also supports outreach and
awareness-raising activities for the achievement of the 2030 Agenda. Throughout 2022, through this
Working Group, ICO has been involved in the promotion of relevant issues such as responsible public
procurement, Human Rights and Due Diligence, Sustainability Indicators and Reports, Circular
Economy, among others.
ICO is firmly committed to the important role that women and female talent must play in the
development of our economy, which is why, in 2019, ICO has joined the "Women and
Internationalisation" working group, promoted by the Secretary of State for Trade, with the aim of
promoting the role of women in the development and internationalisation of the Spanish economy and
laying the foundations to advance in a committed, firm and coordinated manner in the incorporation
of women in international trade.
Within the framework of this working group, in 2022, ICO presented different initiatives to strengthen
the role of women in its different fields of action:
• Endorsement of the European Parliament's #WhereAreThey
ICO is committed to the promotion of female talent and the participation of women in conferences
and debates.
In 2022, it was agreed to include a clause in all ICO Group collaboration or sponsorship
agreements to encourage the participation of women in the conferences and debates organised
within the framework of each sponsorship or agreement, promoting gender equality in the different
events organised, with greater importance being given to those in which ICO Group
representatives participate.
• ASCRI Diversity Club. The ICO Group, through AXIS, its Venture Capital manager, is adhering
to this initiative whose objective is to promote measures in the Venture Capital & Private Equity
industry that promote gender equality, diversity, parity and talent.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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• Level 20. The ICO Group, through AXIS, its venture capital manager, is a member of the Spanish
Level20 Committee. A non-profit organisation that aims to have women occupy 20% of senior
management positions in the private equity industry. It represents a network with a presence in
several countries through its 12 committees.
The objective of the Spanish Committee is to work with the private equity industry in Spain to:
a. Attract more women to the sector.
b. Ensure that there is support to retain as many women as possible in the industry.
c. To help those women who have the ability and
determination to reach the highest levels of the profession
to do so.
• UN Women's Empowerment Principles (Global Compact and UN
Women).
• Promoting gender equality in SMEs. Through the initiative
icopymeods.ico.es
In addition, ICO's participation in the sustainable bond market is not only limited to that of issuer of
this type of debt instrument; it also actively collaborates in the development and promotion of the
sustainable bond market as an active member of the working groups of the International Capital
Market Association (ICMA), to whose principles we adhere. Since its launch in 2019, ICO has been
a member of the Advisory Council of the GBP and SBP Executive Committee of ICMA.
Updated information on the different initiatives and commitments can be found on the website:
https://www.ico.es/web/guest/sostenibilidad/compromisos-y-estrategias
3.2.5 CORPORATE VOLUNTEERING
Corporate volunteering enables the ICO Group, through the solidarity, dedication and vocation of its
staff, to contribute directly to the maintenance of social cohesion and development of the local
community, through local social entities.
Through its Corporate Social Responsibility (CSR) policy, ICO is committed to contributing to the
social purpose of third-sector entities by signing alliances and collaboration agreements. This
commitment is materialised in the annual preparation and development of a corporate volunteering
plan in which actions are carried out to support the activities of third-sector organisations and training
actions in which ICO employees contribute their experience and knowledge to entrepreneurs and
groups at risk of social and employment exclusion.
Throughout 2022, this commitment materialised in a series of activities carried out in collaboration
with the following entities:
• Fundación Leucemia y Linfoma (Leukaemia and Lymphoma Foundation)→ collaborated in the
13th edition of the Leukaemia and Lymphoma Foundation Basketball Tournament and the
Gifts with Heart campaign, both organised to raise awareness in society of the need to take
an active role in the fight against leukaemia, lymphoma and myeloma by donating bone
marrow. In total, a contribution of €2,000 was made.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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• Gmp Foundation → participated in the 22nd Solidarity Paddle Tennis Tournament for
Companies, which raised funds for the project developed with the Fundación Sin Daño, aimed
at providing robotic arms ("Armeo Spring") to the Niño Jesús University Children's Hospital in
Madrid. Thanks to this technology, children with brain damage or cerebral palsy will be able to
work on movements and therapeutic exercises in an interactively and visually, thus improving
their recovery and quality of life. A contribution of €1,750 was made.
• Madrid Golf Federation → participation in the 2022 edition of the Adapted Golf Tournament
to promote awareness and participation in support activities that favour the social integration
of people with intellectual disabilities and disadvantaged groups. A contribution of €1,000 was
made.
• Rafael del Pino Foundation → workshops given by ICO employees in schools in the
Community of Madrid to raise awareness of the 10 Principles of the Global Compact and the
SDGs among high school students. No monetary contribution was made.
• Clowns Without Borders Foundation → In 2022, a children's Christmas party for
employees' children was organised with the support of the Clowns Without Borders
Foundation. The funds were donated to the Caravana de Risas project in Mexico to provide
emotional support to refugee and displaced children in Mexico. A contribution of €5,500 was
made.
• International Cooperation → The ICO Group took part in the 10th Inter-company Charity 7-
a-side Football Tournament organised by Cooperación Internacional to help children at risk of
social exclusion. This project focuses on promoting the comprehensive socio-educational
development of minors through educational reinforcement activities and the development of
skills that favour healthy lifestyles, social inclusion and child and youth participation, through
prevention and intervention actions complementary to standard educational, leisure and social
services. A contribution of 1,500 euros was made.
3.2.6 RESULTS, TAX AND SUBSIDY INFORMATION
The ICO Group is taxed only in Spain. Profit before tax in 2022 (consolidated data for ICO and AXIS):
203.86 million, profits earned in Spain. The corporate income tax accounted for amounted to 57.03
million euros.
There is a Fiscal Management procedure on which the tax compliance approach is based. The ICO
is taxed under all applicable taxes, without any speciality as a credit institution and as a public law
entity. The tax strategy consists of complying with all legal obligations.
GRI INDICATORS - YEAR 2022 (ICO and AXIS):
Economic value generated: 233 million euros (gross margin)
Economic value distributed: 102 million euros (including staff costs, other
administrative costs and contributions and taxes)
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
73
Fundación ICO prepares its accounts separately from the other entities of the ICO Group. The profit
before tax in 2022 was 24,436.71 euros. The Foundation does not pay tax on the profits arising from
its foundational activities, by virtue of the provisions of Law 49/2002, of 23 December, on the Tax
Regime for Non-Profit Entities and Tax Incentives for Patronage.
In 2022, Fundación ICO received a grant of 60,000 euros from the Ministry of Transport, Mobility and
Urban Agenda under the General State Budget Law for 2022, within the budget application
17.10.261O. 78714 "Capital transfers to Families and Non-Profit Institutions". ICO and AXIS do not
receive public grants.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
74
4 OUR WAY OF DOING THINGS: RESPONSIBLE MANAGEMENT
The ICO Group is a modern organisation with internal management systems that enable it to meet the
challenges it faces. The ICO Group has developed management and corporate governance tools that
ensure the ethical behaviour, sustainability and transparency of ICO's activity in all its areas of activity
and internal management.
As a credit institution, risk management is a core element of its activity, with an approach that goes
beyond traditional credit risk management to adopt a much more comprehensive approach that takes
into account the impacts that the Group's operational and financial activity has on society and the
economy, as well as the impacts that the environment can have on the Group. In this regard, all due
diligence procedures are applied to our business as provided for in the applicable legislation and our
internal regulations.
Of particular relevance is sustainability, where environmental, social and corporate governance
factors are taken into account, and which constitutes a basic pillar integrated in all the activity in a
transversal manner, both in its asset and liability operations as well as in the internal management of
the organisation, from the perspective of governance and corporate social responsibility.
4.1 RISK MANAGEMENT: IDENTIFICATION AND MONITORING
The identification, management, and control of risks is a priority task for ICO. This section describes
the main instruments available to the ICO Group for identifying and monitoring the different types of
risks, as well as the management mechanisms that enable them to be kept under control. ICO's status
as a credit institution means that it is subject to certain regulatory requirements; however, policies and
procedures are not exhausted by regulatory mandates, but rather there are a number of elements that
ICO adopts voluntarily as a commitment to better management practices.
➢ COMPLETE SYSTEM FOR RISK MANAGEMENT
✓ Involvement of the General Board
✓ The Risk Map sets out the guiding principles in this area
✓ Coherence between risk treatment instruments
The General Board of ICO approved during 2022 the ICO's Strategic Risk Management Framework
(Risk Map), with the aim of setting the guiding principles for risk control, hosting the risk map and
establishing guidelines to ensure the alignment of all risk control tools across the ICO Group as a
whole. The Risk Map is in line with the provisions of the Capital and Liquidity Self-Assessment Report
(CLAR) and the Risk Appetite Framework (RAF). The ICO Group is exposed to financial risks (credit,
liquidity and market) and operational risks. Other typologies such as reputational risk, strategic
risk, business risk, environmental risk and technological risk are also considered.
At a general level, risks are characterised on the basis of the so-called "three lines of defence":
• 1st line of defence. The units of the Directorate General Business have the main responsibilities
for risk identification, recognition and management.
• 2nd line of defence. The risk management function should oversee the effectiveness of risk
management, being responsible for identifying, measuring, monitoring and disclosing risk at the
enterprise level, independent of the first line of defence. It also includes the compliance function
which is responsible, inter alia, for ensuring that the bank operates with integrity and in accordance
with applicable laws, regulations and internal policies.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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• 3rd line of defence. The internal audit function conducts both risk-based and more general audits
and reviews to ensure that the overall governance framework, including the risk governance
framework, is effective and that policies and processes are in place and consistently applied,
providing independent and objective advice.
Financial risks
ICO possesses appropriate methodologies and procedures adapted to its specific nature that enable
the identification, management, monitoring and control of financial risks, which allows them to be
monitored and followed up. In particular, ICO has a Risk Policy Manual approved in 2013 and
amended on several occasions since then (most recently in October 2022) which sets out in detail the
treatment of these risks, which in this manual are grouped into three main categories: liquidity, market
and credit (which is the one that receives the most detailed treatment). This risk treatment is carried
out in accordance with existing regulations, both in terms of Bank of Spain circulars or
recommendations and international standards, such as the Basel II Capital Accord.
Operational risks
With regard to operational risk, ICO has monitoring policies and activity indicators, also adapted to its
specificities, relating to the development of internal processes and procedures, the definition of
policies for monitoring customers and operations and internal control of incidents, and the existing
contingency plan. In addition, there are also a number of periodic controls on procedures and
operations, which are carried out by the various internal and external audit services.
Climate/environmental risks
As regards climate and environmental risks, in line with ICO's strategic plan, sustainability is
transferred to the entity's risk management through the implementation and incorporation of the
environmental performance ratio. This level III indicator (according to the classification included in the
Risk Appetite Framework described below) is not linked to capital, so the thresholds are defined
according to the Institute's strategic criteria that allow the development of a business plan aligned with
international and national commitments in environmental matters, seeking to promote the sustainable
economic growth of companies and achieve a portfolio in which the sectors with the greatest
environmental risk gradually lose weight, limiting the physical and transition risk of the portfolio. For
the categorisation of operations that can be included as environmental, categories are identified
according to internal criteria, including, among others, the Taxonomy
3
of Objectives approach
developed to date, and internationally recognised standards such as the Green Loan Principles (Loan
Market Association and Asia Pacific Loan Market Association) and the Sustainability Linked Loan
Principles (Loan Syndications and Trading Association).
➢ REGULATORY RISK MANAGEMENT TOOLS: CAPITAL AND LIQUIDITY SELF-
ASSESSMENT REPORT (CLAR) AND RISK APPETITE FRAMEWORK (RAF)
✓ Required by Bank of Spain in accordance with banking supervision regulations
Without prejudice to the other mechanisms and policies discussed below, the following two
instruments stand out as key elements in risk management
The Capital and Liquidity Self-Assessment Report (CLAR)is one of the existing tools in this area.
The ICO is required to prepare the CLAR, a document in which institutions identify, measure and
aggregate their risks in order to determine the capital and liquidity needed to cover them and in which
they plan their capital and liquidity levels over the medium term. Since 2016, a multidisciplinary ICO
team has been in charge of preparing the Institute's CLAR every year. Over the last few years, the
3
The methodology for the Taxonomy will be incorporated into the categorisation as and when the Taxonomy regulation
comes into force.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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ICO's risk profile has remained at low to medium-low levels. This report includes three stress tests
(macroeconomic, business and liquidity) on the ICO's baseline scenario, with a time horizon of 3 years.
The tests serve to determine the ICO's capital needs in the event of the different scenarios envisaged
in the tests, determining its ability to cope with crisis situations. In addition, the liquidity stress scenario
will also analyse the evolution of different metrics related to the Institute's liquidity. Once this has been
done, the ICO's General Board must take cognizance of and approve the CLAR, which is then
submitted to the Bank of Spain.
The Risk Appetite Framework (RAF) defines a series of indicators (29 in total) at three different
levels according to their importance in the management of the Institute:
• 3 indicators of Level I: two of them required by the Regulator, which measure the capital and
liquidity position, and a third one, which measures the impact on the income statement in a stress
scenario on ICO's 5 main direct borrowers.
• 5 indicators of Level II: regulatory or basic indicators that develop the previous ones for the most
relevant risks of ICO, whose objective is to measure the impact on capital and liquidity and their
evolution.
• 21 indicators of Level III: monitoring and management indicators, which make it possible to
control the evolution of the ICO's current activity, including those related to environmental risk and
technological risk.
The RAF is reviewed annually and is adapted according to the results of the CLAR.
4.2 GENERAL INSTRUMENTS FOR RESPONSIBLE MANAGEMENT
All of the ICO Group's internal regulations are focused on the correct monitoring of the various types
of risks it faces and on appropriate management in accordance with the best standards. The approach
is always a holistic one in which the entire organisation is involved in order to ensure that management
is always conducted with the highest ethical and corporate social responsibility standards, applying
due diligence in its actions. Both the General Board and senior management are involved and
receive regular information on these matters. The most relevant policies are approved at General
Board level and the General Board receives regular feedback on performance in terms of business,
sustainability, internal control and anti-fraud. There are units and collegiate bodies with specific
functions, the most important of which are detailed below, in addition to those described in the previous
section.
➢ THE STRUCTURE OF THE ICO INCLUDES APPROPRIATE RISK MANAGEMENT UNITS
✓ The Internal Audit and Compliance units cover functions that are fundamental to the
treatment of risks
✓ In any event, the General Board is involved in the management of the
• Internal Audit Department and Audit Committee. The ICO has a policy, called "Internal Control
Functions", which sets out the internal control bodies of the Institute and the internal control
functions performed by them. As set out in the policy, the ICO has risk measurement
methodologies in place, which allow for an appropriate analysis of the various risk factors to which
it is exposed. Furthermore, the identification, quantification, control and continuous monitoring of
risks allow an appropriate relationship to be established between the profitability obtained from the
transactions carried out and the risks assumed, and an adequate internal control environment.
In accordance with the Basel Committee on Banking Supervision's Principles of Corporate
Governance for Banks, the ICO has in place a sound corporate governance framework with well-
defined organisational responsibilities for risk management, commonly referred to as the "three
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
77
lines of defence" mentioned above: - The Business Line. - A Risk Management and Compliance
function independent of the first line of defence and - An Internal Audit function independent of the
first and second line of defence.
Internal control in the ICO Group with regard to corporate governance is carried out by the internal
operational bodies with competence in the regulatory area of the activities.
In accordance with the Audit Guidelines approved by the General Board, the Internal Audit
Function at the ICO is exercised by the Audit and Compliance Committee and the Internal Audit
Department. This department audits business and operational procedures, risk management and
the internal control system on an ongoing basis. The internal control carried out by the Internal
Audit Department is reinforced by the work of the Audit and Compliance Committee, whose
functions include proposing measures to speed up and facilitate compliance with
recommendations. In order to comply with article 43.2 of Royal Decree 84/2015, of 13 February,
which implements Law 10/2014, of 26 June, on the regulation, supervision and solvency of credit
institutions, the Internal Audit function reports periodically to the General Board of ICO on the
verification work carried out by the Internal Audit function.
Externally, the ICO Group periodically submits its actions to the control of external experts and
different national bodies (Intervención General de la Administración del Estado -IGAE, Inspección
de los Servicios del Ministerio de Asuntos Económicos y Transformación Digital, Tribunal de
Cuentas, Banco de España and, more recently, the Independent Authority for Fiscal Responsibility
- AIREF) and those EU bodies that are competent to do so. In 2022, 26 audit reports were issued,
with no significant findings.
• Regulatory Compliance Area and Regulatory Compliance Technical Committee. The
Regulatory Compliance Area was created to protect the Institute’s reputation and integrity, to
promote the applicable ethical standards and to strengthen accountability and transparency. It is
also responsible for identifying and evaluating compliance with regulations related to the
prevention of money laundering and the financing of terrorism, and for coordinating the internal
policies and procedures implemented in this field. It is also involved in identifying, assessing and
controlling risks that could affect the ICO Group’s integrity and reputation arising as a
consequence of the breach or failure to comply with the rules or measures recommended by
policies or the ICO Group’s internal regulations or external recommendations or standards that
may apply.
For its part, the Technical Committee on Regulatory Compliance also performs functions in the
processing of issues related to the prevention of money laundering and the financing of terrorism
and due diligence measures, as well as those matters referring to the correct application of the
data protection policy. It is also aware of and analyses new regulations that may apply to the ICO
and proposes relevant training actions in this area. Finally, it also ensures the implementation of
the decisions taken by the Audit and Compliance Committee.
4.3 SPECIFIC ETHICAL AND RESPONSIBLE MANAGEMENT TOOLS
Without prejudice to the global nature of the measures and tools described so far and the interrelation
between them, the main tools available for ethical and responsible management are grouped
thematically below. The ICO Group has developed management and corporate governance tools that
ensure ethical behaviour, sustainability and transparency in all its areas of activity and internal
management.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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➢ FIGHT AGAINST FRAUD, CORRUPTION, MONEY LAUNDERING AND TERRORIST
FINANCING
✓ In compliance with applicable regulations and with a cross-cutting approach for the
entire organisation
In all the Group's actions, undesirable conduct, such as that described above, is prevented through
due diligence. Prior to approval, all direct operations are screened for these risks. In 2022, 525
operations were analysed in COPER. Specific tools include:
• Code of Conduct, Internal Code of Conduct for the Securities Market and Ethical Channel.
The purpose of ICO's Code of Ethics and Conduct is to define and develop the basic foundations
of behaviour and the necessary guidelines for action so that the Institute's principles are
manifested in the individual actions of its employees, managers and directors, in internal and
external relations with customers, suppliers and third parties, as well as in its actions in the
markets. Therefore, the Code of Ethics and Conduct is applicable to all ICO staff and members of
the General Board, as well as to trainees in training at the Institute; 100% of them receive it upon
joining the Institute. In the case of suppliers, the service provider will be required to comply with
the code for those of its employees who provide services for ICO. This section on the regulation
of ethical conduct also includes internal policies relating, among other issues, to Social
Responsibility, Corporate Gifts, Travel, Representation Expenses and Corporate Credit Cards.
Securities Market Conduct identifies the units of the ICO Group that carry out activities related to
the securities market and defines the separation they must adopt to avoid potential conflicts of
interest or insider trading. The version in force was approved by the General Board in February
2017 and has been last revised in February 2022. No breaches of the code of conduct were
recorded in 2022.
The Code of Conduct and the Internal Code of Conduct of the Securities Market are public and
accessible through the website
4
.
The Ethics Channel allows employees to report potentially significant irregularities with respect to
the Code of Ethics and Conduct on a confidential, non-anonymous basis. There is a compliance
committee that receives such communications and processes them. Among its functions is to
report to the General Board on non-compliance: in 2022 there was no non-compliance. In 2022,
one complaint was received through the Ethics Channel, of a labour nature, which was handled
and resolved by HR.
• Prevention of money laundering and terrorist financing. The ICO Group is aware of the
important role that financial institutions play in prevention and therefore collaborates with the
competent authorities and joins forces with the rest of the Spanish financial system in the fight
against all forms of money laundering and terrorist financing. The Prevention of Money Laundering
policy, the latest version of which was approved by the General Board in December 2022, sets
out the rules of action and control and communication systems to prevent access to the institution
by undesirable persons or groups, and establishes the criteria for accepting customers. The
aforementioned Policy is developed in a procedure called Money Laundering and Terrorist
Financing Prevention Management, incorporating the latest regulatory developments at national
and European level. In compliance with the aforementioned Policy and the Group's Training Plan,
in 2022 a training action was carried out in which a total of 149 people from the ICO Group took
part, called: "The prevention of money laundering: Royal Holder in Legal Entities", given by the
Analysis and Communication Unit of the Centralised Body for the Prevention of Money
Laundering. General Board of Notaries.
4
https://www.ico.es/en/web/guest/políticas-internas-de-funcionamiento
https://www.ico.es/web/guest/sostenibilidad/compromisos-y-estrategias
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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In addition, following the recommendations of the External AML/CFT Expert, a physical mailbox
was installed at the ICO's headquarters, managed by the Regulatory Compliance area, to facilitate
the anonymous submission of internal complaints and reports of irregularities, which, should they
occur, would be handled either directly through the Regulatory Compliance area or through
communication to the Ethics Channel. This mailbox is located in an accessible area of the ICO's
headquarters, but is free of security cameras and not directly associated with the Regulatory
Compliance area. No notifications were received through this mailbox in 2022.
• Anti-Fraud Measures Plan. The Ministry of Economic Affairs and Digital Transformation has
updated the Anti-Fraud Measures Plan within the scope of the Recovery, Transformation and
Resilience Plan in order to comply with EU requirements on the prevention, detection and
correction of fraud, corruption, conflict of interest and double funding. These measures are
applicable to the ICO Group, and imply a commitment to the highest standards of legal, ethical
and moral compliance and to the strictest principles of integrity, objectivity and honesty, so that its
activity is perceived by all its stakeholders as being opposed to fraud and corruption in any form.
All internal regulations are in line with the general aim of preventing fraud or other undesirable conduct.
For example, the Direct Funding Policy contemplates a series of exclusions from funding to potential
clients operating in non-cooperative jurisdictions in tax matters, subject to sanctions or other
assumptions such as human rights violations.
➢ DATA PROTECTION AND CYBERSECURITY
✓ To comply with legal obligations and to ensure the highest standards of protection
• Protection of personal data. The ICO has approved a personal data protection policy adapted
to EU Regulation 2016/679 and Law 3/2018, which is developed and implemented in the internal
processes and processing carried out at the Institute itself. Furthermore, it has a Register of
Processing Activities and its website provides information on the ICO's policy on the protection of
personal data. In addition, the ICO Group has a data protection officer who oversees, confidentially
and independently, compliance with personal data protection regulations within the Group. There
were no data protection incidents in 2022.
• Information Security Committee. Information Security Policy. Information security
management is carried out in an integrated and coordinated manner with the requirements
inherent to the nature of our activity in order to prevent potential threats. All of this in accordance
with current legislation and, in particular, with the National Security Scheme. Specifically, the
National Security Status Report (INES) periodically assesses the security status of systems as a
method of security governance, and no significant deficiencies have been detected.
➢ SUSTAINABILITY AND CORPORATE SOCIAL RESPONSIBILITY
✓ Sustainability is an overarching principle for the whole of activity
In accordance with the ICO Group's Strategy 2022-2027, the Group's actions are aimed at
transforming the growth model of the Spanish economy towards a more sustainable and digital model
with a greater capacity to generate quality employment. In this way, sustainability has become a
strategic axis that permeates the ICO Group's activity as a whole. In this way, sustainability is reflected
both in terms of assets and liabilities, as well as in all aspects of the Group's activities. This
commitment to sustainability at all levels includes continuous reporting of regulatory developments,
benchmarks, actions taken and metrics to the General Board on a regular basis.
• Sustainability Policy. The Sustainability Policy, approved by the General Board in February 2020
and which will be reviewed and updated in 2023, establishes sustainability as a basic guiding pillar
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of the ICO Group's actions, both for its asset and liability operations, as well as in the internal
management of the organisation, also from the perspective of governance and Corporate Social
Responsibility (CSR). Therefore, it involves all areas of the organisation and its activity, acting as
a foundation of management that allows it to fulfil its mission as a public and promotional bank.
The effects of this orientation spill over into other policies, such as direct funding, which envisages
the impossibility of financing projects with potential negative social or environmental impacts
where there is no adequate mitigation.
• Sustainability Commission. This committee meets every three months, or more frequently if
deemed appropriate, and its functions include defining the concept of sustainability adopted by
the ICO Group, as well as raising awareness and communicating it to the entire workforce. This
committee, chaired by the Chairman of ICO and comprising members from all Directorates
General, AXIS and the ICO Foundation, is also in charge of preparing and monitoring ICO's
position on the activity considered sustainable by the ICO Group. It also identifies regulatory
developments on sustainability that affect the ICO Group and, where appropriate, is responsible
for the implementation of such standards. Finally, it also promotes and coordinates the initiatives
on sustainability that are carried out in the ICO Group, as well as any other issue on sustainability
that may arise outside the scope of the above.
• Environmental Policy. In order to guarantee a respectful and preventative approach towards the
environment, the ICO Group has approved and documented an environmental policy that has
been fully adapted to the requirements of the ISO 14001 Environmental Management Systems
standard since 2020 and a code of good environmental practices. ICO, as a signatory of the 10
Principles of the Global Compact, the Equator Principles and the Spanish Collective Commitment
to Climate Action signed with the AEB, CECA and other Spanish financial institutions, and in its
alignment with the 17 Sustainable Development Goals for the 2030 Agenda and the Paris Climate
Agreement (COP-21), is committed to the control and management of its direct and indirect
environmental impacts. In 2021, the Environmental Management System was certified by
European Quality Assurance as detailed in section 4.4.5 on Certifications.
• Corporate Social Responsibility Policy. The ICO Group has approved and published a CSR
policy with the aim of being a transparent and socially committed entity that incorporates ethical,
social and environmental values and that applies the principles of good governance and thus is
recognised for its activity and for its relationship with its stakeholders. To this end, the principles
that govern its activity are established: good governance and transparency, respect for the
environment and the 10 principles of the United Nations Global Compact.
➢ STAFF MANAGEMENT
✓ With respect for workers' rights
• Labour relations. The staff policies applied in the ICO Group are based on respect for employees’
human rights and industrial rights, and the implementation of actions to facilitate and enhance their
ability and professional development. Equal opportunities, non-discrimination policies, diversity
and work-life balance are fundamental principles in the development and implementation of
industrial relations between ICO and its staff. The following chapter provides details on the
management of ICO Group staff.
• Management by objectives. Management model implemented to effectively direct and improve
ICO's performance, establishing strategic and general objectives and helping to generate a culture
of valuing the professional merits of employees. Management by objectives holds great value due
to its uniqueness within the Administration; it allows the efforts of different areas to align with the
road map, and improves the quality of work and professional performance, rewarding effort and
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achievement of objectives. The adoption of the strategic objectives proposed by the Steering
Committee are subject to the approval of the Ministry of Economic Affairs and Digital
Transformation. All employees receive an annual performance appraisal.
The Management by Objectives System, which enables variable remuneration to be linked to the
achievement of objectives, also incorporates those directly related to sustainability and
digitalisation, fostering their integration into the culture of the organisation with full alignment of
this system with that established in the Group's Strategy. Thus, in 2022, in line with the Strategy
for the period 2022-2027, a specific target for direct sustainable activity was set, which, as in 2021,
was met.
➢ ORGANISATION AND QUALITY
✓ To ensure effective and accountable management
• Quality Policy. The ICO has implemented a process management model and approved a Quality
Policy fully adapted to the ISO 9001 standard. This Policy is the appropriate framework for the
development of the procedures and tools necessary for the establishment of quality objectives and
the implementation of an effective Quality Management System, based on the requirements of
ISO 9001. It aims to identify and satisfy the needs and requirements of ICO's internal and external
customers and stakeholders. The ICO is also geared towards operational excellence, with the
implementation and application of efficient processes and products, carried out with the full
involvement of all employees.
• Regulatory map. The ICO Group has a comprehensive, coherent and systematic body of rules
and regulations, geared towards ensuring that the overall operation of the ICO is in line with the
best standards in the industry and with all the ethical and responsible management practices
discussed in this section.
➢ TRANSPARENCY
✓ To provide society with information on its activities
• Transparency. The ICO Group provides its stakeholders with all the relevant information relating
to its organisational structure and activity. In addition, and in accordance with the provisions of the
Transparency Law, it provides direct access to the Transparency Portal of the Spanish
Government, through a link available at the website www.ico.es. In this way, it makes it easier for
the user to consult all available data. Every year, the Auditors' Report on the "Consolidated Annual
Accounts and Consolidated Management Report" is prepared and published on the website, with
all the economic information and information relating to its activity as a financial institution,
including this Non-Financial Information Statement (NFIS). The annual accounts are audited by
an independent expert. This NFIS is prepared in accordance with the GRI Standards and the
requirements of Law 11/2018 on non-financial reporting and diversity. This NFIS is also subject to
independent expert verification to increase stakeholder confidence. In this spirit, the ICO Group
has produced a Progress Report in relation to the United Nations’ 10 Global Compact Principles.
In addition, in order to increase public awareness of the Group's activities, intense communication
and dissemination work is carried out, as detailed in section 4.4.4
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4.4 MAIN RESULTS OF INTERNAL MANAGEMENT
These internal management issues lead to the results discussed below. The ICO Group, like any
entity, consumes resources as detailed below, including the estimated carbon footprint for 2022. It
also refers to the communication of the activity and, finally, to the certifications obtained that
demonstrate the effectiveness of the current management systems.
4.4.1 RESPONSIBLE USE OF NATURAL RESOURCES
The ICO Group identifies the following environmental aspects in the development of its activity in the
corporate facilities:
▪ Consumption of resources. ICO carries out regular awareness-raising campaigns on the
consumption of electricity, water and paper in order to ensure the responsible use of these
resources by employees in the workplace and that these habits can be transferred to the
personal sphere.
▪ Atmospheric emissions. A relevant objective for ICO is to avoid and reduce greenhouse gas
emissions as much as possible. This is done through the implementation of energy-saving
measures and the use of energy from renewable sources in the heating and air conditioning
of its offices. In addition, in order to reduce its carbon footprint per employee, it promotes the
use of alternative means to travel, such as video conferencing, and seeks to minimize travel
as much as possible.
▪ Waste generation. ICO has at its facilities the necessary means to segregate and recycle the
waste generated in the development of its activity and seeks to use ecological and recycled
materials.
▪ Biodiversity protection: ICO only operates in Madrid in locations that do not generate
negative impacts on biodiversity and land use.
With regard to the consumption of natural resources, the ICO Group consumes the resources
necessary for the performance of its activity, with a lower impact than other sectors of activity. In any
case, an annual consumption measurement is carried out in order to analyse the impact of the
measures implemented.
The return of employees to a higher degree of presence in the 2021 financial year led to an increase
in electricity consumption. In 2022, this electricity consumption decreased compared to the previous
year, but was still above the consumption in 2020. All energy consumption comes from electricity
consumption. As a measure to promote sustainable mobility through the use of electric vehicles
instead of fossil fuel vehicles, in 2022, ICO maintained 8 electric vehicle charging points located in the
parking spaces made available to ICO employees. These 8 recharging points can serve up to 19
vehicles in a shift system. For the allocation of parking spaces, the criterion of the environmental
categorisation of the vehicle is included in the scoring scale.
On the other hand, the ICO Group does not have fleet cars, so it does not generate indirect energy
consumption.
Water consumption has recovered in 2022 after the low consumption of the previous two years, due
to the increased presence of staff at ICO Group sites.
Paper consumption has maintained a downward trend due to the greater use of digital formats to the
detriment of physical formats in work documentation.
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NATURAL
RESOURCE
UNIT
2022
2021
2020
ELECTRICITY
kWh
1,997,767
2,204,474
1,892,489
WATER
m
3
2,274
1,352
1,461
PAPER
kg
4,229
5,613
7,200
4.4.2 CIRCULAR ECONOMY AND WASTE MANAGEMENT
The segregation of waste at the plant is one of the objectives defined by the ICO Group within its
environmental management system. From 2021, the ICO Group has had environmental islands
equipped with containers for waste segregation. These areas are installed on the office floors. In each
of them there are 3 islands that allow the proper segregation of the waste generated in the workplace.
These areas have been completed with containers for the collection of Covid-19 related waste (masks,
gloves, etc.) installed since 2020 and present throughout the year 2022. Due to the activity carried
out, food waste is not relevant and there are no specific measures.
Saving measures for the consumption of paper, toner and other materials include the following:
✓ The digitalisation of signatures in daily operations
✓ The allocation of laptops to all staff, allowing double monitors at workstations, reducing the
need for paper documents.
✓ Programming printers to print double-sided by default, and restricting colour printers to
centralised services.
✓ Use of recycled paper in all printers available on each floor.
✓ Printer equipment that incorporates a standby power saving system, which allows for greater
energy efficiency.
Below are the figures for the main consumptions in 2022 and the two previous years:
WASTE MANAGED
UNIT
2022
2021
Paper and cardboard
Litres
(estimated)
38,400
38,400
Plastic and packaging
Litres
(estimated)
38,400
40,000
Organic waste
Kg. (estimated)
288
288
Toner and ink cartridges
Units
99
63
Fluorescent tubes
Units
310
305
Batteries
Units
384
694
Batteries
Units
3
127
It also provides data on the evolution of consumption per employee of the ICO Group:
WASTE MANAGED
UNIT
2022
2021
Paper and cardboard
litres per employee
109
109
Plastic and packaging
litres
per employee
109
113
Organic waste
Kg per employee
0.81
0.82
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Toner and ink cartridges
Units per employee
0.28
0.18
Fluorescent tubes
Units per employee
0.88
0.86
Batteries
Units per employee
1.09
1.97
Batteries
Units per employee
0.01
0.36
Consumption of paper and cardboard as well as plastics and packaging remained in line with the
previous year in 2022 after lower consumption data in the atypical year 2020. Similarly, the
consumption of toners and ink cartridges also recovered in tandem with the recovery of a higher level
of attendance. Other consumptions, such as fluorescent tubes, batteries and accumulators, are
conditioned by the placing of orders of different amounts due to the less uniform nature of their
consumption, which has an impact on the figures presented.
4.4.3 POLLUTION. EMISSIONS. INTERNAL CARBON FOOTPRINT
The products and services offered by the ICO Group do not themselves generate greenhouse gas
emissions that seriously affect the environment. In other words, the carbon footprint is the one that
comes from the development of its activity (carbon footprint inherent to an organisation).
With regard to pollution, the products and services offered by the ICO Group do not generate noise
pollution that could substantially affect the environment. Neither does it generate light
pollution that could substantially affect the environment. There are therefore no specific measures
in these two areas.
The ICO's activity is mainly carried out in the offices of its only headquarters in Madrid, located at
Paseo del Prado, 4, and in its annex building, Calle los Madrazo 36, 38, so the emissions generated
correspond mainly to electricity consumption, maintenance and recharging of air-conditioning
equipment and fuel for a generator set. Additionally, the building has a photovoltaic panel installation
on its rooftop, however, this installation has not been taken into account to reduce the calculation of
emissions, as the energy produced is discharged into the electricity grid and is not destined for self-
consumption. In 2022, this facility generated 2,243 kWh, well below the figure of 5,834 kWh in 2021
and previous years due to a breakdown that caused the facility to be out of service during peak
production months, although the facility was restored within the same year 2022.
The ICO Museum (Calle Zorrilla 3 - Madrid 28014) hosts different exhibitions, and the management
of this activity and space also generates electricity and refrigerant gas consumption.
In addition, the ICO has a warehouse located in the Gitesa Industrial Estate in Daganzo de Arriba
(Madrid), which serves as logistical support and documentation archive, and which generates
emissions from electricity consumption and refrigerant gases.
Finally, the ICO Group does not have a fleet of vehicles, nor does it need one to carry out its activities,
which are mainly carried out at the offices at Paseo del Prado, 4 - 28014 Madrid. However, it does
have a vehicle that Parque Móvil del Estado makes available to the Chairman of the ICO for his
business trips, the management, maintenance and fuel of this vehicle being the responsibility of
Parque Móvil del Estado, and therefore this vehicle has been excluded from the calculation of ICO's
emissions to avoid double-counting.
Below is an estimate of total emissions for the year 2021 (adjusted from previous reports) and 2022.
This carbon footprint includes in its calculation direct emissions (scope 1) and indirect emissions from
the purchase of electricity and other energy (scope 2). In direct emissions, the amount of CO2
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equivalent is calculated by taking into account both the CO2 emissions themselves and the CH4 and
N2O emissions of the installations, according to the table of emission sources below.
With regard to Scope 3, an estimate has been made in relation to employee business travel. All
calculations have been carried out in accordance with the indications published by the Ministry for
Ecological Transition and Demographic Challenge (MITECO), using the calculator published by
MITECO for scopes 1 and 2 and the ZeroCO2 initiative calculator for scope 3
5
.
For the year 2022, a provisional calculation of the carbon footprint including scopes 1, 2 and 3 (of the
employee commuting part) has been made. The same tools have been used for the calculation as for
the 2021 calculation, as they were available at the date of this report.
EMISSIONS (t CO2e)
2022
2021
Direct emissions (Scope 1)
168.21
137.01
Indirect emissions purchased energy (Scope 2)
542.49
597.31
Indirect emissions from business travel (Scope 3)
64.37
11.21
Total
775.07
745.53
Scope 3 indirect emissions (from employee business travel) indicate a significant increase in
estimated emissions in 2022, compared to the 2021 estimate, due to the gradual normalisation of
travel activity following the Covid-19 pandemic. The widespread use of videoconferencing tools, the
use of which the Group encourages, means that the number of trips remains significantly below pre-
pandemic figures.
The evolution of emissions (referring to scopes 1 and 2) shows a reduction of the carbon footprint of
3.3% in 2022 compared to the previous year. Below is a summary of the carbon footprint results for
the last two years. Given the virtual stability of the average number of ICO Group employees over the
last two years, the decrease in the carbon footprint per employee (3.03%) was almost equal to the
aforementioned decrease in the aggregate carbon footprint.
2022
2021
Carbon footprint (t CO2e).
Scope 1 and 2
710.70
734.32
Footprint per employee (t
CO2e)
2.0190
2.0802
In the above calculations, the following elements have been taken into account, valued according to
the location of the various ICO Group facilities:
Location
Emission sources
Scope 1
Scope 2
Edificio Paseo de Prado, 4 –
28014 Madrid
Air conditioning equipment
Possible refrigerant gas
recharges
-
Electricity
-
Electricity consumption
5
https://www.ceroco2.org/sobre-nosotros
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Generator set
Diesel B
-
Edificio los Madrazo 36, 38 –
28014 Madrid
Air conditioning equipment
Possible refrigerant gas
recharges
-
Electricity
-
Electricity consumption
Generator set
Diesel B
-
ICO Museum - Calle Zorrilla 3
- 28014 Madrid
Air conditioning equipment
Possible refrigerant gas
recharges
-
Electricity
-
Electricity consumption
Polígono Industrial Gitesa -
Daganzo de Arriba (Madrid)
Air conditioning equipment
Possible refrigerant gas
recharges
-
Electricity
-
Electricity consumption
Based on the carbon footprint data of recent years, ICO is in a position to register its carbon footprint
and apply for the MITECO "Calcula" [Calculate] and "Compensa" [Compensate] labels. In this sense,
the possibility of implementing some kind of emissions compensation system is being assessed. In
fact, an Emission Reduction and Offset Plan is being considered, based on the consistent
measurement and comparison of ICO's carbon footprint in previous years.
4.4.4 COMMUNICATION FOR SUSTAINABLE GROWTH
The ICO Group's 2022-2027 strategy focuses on promoting activities that contribute to the
transformation of the Spanish production model, boosting business growth, innovation and digitisation,
internationalisation and environmental, social and governance sustainability.
For the ICO Group, it is a priority to contribute to a model of recovery and sustainable growth in all the
actions it carries out, in line with the guidelines set by the Government in the Recovery, Transformation
and Resilience Plan for the Spanish economy, which reflects the priorities established in the European
Next Generation EU programme and the Multiannual Financial Framework 2021-2027.
These strategic objectives have been integrated as a priority focus in the Institute's current
communication policy and are conveyed externally through the different channels we use.
During the year 2022, in addition to the usual communication actions, efforts have been focused on:
1. Updating the ICO website to align it with the ICO Strategy 2022-2027, reinforcing and
creating specific content on our priorities through the sections on Business Growth,
Sustainability and Digitalisation.
In 2021, the design, architecture and content of the ICO Group's websites were revamped
to align them with the Institute's strategic objectives and adapt them to the provisions of
Royal Decree 1112/2018 of 7 September 2018 on accessibility of public sector websites
and applications for mobile devices.
In 2022, we went a step further and have worked on updating the architecture and
expanding the content to align it with the ICO Strategy 2022-2027, reinforcing and creating
content specific to our priorities through the sections on Business Growth, Sustainability
and Digitalisation.
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In addition, a new version of the website has been created in English, transferring the same
contents as the Spanish website and the new sections linked to the ICO Strategy 2022-
2027. In this way, the user will enjoy an easy navigation and homogeneous content in both
languages.
2. Creation of new audiovisual and digital material, with content aligned with the ICO
Strategy 2002-2027 to reinforce communication. Several interactive videos and
infographics have been produced for use on the web, social networks...
a. Other communication actions carried out in 2022
1 NATIONAL ADVERTISING CAMPAIGN. An adaptation of the 2021 campaign has been
made, with three different materials:
General ICO Lines National ICO Lines International
The advertising agency and the media centre that carried out the campaign were selected through a
public tender.
The campaign concentrated on a single round from 17 November to 20 December 2022. In media
planning, digital media insertion has been increased. The media in which the ICO was present were
press, radio, outdoor, and internet.
The main metrics show a good performance of the ICO Funding and ICO Lines 2022 advertising
campaign in the online channel. The data for the fourth quarter, when the campaign was
implemented, compared to the previous quarter are as follows:
• SESSIONS → +120.96 %
• PAGE VIEWS → +57.96 %
• NEW USERS → +167.01 %
2 INTERNATIONAL ADVERTISING CAMPAIGN
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“ICO GREEN AND SOCIAL BONDS. Supporting Sustainable Growth in Spain”'
In the international arena, ICO is also carrying out an advertising campaign with the dual objective of
supporting the Institute's role as an issuer in the capital markets and reinforcing ICO's identification
as one of the benchmark players in the development of the social and green bond market.
The campaign was focused on two phases during the months of May-June and September-October.
The campaign included on-line and off-line advertisements in economic magazines, magazines
specialised in the financial sector - with special attention to issues dedicated to sustainable financing
- and the on-line part was promoted with presence in specialised information terminals and
international economic websites.
3 ON-LINE COMMUNICATION CHANNELS
One of ICO's priority objectives in recent years has been to increase activity in the various online
communication channels.
In addition, in recent years the ICO Newsletter has been
consolidated as ICO's communication channel with the self-
employed and SMEs to publicise the activity, the main products
and financing programmes of the ICO Group, as well as the
success stories of our client companies. The newsletter is
published monthly (11 issues) and is distributed by e-mail to the
ICO database (approximately 380,000 contacts), with an average
opening rate of around 36.34%. On the website, the Newsletters
received 85,878 visits (2.12% more than in 2021).
On the other hand, an Investors Newsletter is published
quarterly, which offers updated information of interest to investors.
The newsletter is written in English, published on the ICO website
and sent by email to the Institute's investor database (over 1,500
records).
In terms of social networks, the @ICOgobprofile on Twitter is
noteworthy. Twitter has established itself as one of the main online
channels for ICO to publicise its activity.
✓ In 2022, the number of own tweets and retweets published on the official Twitter profile
@ICOgob amounted to 588, 30.09% more than in 2021.
✓ Of the total number of tweets published in 2022, 9 out of 10 tweets were accompanied by
graphic or audiovisual material (photographs, infographics, videos).
✓ The interaction rate stood at 3.72%, an increase of more than 24% over the previous year.
4.4.5 CERTIFICATIONS
As a result of the application of the entire policy structure and management instruments, ICO has
obtained several certifications confirming compliance with the highest standards.
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• A certification of its Environmental Management System was obtained in 2021, in accordance
with the requirements of the ISO 14001 standard. This certification
guarantees to third parties that ICO follows good practice standards to
help protect and respect the environment at all levels of its activity. The
certification of the environmental management system is an objective
established in the Environmental Policy of the Instituto de Crédito
Oficial, and affects the procedures for the identification and evaluation
of environmental aspects, the identification and treatment of
environmental risks and opportunities, as well as the procedures for the
management, control, monitoring and evaluation of environmental
performance in the development of our activity. The ICO Group's
Environmental Management System develops the Environmental
Policy, which, in order to guarantee environmentally friendly action, includes the following
commitments, among others:
▪ Identify environmental aspects and control the associated environmental impact.
▪ Identify and assess compliance with legal requirements and other environmental and
biodiversity protection requirements voluntarily subscribed to by ICO (Equator
Principles, 10 Principles of the Global Compact, Paris Agreement).
▪ Identify and assess the risks and opportunities that its activity and its products and
services have on the environment.
▪ Measure GHG emissions and carrying out prevention, reduction and remediation
actions.
▪ Facilitate the segregation and management of the waste generated in its facilities, and
promote awareness among its professionals so that waste segregation practices are
also applied in their daily lives.
▪ Formalise agreements that promote circular economy practices for the reuse of waste.
▪ Implement tools for environmental protection and pollution prevention.
▪ Promote sustainable and responsible consumption of natural resources, and define
energy efficiency and improvement plans.
Precautionary principle: ICO has implemented an environmental management system that
meets the requirements of ISO 14001. This management system is certified by European Quality
Assurance (EQA). The control and monitoring of the management system is the responsibility of
the general services and heritage unit, which is equipped with the necessary resources to carry
out this function. As the environmental impact is insignificant, there is no specific provision or
guarantee in the income and expenditure budget to cover environmental damage.
• In April 2022, ICO obtained a certification that its quality management
system complies with the requirements set out in the international
standard ISO 9001:2015. The quality management system applies to
the development of all the activities carried out by the ICO, both
management and support, in its triple role as National Promotion Bank,
Financial Instrument for Economic Policy and State Financial Agency.
The international ISO 9001 standard regulates the quality process in all
areas of development, implementation and improvement, and is
consistent with ICO's Quality Policy. This certification, also issued by
EQA, demonstrates to stakeholders ICO's commitment to quality and
to the procedures established in this ISO 9001 standard.
• As mentioned in chapter 2, the ICO Group plays a very important role in the management of
various instruments in the framework of the European Union. A large part of this activity is done
thanks to the accreditation obtained by ICO in 2020 as Implementing Partner of the European
Commission for the management of European programmes, in particular InvestEU. This
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accreditation followed a comprehensive review of ICO's policies, processes and actions in the 9
pillars defined by the European Commission (Pillar Assessment), which include aspects such as
internal control, accounting, external audit, management of financial instruments, contracting
procedures, data protection or exclusions from funding, among others. This test was passed by
ICO in its entirety, which on the one hand allows for the management of European funds and
guarantees and on the other hand demonstrates that it complies with EU management standards.
• There are also extra-financial ratings by specialised and independent rating agencies that
categorise the ESG performance and risk of ICOs and whose ratings can be found at
https://www.ico.es/web/guest/sostenibilidad/evaluacion-divulgacion-y-trasnparencia
• ICO is also certified as a Family-Responsible Company (EFR) by the Másfamilia Foundation.
This EFR certification shows the ICO Group's firm commitment to progress in the area of work-life
balance in order to improve the quality of life of its employees, and it is one of the first companies
in the public sector to have this certification. In order to obtain the certificate, a thorough process
of diagnosis and external audit was carried out to accredit the implementation of processes that
promote quality employment, equal opportunities and cohesion between family and professional
life, based on the legislation in force. This certification is also subject to periodic review, the last
renewal having taken place in December 2022.
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5 HUMAN RESOURCES AND DIVERSITY MANAGEMENT
ICO's most important asset is its human and intellectual capital, committed professionals who drive
the organisation every day towards achieving its mission in an environment of collaboration and trust.
In its relationship with the professionals who make up the organisation, ICO is committed to:
• The Universal Declaration of Human Rights and the International Labour Organization
Declaration on Fundamental Principles and Rights at Work.
• Freedom of association and effective recognition of the right to collective bargaining.
• Equal treatment and opportunities between men and women and the fight against all forms of
discrimination.
• Reconciling work, family and personal life.
• Professional development and training.
• Workplace health and safety.
• Balancing professional activity with respect for the environment.
• The inclusion of groups with functional diversity in social and work contexts.
• Corporate volunteering, developed through collaboration agreements with social entities.
ICO's commitments to its staff are set out in the Sustainability Policy approved in 2020, and are
embodied in the personnel policies and procedures and in the actions carried out in each of its areas.
5.1 STAFF DATA
A. STAFF DISTRIBUTION
1) Distribution of ICO Group staff by age, gender and professional groups.
During 2022, the average number of staff of the ICO Group was 352. Of these, 93% carry out their
professional activity at ICO, while 5% work at AXIS and 2% at Fundación ICO.
As of 31 December, the ICO Group's staff numbered 364 people, with this month being the largest in
terms of staff size as a result of the incorporation of people selected through the Institute's job offer.
The staffing percentages of each of the 3 entities of the group remained the same in December as the
annual average.
By age group, occupational group and gender, the average distribution of the workforce in 2022 was
as follows:
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ICO GROUP
AVERAGE 2022
Under 30
years of
age
Between
30 and 50
years of
age
Older than
50 years
old
TOTAL
Management staff
5
12
17
Women
3
3
6
Men
2
9
11
Middle managers
32
25
57
Women
22
8
30
Men
10
16
26
Technical Staff
11
105
104
220
Women
7
67
62
136
Men
4
38
42
84
Administrative Staff
13
44
57
Women
12
38
50
Men
1
6
7
TOTAL ICO
11
156
185
352
Women
7
105
111
223
Men
4
51
74
129
In line with the Universal Declaration of Human Rights and the International Labour Organisation's
Declaration on Fundamental Principles and Rights at Work, as well as national and international
regulations, the ICO Group does not employ any under-age employees.
In addition, the ICO Group was supported by 28 young university graduates participating in the SEPI
Foundation's practical training scholarship programme. Of these, 97% were in the under-30 age
group, and 52% were women.
The high specialisation of the products and services offered by ICO Group entities is reflected in the
distribution of staff by professional group. As a result, 63% of the workforce is in the professional group
of Technicians.
With regard to the distribution of the workforce according to age, most of the workers are in the "Over
50" age bracket, with an average of 185 people in this age bracket (52% of the workforce).
Given the nature of ICO as a national Public Business Entity, 100% of our staff carry out their
professional activity in Spain.
Stability in the workforce is a characteristic feature. Compared to 2021, there has been a decrease by
two persons.
2) ICO Group staff new hires and terminations
During 2022, 47 employees joined the ICO Group's workforce, 53% of whom are women. 15 of the
discharges were under 30 years of age and the remaining 32 were between 30 and 50 years of age.
34 employees (47% women) left the company, the most common cause being leave of absence
(58%). In 2022, there were no dismissals due to redundancy.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
93
In 2022, there was one voluntary departure in management (male), none in middle management and
one in administrative staff due to termination of contract (female). The breakdown of technical staff is
as follows:
DISTRIBUTION OF LEAVES 2022
TOTAL
Retirement
Dismissal
Leave of
absence
Voluntary
Terminatio
n
Dismissal
Termination
of Contract
Absolute
Permanent
Incapacity
Other
Causes
TECHNICIAN
32
2
0
19
2
0
8
0
1
Women
15
0
0
10
2
0
3
0
0
Men
17
2
0
9
0
0
5
0
1
Note: All of the terminations recorded (34) in 2022 correspond to ICO. There were no terminations at AXIS or at Fundación
ICO.
Of the total number of leaves, 4 were under 30 years old, 24 were between 30 and 50 years old and
6 were over 50.
3) Employees with disabilities
There are 5 people with a recognised disability (functional diversity/physical disability) on the staff,
80% of whom are women and 20% men.
In addition, ICO has signed an agreement with the A LA PAR Foundation through which 2 people with
disabilities completed their studies by doing internships at ICO during the year 2022.
Likewise, since November 2021, ICO has been authorised by the Regional Ministry of Economy,
Finance and Employment of the Community of Madrid to comply with the disability quota on an
exceptional basis by adopting alternative measures by contracting with Special Employment Centres
for the provision of certain services. During the year 2022, 6 contracts were maintained with these
centres. The services associated with these contracts are provided by 16 people with disabilities
working at the ICO Group's headquarters, of whom 8 are women and 8 are men.
5.2 CONTRACT MODALITIES
A. DISTRIBUTION OF CONTRACTS
1) Total number and distribution of employment contracts. Average annual number of permanent,
temporary and part-time contracts by gender, age and professional classification
As of 31 December 2022, the average number of ICO Group staff working under permanent contracts
was 327 (93% of the total). In 2022, staff working under temporary contracts represented 5%, these
contracts were signed exclusively to cover temporary disability leave, maternity/paternity leave and
vacant positions until they are filled indefinitely through public employment offers. Also, in 2022, staff
working part-time due to retirement accounted for 2%.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
94
Activity
AVERAGE 2022
Under 30
years of age
Between 30
and 50 years
of age
Older than 50
years old
PERMANENT
9.3
145.1
171.8
Women
5.3
95.5
103.7
Men
4.0
49.6
68.2
Management staff
-
5.0
12.3
Women
-
3.3
3.0
Men
-
1.7
9.3
Middle managers
-
32.2
24.5
Women
-
21.8
8.3
Men
-
10.3
16.2
Technical Staff
9.3
97.8
99.3
Women
5.3
61.2
61.4
Men
4.0
36.6
37.9
Administrative Staff
-
10.2
35.7
Women
-
9.2
30.9
Men
-
1.0
4.8
PART-TIME
-
-
8.6
Women
-
-
4.7
Men
-
-
3.9
Technical Staff
-
-
3.9
Women
-
-
2.9
Men
-
-
3.7
Administrative Staff
-
-
3.3
Women
-
-
1.8
Men
-
-
0.3
TEMPORARY
2.2
11.1
3.4
Women
19.0
9.4
2.7
Men
7.0
1.7
0.8
Technical Staff
2.2
7.8
1.3
Women
1.6
6.1
0.6
Men
0.6
1.7
0.8
Administrative Staff
-
3.3
2.1
Women
-
3.3
2.1
Men
-
-
-
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
95
5.3 AVERAGE SALARIES AND PAY GAP
A. AVERAGE SALARIES
1) Average salaries and their evolution by gender, age and professional classification.
For the calculation of these data, the total remuneration (salary, in kind and non-wage) of the
workforce at 31 December 2022, annualised, has been taken into account to avoid deviations due to
the date of incorporation, including the variable remuneration regardless of its accrual, and is broken
down by professional group, age and gender.
GENERAL METRICS
(EUROS)
2022
2021
Salary expenditure
17,540,886
16,382,466
ICO average salary
52,205
50,720
ICO median salary
47,649
45,441
Minimum
interprofessional
salary
14,000
13,300
The average wage increased by 2.9% in 2021 compared to the previous year.
ICO AVERAGE
SALARIES (EUROS)
2022
2021
%
growth
WOMEN
2022
MEN
2022
DIFFERENCE
(W-M)
Average salary of
senior management
98,150
95,497
2.8%
97,996
98,305
-0.2%
Average salary
Head of Department
85,755
82,921
3.4%
85,878
85,685
0.1%
Average salary Area
Manager
68,561
67,225
2.0%
67,776
69,565
-1.1%
ICO average salary
Technicians
48,846
47,991
1.8%
49,889
47,327
2.1%
ICO average salary
Administrative
38,129
36,748
3.8%
38,262
36,832
0.3%
ICO minimum salary
Technicians (entry
level)
30,380
29,352
3.5%
30,380
30,380
0.0%
ICO minimum salary
Administrative
(entry level)
20,678
19,979
3.5%
20,678
20,678
0.0%
Note: For the calculation, the salary expenditure of the Chairman and Senior Management has not been considered, as this
information can be found in section 1.3. Governance and Management Structure. Middle management is broken down
between departments and areas as they are categories with differentiated salary authorisations.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
96
Activity
AVERAGE 2022
Average ICO
Under 30
years of age
Between 30
and 50 years
of age
Older than 50
years old
Management staff
98,150.49
-
97,888.90
98,324.88
Women
97,995.91
-
97,618.14
98,562.57
Men
98,305.07
-
98,701.17
98,206.04
Department Heads
85,755.38
-
85,920.55
85,660.99
Women
85,878.09
-
85,597.78
86,719.00
Men
85,685.26
-
86,888.84
85,484.66
Heads of area
68,561.42
-
65,621.43
73,155.16
Women
67,775.71
-
64,368.34
74,164.51
Men
69,565.40
-
67,501.07
74,186.67
Technical Staff
48,845.79
33,947.08
41,899.40
58,872.83
Women
49,888.91
34,406.36
43,134.04
59,646.54
Men
47,327.49
33,430.39
40,047.44
57,750.96
Administrative Staff
38,129.24
-
32,596.67
39,544.55
Women
38,261.67
-
33,080.94
39,590.06
Men
36,831.50
-
27,753.95
39,100.89
TOTAL ICO
52,205.02
33,947.08
47,877.68
57,823.60
The average remuneration of the groups reflected in this table in 2022 was 52,205.02 euros.
Comparatively, 3.7 times higher than the Spanish minimum wage of 14,000 euros in 2022.
The remuneration of the ICO Group staff has been updated in accordance with the provisions of the
budget regulations, which in 2022 authorised an increase of 3.5% over the remuneration in force on
31 December 2021. The process of setting remuneration is subject to the applicable budgetary rules.
The average salary at AXIS, at the end of 2022, was of 55,495.53 euros. On the other hand, the
average salary of the ICO Foundation at the end of the year was 40,086.16 euros.
In both cases, given the small size of the staff, the average salary broken down by professional group
and gender is not provided as such information would violate personal data protection legislation.
GRI INDICATORS:
• The Chairman's salary is 3.06 times the median salary of the rest of the organisation
• The 2022 salary increase for the Chairman was identical to that of all employees
• The ratio between the basic wage and the average wage is:
o 185% for women and 178% for men in administrative groups
o 164% for women and 156% for men in technical groups
o 223% for women and 229% for men in area leadership positions
o 283% for women and 282% for men in department leadership positions
o 323% for women and 324% for men in management positions
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
97
B. SALARY GAP
From the analysis of the salary record data, it can be concluded that there are no significant salary
differences between men and women at the ICO.
In 2022, in compliance with the provisions of art. 28.2 of the Workers' Statute and Royal Decree
902/2020, of 13 October, on equal pay for men and women, and in line with the commitments made
in the 2nd Equality Plan, ICO drew up a wage register at the end of the 2022 financial year.
This wage register makes it possible to analyse the wage gap between women and men and thus
determine whether there is a gender pay gap.
The concept of positions of equal value is reflected in the calculation of the pay gap, which compares
the total remuneration received by men and women in positions of equal value in the Group. For this
purpose, it has been decided to classify the staff subject to the collective agreement according to
professional group and salary level, following the job structure agreed with the legal representation of
the workers. With regard to the staff excluded from the scope of application of the agreement, a
distinction has been made within middle management between the posts of area manager and
department manager. In addition, a comparison of salaries of upper management (Management,
Senior Management and Chairman's Office) has been carried out.
For each of the above positions, the median of the total pay received by all men and women in these
positions is calculated. The salary gap is calculated as the percentage resulting from dividing the
difference of the median male pay minus the median female pay by the median male pay. The total
salary gap is calculated as the weighted average of the gaps obtained for each job.
As of 31 December 2022, the ICO salary gap for positions of equal value is 0.15%.
The regulations governing the remuneration policy for management and middle management
positions are set by the Ministry of Finance and Civil Service and guarantee equality between men
and women in remuneration. Likewise, the collective agreement establishes pay levels for staff
covered by the collective agreement (belonging to the professional groups of Technicians and
Administrative staff) that guarantee equal salaries for people with the same pay level. Pay grade
promotion is linked to performance appraisal.
5.4 WORK ORGANISATION
A. TYPES OF WORKING DAY
As of 31 December 2022, the average number of the ICO Group's staff working under the split working
day regime amounted to 324 persons (92% of the total). Staff working a continuous working day
accounted for 1% and those working a reduced working day due to work-life balance reasons such as
partial retirement, relief contract, care of ascendants or descendants 7%.
ICO GROUP
AVERAGE 2022
Under 30
years of age
Between 30 and
50 years of age
Older than 50
years old
SPLIT
11.3
142.8
169.9
Women
6.8
92.5
103.0
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
98
Men
4.5
50.3
66.9
Management staff
-
5.0
12.3
Women
-
3.3
3.0
Men
-
1.7
9.3
Middle managers
-
32.2
24.5
Women
-
21.8
8.3
Men
-
10.3
16.2
Technical Staff
11.3
94.1
96.5
Women
6.8
55.8
59.8
Men
4.5
37.3
36.7
Administrative Staff
-
12.5
36.6
Women
-
11.5
31.8
Men
-
1.0
4.8
CONTINUOUS
-
-
3.0
Women
-
-
1.0
Men
-
-
2.0
Technical Staff
-
-
3.0
Women
-
-
1.0
Men
-
-
2.0
Administrative Staff
-
-
-
Women
-
-
-
Men
-
-
-
REDUCED
-
13.4
8.9
Women
-
12.4
4.3
Men
-
1.0
4.6
Technical Staff
-
11.4
3.9
Women
-
11.4
0.3
Men
-
1.0
3.7
Administrative Staff
-
1.0
5.0
Women
-
1.0
4.1
Men
-
-
0.9
Telework has proven to be a key tool in modernising and making work management more flexible. For
its effective operation, the ICO Group is subject to the rules and regulations of the State
Administration. In 2022, the ICO Group implemented its Distance Working Plan within the framework
of energy saving and efficiency measures for the General State Administration and state public sector
entities, approved by the Council of Ministers Agreement of 24 May 2022.
The measures contemplated in the plan include facilitating the provision of public services by public
employees through different organisational formulas that fully guarantee attention to citizens. In
particular, it established the strengthening of remote working, through the voluntary implementation
of a remote working system to reduce the energy impact and make it possible to reduce travel, with
the consequent energy savings, as well as a significant reduction in consumption in the work centres.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
99
In this context, the ICO Group approved its distance working plan. As of 31 December 2022, 325
employees have joined, 36% men and 64% women, representing 89% of the total ICO Group
workforce.
Employees who are members of the Distance Working Plan
No. of
application
s
No. of
employees
%
application
s
Activity
305
339
90%
AXIS
15
18
83%
FUNDACIÓN ICO
5
7
71%
TOTAL ICO GROUP
325
364
89%
5.5 WORK-LIFE BALANCE
1) Measures aim to facilitate the enjoyment of work-life balance and encourage the co-
responsible exercise of work-life balance by parents.
The Institute's commitment to work-LIFE balance responds to the search for the well-being of the
people who form part of ICO, our main source of value. Work-life balance seeks to balance the
achievement of work and private life objectives using flexible formulas that allow for the development
and success of both. Therefore, it is not just about paid leave. It is a way of organising the working
environment that makes it easier for men and women to carry out their work, and personal and family
responsibilities.
ICO has been certified as a Family-Responsible Company by Fundación Másfamilia since December
2014, by the efr 1000-1 standard, and has been renewed in December 2022. This management and
work organisation model provides a simple and effective work-life balance methodology and enables
progress to be made in the implementation of a social, work and, business culture based on flexibility,
respect, and mutual commitment. For the effective implementation of this model, ICO has an efr Model
Reconciliation and Equality Management Procedure.
As a driver of well-being and in response to the commitment of the people who make up the
organisation, ICO's management model aims to:
• Contribute through its policies to eliminate of barriers that hinder the participation of women
and men in their personal lives and the company's processes.
• Promote a work environment compatible with personal development, allowing its professionals
to balance the fulfilment of their work responsibilities in a public institution such as ICO with
the needs of their personal and family life.
ICO GROUP
AVERAGE 2022
Under 30 years
old
Between 30 and
50 years old
Over 50 years
old
Upstream care
1.0
Administrative Staff
1.0
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
100
Women
1.0
Offspring care
12.4
Administrative Staff
1.0
Women
1.0
Technical Staff
11.4
Women
11.4
Men
1.0
Partial retirement
7.9
Administrative Staff
4.0
Women
3.1
Men
1.3
Technical Staff
3.9
Women
1.0
Men
3.7
To guarantee and ensure that the values and principles underlying ICO's commitment to work-life
balance are properly complied with, an external communication channel has been set up so that ICO
staff, as an efr certified entity, can express their complaints and claims regarding work-life balance
directly to the Fundación Másfamilia. It guarantees the absolute confidentiality of the information
received through this channel. During 2022, the Fundación Másfamilia has not received any
complaints or claims through this channel.
The ICO has 91 conciliation measures divided into 4 blocks. For those measures that go beyond the
current legislation (44), employees have been consulted to assess their degree of satisfaction with
them. All of them are equally applicable to all staff. The results of this survey are shown below.
Employee voice
Quality of
employment
Flexibility in
time and
space
Family
support
Personal and
professional
development
Knowledge
95%
97.5%
94%
94.9%
Use
60.9%
69%
32.3%
51.2%
Satisfaction ( 0-10)
7.3
8.9
7.7
7.3
Relevance ( 0-10)
7.2
8.4
7.3
7.3
Data 2022
Data 2021
Men
Women
Total
Men
Women
Total
Total number of employees who have
been entitled to parental leave
6
7
13
4
5
9
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
101
Total number of employees who have
taken parental leave
6
7
13
4
5
9
Total number of employees who have
extended their parental leave with
parental leave in 2022
1
4
5
0
3
3
Return to work rate (employees who
returned to work after parental leave in
the year over the total number of those
who were due to return) (%)
100%
100%
100%
100%
100%
100%
Retention rate (employees retained 12
months after return out of the total
number of returnees) (%)
100%
100%
100%
100%
100%
100%
The ICO also has an ethics channel available to its staff for reporting breaches of its code of conduct
and a Compliance Committee that keeps a record of all reports received through the ethics channel
or any other means that the person making the report considers appropriate. The Compliance
Committee guarantees the confidentiality of the complaints received. In 2022, one complaint was
received, which was dealt with and resolved following the procedure.
2) Implementation of digital disconnection policies in the work environment
Within the framework of the remote work plan approved in the ICO Group in 2022, the right to digital
disconnection outside working hours is recognised under the terms established in article 88 of Organic
Law 3/2018, of 5 December, on Personal Data Protection and guarantee of digital rights. Following
the implementation of the remote working regime, a specific policy is expected to be approved within
the framework of the new work organisation in 2023. In addition, the corporate email tool invites you
to schedule emails sent outside normal working hours to be received the following day within normal
working hours.
5.6 HEALTH AND SAFETY
The ICO Group considers it essential to strengthen and control the occupational health and safety of
its staff, as expressed at the highest level in the Sustainability Policy approved by the General Council,
which includes occupational health and safety as a commitment to employees.
The management of health and safety in the workplace affects 100% of the workforce, and is
developed through two main lines of action: (A) technical prevention refers to the specialities of safety
at work, industrial hygiene, ergonomics, and applied psycho-sociology, which includes occupational
risk assessments, action plans to eliminate or minimise the risks detected, monitoring the
implementation of action plans, the preparation and implementation of emergency and evacuation
plans, health and safety training and the coordination of preventive activities; and B) occupational
medicine, with the performance of medical check-ups for staff, the protection of particularly sensitive
employees and the adaptation of workstations with specific ergonomic material, as well as
programming preventive activities and campaigns to maintain and improve the health of workers and
encouraging the development of both a preventive culture and healthy habits among the workforce.
In 2022, the prevention service was carried out in collaboration with Grupo MPE Prevención de
Riesgos Laborales, as an external prevention service, which also holds ISO 9001 and ISO 14001
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
102
certifications for its quality and environmental management system. AXIS and the Foundation have
their external prevention services.
Occupational health and safety is monitored by the Health and Safety Committee, made up of 3
representatives from the Company and 3 from the Workers' Legal Representation, and by the Medical
Service (company doctor) and the External Prevention Service (prevention technician). The Health
and Safety Committee meets quarterly. During 2022, 4 meetings were held, recorded in minutes,
which dealt with issues related to the appointment of alarm and evacuation teams and first intervention
teams, training in occupational risk prevention for office staff (including teleworking), certification of
COVID-19 protocols and monitoring of the impact of COVID-19 on the workforce and accidents at
work. This body participates in the elaboration, implementation, and evaluation of the
risk prevention plans and programmes in the company. No risks of major injuries have been identified
and no such events have occurred. Workers can report any risks or incidents directly to HR or through
union representatives.
In 2022, 193 medical check-ups were carried out in the ICO Group, representing 55% of the group's
average workforce. In addition, a course entitled "Prevention of occupational risks for office staff" was
given to 215 people, all of them from ICO.
There is a procedure for the coordination of business activities in compliance with R.D. 171/2004,
which details the functions and measures to be adopted in these situations.
In addition, as part of its commitment to the health of its employees, the ICO Group has a medical
service available to all its employees at the work centre, from Monday to Friday mornings, for medical,
nursing, and physiotherapy consultations. The health service for the medical care of ICO staff is
authorised by the Health Department of the Community of Madrid. This measure promotes health
care, conciliation, flexibility, and the reduction of absenteeism by facilitating medical consultation and
assistance for ICO staff at the workplace.
During 2022, 1,565 medical consultations were provided, which means an average of 130
consultations per month, 32% to men and 68% to women. Of the total assistance, 48% was provided
by a medical professional, 42% by a nursing professional, and 10% by the physiotherapy service. An
average of 82 workers per month have been assisted. By type of assistance, 84% was due to common
illnesses, 1% to non-occupational accidents and the remaining 15% to health campaigns. In 2022,
two health campaigns were carried out, a vaccination campaign to prevent seasonal flu and a
campaign to prevent cardiovascular risk. A total of 207 professionals benefited f rom these campaigns,
which were aimed at the entire workforce.
In addition, the ICO collaborates annually with the blood donation campaign promoted by the Red
Cross. In 2022, 22 volunteers were able to donate blood at the work centre. This helped to improve
the lives of 66 people, as each donation saves three lives.
Sick leave and absenteeism
On the other hand, 4,368 days of sick leave were recorded, 72% for common illness and 28% for
maternity or paternity. In addition, there were 6 accidents on the way to and from work, 5 were women
and 1 man, all of them minor (4 of them without medical leave). The 2 occupational accidents requiring
medical leave affected women. In 2022, no occupational illnesses or deaths due to occupational
accidents were recorded. Due to the nature of the ICO Group's activities, there is no risk of
occupational illnesses covered by current legislation, as assessed by the prevention service.
The number of absenteeism hours recorded in 2022 was 26,442, bringing the absenteeism r ate at
ICO to 5%. This rate represents a slight upturn compared to 2021, when it stood at 4%, but remains
at lower levels than in 2019.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
103
ICO
2022
2021
Total
Men
Women
Total
Men
Women
Number of days off work
4,368
1345
3023
3768
1075
2693
Number of absence hours
26,442
5,899
20,543
24,310
8,162
16,143
Number of total occupational
accidents
6
1
5
1
0
1
Number of occupational
accidents in itinerary
6
1
5
0
0
0
Number of occupational
accidents requiring time off work
2
0
2
1
0
1
Frequency rate (%)
0
0
0
0
0
0
Incidence rate (%)
0.62
0
0.62
0.31
0
0.31
Absenteeism rate (%)
5
3
6
4
5
6
The frequency rate does not include accidents on the way to and from work. The calculation is based on one
million hours.
At AXIS and Fundación ICO, no occupational accidents or occupational diseases were recorded in 2022.
Health certifications
In 2021, following an exhaustive audit process, the ICO Group obtained AENOR certification of protocols for
action against COVID-19. This certification extended to all the Group's activities and facilities, explicitly
including ICO, AXIS, ICO FOUNDATION, and ICO MUSEUM, and has remained in force during the
2022 financial year.
The AENOR certificate is a formally recognised external guarantee of the effectiveness of the
measures implemented in the Group, the suitability of the protocols, and compliance with the
guidelines laid down by the Ministry of Health and the Community of Madrid, both in the work centre
where the offices are located and in the ICO Museum facilities, thus guaranteeing the safety of the
staff providing services in the facilities and of visitors to them.
It should also be noted that the AENOR certification process requires the ICO Group to undergo
periodic audits in which the correct application, maintenance, and updating of the existing protocols
are verified, which further reinforces the ICO Group's commitment to complying with its high standards
of safety and prevention. In short, the AENOR certification endorses all the measures that have been
implemented by the ICO Group since March 2020, under appropriate and effective risk management,
which has enabled the Group to continue its activity in the best health and safety conditions for people
accessing its facilities and to conclude the process of returning to normality that has been achieved in
2022, without incident.
5.7 SOCIAL RELATIONS
A. ORGANISATION OF SOCIAL DIALOGUE
In line with Principle 3 of the Global Compact, ICO respects the right of its staff to join trade unions
according to their needs and to form their Works Council.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
104
At ICO, the Works Council acts as a collegiate body representing the workers and interacts with the
company through its autonomous functioning, and its participation in different committees (Joint
Committee, Health and Safety Committee, Training and Professional Promotion Committee, and
Social Affairs Committee), in addition to the working groups and specific negotiating committees that
may be set up to deal with specific issues that may require it.
To carry out its functions, ICO has provided the Works Council with its own physical space to meet
and keep documentation, as well as its e-mail address to receive queries and a space on the Intranet
to publish its information.
B. PROCEDURES FOR INFORMING, CONSULTING, AND NEGOTIATING WITH
EMPLOYEES
Concerning the existing means of informing staff, the ICO, in addition to sending general and
personalised communications by e-mail, has a channel on its Intranet for announcements, new
developments, and news items related to the institution's activities. This channel also encourages the
participation of all employees in the institution's development, either by providing comments on the
news published or through the suggestions channel, Aporta Tu Idea (Contribute Your Idea).
1) Percentage of employees covered by collective bargaining agreements by country
The VI Collective Bargaining Agreement, published in the BOCM on 11 January 2014
(http://w3.bocm.es/boletin/CM_Orden_BOCM/2014/01/11/BOCM-20140111-3.PDF), which applies only to
ICO staff, and is currently in force.
The social benefits are stipulated in the Collective Bargaining Agreement and apply to all staff on
equal terms.
The agreement applies to 80% of ICO's staff, excluding the Chairman, the management team, and
the professional group of middle managers, whose employment relationship is governed by the terms
of their contracts.
2) Review of collective bargaining agreements, particularly in the field of occupational health and
safety
The ICO Works Council has 13 members, representing 3 different trade unions. 46% of the members
of the Works Committee are women.
During the 2022 financial year, 9 meetings of the Joint Committee and the Health and Safety
Committee were held and 1 agreement was reached. In addition, dialogue tables were set up with
employee representatives to address issues relating to the working conditions of greatest concern to
the workforce.
5.8 TRAINING
A. POLICIES IMPLEMENTED IN THE FIELD OF TRAINING
Training and empowering staff are key to contributing to the Sustainable Development Goal: "Decent
work and economic growth". The ICO Group encourages the improvement of the knowledge, skills,
and abilities of its human and intellectual capital and, at the same time, by its mission to promote the
growth and development of the country, it responds to the training needs of other groups, such as
young people and people with intellectual disabilities, to help them enter the labour market.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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This commitment of the ICO Group to professional development and training is included in the
Sustainability Policy and is materialised in the Training Policy and in the Training Plan on which
planned and unplanned training actions are developed annually in response to needs identified
throughout the year.
In 2022, the Institute has maintained its demanding level of staff training hours, given that it has been
adjusted by 15% less than in 2021, taking into account the exceptional increase in 2021 to return to
the pre-pandemic situation. This has been reduced from 18,508 to 15,750 hours from 2021 to 2022,
respectively, and the investment has decreased by 28% from €155,592 to €111,874 from 2021 to
2022, respectively.
This commitment to the professional development of ICO's human and intellectual capital is reflected
in the fact that investment in training represents 1.10% of ICO's salary expenditure in 2022. It is also
reflected in the average number of hours per employee, which stands at 42 hours in 2022, 19.23%
less than in 2021 in ICO and AXIS. The year 2021 saw an exceptional increase due to the pandemic
in 2020, although the current number of hours is back in line with the average for the two years before
the pandemic (45.75 hours per employee, average for 2018 and 2019).
The ICO Training Plan includes training objectives that are materialised with the number of hours and
investment in the following areas: training in sustainability, in the Systems Plan, on-the-job training
related to the ICO's activity and regulations, language learning and improvement, and the
development of personal skills useful for the performance of jobs.
In line with the above, 64% of the investment made is devoted to language learning and improvement,
17% to on-the-job training, 7% to sustainability training, 3% to systems plan training, and 9% to skills
training and postgraduate training, and certifications.
DISTRIBUTION OF TRAINING HOURS BY OCCUPATIONAL GROUP - ICO GROUP
2022
2021
WOMEN
2022
MEN
2022
HOURS PER
PERSON
(TOTAL)
HOURS PER
PERSON
(WOMEN)
MANAGERS
758
431
255
503
44.5
42.5
MIDDLE MANAGERS
1,693
2,379
1,109
583
29.7
37.0
TECHNICIANS
11,458
12,964
8,235
3,223
52.1
60.6
ADMINISTRATIVE
2,050
2,387
1,997
53
36.0
39.9
GRANT HOLDERS
124
347
76
49
--
--
TOTAL
16,083
18,508
11,672
4,411
DISTRIBUTION OF INVESTMENT IN TRAINING BY TYPE OF COURSE - ICO GROUP
2022
2021
Increase
WOMEN
MEN
LANGUAGES
74,384
74,334
0%
54,601
19,784
ON-THE-JOB TRAINING
18,966
74,001
-74%
14,424
4,542
SUSTAINABILITY
8,003
-
3,746
4,257
SYSTEMS PLAN
3,600
1,200
200%
2,250
1,350
SKILLS TRAINING
327
791
-59%
327
0
ACADEMIC TRAINING, POSTGRADUATE STUDIES, AND CERTIFICATIONS
9,772
5,266
86%
9,022
750
TOTAL
115,052
155,592
-26%
84,369
30,682
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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The differences between women and men must be interpreted as the weight of each sex in the
workforce or category as a whole.
This year, in line with the Training Plan, training in sustainability has been differentiated from on-the-
job training, where it was located in the previous year. Likewise, the training in new technologies has
been called the Systems Plan, to facilitate the adaptation of the human team to the new technological
tools needed to implement the projects developed by ICO, also promoting training in useful skills for
digital transformation.
Lastly, it should be noted that the ICO Group plans to offer voluntary access to the training activities
contained in its Training Plan to professionals who are on childbirth and childcare leave, breastfeeding
leave, or leave of absence to care for children or family members so that their absence is not a barrier
to professional progress. 53% of the professionals who have taken any of these leaves wanted to
participate in the training programme during this period.
5.9 UNIVERSAL ACCESSIBILITY FOR PEOPLE WITH DISABILITIES
A. ACCESSIBILITY FOR PEOPLE WITH DISABILITIES
The ICO Group has facilities, tools, and workstations adapted to allow accessibility for people with
reduced mobility or other types of functional disabilities who carry out their professional activity at ICO
or who visit the facilities. Thus, the staff includes 5 people with recognised disabilities (functional
diversity/physical disability), 80% of whom are women.
The ICO Foundation holds the Accessible Tourism badge awarded to the ICO Museum for
incorporating universal accessibility measures in its establishment and for its commitment to
welcoming and attending to people with disabilities and with accessibility needs in general, developed
through the provision of adapted, easy-to-read material on the Museum's exhibitions or the
organisation of activities with a sign language interpreter.
The ICO's corporate portal is designed to comply with Royal Decree 1112/2018 of 7 September on
Accessibility of Public Sector Websites and Applications for Mobile Devices. Thus, a practical and accessible
corporate portal is made available to society, guaranteeing access to the information and services on
its pages to all users without any limitation or restriction based on disability, medium, or context
through which this portal is accessed.
At the same time, the www.ico.es portal aims to adapt to the standards and regulations in force about
accessibility, complying with the double A (AA) verification points defined in the Web Content
Accessibility Guidelines (WCAG 2.1) specification belonging to the W3C.
B. INTEGRATION OF PEOPLE WITH DISABILITIES
Since 2016, ICO has been hosting several students from the ALAPAR Foundation who are part of the
CAMPVS educational project aimed at young people with functional diversity who, after completing
their formal training, wish to access higher education to develop a higher degree of personal, social
and professional competence.
With this programme, these young people specialise in the administrative branch, acquiring general
knowledge of business, information technologies, economics, law, financial culture, and English, as
well as working on personal autonomy and socio-labour skills. The studies last three years and end
with a six-month training internship in the company, a stage in which ICO helps them to complement
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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their training with practical experience and to acquire the knowledge and skills necessary to function
fluently in the work environment.
Since the start of the collaboration with the ALAPAR Foundation, ICO has taken in a total of 13
students, of whom 7 have found employment, 3 of them are preparing for competitive examinations
and the rest of the students are continuing their training to improve their employability.
5.10 EQUALITY AND DIVERSITY
A. EQUALITY
One of the guiding principles on which the responsible management of the ICO Group is based is
equal opportunities, in a broad sense, which is evident both in the public employment offer processes
and in tenders for the purchase of goods or the contracting of services.
In the previous sections, we can see the breakdown of the workforce by gender, and how women
have greater participation in practically all professional groups. In terms of female representation on
governing bodies, it is worth highlighting the representation achieved on the General Council of ICO (37%
women and 63% men), on the Board of Directors of AXIS (56% women and 44% men), and the Board of
Trustees of the ICO Foundation (44% women and 56% men).
B. MANAGEMENT OF DIVERSITY AND THE FIGHT AGAINST INEQUALITIES AND
DISCRIMINATION
1) Measures for Women Empowerment
In the third year of the II Equality Plan, approved at the end of 2019, actions were carried out in the
seven axes that structure the Plan. Of the 45 measures of which the II Equality Plan consists, 43
(96%) have been fulfilled in 2022 and another 2 are in progress. In total, 108 actions have been carried
out
In 2020, ICO joined the Where Are They? Manifesto, an initiative launched by the European
Parliament to promote and strengthen the presence of women in discussion forums and conferences.
During 2022, ICO participated in 220 conferences as a speaker (both in person and online), organised
in collaboration with various institutions, sectoral associations, and collaborating agents, covering the
entire country. Of the total number of conferences, the President of the ICO participated as a speaker
in 57 of them. In the remaining 163 conferences, 85 women participated in the representation of the
ICO (52%).
2) Protocols against sexual and gender-based harassment
The prevention of sexual and gender-based harassment, 2nd ICO Equality Plan has a procedure
against harassment in the workplace available to all employees that specifically includes the
prevention of sexual and gender-based harassment. To date, this has not been activated at any time.
In addition, as part of the commitments made in the Equality Plan, ICO has joined the Ministry of
Equality's Red de Puntos Violeta (Purple Points Network) initiative to combat gender-based violence
and to disseminate, on a massive scale, the information needed to know how to act in the event of
violence against women.
3) Measures adopted to promote employment
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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The ICO, as a public sector entity and by the provisions of the Basic Statute of the Public Employee,
promotes access to employment under the principles of equality, merit, and ability through periodic
competitive examination procedures with public notice, reserving a quota of no less than 5% of
vacancies to be filled by people with disabilities.
Internally, the ICO encourages professional development and internal job mobility among its
employees through the system of promotion by filling vacancies established in the institution's
Collective Bargaining Agreement.
In addition, the ICO has signed a collaboration agreement with the SEPI Foundation whose objective
is to organise and develop a programme of practical training scholarships in the work centres of the
ICO Group, under the supervision of suitable tutors, aimed at young people with recent university
degrees to facilitate and prepare them for their access to the world of work, enabling them to acquire
practical knowledge, maturity, employability, status and vision of the business world. In 2022, the ICO
Group welcomed 18 scholarship holders from the SEPI Foundation, whose scholarships have a
maximum duration of 18 months.
At the end of the scholarship, ICO surveys to find out their degree of satisfaction. In 2022, the average
level of satisfaction of the 25 scholarship holders who completed their scholarship at ICO was 8.84
out of 10, highlighting the success of the programme. Another noteworthy fact is that many of them,
once they have finished their scholarship, take part in the selection processes organised to recruit
permanent staff. In fact, in the last two ICO Job Offers, 6 of the selected candidates were previously
ICO scholarship holders of the SEPI Foundation.
Collaterally, there are further advantages in broadening the framework of participation in the company
by involving the professionals in the successful implementation of the Fellowship Programme.
Although some act as tutors and others as trainers, they all have the opportunity to participate in the
orientation and integration of the trainees. In addition to the practical training, they are offered the
possibility of attending training actions that are tailor-made for ICO staff, as long as places are
available.
In 2022, ICO has received a grant to participate in the "First Professional Experience Programme in
Public Administrations" within the framework of the Transformation and Resilience Recovery Plan,
which aims to hire young unemployed people in the form of an internship contract, so that they can
acquire their first experiences in employment, as well as social and professional competences and
skills. The grant will enable the recruitment of 25 young people on 12-month training contracts in
2023.
All this results in a better social reputation for ICO, which offers real opportunities for labour market
insertion by increasing the employability of young people.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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6 ABOUT THE REPORT
This report forms part of the Management Report of the Consolidated Annual Accounts of the ICO
Group, per articles 44.1 and 6 of the Code of Commerce, as amended by Law 11/2018 on Non-
Financial Information and Diversity.
This report has been prepared following the Global Reporting Initiative (GRI) standard for the
preparation of sustainability reports, as well as taking into account the reference frameworks described
throughout the document and, in particular, the Sustainable Development Goals. The GRI
methodology allows reporting on the most relevant issues about the sustainability of the company and
its management.
In the following point of the document, the concordance of the different reporting requirements by GRI,
Law 11/2018, the Global Compact Principles, and their relationship with the SDGs are detailed in table
form.
For the drafting of the Statement of Non-Financial Information, information has been gathered from
all available and timely internal and external sources, and internal documents of the organisation such
as the Strategic Plan, relevant Policies and Procedures, as well as all internal reporting and monitoring
information have been taken into account to give a true picture of the company's performance in terms
of sustainability and social responsibility.
➢ SCOPE AND APPROVAL
The Statement of Non-Financial Information forms part of the management report of the consolidated
annual accounts of the ICO Group and therefore follows the same approval procedure, i.e., it is drawn
up by the Chairman in March each year and subsequently approved by the Operations Committee,
the highest governing and management body of the ICO Group, and endorsed by the General Council
in its capacity as the Institute's highest governing body.
The information in this document refers, among others, to the broad sustainability performance of the
ICO Group between 1 January and 31 December 2022, based on the materiality study described in
section 1.4. Where possible, data has been provided on a consolidated level. Where the information
does not refer to all the companies included in the scope, this is expressly stated. This report is
prepared on an annual basis.
➢ PRINCIPLES FOR THE PREPARATION OF THE STATEMENT OF NON-FINANCIAL
INFORMATION
The principles contained in the European Commission's guidelines (2017/C 215/01) have been taken
into account in preparing this NFS, in particular, the principles according to which the information
disclosed should be meaningful; faithful, balanced, and understandable; and complete but concise.
In this respect, the ICO Group's NFI contains the information necessary to understand its
performance, results, and situation, as well as the impact of its activity, relating at least to
environmental and social issues, as well as personnel, respect for human rights and the fight against
corruption and bribery. The non-financial information provided enables a true and fair view to be
obtained of the aspects developed, providing information that is comparable with other entities or with
previous years where applicable.
Likewise, the content of the non-financial information statement has been defined taking into account
the stakeholders and the material aspects identified. In this respect, the ICO Group has carried out a
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
110
materiality study through an exhaustive process of internal and external analysis to identify the
relevant aspects. The study has been carried out from a dual materiality and impact assessment
perspective, and includes the different aspects ordered by priority, with more specific explanations as
to why they are relevant.
The annual accounts and financial information of the ICO Group have been audited by the
Intervención General de la Administración del Estado (IGAE) through Mazars Auditores, S.L.
Concerning the Statement of Non-Financial Information, the ICO Group has submitted its content to
verification by independent experts to increase the confidence of stakeholders, which was carried out
by CAVALA Gabinete de Asesoría Empresarial, S.L. During the verification process, it was verified
that the structure of the document allows the information to be read quickly and clearly. Furthermore,
the veracity of the information and the reliability of the sources used have been checked.
➢ CONTACT
For any questions regarding the content of this report, please contact: estudios.evaluacion@ico.es.
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
111
7 ORGANISATIONAL CHART
The organisational chart of the entities that make up the ICO Group is as follows.
CHAIRMAN'S OFFICE
DIRECTORATE FOR LEGAL
ADVISORY
Financial Operations and
Economic and Labour Policy
Advisory Area
DEPT. COMMUNICATION AND
CABINET
DEPT. INTERNAL AUDIT
European, Institutional, and State
Fund Affairs Advisory Area
Institutional Relations Area
Regulatory Compliance Area
DEPT. ASSET OPERATIONS AND
RECOVERIES AND GUARANTEES
ADVISORY DEPARTMENT
Recoveries and Guarantees
Advisory Area
ICO FOUNDATION
AXIS
DG FINANCE AND
STRATEGY
DG BUSINESS
DG RISK AND
FINANCIAL CONTROL
DG TECHNICAL AND
RESOURCES
CHAIRMAN
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
112
DIRECTORATE GENERAL FOR FINANCE AND STRATEGY
DIRECTORATE FOR STRATEGY
AND SUSTAINABILITY
DIRECTORATE OF FINANCING
AND TREASURY
Sustainability Development Area
Financial Operations Management
Area
DEPT. BALANCE
SHEET MANAGEMENT
Sustainability Methodologies and
Measurement Area
Capital Markets Are
Research and Evaluation Area
Treasury Area
Securitisation and Investee
Management Area
GENERAL BUSINESS MANAGEMENT
DIRECTORATE OF
INTERNATIONAL
MANAGEMENT
FOR STATE
FUNDS
DIRECTORATE
OF
INTERMEDIATION
AND SME'S
DIRECTORATE
OF
CORPORATE
AND
INSTITUTIONAL
FINANCE
DIRECTORATE
OF
INTERNATIONA
L FINANCING
AND EUROPEAN
UNION
Transaction
Restructuring Area
Mediation with
Financial
Institutions Area
Territorial State
Funds Area
Guarantees and
International
Financing Area
DEPT. PRODUCT
DEVELOPMENT
EIF Management
Area
Information
Area
Corporate
Finance Area
EIF Administration
Area
DEPT. SME
FINANCING AND
GUARANTEES
DEPT.
CORPORATE
FINANCING
Guaranteed
Lines
Management
Area
Medium-Sized
Company
Financing Area
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
113
DIRECTORATE GENERAL FOR RISK AND FINANCIAL CONTROL
DIRECTORATE FOR
RISK MANAGEMENT
DIRECTORATE OF
MONITORING AND
RECOVERIES
DIRECTORATE FOR
BUDGET AND FINANCIAL
CONTROL
Global Risk Control
Area
Wholesale Monitoring
and Recovery Area
Information Management
Area
DEPT. OPERATIONS
MANAGEMENT
DEPT.
METHODOLOGY AND
CREDIT RISK
Retail Monitoring and
Recovery Area
Budgeting and
Management Control Area
Direct Operations
Administration Area
Admission and ESG
Risks Area
Management Control
Methodologies and
Analysis Area
Issue and Treasury
Management Area
Risk Methodology and
Policies Area
DEPT. ACCOUNTING
Mediation Operations
Administration Area
Accounting and Solvency
Management Area
Financial Reporting and
CIRBE Area
GENERAL TECHNICAL AND RESOURCES DEPARTMENT
DIRECTORATE FOR INFORMATION
SYSTEMS
Applications Development Area
DEPT. HUMAN RESOURCES
AND CSR
Platforms Area
Human Capital and CSR Area
Organisation and Quality
Area
Digital Solutions Area
Labour Relations Area
General Services and Assets
Area
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
114
CHAIRMAN'S OFFICE
VICE-CHAIR
ADDRESS OF THE ICO
FOUNDATION
SUSTAINABLE ART
AND ARCHITECTURE
AREA
SUSTAINABLE
ECONOMY AND
FINANCE AREA
CHAIRMAN'S OFFICE
VICE-CHAIR
AXIS GENERAL MANAGEMENT
PORTFOLIO
MANAGEMENT
AREA
FINANCIAL AREA
LEGAL ADVISORY
AREA
INTERNATIONAL
RELATIONS AREA
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
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8 TABLE OF CONTENTS LAW 11/2018 AND GRI
Table of contents Law 11/2018
Description Law 11/2018
Chapter
Business
Model
Brief description of the group's business model
- Business environment
- Organisation and structure
- Markets in which it operates
- Objectives and strategies
- Factors and trends likely to affect its future
development
1. The ICO Group, its Strategy, and Environment
Policies
Applied
- Policies applied by the group in non-financial
aspects,due diligence procedures applied, and
actions taken
- Results of these policies accompanied by key
non-financial performance indicators
4.1. Risk management: identification and
monitoring
4.2. General tools for responsible management
Main risks
- Main risks related to non-financial aspects
linked to the group's activities
- Procedures used to identify, assess and
manage these risks
- Impacts identified on the main risks in the
short, medium, and long-term
4.1. Risk management: identification and
monitoring
Non-
Financial
KPIs
Non-financial key performance indicators that
are relevant to the specific business activity, and
that meet the criteria of comparability,
materiality, relevance, and reliability.
2.2. In its financial activity: support for the
productive fabric
2.3. Positive macroeconomic impact on the
Spanish economy
2.4. The priority: boosting sustainability in our
financial activity
3.2. 6. Results, fiscal and subsidy information
4.4. Key internal management results
5. Human resources and diversity management
Environme
ntal
Manageme
nt
- Current and foreseeable effects of the
company's activities on the environment,
health, and safety.
- Environmental assessment or certification
procedures
- Resources dedicated to environmental risk
prevention
- Application of the precautionary principle
- Amount of provisions and safeguards for
environmental risks
4.4. Key internal management results
Pollution
Measures to prevent, reduce or remediate
carbon emissions that seriously affect the
environment, taking into account any form of
activity-specific air pollution, including noise
and light pollution.
4.4. 3. Pollution. Emissions. Internal carbon
footprint
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
116
Circular
Economy
and Waste
Prevention
and
Manageme
nt
- Waste prevention, recycling, reuse, or other
forms of recovery and disposal measures.
- Actions to combat food waste
4.4. 2. Circular Economy and Waste Management
Sustainable
Use of
Resources
- Water consumption and water supply by local
constraints
- Consumption of raw materials and measures
taken to improve the efficiency of raw material
use
- Direct and indirect energy consumption
- Measures to improve energy efficiency
- Use of renewable energy
4.4. 1. Responsible use of natural resources
4.4. 2. Circular Economy and Waste Management
4.4. 3. Pollution. Emissions. Internal carbon
footprint
Climate
Change
- Significant elements of GHG emissions
generated as a result of the company's
activities, including the use of the goods and
services it produces.
- Measures to adapt to the consequences of
climate change
- Voluntary medium- and long-term reduction
targets set to reduce GHG emissions
- Means implemented to reduce GHG emissions
4.4. Key internal management results
2.4. The priority: boosting sustainability in our
financial activity
Biodiversity
Protection
- Measures to preserve or restore biodiversity
- Impacts caused by activities or operations in
protected areas
4.4. Key internal management results
2.4. The priority: boosting sustainability in our
financial activity
Employmen
t
- Total number and distribution of employment
contracts, the average annual number of
permanent contracts, temporary contracts, and
part-time contracts by gender, age, and
occupational classification.
part-time contracts by gender, age, and
occupational classification
- Number of dismissals by sex, age, and
occupational classification
- Average earnings and their evolution broken
down by sex, age, and occupational
classification or equal value
- Pay gap, the remuneration of equal or average
jobs in the company
- Average remuneration of directors and
executives, including variable remuneration,
allowances, indemnities, payments to long-term
savings schemes, and any other payments
disaggregated by gender.
- Implementation of policies of disconnection
from work
- Employees with disabilities
5.1. Staff data
5.2. Types of contracts
5.3. Average earnings and the wage gap
5.9. Universal accessibility for people with
disabilities
1.3. Governance and Management Structure
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
117
Work
organisatio
n
- Organisation of working time
- Number of hours of absenteeism
- Measures aimed at facilitating the enjoyment
of work-life balance and encouraging co-
responsibility on the part of both parents.
5.4. Work organisation
5.5. Work-life balance
Health and
Safety
- Health and safety conditions at work
- Accidents at work (frequency and severity) and
occupational diseases, disaggregated by gender
5.6. Health and safety
Social
Relations
- Organisation of social dialogue, including
procedures for informing, consulting, and
negotiating with employees
- Percentage of employees covered by collective
agreements by country.
- Balance of collective agreements, particularly
in the field of health and safety at work
5.7. Social relations
Training
- Policies implemented in the field of training
- Total number of training hours by occupational
category
5.8. Training
Universal
Accessibilit
y for
People with
Disabilities
Measures implemented by the organisation
to facilitate accessibility (physical and digital) for
people with disabilities
5.9. Universal accessibility for people with
disabilities
Equality
- Measures to promote equal treatment and
opportunities between women and men
- Equality plans
- Measures to promote employment
- Protocols against sexual harassment and
harassment based on sex
- Integration and universal accessibility for
people with disabilities
- Anti-discrimination and diversity management
policy
5.10. Equality and diversity
Respect for
Human
Rights
- Implementation of human rights due diligence
procedures
- Prevention of risks of human rights abuses and
measures to mitigate, manage and redress
potential abuses committed
- Denunciation of cases of human rights abuses
- Promotion of and compliance with the
provisions of the International Labour
Organisation's core conventions related to
3.2. 1. Human rights
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
118
respect for freedom of association and the right
to collective bargaining
- Elimination of discrimination in respect of
employment and occupation
- Abolition of forced or compulsory labour
- Effective abolition of child labour
Combating
Corruption
and Bribery
- Measures to prevent corruption and bribery
- Measures to combat money laundering
- Contributions to foundations and non-profit
organisations
3.2. 1. Human rights
4.3. Specific tools for ethical and responsible
management
Company
Commitme
nts to
Sustainable
Developme
nt
- Impact of the company's activity on
employment and local development
- Impact of the company's activity on local
populations and the territory
- Relations maintained with local community
stakeholders and the modalities of dialogue
with them
- Partnership or sponsorship actions
2.3. Positive macroeconomic impact on the
Spanish economy
2.2. In its financial activity: support for the
productive fabric
2.4. The priority: boosting sustainability in our
financial activity
3.1. ICO Foundation Promoting culture and
knowledge
3.2. Our role in society
Subcontrac
ting and
Suppliers
- Inclusion of social, gender equality, and
environmental issues in the procurement policy.
- Consideration in relations with suppliers and
subcontractors of their social and
environmental responsibility.
- Monitoring and audit systems and results of
audits
3.2. 2. Suppliers
Consumers
- Consumer health and safety measures
- Claims systems, complaints received, and their
resolutions
3.2. 3. Customers:
Tax
Informatio
n
- Profits earned country by country
- Taxes on profits paid
- Public subsidies received
3.2. 6. Results, Tax, and Subsidy Reporting
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
119
GRI Content Index with references to Global Compact Progress Report and
SDGs
Statement of Use
The ICO Group has prepared the report following the GRI Standards for the
period from 1 January 2022 to 31 December 2022.
GRI 1 used
GRI 1: Fundamentals 2021
Applicable GRI Sector Standards
Not applicable as there is no sectoral standard developed for the banking
sector.
Standards
GRI
Description
Global
Compact
Progress
Report Ref.
SDG
Ref.
Page / Link / Omissions
General Content
The organisation and its reporting practices
GRI2: General Contents 2021
GRI
2-1
Organisational details
General
Information
1.1. Composition - p.4
1.2. Nature and Functions - p.4
GRI
2-2
Entities covered by sustainability
reporting
General
Information
1.1. Composition - p.4
6. About the Report – p.109
GRI
2-3
Reporting period, frequency, and contact
point
General
Information
6. About the Report - p.109
GRI
2-4
Updating of Information
General
Information
4.4.3. Pollution, Emissions, Internal Carbon Footprint - p.
84
GRI
2-5
External Verification
General
Information
6. About the Report - p.109
Activities and employees
GRI2: General Contents 2021
GRI
2-6
Activities, value chain, and other
business relationships
General
Information
1.2. Nature and Functions - p.4
1.5. ICO Group Strategy - p.23
2.2. In its financial activity: support for the productive
fabric - pg.35
2.4. The priority: driving sustainability in our financial
business - p.50
3.2. 2. Suppliers - p.67
3.2.3. Customers – p.68
GRI
2-7
Employees
Principle no.
6
8
5.1. Staff Data – p.91
5.2. Contract Modalities - p.93
GRI
2-8
Non-employed workers
Principle no.
6
8
5. Human Resources and Diversity Management – p.91
Governance
GRI2: General Contents
2021
GRI
2-9
Governance structure and composition
General
Information
5, 16
1.3. Governance and Management Structure – p.7
GRI
2-10
Nomination and selection of the highest
governance body
General
Information
5, 16
1.3. Governance and Management Structure – p.7
GRI
2-11
Chairman of the highest governance
body
General
Information
16
1.3. Governance and Management Structure – p.7
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
120
GRI
2-12
Role of the highest governance body in
overseeing sustainability reporting
General
Information
16
1.3. Governance and Management Structure – p.7
4.1. Risk management: identification and monitoring -
p.74
4.2. General instruments for responsible management -
p.76
GRI
2-13
Delegation of responsibility for impact
management
General
Information
1.3. Governance and Management Structure – p.7
4.1. Risk management: identification and monitoring -
p.74
4.2. General instruments for responsible management –
p.76
4.3. Specific tools for ethical and responsible
management - p.77
GRI
2-14
Role of the highest governance body in
sustainability reporting
General
Information
6. About the Report - p.109
GRI
2-15
Conflict of Interest
General
Information
16
1.3. Governance and Management Structure – p.7
GRI
2-16
Communication of critical concerns
General
Information
4.1. Risk management: identification and monitoring -
p.74
4.2. General instruments for responsible management –
p.76
4.3. Specific tools for ethical and responsible
management - p.77
GRI
2-17
Collective knowledge of the highest
governance body
General
Information
4
1.3. Governance and Management Structure – p.7
GRI
2-18
Performance evaluation of the highest
governance body
General
Information
1.3. Governance and Management Structure – p.7
GRI
2-19
Remuneration policies
General
Information
1.3. Governance and Management Structure – p.7
GRI
2-20
Process for determining remuneration
General
Information
16
1.3. Governance and Management Structure – p.7
5.3. Average earnings and wage gap – p.95
GRI
2-21
Annual total compensation ratio
General
Information
1.3 Governance and Management Structure – p.7
Strategy, policies, and practices
GRI2: General Contents 2021
GRI
2-22
Sustainable Development Strategy
Statement
General
Information
1.5. ICO Group Strategy - p.23
GRI
2-23
Commitments and policies
General
Information
Principle No.
10
16
1.5. ICO Group Strategy - p.23
4.1. Risk management: identification and monitoring -
p.74
4.2. General instruments for responsible management –
p.76
4.3. Specific tools for ethical and responsible
management – p.77
3.2.1. Human Rights - p.66
GRI
2-24
Incorporation of commitments and
policies
General
Information
4.1. Risk management: identification and monitoring -
p.74
4.2. General instruments for responsible management –
p.76
4.3. Specific tools for ethical and responsible
management - p.77
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
121
GRI
2-25
Processes to remedy negative impacts
General
Information
12, 13,
14, 15
3.2. 3. Customers - p.68
4.1. Risk management: identification and monitoring -
p.74
4.2. General instruments for responsible management –
p.76
4.3. Specific tools for ethical and responsible
management – p.77
5.5 Reconciliation - p.99
GRI
2-26
Mechanisms for seeking advice and
raising concerns
Principle No.
10
16
3.2. 3. Customers - p.68
4.3. Specific tools for ethical and responsible
management - p.77
GRI
2-27
Compliance with legislation and
regulations
Principles
No. 7,8,9
12, 13,
14, 15,
16
4.3. Specific tools for ethical and responsible
management - p.77
GRI
2-28
Membership of associations
General
Information
1.7. Public-Private Partnerships and Collaboration – p.26
3.2.4. Collaboration with sustainability partnerships–
p.69
Stakeholder engagement
GRI2: General
Contents 2021
GRI
2-29
Approach to stakeholder engagement
General
Information
1.4. Materiality Analysis - p.18
3.2.3. Customers – p.68
GRI
2-30
Collective bargaining agreements
General
Information
8
5.7. Social relations - p.103
Material issue
GRI3 Material
issues 2021
GRI
3-1
Process for determining material issues
General
Information
1.4. Materiality Analysis - p.18
GRI
3-2
List of material issues
General
Information
1.4. Materiality Analysis - p.18
TM1 - Good Corporate Governance, Transparency, and Business Ethics
GRI3 Material issues 2021
GRI
3-3
Management of material issues
Principle No.
10
16
1.2. Nature and Functions - p.4
1.3. Governance and Management Structure – p.7
4.1. Risk management: identification and monitoring -
p.74
4.2. General instruments for responsible management –
p.76
4.3. Specific tools for ethical and responsible
management - p.77
GRI 205
Anti-
Corruption 2016
GRI
205-1
Operations assessed for risks related to
corruption
Principle No.
10
16
4.3. Specific tools for ethical and responsible
management - p.77
GRI
205-2
Communication and training on anti-
corruption policies and procedures
Principle No.
10
16
4.3. Specific tools for ethical and responsible
management - p.77
GRI 207 Taxation
2019
GRI
207-1
Tax approach
General
Information
16
3.2.6. Results, Tax, and Subsidy Reporting– p.72
GRI
207-2
Tax governance, control, and risk
management
General
Information
16
3.2. 6. Results, Tax, and Subsidy Reporting– p.72
TM2 - Financial and non-financial risk management
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
122
GRI3 Material
issues 2021
GRI
3 - 3
Management of material issues
Principles
No. 7,8,9
16
4.1. Risk management: identification and monitoring -
p.74
GRI 201 Economic
Performance 2016
GRI
201 - 2
Financial implications and other risks and
opportunities arising from climate
change
Principles
No. 7,8,9
13
2.4. The priority: driving sustainability in our financial
business - p.50
4.1. risk management: identification and monitoring -
p.74
4.2. General instruments for responsible management –
p.76
4.3. Specific tools for ethical and responsible
management - p.77
TM3 - Sustainable finance linked to ESG criteria
GRI3 Material
issues 2021
GRI
3 - 3
Management of material issues
Principles
No. 7,8,9
7, 8, 9,
10, 11,
13, 14,
15
1.5. ICO Group Strategy - p.23
2.1. Frameworks - p.31
2.4. The priority: driving sustainability in our financial
activity - p.50
GRI 203
Indirect
Economic
Impacts 2016
GRI
203 - 1
Investments in infrastructure and
services supported
Principles
No. 7,8,9
7, 8, 9,
10, 11,
13, 14,
15
2.2. In its financial activity: support for the productive
fabric - pg.35
2.4. the priority: promoting sustainability in our financial
business - p.50
TM4 - Solvency and economic resilience
GRI3 Material
issues 2021
GRI
3 - 3
Management of material issues
General
Information
8, 16
2.2. In its financial activity: support for the productive
fabric - pg.35
2.4. the priority: promoting sustainability in our financial
business - p.50
GRI 201
Economic
Performance
2016
GRI
201 - 1
Direct economic value generated and
distributed
General
Information
8, 16
3.2. 6. Results, Tax, and Subsidy Reporting– p.72
TM5 - Privacy, data protection, and cybersecurity
GRI3 Material
issues 2021
GRI
3 - 3
Management of material issues
General
Information
16
4.3. Specific tools for ethical and responsible
management - p.77
GRI 418
Customer
Privacy 2016
GRI
418 - 1
Justified complaints concerning
violations of customer privacy and loss of
customer data
General
Information
16
4.3. Specific tools for ethical and responsible
management - p.77
TM6 - Digital transformation and innovation
GRI3 Material
issues 2021
GRI
3 - 3
Management of material issues
General
Information
9, 16
1.5. ICO Group Strategy - p.23
2.2. In its financial activity: support for the productive
fabric - p.35
TM7 - Public-private partnerships
GRI3
Material
issues 2021
GRI
3 - 3
Management of material issues
General
Information
16, 17
1.7. Partnerships and public-private collaboration - p. 26
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
123
TM8 - Support for the productive fabric and value creation
GRI3
Material
issues 2021
GRI
3 - 3
Management of material issues
General
Information
1, 2, 3,
8, 10,
17
2. Our model for adding value to society: Driving
sustainable growth - p.30
GRI 203
Indirect
Economic
Impacts 2016
GRI
203 - 2
Significant indirect economic impacts
General
Information
1, 2, 3,
8, 10,
17
2.3. Positive macroeconomic impact on the Spanish
economy - p.49
TM9- Respect for Human Rights
GRI3
Material
issues 2021
GRI
3 - 3
Management of material issues
Principles
No. 1 and 2
16
3.2.1. Human Rights - p.66
TM10 - Customer experience and satisfaction
GRI3
Material
issues 2021
GRI
3 - 3
Management of material issues
General
Information
16
3.2. 3. Customers – p.68
TM11 - Talent management, training, and development of your professionals
GRI3
Material
issues 2021
GRI
3 - 3
Management of material issues
Principles
No. 3, 4, 5,
and 6
4, 5, 8
5. Human Resources and Diversity Management – p.91
GRI 401
Employment 2016
GRI
401 - 1
Recruitment of new employees and staff
turnover
Principles
No. 3, 4, 5,
and 6
5, 8
5.1. Staff Data - p.91
GRI
401 - 3
Parental leave
Principles
No. 3, 4, 5,
and 6
5, 8
5.5. Reconciliation - p.99
GRI 404 Training and Education
2016
GRI
404 - 1
Average hours of training per year per
employee
Principles
No. 3, 4, 5,
and 6
4, 5, 8
5.8. Training - p.104
GRI
404 - 2
Programmes to improve employees’
skills and programmes to assist the
transition
Principles
No. 3, 4, 5,
and 6
8
5.8. Training - p.104
GRI
404 - 3
Percentage of employees receiving
regular performance and career
development reviews.
Principles
No. 3, 4, 5,
and 6
5, 8
4.3. Specific tools for ethical and responsible
management - p.77
TM12 - Safety, health, and well-being
GRI3
Material
issues 2021
GRI
3 - 3
Management of material issues
Principles
No. 3, 4, 5,
and 6
3, 8
5.6. Healthy and Safety – p.101
GRI 403 Occupational Health and Safety 2019
GRI
403 - 1
Occupational health and safety
management system
Principles
No. 3, 4, 5,
and 6
3, 8
5.6. Healthy and Safety – p.101
GRI
403 - 2
Hazard identification, risk assessment,
and incident investigation
Principles
No. 3, 4, 5,
and 6
3, 8
5.6. Healthy and Safety – p.101
GRI
403 - 3
Occupational health services
Principles
No. 3, 4, 5,
and 6
3, 8
5.6. Healthy and Safety – p.101
GRI
403 - 4
Worker participation, consultation, and
communication on health and safety at
work
Principles
No. 3, 4, 5,
and 6
3, 8
5.6. Healthy and Safety – p.101
GRI
403 - 5
Worker participation, consultation, and
communication on health and safety at
work
Principles
No. 3, 4, 5,
and 6
3, 8
5.6. Healthy and Safety – p.101
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
124
GRI
403 - 6
Promotion of worker health
Principles
No. 3, 4, 5,
and 6
3, 8
5.6. Healthy and Safety – p.101
GRI
403 - 8
Coverage of the occupational health and
safety management system
Principles
No. 3, 4, 5,
and 6
3, 8
5.6. Healthy and Safety – p.101
GRI
403 - 9
Work-related injuries
Principles
No. 3, 4, 5,
and 6
3, 8
5.6. Healthy and Safety – p.101
GRI
403 - 10
Occupational diseases and illnesses
Principles
No. 3, 4, 5,
and 6
3, 8
5.6. Healthy and Safety – p.101
TM13- Diversity, inclusion, and equal opportunities
GRI3
Material
issues 2021
GRI
3 - 3
Management of material issues
Principles
No. 1, 2, 3, 4,
5, and 6
5, 8,
10, 16
5. Human Resources and Diversity Management – p.91
GRI 401
Employment
2016
GRI
401 - 2
Benefits for full-time employees that are
not provided to part-time or temporary
employees.
Principles
No. 3, 4, 5,
and 6
8
5.7 Social relations - p.103
GRI 405 Diversity and
Equal Opportunity
2016
GRI
405 - 1
Diversity of governing bodies and
employees
Principles
No. 3, 4, 5,
and 6
5, 8
1.3. Governance and Management Structure – p.7
5.1. Staff Data - p.91
5.10. Equality and Diversity - p.107
GRI
405 - 2
Ratio between the basic salary and
remuneration of women and men
Principles
No. 3, 4, 5,
and 6
5, 8, 10
5.3. Average earnings and wage gap – p.95
GRI 406 Non
-
discrimination
2016
GRI
406 - 1
Cases of discrimination and corrective
action taken
Principles
No. 3, 4, 5,
and 6
5, 8, 16
3.2.1 Human Rights - p.66
TM14 - Financial education
GRI3
Material
issues 2021
GRI
3 - 3
Management of material issues
General
Information
4
3.1. ICO Foundation Promoting culture and knowledge -
p.61
TM15 - Social commitment and community impact
GRI3 Material
issues 2021
GRI
3 - 3
Management of material issues
General
Information
4, 12
2. Our model for adding value to society: Driving
sustainable growth - p.30
3. Commitment to society: Beyond our financial activity -
p.61
GRI 204 Sourcing
practices 2016
GRI
204 - 1
Proportion of spending on local suppliers
General
Information
12
3.2.2 Suppliers - p.67
TM16 - Environmental protection, combating climate change and energy transition
GRI3
Material Themes 2021
GRI
3 - 3
Management of material issues
Principles
No. 7,8,9
7, 11,
13, 14,
15
2.1. Frameworks - p.31
2.4. The priority: driving sustainability in our financial
business - p.50
4.4. Key internal management results - p.82
3.2.4 -Working with Sustainability Partnerships – p.69
TM17 - Just ecological transition
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
125
GRI3 Material
issues 2021
GRI
3 - 3
Management of material issues
Principles
No. 7,8,9
7, 11,
13, 14,
15
2. Our model for adding value to society: Driving
sustainable growth - p.30
3. Commitment to society: Beyond our financial activity -
p.61
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
126
ANNEX GLOSSARY OF ABBREVIATIONS
AEB
Spanish Banking Association
AFD
Agence Française de Développement
AFIF
Alternative Fuel Infrastructure Facility
AIREF
Independent Authority for Fiscal Responsibility
AML/CFT
Anti-Money Laundering/Combating the Financing of Terrorism
APP
Asset Purchase Programme
ASCRI
Association for Capital, Growth, and Investment
BGK
Bank Gospodarstwa Krajowego - The National Promotional Bank of Poland
BIS
Bank for International Settlements
CAPE
Coalition of Finance Ministers for Climate Action
CAPEX
Capital Expenditure
CARI
Reciprocal Interest Adjustment Contract
CBP
Code of Best Practices
CDC
Caisse des Dépôts et Consignations Group - French National Promotional Bank
CDP
Cassa Depositi e Prestiti - Italian National Promotional Bank
CECA
Spanish Confederation of Savings Banks
CEF
Connecting Europe Facility
CERSA
Compañía Española de Reafianzamiento
CESCE
Spanish Export Credit Insurance Company
CNMV
Spanish Securities and Exchange Commission
COFIDES
Spanish Development Financing Company
COI
Clean Oceans Initiative
COP
United Nations Climate Change Conferences
COPER
Operations Committee
CSRD
Corporate Sustainability Reporting Directive
EBRD
European Bank for Reconstruction and Development
EC
European Commission
ECB
European Central Bank
EDW
European Datawharehouse, GmbHG
EFR
Family-Responsible Company
EFRAG
European Financial Reporting Advisory Group
EIB
The European Investment Bank
EIF
European Investment Fund.
ELTI
European Long-Term Investors Association
EPA
Labour Force Survey
EQA
European Quality Assurance
ESG
Environmental, Social, and Governance
ESMA
European Securities and Markets Authority
FCA
Financial Conduct Authority
FCAS
Cooperation Fund for Water and Sanitation
FFCCAA
Financing Fund for Autonomous Communities
FFEELL
Local Entities Financing Fund
ICO GROUP 2022 NON-FINANCIAL INFORMATION STATEMENT
127
FIEM
Fund for the Internationalisation of Enterprise
FINRESP
Spanish Sustainable and Responsible Finance Centre
FOCIT
State Financial Fund for Tourism Competitiveness
FONPRODE
Fund for the Promotion of Development
FSB
Financial Stability Board
GHG Protocol
Greenhouse Gas Protocol
GRI
Global Reporting Initiative
IACL
Capital and Liquidity Self-Assessment Report
ICEI
Complutense Institute of International Studies
ICEX
Spanish Institute for Foreign Trade
ICMA
International Capital Market Association
IGAE
General Intervention of the State Administration
INES
National Status of Security Report
JICE
Joint Initiative on Circular Economy
KFW
Kreditanstalt für Wiederaufbau - National Promotion Bank of Germany-
MAPA
Ministry of Agriculture, Fisheries and Food
MAR
Risk Appetite Framework
MARF
Alternative Fixed Income Market
MITECO
Ministry for Ecological Transition and the Demographic Challenge
MITMA
Ministry of Transport, Mobility, and Urban Agenda
MOOC
Massive Online Open Courses
MRR
Resilience and Recovery Mechanism
NAFTA
North American Free Trade Agreement
NEFI
Network of European Financial Institutions for Small and Medium Sized Enterprises
NFRD
Non-Financial Reporting Directive
NGEU
/NextGen
Next Generation EU
NGFS
Network of Central Banks and Supevisors for Greening the Financial System
OFISO
Spanish Observatory for Sustainable Finance
PCAF
Partnership for Carbon Accounting Financials
PEPP
Pandemic Emergency Purchase Programme
PERTE
Strategic Projects for Economic Recovery and Transformation
PNIEC
National Integrated Energy and Climate Plan
SAECA
State Agricultural Guarantee Company
SDG
Sustainable Development Goals
SFDR
Sustainable Finance Disclosure Regulation
SGR
Mutual Guarantee Societies
SIW
Sustainable Infrastructure Window
SWIFT
Society for Worldwide Interbank Financial Telecommunication
UCM
Complutense University of Madrid
UIMP
Menéndez Pelayo International University
UNED
National University of Distance Education
UNEP
United Nations Environment Programme
UNFCCC
United Nations Framework Convention on Climate Change
General Board
CAYETANA LADO CASTRO-RIAL, SECRETARY OF THE GENERAL BOARD OF THE INSTITUTO DE
CRÉDITO OFICIAL, BY VIRTUE OF THE POWERS ESTABLISHED IN ARTICLE 13 OF ITS BYLAWS,
APPROVED BY ROYAL DECREE 706/1999, OF 30 APRIL,
C E R T I F I E S:
At the General Board session on 28 April, 2022 the following resolution, among others, was
adopted:
1)
Approve the individual and consolidated annual accounts (balance sheet, profit and loss account,
statement of recognised income and expense, statement of changes in equity, cash flow
statement and notes to the financial statements) and the management report of the Instituto de
Crédito Oficial (ICO) for the financial year 2022.
2)
Submit the annual accounts and the management report for the 2022 financial year, together with
the proposed allocation of profits, within one month of approval, for consideration by the Minister
for Economic Affairs and Digital Transformation, who shall approve the allocation of profits,
subject to a non-binding report from the Ministry of Finance and Public Administration to be issued
within ten days of the request.
It is hereby certified in accordance with the provisions of article 19.5. of Law 40/2015, of 1
October, on the Legal Regime of the Public Sector, in relation to article 9.9 of the Institute's Bylaws, which
has not yet approved the Minutes of the session of 20 April 2023.
For the record, to all appropriate purposes, this certification is issued in Madrid on the date of
electronic signature.
Seen and approved by:
THE CHAIRMAN,
José Carlos García de Quevedo Ruiz
STATEMENT OF RESPONSIBILITY
OF THE ANNUAL FINANCIAL REPORT
José Carlos García de Quevedo Ruiz, Chairman of Instituto de Crédito Oficial,
declares that, to the best of his knowledge, the individual and consolidated
annual accounts for 2022, drawn up on March 28, 2023, in accordance with the
applicable accounting principles, give a true and fair view of the net worth,
financial position and results of Instituto de Crédito Oficial and of the companies
included in the consolidation taken as a whole, and that the management
reports, both individual and consolidated, include a true and fair analysis of the
evolution and business results and of the position of Instituto de Crédito Oficial
and of the companies included in the consolidation taken as a whole, along with
a description of the main risks and uncertainties they face.
Madrid, April 24, 2023
José Carlos García de Quevedo Ruiz
Chairman of the Instituto de Crédito Oficial
Código Seguro De Verificación Hh5bFDQSNBULphMchuA5hg== Estado Fecha y hora
Firmado Por Jose Carlos Garcia de Quevedo Ruiz - Presidente Firmado 24/04/2023 12:58:09
Observaciones Página 1/1
Url De Verificación https://verifirma.ico.es/verifirma/code/Hh5bFDQSNBULphMchuA5hg%3D%3D
Normativa Este informe tiene carácter de copia electrónica auténtica con validez y eficacia administrativa de ORIGINAL (art. 27 Ley 39/2015).