Corporate Responsibility

2010 ReportCorporate

Responsibil ity

1 G r u p o B a n c o l o m b i a

David Bojanini GarcíaJosé Alberto Vélez Cadavid

Carlos Enrique Piedrahíta ArochaGonzalo Alberto Pérez Rojas

Carlos Raúl Yepes Jiménez Ricardo Sierra MorenoAlejandro Gaviria Uribe

Rafael Martínez Villegas

Board of Directors

President Jorge Londoño SaldarriagaExecutive Vice President of Services Federico Ochoa BarreraExecutive Vice President of Corporate Development Sergio Restrepo IsazaVice President Personal and SME Banking Santiago Pérez MorenoVice President Corporate and Government Banking Gonzalo Toro BridgeVice President of Finance Jaime Alberto Velásquez BoteroVice President of Risks Juan Carlos Mora UribeVice President of Operations Luis Fernando Montoya CussoVice President of the Treasury Carlos Alberto Rodríguez LópezVice President Mortgage and Construction Banking Luis Fernando Muñoz SernaVice President Legal Department Secretary General Mauricio Rosillo RojasVice President Human Management Jairo Burgos De La EspriellaVice President Audit Luis Arturo Penagos LondoñoVice President Administration Augusto Restrepo GómezVice President Information Technology Olga Botero Peláez

Executives

Grupo Bancolombia a regional financial conglomerate based in Colombia.

2 0 1 0 R E P O R T2C o r p o r a t e R e s p o n s i b i l i t y

IndexCorporate Responsibility Report

Board of Directors and Executives 1Scope and coverage of the report 6Letter from the President 8

I. Grupo Bancolombia We do everything to get closer!

About us 12 Our responsibility in the banking business 16

II. Corporate Responsibility, a commitment of Grupo Bancolombia

Relationship with our stakeholders 20 Government 22 Ethics 23 Commitment to sustainability 23 Progress in the Corporate Responsibility strategy 24 2011 Projection 26

III. Commitment to stakeholders

Commitment to our collaborators Integrated management model 31 - Corporate values 31 - Grupo Bancolombia: a good place to work and leadership model 32 - Leadership brand 33 - Organizational Coaching

Management of the organizational culture 34 - Change management 35 - Recognition programs 35 - Performance management 36 - Building a culture of service 36 Training and development of our talent - Training management 39 - Induction to Grupo Bancolombia 41 - Hands-on training 41 - 2010 development plan 41 - Internal credit certification 42 - Bancolombia Excellence Scholarships 42


Internal communication Well-being for employees and their families 42 - Salaries and benefits 45 - Loans to employees 45 - Insurance 46 - Mutual Fund Investment: Mutuocolombia 47 - Variable Compensation, SVA 48 - Wellness programs 48 - Colegio Fundación Colombia [Colombia Foundation College] 48 - Demographics of Grupo Bancolombia 50

Fundamental principles for the comprehensive development of the employees 53 Labor relations 53 Safety and health 54 Commitment to society Education: backbone of our Corporate Responsibility 58 - Fundación Bancolombia (Bancolombia Foundation) 59 - Fundación Bancolombia Program 62 - Grupo Bancolombia Volunteering 62 - Training programs for volunteers 65 - Financial Education Program 65 - Literacy Comes to Colombia (Las Letras Van por Colombia) 68 - Sustainable Production Projects 70 - Commitment to the victims of the rainy season 71 - Christmas Campaign 2010 71 - We work for the Millennium Development Goals 71 - Our support for Dividend for Colombia Foundation (Fundación Dividendo por Colombia) 72 Institutional Planning -- Culture 78 - Training 80 - Country identity 80 - Branding 82

Corporate Responsibility in Latin America 83 - Bancolombia Panama 83 - Banco Agricola, El Salvador 84 - Bancolombia Puerto Rico 85


Employment generation 85

Commitment to our customers

- Universal Banking Model 86 - Financial services made easier 88 - Inclusive infrastructure 88

Commitment to our suppliers

- Supplier policy 89

Commitment to our shareholders

- Business continuity 90

Commitment to the authorities

IV. Commitment to the environment

Environmental management 96 -- Pillars 96 - Policy 97 - Management 97 - Participation of interested parties 97 - Model 98 - Adherence to protocols 98 - Allies 99

Mission fronts 102

Environmental and social risks 102 - Projects financed 102 - Corporate credit 103 - Real estate leasing 103 - Suppliers 103 Environmental credit line 104 Environmental business model 104 Environmental businesses 104 ESCO model 106 Carbon markets 106 Expert advice to customers 107 Eco-efficiency 107 Power consumption 107 Water consumption 108 Paper consumption 108 Business travel 109 Waste management 110 Other managed resources 112


Support fronts Environmental education 112 - Analysis of social and environmental risks 112 - Corporate eco-efficiency 112 - Environmental businesses 113 - Other programs developed 113

Disclosure 113 - Internal 113 - External 113 Events 114 Campaigns 114 Planting program for the extraction campaign 116

Climate change -- Banco Agricola, El Salvador 119 - Compensation 120 - Fundación Natura 120 - Environmental volunteering 120 - Support for mitigation 120 - Carbon risk in financing 122 - Disclosure 122 - Perspectives 123

Acknowledgments

Corporate buildings - Leed Certification

- Visit to the USGBC 124 - Certification Process General Management 124

Environmental investments

Santa Elena Case

Looking ahead

V. Contributing to economic growth

- Economic value generated and distributed 129


At Grupo Bancolombia, we are committed to advancing our financial activity along with the development and well-being of our Shareholders, customers, suppliers, authorities and the communities in which we operate. Therefore, in 2010, we moved forward in financial inclusion, contributing with our management and our role to caring for the environment and promoting projects aimed, in particular, at financial education.

Our 2010 sustainability report aims to present the progress made on these fronts, what we have accomplished and what goals we have looking forward. We have made progress in strengthening education as the core of our Corporate Responsibility and this year we implement our Financial Education program targeted at children and young people, which will expand and reach a wider audience with different teaching strate-gies.

We are committed to moving forward on this issue, which we consider essential to the development of our communities.

In 2010, we also supported the arts and culture, got involved in social causes, stren-gthened the identity of the country, sought to include more people in the financial sector, generated employment for more than 20,000 collaborators in Colombia and the region, supported our employees and their families to improve their well-being, improved our care and service to customers, carried out environmental management with collaborators, customers and suppliers, and counted on the work of Fundación Bancolombia, among other actions.

Scope and coverageof the report

In this report, we present the actions and progress of our Corporate Responsibility strategy in 2010.


Development Report

After beginning, in 2008, the presentation of our social report using the methodology proposed by the Global Reporting Initiative, GRI, in 2010 we articulated from the begin-ning our Corporate Responsibility management model using the guidelines established in the G3 Guidelines for GRI sustainability reporting and the Supplement for the Financial Services Sector, FSSS, revised and updated in November 2008.

Over the course of this year, we defined the actions of our Corporate Responsibility strategy according to the needs and expectations established in a process of ongoing communication with our audiences. In this report, we present the path we have traveled and goals that have yet to be accomplished.

In the final section, we present the GRI content index, indicators in the economic, envi-ronmental and social areas that apply to the construction of a sustainability report. We commit to continue working using this methodology so that each time we may deliver to our stakeholders a more complete report on our performance with them.

Our 2010 Corporate Responsibility Report is on the website www.grupobancolombia.com.

For any concerns about its content, you can contact usby email at [email protected]

Over the course of this year, we defined the actions of our Corporate Responsibility strategy according to the needs and expectations established in a process of

on going communication with our audiences.


In our day to day work as bankers at Grupo Bancolombia, we work so that each of our actions contribute to the well-being and development of our sharehol-ders, customers, employees and the community. Our primary interest consists of perfor-ming our work in the banking system responsibly and professionally, which is necessary to drive the growth of a society.

Using our mission as a jumping off point, we structured the Corporate Responsibility strategy, whose policy is to make financial activity a factor of sustainable development for society, to promote inclusion in financial services and the development of high-impact social programs, which contribute effectively to building human capital and overcoming poverty and inequality.

Thus, in 2010 we took actions that sought to achieve the financial inclusion of more Colombians by offering financing for small, medium and large companies, insurance pro-ducts to insure the family group and a network of 742 Non-Bank Correspondents, CNB, and 600 Mobile Service Points, PAM, in remote geographical areas, inter alia.

Our environmental commitment was focused on implementing the most appropriate methodologies and tools for assessing environmental and social risks in the financing of projects and in the contracting of suppliers, reducing and compensating our ecological and carbon footprint, and supporting customers committed to a better environment through our product portfolio.

In turn, the core of our social responsibility is financial education. Thus, in 2010 we made significant progress in terms of this objective that aims to teach resource management and personal financial responsibly so that they can progress and achieve their dreams and goals.

Letter fromthe President

In 2010, we took specific actions to promote and contri-bute to the development and well-being of our stakehol-ders: shareholders, customers, employees, suppliers,

government and the community in general, from our fo-cus on Corporate Responsibility: social, economic and environmental.


It is noteworthy that, due to our responsibility and role as agent for the integral develop-ment of the communities, we are committed to apply, in our daily lives, the principles of the Global Compact, the Millennium Development Goals and the Principles of Ecuador, as well as the Dow Jones Sustainability Indexes and the Ethos Indicators. To fulfill this role, we have the fundamental participation of Fundación Bancolombia, which is essential as the main channel through which we conduct our social and community work. We also incorporate its guidelines and principles in the modus operandi of our organization, as evidenced from everything from our corporate values to the processes and the manner in which to advance the business.

We will continue to move ahead with our task of being the engine of development for the societies in which we operate in Latin America and to work to narrow the gaps of inequality and poverty. We undertake this task with all the commitment to bankarization, support and help to people to fulfill their dreams, with the resources to boost the produc-tive and institutional sector of the country, including the development of the Corporate Responsibility activities we have assumed, especially financial education.

Thus I invite you to learn about the scope of our Corporate Responsibility strategy and how we have impacted the social, economic and environmental development of our sha-reholders, customers, employees, suppliers, government and the community in 2010.

Jorge Londoño Saldarriaga President of Bancolombia (1995-2010)

The cornerstone of our social responsibility consists

of taking actions to educate and train communities in managing their finances. In 2010, the Financial Education Program trained 1,660 teachers on financial skills, and they trained more than 48,000 students from 130 public institutions.

We do everything to be closer

We are committed to the development and well-being of the communities in which we operate. Therefore, we develop financial education projects, we encourage cultural traditions and we manage protection of the environment.

GLORIA CECILIA VELÁSQUEZClub de Fotografía

We do everything to be closer

We are committed to the development and well-being of the communities in which we operate. Therefore, we develop financial education projects, we encourage cultural traditions and we manage protection of the environment.


About Us With a clear growth strategy, in 1995, Banco Industrial Colombiano, BIC, made its first big move by becoming listed on the New York Stock Exchange, NYSE, becoming the first Colombian company to reach these international markets. Three years later, in 1998, it bought Banco de Colombia, by which it joined more than 130 years of history and tradi-tion in order to create the Organización Bancolombia [Bancolombia Organization].

With the aim of not only being the largest Bank in the country, but also with a clear vision of consolidating a regional conglomerate that would meet the financial needs of custo-mers in Colombia and Latin America, Bancolombia merged with Conavi and Corfinsura to create Grupo Bancolombia under a model of Universal Banking, the financial conglome-rate Banagrícola, in El Salvador, and strengthened its affiliates in Panama, Peru, Miami and Puerto Rico.

Today, we are working to become a regional financial institution based in Colombia, focusing on the customer. For that purpose, we are upgrading our technology platform and taking actions that allow us to increasingly understand the needs of all those who have entrusted their savings and financial services to us. Because being close always brings good things!

Grupo BancolombiaWe do everything to be closer

Our history has been characterized by growth and leadership, with a clear commitment to offering a full range of financial services and generating deve-

lopment and well-being for our shareholders, employees, customers and the community in general.


History of the Bank 1995 Beginning of the story

The first major strategic move was 15 years ago, in 1995, with the listing of Banco Industrial Colombiano, BIC, on the New York Stock Exchange, NYSE.This important effort made by BIC, which gave it its first issue of ADRs for $63.384 billion COP, more than the $53.432 billion COP added to the retained earnings from 1990 to 1994, was the beginning of another story for the entity and Colombian banks.

1998 Union of two traditionsThe commitment to be a big Bank continued with the purchase in 1998 of Banco de Colombia by BIC, which joined more than 130 years of history and tradition in order to create the Organización Bancolombia [Bancolombia Organization]. In times of difficult for the financial system, with a fragmented banking system and before the dawn of the crisis of the late twentieth century, Bancolombia showed that consolidation and acquisitions were a way to strengthen itself and to offer its customers solid banking. The path was followed later by other institutions.Between 1998 and 2000, the Colombian financial sector experienced great difficulties and its numbers were redu-ced from 136 to 80. In March 2000, Bancolombia achieved a market capitalization of $343 billion COP, of which $178,000 COP from the international capital market due to its position on the New York Stock Exchange, with which it cleared its balance sheet and reached a solvency level of 11%. Since then, the Bank has presented a strong balance sheet and has generated permanent profits, combining growth with strength and Corporate Responsibility.

2005 Consolidation in the domestic marketIn 2005, Bancolombia merged with Conavi, the country’s largest mortgage bank and of which it was a sharehol-der since its inception, and Corfinsura, a specialist in investment banking, which gave rise to Grupo Bancolom-bia, which was consolidated as the first financial institution in the country for its level of assets. It also raised its stake to 20% of the domestic market and allowed it join the major league of Latin American banks by entering the top 20 regional financial groups.The Bank’s customer base grew by about 3 million, the branch network multiplied and the challenges grew in all directions.

2007 The jump to regional banking The next step was internationalization. In 2007, Bancolombia purchased the Banagrícola financial conglome-rate of El Salvador. It was a historic step to retail banking in another country. It also was a great challenge to make a transaction of $900 million COP in cash. When the international crisis first started, Bancolombia fully financed the purchase of Banagrícola in the international capital market and also increased its capitalization.

2010 Sustainable growthWe are an institution committed to community development, meeting the financial needs of our customers, creating value for our shareholders and, of course, contributing to the development of the region and streng-thening our business model in the countries where we operate.


History of a vision Bancolombia has been on the New York

Stock Exchange for 15 years

• ProfitablegrowthisoneofthestrategicpillarsofGrupoBancolombia.

• Internationalizationisatooltoexpandthescopeofthisstrategy.

• Growthhasbeenbeneficialtoshareholdersasitisreflectedinahighernetreturn.

1875 Beginning of the storyEvent Bancolombia began operations.

1945 Event Banco Industrial Colombiano S.A. (BIC) began operations on October 11.

Impact Bank whose principal vocation is corporate banking. Succeeded in consolida-ting a market share close to 4% in the portfolio of the banking system.

1875 Event BIC Panama.

1990 Event Economic environment of the ‘90s.

1995 Event BIC lists its ADRs on NYSE.

Impact This year the Bank successfully completed its capitalization process in inter-national markets, with a capital increase of nearly 12%.

1998 Event BIC acquired and subsequently merged with Banco de Colombia S.A.

ImpactBancolombia S.A. was born. This merger gave rise to the largest financial institution in the country, which reached a share of approximately 14% of the banking system in total assets and credit portfolio.


2000 Event Capitalization

Impact

As part of our reinforcement strategy, our shareholders provided new resour-ces of $343.584 billion COP, of which $177.867 billion COP (52%) are resou-rces from foreign investors.

With this capitalization, a solvency of 11% was achieved, as well as portfolio coverage of 116%, when the industry average was 39%.

2005 Event Bancolombia merges with Conavi and Corfinsura.

Impact

The bank is consolidated with the widest branch network in the country, with market share in excess of 20% and the Financial Conglomerate with the most complete portfolio of services. We position ourselves within the top 17 finan-cial groups in the region.

2007 InternationalizationEvento Acquisition of the Banagrícola S.A. Financial Conglomerate of El Salvador.

Impacto

The Group reaffirmed and strengthened its strategic purpose of international growth. The acquisition of Banco Agrícola incorporated into the commercial structure of the Group a series of international activities that tripled the level of dollar assets that existed prior to the operation.

Currently, we are number 12 in ranking by level of assets of financial groups in Latin America, and if we consider in the same ranking only banks that are not transnational, we are number 6.

1995 2010 Crecimiento

Assets USD 1.85 billion USD 35.9 billion 19 timesShareholders’

equity USD 0.32 billion USD 4.2 billion 13 times

Market share

2.6% No. six among banks in Colombia

20% No. one bankin Colombia 30% No. one bankin El Salvador

N/A

Customers 0.25 million 7 million 28 times

Employees 3,256 21,201 7 timesMarket

capitalization USD 0.67 billion USD 12.9 billion 19 times

Distribution chan-nels

101 branches and presence in 25 cities

901 branches, 2,669ATMs andpresence in 663cities and towns.

N/A

Figures of July 2010.


The banking activity plays a fundamental role in the

development of societies. Its evolution and

development over the centuries has been related to

resource management,

risk and capacity to provide the capital necessary to

undertake new works.

Our responsibility in the banking business From our basic function to raise money from savers to lend to those who request it, at Bancolombia we have played an important social function, because we have mechanisms to assess the level of risk involved in this operation, by which we help to channel the resou-rces of society efficiently.

By approving a loan, whether it is given to a small business or a large infrastructure project, at the Bank we are saying that this project is viable and that the economic resources of society can be allocated to its financing. Similarly, when we deny it, we are saying that the project should be better structured, to prevent its implementation from being a reason for lost or squandered resources.

Thanks to credit, the banks make it possible for people and businesses to purchase the goods they require or to finance their needs with resources that otherwise would take years to accumulate. This is the case of the family who gets its own home or the company that gets the machinery required to increase production and to conquer new markets.

This has happened for thousands of years. In ancient times, a farmer in Mesopotamia could get financing for the costs of his crop, according to the projections of the earnings that he could get with the harvest. In this almost magical work of making it possible for us to enjoy the future in the present, banking has contributed to the progress and development of man-kind. The understanding of the Italian Renaissance, for example, is incomplete if we do not include in its analysis the development of Italian banks, essentially the Medicis, and what they accomplished through the application of Eastern mathematics to financial operations.

In a region like ours, whose countries belong to the emerging world, getting more and more people to have access to financial markets, which is known as bankarization, poses enormous challenges. We have undertaken this task at Grupo Bancolombia with all the conviction of the role we are called to play as an engine of development in the communities in which we operate.

Thus, we have explored schemes to give profitable loans to micro-businesses, we have sought ways to channel in the best possible way the remittances received by Colombians from abroad and we have worked to implement service models that bring financial services to remote populations where it would not be feasible to install a physical branch.

In addition to the function of collecting the public’s money and lending, banks also provide mechanisms for people to move their money and have it available when they need it. For that reason, we put at their service ATMs, the Telephone Branch, the Virtual Branch, Mobile Banking, Non-Bank Correspondents and other schemes.

Finally, as a complement to what is traditionally understood in the banking business, Ban-colombia has converted its network of offices into a very effective channel for selling life and home insurance, among other things, to persons who have not experienced this type of product.


From our Institutional Planning, we foster the values, traditions and customs of the populations of the Latin American coun-tries where we are present: Peru, Pana-ma, El Salvador, Puerto Rico and Miami.


Corporate Responsibility

We are working on the bankarization of more remote populations that do not have financial services, with the conviction that their access to the system will enable them to advance and grow in their initiatives.



We are working on the bankarization of more remote populations that do not have financial services, with the conviction that their access to the system will enable them to advance and grow in their initiatives.


Our Corporate Responsibility is closely related to the corporate purpose of the financial business. Thus, we seek to be immersed in the whole value chain and, to achieve it, we develop initiatives, actions, programs and projects aimed at generating sustainable value for our stakeholders.

Over the course of this year, we took the advice of the Brazilian firm Terra Mater, which supported us in the design of a diagnosis to identify critical factors for sustainability at Grupo Bancolombia. At the closing of this report, we were in the final stage of the project, watching for the results of the process. This study allowed us to get closer to our stake-holders by emphasizing exclusively economic, social and environmental topics proposed in the strategy of Grupo Bancolombia.

Corporate Responsibility, a commitment

of Grupo Bancolombia

Our Corporate Responsibility strategy at Grupo Banco-lombia is based on the generation of social, economic and environmental value for our shareholders, custo-

mers, employees, suppliers, authorities and the community.

Relationship with our stakeholders

Clientes Accionistas Empleados Proveedores Comunidad Autoridades

Más de 6.000.000 de

clientes

Listado en NYSE desde

1995

Más de 22.000

empleados

Más de 4.000

proveedores

Presencia en 7 países

Banco líder en Colombia y El Salvador

BancarizaciónCorresponsales No Bancarios

Puntos de Atención Móvil

Mi NegocioBanca UniversalInfraestructura

incluyenteTrabajo con ONG’S

Principios del EcuadorLíneas

Ambientales

Gobierno CorporativoContinuidad del Negocio

Gestión integral de RiesgosSARLAFT

SOXDJSI

Línea Alimentos OIT

Desarrollo Integral

Relaciones Laborales

Salud OcupacionalProgramas de

FormaciónComunicación

InternaLínea Ética

Pacto GlobalEcoeficiencia

Market PlacePacto GlobalDesarrollo ProveedorFormación

Portal Proyectos de Innovación

Líneas de Quejas y reclamosLinea éticaSitio Web

Análisis de riegos Ambientales y

Sociales

Fundación BancolombiaEducación FinancieraEducación ambiental

Canales de atención cercana

Desarrollo cultural y artístico

Bancolombia más cerca

Apoyo al cumplimiento

normativoDesarrollo territorialObra de

infraestructuraResponsabilidad

FiscalDesarrollo de

política pública.


The main commitments we are developing at Grupo Bancolombia through our Corporate Responsibility strategy are, in particular, focused on three core themes:

1. Create financial literacy and therefore achieve development in the country which is more inclusive, through financial education programs.

2. Facilitate access to the financial system for the low-income population through financial inclusion programs.

3. Reduce the direct and indirect impact of our activity on the environment through environmental and social risk management.

Environmental Responsibility

Economic Responsibility

Social Responsibility


Social risk evaluation in the

chain value

Financial Inclusion

Financial Education

Given the ignorance expressed by different sectors of society about financial operations, which has resulted in high-risk situations such as investing in pyramid schemes and the use of informal financing such as so-called Drop by Drop financing, it is important to develop the financial literacy of our stakeholders.

To achieve this, we have developed our financial education program, defined as the process by which people improve their understanding of financial products and concepts through prompt information tailored to their needs. Healthy financial management de-velops skills and confidence to be aware of the risks and opportunities, allows making

At Grupo Bancolombia, we will continue to be a

development factor in the communities where we are present.


Decisions under the law, knowing where to turn for help and taking effective measures to improve financial well being. But this is not just about knowledge of banking matters, but also about having access to these services. Today, thousands of Latin Americans lack access to financial products. For several reasons, such as their conditions of vulnerability, income, geographic loca-tion, culture and other structural factors, communities that are remote find access to new development opportunities in financial inclusion programs. Consequently, resolving this exclusion becomes a priority for the society and an opportunity for our sector.

To achieve this, financial institutions must provide services that are appropriate for their reality and needs, enabling them to have access to credit through a specialized micro-credit methodology, under better conditions than the unregulated market and, in turn, generate savings programs that accompany the entrepreneurship training.

The development of the financial business allows the institutions in the sector to mitigate the direct impacts of our activity by reducing our carbon footprint generated by the con-sumption of energy, water, paper, business travel and waste management. In addition, it gives us the opportunity to direct our financial resources in a responsible way, through serious evaluation of the environmental and social risks involved in the projects we fund and the investments we make. By looking for appropriate mitigation and management [techniques], we can develop effective long-term relationships with our stakeholders, while improving the environment and quality of life of the communities were we are present.

GovernanceThe implementation of our Corporate Responsibility strategy at Grupo Bancolombia in-cludes all areas of the organization. For our governance program, we have the following structure:

We know the needs and expectations of the public

with whom we interact, in order to offer

effective solutions in the context of

sustainability, ensuring long-term relationships,

ethics and mutual growth.

Environmental Responsibility

Committee Commercial Committees

Board of Directors


CommitteeManaging

Board

Vice Presidency for Environmental Management

Business Areas

Department of Corporate

ResponsibilityFundación

Bancolombia

Vice Presidency for Risks

Commercial Vice Presidency

Vice Presidency for Human Management

Presidency


Through the governance program defined, we seek to ensure that the decisions made are in line with the economic, social and environmental factors that we have defined at Grupo Bancolombia. The business areas have their commercial committees for decision-making to strengthen the established programs. The responsibility committee is infor-med about, discusses and proposes social programs of the organization, especially in the approach to financial education. The environmental responsibility committee makes decisions about environmental and social risks to which the organization is exposed and about green businesses.

Those responsible for making decisions about the topics stated are the vice presidents who are listed in the chart below. The coordination and implementation of the decisions are the responsibility of the departments described.

Through Fundación Bancolombia, we bring the social and community commitment of Grupo Bancolombia to life, through high impact programs. Therefore, the Foundation, which reports to the Vice President of Human Management, has a Board of Directors as the highest authority.

Ethics Ethics, as the foundation of Corporate Responsibility, involves initiatives that seek good governance and conscious actions to achieve the common good.

For us, ethics is a core value for our Corporate Responsibility strategy to make sense. The organization has turned this value into practical knowledge through training pro-grams for all employees and has established different channels for unethical attitudes to be reported and to take actions in this regard. Furthermore, this objective expands to our different stakeholders. We have strengthened these criteria through links to organi-zations like the Global Ethic Foundation.

We work every day to maintain the trust as a financial institution, a challenge and a res-ponsibility that also shows a joint work with all those who are close.

Commitment to sustainability In recent years, we at Grupo Bancolombia have assumed international initiatives that promote Corporate Responsibility, which have become essential guidelines for the deve-lopment of the strategy.

Global Compact: In 2010, we presented the first annual UN report on the pro-gress and actions developed by Grupo Bancolombia in the 10 principles propo-sed by the Global Compact. Website www.globalcompact.org

Principles of Ecuador: In 2010, we presented our evaluation report on social and environmental risks in the financing of projects in line with this protocol. Web-site www.equator-principles.com

Dow Jones Sustainability Index: Over the past two years, we have been invited by the Sam Group to participate in this index. These have been years of learning in which we have consistently improved our performance and we have made progress toward our goal of being including in this list.See results at www.grupobancolombia www.grupobancolombia.com


Progress in the Corporate Responsibility strategyIn accordance with our practice in recent years, under the standards of the Global Repor-ting Initiative, we have developed our sustainability report, in which we present, in detail, the achievements of the various fields of action of our Corporate Responsibility strategy. In this report, we wish to present the progress made in the three core aspects: social, economic and environmental.

In the social component, financial education is the fundamental pillar of our strategy. Since 2008, we have been working to implement programs from Fundación Banco-lombia, focusing on the benefit in the communities, mainly for children and young peo-ple from educational institutions. In 2010, we had 48,035 students and trained 1,660 teachers in four regions of the country. This initiative served as a basis to identify a potential among the other stakeholders, who requested financial knowledge tailored to their needs.

We are interested in sharing our knowledge with the stakeholders and designing pro-grams intended to improve their financial knowledge, which, in 2010, allowed us to reach 1,603 collaborators at Grupo Bancolombia, who took the personal finance course and obtained knowledge that allowed them to have healthy financial habits.

Equally, we are designing proposals for other stakeholders based on the criteria of trai-ning and information, according to the needs of each stakeholder.

In the financial inclusion component, in 2010, we worked with the team of Bancolombia Mi Negocio, which has the challenge of serving micro-entrepreneurs with a microloan portfolio, a savings account and a debit card, which is free for the customer and, also, Bancaseguro, which allows them to insure their family group in order to attain the fo-llowing results:

• 75%ofthecustomersacquiredinsurance,whichallowsthemtoprojecttheirfuturerisks.

• Inaddition,weenrolled17,000newcustomers,ofwhom2,000weregivenanamountof one million pesos or less, thus reaching smaller micro-businesses.

• Today,atBancolombiaMiNegocio,wehave35,500currentcustomers,withpaymentterms of up to 12 months, which allows them not to resort to informal credit sources that are more costly and reduce their quality of life.

• 40%ofthecustomersarewomenwhoaretheheadoftheirfamily.

• WestartedanagreementwiththecompanyBavaria,inordertosupport,withourportfo-lio, the storekeepers of southern Bogota. In just four months, we reached more than 300 storekeepers, with a portfolio of $750 million COP.

• WearealsoworkingonanagreementwithConstruyá,inwhichwesupportmicro-entre-preneurs in the purchase of materials to improve their housing or businesses.

• BancolombiaMiNegociohas21offices in13citiesaround thecountryandvariouspopulations near these capital cities.


In 2010, we implemented our Financial Education Program, so that children and young people from financial institutions have savings and healthy consumption habits. We served 48,035 students and trained 1,660 teachers in four regions of the country.


At the end of 2010, at Grupo Bancolombia, we offered the community a network of 742 Non-Bank Correspondents, CNB, and 600 Mobile Service Points, PAM, in geographically remote areas. Through this network, we are present in more than 500 municipalities and 23 corregimientos. In most of them, we are the only bank that renders financial services, generating development for the country.

We also were able to increase coverage in more than 52 municipalities of Colombia, thanks to the implementation of more than 200 CNB working positions during the year. There, our customers may conduct transactions and check balances.

In turn, from an environmental perspective, we have the best methodologies and tools to evaluate environmental and social risks in the financing of projects and the contracting of suppliers. This has allowed us to generate policies targeted at analyzing these impacts and making decisions to mitigate and handle them appropriately with our customers and supply chain. In 2010, we evaluated 17 financed projects, 7 leasing operations and 31 suppliers, identifying various levels of risk, establishing conditions for disbursements and contracting, and denying financing to projects or closing the generation of purchase orders, when we do not find compliance with regulations and good practices in social and environmental matters.

2011 ProjectionWe will continue developing the Corporate Responsibility strategy, starting initiatives to reinforce our fronts of action defined in the social, economic and environmental areas.

On the financial education front, we have developed programs tailored to the needs of the customers of Grupo Bancolombia, suppliers, authorities, employees and other segments. We will continue with the financial education program, in which we have pro-gressed in various educational institutions of the country, both public and private, and we will reach an additional 82 institutions, for a total of 209.

With this strategy, we are striving for the financial education program implemented by us with various stakeholders to impact their behaviors and decisions in the present and in the future, allowing them to understand and analyze the effects their decisions may have.

In 2011, financial inclusion will be a fundamental topic for the development and growth of our business. At Bancolombia Mi Negocio, we hope to open five offices in new towns in order to achieve better coverage and growth. One of our challenges is to continue increasing the base of current customers and work on the optimization of our portfolio for the micro-entrepreneur.

We are also working to develop a diploma for micro-entrepreneurs, to allow them to increase their generation of value in their offering to the customer. We hope to expand the agreement with Bavaria for all locations where we are present today and thus con-tinue contributing to the growth and sustainable development of storekeepers and their families and also to consolidate the agreement with Construyá.

Our efforts will continue with the bankarization programs, where we maintain the growth rate in the coverage of the network of Non-Bank Correspondents and Mobile Service Points throughout the country.


We will strengthen our relationship with our strategic partners, such as, for example, our Non-Bank Correspondents, to offer them tools to improve the attitude, service and strength in the bonds of trust and relationship with our customers.

Regarding the assessment of environmental and social risks, we will continue with the processes of analysis in project financing, investment bank consulting, real estate lea-sing and investment of private capital funds. In turn, we will participate in the ongoing strategic review on the Principles of Ecuador, coordinated by the managing board of this association. With this, we will reinforce our results, given the commitments assumed by adhering to the Global Compact and the Principles of Ecuador.

Being consistent with our stated purpose in the area of partnerships for sustainability, we hope to apply again during this year to the Dow Jones Sustainability Indexes, and our goalwillbetobelistedinthisimportantindexthatclearlyreflectsourprogressinthefield of sustainability, allowing us, in turn, to have a comparison and a reference scheme with the rest of the global financial sector in these matters of vital importance for the development of nations.

With this comprehensive approach of our Corporate Responsibility, we invite our share-holders, customers, employees and the community in general to learn, in detail, about the progress made in terms of sustainability in 2010, which they can find throughout this report, prepared on the basis of the standards of the Global Reporting Inititive, GRI.


Commitment to our stakeholders

We supported education through programs, such as Las Letras Van por Colombia, which reached 65 institutions and delivered 12,000 books for 40,000 students.


Commitment toour stakeholders

At Grupo Bancolombia, we are committed to the development of our stakehol-ders in the countries where we are present. We present below the actions we carried out in 2010 to contribute to their development and well-being.

Commitment to our collaborators

Every day, we reaffirm our commitment to our colla-borators and constantly work for their development, because we are convinced that the growth of Grupo

Bancolombia and its contribution to the countries where we are present in the region depends, to a great extent, on human talent. Only with the best people will we built a better company and a more prosperous society.


Integral management model

At Grupo Bancolombia, we are characterized by the fact that we have proud, satisfied employees who are happy to be part of this team, with the required skills, in the right place and at the right time.

As a fundamental premise, we consider that the higher sustainable advantages come, to a great extent, from the persons and the organizational culture. Therefore, it is our res-ponsibility to work day to day with the goal of the human talent of our employees being managed in an integral manner, so that they find, at Grupo Bancolombia, a great place to work and also a space for professional and personal growth that would allow them toachieveabetterstandardofliving,whichisreflectedintheirfamilyandinthecontri-bution to the development of Colombia and the other countries where we are present.

Such being the case, our purpose is to attract, keep and develop human talent who are characterized by their sense of leadership and teamwork, with pride and a sense of belonging that would allow them to work in line with the strategy of Grupo Bancolombia and, therefore, contribute to its growth and that of the country.

The skill model is the conceptual principle guiding the Human Management of the Group, which articulates all the processes that accompany the employee’s working life and the actions that contribute to balanced professional and personal growth.

Thus, the valuable, meaningful work, the style of our leaders, the development of the career, the harmony of the labor relations, the constant search for the balance between workandpersonal life, theflexibleschedules,ourrecognitionmodel, theopportunityfor continuous learning, the generation of value for all our stakeholders through ethical, transparent actions committed to the country and the interest in contributing to the cons-truction of a better country for the new generations are part of the pillars of our proposal of value to attract and keep the best human talent.

Corporate values

Our objective is to have work teams made up of motivated persons who are interested in developing their capacities and aware of the importance of our corporate values, which characterize us as employees of Grupo Bancolombia.

• Service attitude. We are polite, punctual and efficient in rendering

Our integral management model is the way that we, at Grupo Bancolombia, conceive and work so that our employees can develop their skills, feel motiva-

ted and have personal and professional knowledge.

At Grupo Bancolombia, we strive for the

human talent of our employees to be managed in an integral manner, so that they find, at the organization, a great place to work and also a space of professional and personal growth that allows them to achieve a higher standard of living.


• Positive attitude. We enjoy what we do and are constantly looking for opportuni-ties.

• Highperformance.We continuously exceed our goals and optimize the use of resources to create value.

• Trust.We generate credibility and handle information responsibly.

• Integrity.We operate according to the most stringent ethical and legal principles.

• Customerfocused.We build long-term relationships with our customers, who are our reason for being.

• Respectforpeople.We treat people with dignity and value their differences.

• Socialresponsibility.We are a factor of sustainable development of the commu-nities where we are present.

• Teamwork.We value and encourage the contribution of the people to the achieve-ment of the common goals.

• Transparency.We work in a clear, consistent and prompt manner.

Grupo Bancolombia: a good place to work and a leadership model

The national and international recognition of our companies of Grupo Bancolombia is a differentiating element and becomes a focus of management to make our companies good places to work. The labor climate became a competitive advantage to attract and keep talent.

We are committed to developing a leadership style that is effective and consistent with the brand and the values that generates value for our target stakeholders and make it possible for the employees and the business to grow. We have been building this model for more than ten years, along with training, teamwork and a focus on results and on the customer, creating camaraderie and pride, attributes that permanently give incentives to Grupo Bancolombia to reach the goals proposed. The results of our performance are shown in the positive indicators of each company of the Group, as well as in the ascen-ding and descending performance evaluation.

In 2006, 2008 and 2010, we participated in the research conducted by the Great Place to Work Institute on work environment and relationship among collaborators of Grupo Bancolombia, with excellent results and with an increase in the “place to work” index of more than seven points. This stresses the performance and efforts we make, in the work teams, to improve the labor climate through plans of action that are clear, measurable and achievable over time, with the help of the Vice President of Human Management. Par-ticipation in the evaluation of Great Place to Work is defined for every two years, because we consider that the development of culture and management of the work environment requires long-term programs

This study includes variables, such as: pride to work for the company, trust (relationship withsuperiors)andcamaraderie(relationshipbetweencolleagues),whicharereflected


in our open communication style, our ongoing training, our respect for others and our constant desire to make the companies spaces where the collaborators develop from a personal and professional viewpoint.

Our work in this aspect was also recognized in 2009 and 2010 by the company Monitor Empresarial de Reputación Corporativa, Merco. For the second time, we were part of the list of companies with the best reputation in our country, and we are leaders in the finan-cial sector category. The international consultant Hewitt Associates, Fortune magazine and RBL Group found us outstanding at Bancolombia because we are a company that has practices allowing for the development of people, with a vision towards the future and because we add value in conducting the business and the people.

Another aspect we deem fundamental to building and reinforcing our culture and having a good workplace is the way we support the leadership. For this purpose, we have focu-sed on reinforcing it based on the values of respect, teamwork, empowerment and the participation of our collaborators. Thus, we seek to promote the development of human talent and the generation of value for all our stakeholders.

Leadership Brand

The initiative to build a Leadership Brand at Grupo Bancolombia came from the need to reinforce the way we are perceived by our stakeholders, in other words, our customers, collaborators and their families, investors, authorities, suppliers, communication media and the community in general.

OurLeadershipBranddefinestheidentityofourorganization,anditsattributesreflectour differentiating seal:

“We, the collaborators of Grupo Bancolombia, are expert consultants, optimis-tic and flexible, who build relationships of trust and closeness with our stake-holders, supported by excellence in the performance and the development of outstanding people and teams, in order to enable the business to evolve towards an avant-garde vision, so as to create sustainable economic, ecologi-cal and social value.”

We have developed this matter since 2009 with the consulting of the firm The RBL Group, and, during various evolution stages, we had the participation of various persons, both from the Group and from outside it: from the vice presidents, executives and colla-borators of various areas to suppliers and customers. It has been a collective construc-tion that, today, is in the diffusion stage.

In this phase, we rely on the leaders of our teams to facilitate our awareness within the organization of the way we want to be perceived and to act accordingly. For this purpose, we built a Leadership Brand declaration to serve as a compass to guide the processes related to people.

In 2010, we spread this message within the organization using various strategies: the marketing campaign De Mí Depende Darle Sentido a lo que Hago [It Depends on Me to Give Meaning to What I Do], the coaching workshops targeted at the executives of the Group and the informative talks in the communication circles of various sections. Equally, from the Vice Presidency of Human Management, we articulate the management initiati-ves for the year, according to the attributes of the brand.

We are among the

10 best companies to work for in Colombia, according to the Great Place to Work study. This recognition fills us with satisfaction but, at the same time, motivates us to continue working towards a good labor climate and the satisfaction and growth of our employees.


61% of the executives

of Grupo Bancolombia were trained in

Organizational Coaching.

Organizational coaching

In order to consolidate our management style at Grupo Bancolombia and to give conti-nuity to the training of all the leaders of this organization in this philosophy and mana-gement technique, we certified 55 collaborators as coaching facilitators. In previous years, the training of the leaders was given by a consulting company, and, starting in 2010, it was the responsibility of this team of facilitators, which received more than 100 hours of training.

Between May and December 2010, and thanks to the support of this network of facilita-tors, 575 executives of Grupo Bancolombia, representing 21% of the total population of executives, were trained to help their teams in developing skills and in achieving personal and organizational objectives, through the application of Organizational Coaching. In this way, long-term organizational capacities are built and are able to achieve outstanding and sustainable results.

To date, 61% of the total numbers of executives of the Group were trained in Organiza-tional Coaching, and it is planned to cover one hundred percent in the next two years.

We are working together with our executives for

the Leadership Brand to be our identity in the

way in which we relate and act at Grupo Bancolombia.

Management of organizational culture

Our organizational culture is the common way for us to express ourselves and live with others in our daily work. For this reason, at Grupo Bancolombia,

we take actions to reinforce it, based on our values and identity.

At Grupo Bancolombia, we consider the development of human talent to be one of our critical success factors and, in order to achieve it, we have important strategies focu-sed on reinforcing the organizational culture as the construction of appropriate work environments, where respect and teamwork, training and qualification programs, corpo-rate scholarship for study abroad, workshops to develop skills, such as leadership and working in teams, interventions in change management and recognition events, among others, prevail.


Change Management

The Change Management model, which was established two years ago, was mainly de-ployed in 2010 in the program Transformación del Negocio [Business Transformation], Innova, which enabled, through said strategies of sensitization, preparation and stabi-lization of each new process, the collaborators of Grupo Bancolombia to learn about the transformation of the business and for some of those who were directly involved to participate in its startup.

In addition to its work in the Innova program, the Change Management team advised other projects that were important for the organization, such as the sale of assets and liabilities of Sufi to the Bank, the integration of Leasing – Renting, the Private Banking project, the transfers of the Headquarters from Cali and Cartagena and the implementa-tion of the Centro de Servicios Compartidos de Mercadeo y de Canales [Marketing and Channel Shared Service Center], among other things.

Nearly 1,500 collaborators participated in Change Management activities such as con-versations and workshops, the objective of which was to obtain a better understanding of the transformation process for collaborators and to take maximum advantage of the positive opportunities for learning and growth brought by them.

Recognition programs One of the priorities of the organization is to recognize excellence in the performance of the collaborators, not only in achieving results but also in living the values.

In addition to the initiatives of each leader to support a good work environment and mo-tivate his teams, at Grupo Bancolombia we have corporate activities that seek to stress the characteristics of our collaborators and their commitment to the development and achievement of corporate strategies.

• Our Pride (Nuestro Orgullo) The fourth version of the Our Pride event was inspired by the celebration of the

Bicentennial of the Independence of Colombia under the concept of Freedom, to recognize 144 collaborators coming from Barranquilla, Bogotá, Medellín, Bucara-manga, Cali, Cartagena, Santa Maria, Miami, Panamá and Puerto Rico, which were outstanding due to their leadership style, their integrity, their openness to change, their social responsibility, their sense of efficiency and their excellent service. They enjoyed a recreation and recognition event with the participation of executives of the Group.

• Convention of the Best (Convención de los Mejores) Convention of the Best is a very important event at Grupo Bancolombia, because

it brings together those who were outstanding during the year as the best in com-mercial performance and in service to our customers. With this event, and in an en-vironment of brotherhood, friendship, fun, rest and social activities, our champions are treated like big stars.

Thanks to the commitment and dedication of our commercial team, we are recog-nized as leaders in the financial sector as a company focused on improving the quality of life of our customers and with a clear sense of social responsibility.

At Grupo Bancolombia, we organize three big

recognition events for our employees: Our Pride, which stresses team value and work; Convention of the Best, attended bythose who reach the commercial goals and the BancaSeguros meeting for the best salespeople.


In 2010, more than 350 employees were rewarded at the Convention of the Best for their commercial work and their commitment to service.

• BancaSeguros Savings and Consumer Meeting Each year at Bancolombia, we organize the Bancaseguros Savings and Consumer

Meeting, where we recognize the effort and excellence of the collaborators who implement this strategy. These great salespeople were received in San Andrés to recognize their commitment, sacrifice and business dynamics.

Performance management

This is a systematic and periodic communication process by which we manage the con-tribution of the collaborators of Grupo Bancolombia, from an integral approach to the person: being, knowing and doing.

This process consists of two formal moments:The ascending evaluation, in which the collaborators have the possibility to give fee-dback on the leadership style of their superiors. This tool guides their professional and personal development and helps improve their performance. In 2010, we reached a participation of 95% at Grupo Bancolombia.

The descending performance evaluation is the appropriate moment for our exe-cutives to reinforce their relationship with their collaborators, give them feedback on their performance during the year and share the expectations of both. Based on this evaluation, we determine a plan for individual improvement and help to develop skills based on the agreement on the goals we must set for ourselves as collaborators of Grupo Bancolombia. In this meeting between executives – collaborators, the elements of Organizational Coaching arise and are reinforced. The level of participation was 99% at Grupo Bancolombia.

The information obtained through feedback processes allows us to define the deve-lopment plan for training programs, the recognition plan, the annual salary increase for administrative positions, the granting of loans and, in general, the development of possibilities.

Building a culture of service Continuing with the service strategies we have mobilized since 2009 under the concept De Mí Depende [It Depends on Me] and based on the desire to make the service a di-fferential factor for Grupo Bancolombia, in 2010 we put in place a series of actions in order to be able to perceive this fundamental aspect in our daily activities, which is also a strategic guideline.

For this purpose, we deployed permanent and comprehensive actions intended to posi-tion the commitment to service in the minds and conscience of all collaborators. One of the campaigns we developed consisted of promoting, for 21 days, the practice of the values that constitute the fundamental principles of our Leadership Brand. The subse-quentchallengewastoputthemintopracticeinourdailylifeinordertoreflectinourorganizationchangesinflexibility,learning,will,optimism,commitment,confidenceandcloseness, which are values assumed by each of one in all our behaviors towards collea-gues, friends and customers.


For us, Convention of the Best is one of the most important events for re-cognizing collaborators, because it brings together those who, during the year, stood out as the best in their bu-siness performance and service.


Resultsofthestrategy:LaHoradelaVerdad 1. 1More than 270 persons shared their positive experiences using the change handle

and the impact on their personal life.

2. We showed on video six cases of service set up by the theater company Acción Impro, so that everyone could write the possible solutions proposed for these si-tuations. We received 405 solutions, from which we selected the best to be shown again at the end of February 2011.

The cases shown were: Handling difficult customers, quality consulting, customer-focused processes, commitment to safety, construction of relationships of trust and closeness with customers, as well as learning more from our affiliates about our customers and colleagues.

3. We delivered the La Hora de la Verdad kit, with recognition and service tools, to

more than 2,000 executives of Grupo Bancolombia. The kit contained:

a. a. Recognition totem: It allows rotating the values for which the collaborators in each area are recognized. The idea is that the executives rely on this piece in order to recognize the members of the team who are outstanding in living the valuesofthecampaign:commitment,optimism,flexibility, learning,trustandcloseness. Today, all executives who received it are rotating in the recognition in their teams.

b. Game to build a plan for service improvement in 2011.

c. Invitation to creatively build the plan for improvement in internal service in order to then share it with the entire organization on the Intranet. Some ideas are: songs, poetry, videos, among others. The idea is to have all business, adminis-trative and operating teams participate.

In this sense, in 2011, we will continue building a service culture starting from a polite and cordial attitude in behavior, in the willingness and interest that is demonstrated to learn about, attend to and resolve the needs of our customers, as well as the knowledge and preparation of the business.

To achieve it, we are going to: • Reinforcetheprofessionalconsultingof theemployeesof theBanktooffercus-

tomers the right products and services, according to their needs, expectations, preferences and behavior.

• Segmentthetelephonechannelandthecomplaintsandclaimsprocess.

• Fosterthesenseofbelongingandfeelingofprideaboutbeingbankers.

• Designingcertificationprogramsforthebusinessteams,appropriatefortheneedsof the market and our customers.

Lastly, we are committed to make financial services easy so that, based on operating exce-llence, we may guarantee a positive experience in the service, from the time the customer

With the La Hora de la Verdad

[The Moment of Truth] strategy, more

than 270 people shared their positive experiences using the change handle.

Service strategies allowed us to

increasingly be an organization where values

and principles are experienced, with collaborators who are

willing to be integral persons and with actions that are ultimatelyreflectedinthe

satisfaction of our customers.

We delivered the La Hora de la Verdad kit to

more than 2,000 executives of

Grupo Bancolombia.


Training and development of our talent

The permanent training and development, as a perso-nal project of each collaborator, constitutes funda-mental pillars of our culture at Grupo Bancolombia.

To have the best human talent, we support the integral development of the skills of the employees and the management of organizational culture.

In 2010, we invested about $6,546,804,998 COP in the development of our collabo-rators. This figure translates into 180,934 participations in training programs, i.e. on average, each collaborator received eight courses that facilitated the improvement of their skills and competencies.

As compared to the prior year, the amount invested was lower by $198 million COP and thefigureofparticipationsincreasedby108,362,equivalentto59.89%,whichreflectsa more efficient use of resources.

Training management Our annual training plan is carried out by face-to-face and virtual methods, which are based on the pillars of culture, business, processes, risk and finances with the following behavior:

Pillar Percentage

Risk 36%

Culture 33%

Business 18%

Processes 10%

Finance 3%

Furthermore, face-to-face training programs are classified into:

Internal programs: Developed by employees who play the role of facilitators.

External programs: Defined for certain groups of the organization with the support of external facilitators.

Extension programs: Open programs, coordinated by universities, specialized institu-tions and national and international consultants, in which the collaborators enroll.

requests the product to the time he actually receives it. This must be based on the premise of guaranteeing an agile, prompt, efficient process with good customer service.


The distribution of the participations in these programs was:

Program Percentage

Internal 70%

External 23%

Extension 7%

The investment in these programs, represented by payment of fees to external suppliers, was:

External Programs Extension Programs

$1,265,092,267 COP $1,862,782,287 COP

In 2010, 88% of the participations were through virtual programs which represented an improvement in the levels of efficiency of the learning processes and the coverage of the contents.

The total investment in virtual programs in 2010 was

$236.352.309.

Number of participations in virtual programs

Company Virtual

Bancolombia 127.126Banca de Inversión Bancolombia 529Factoring Bancolombia 631Fiduciaria Bancolombia 2.387Valores Bancolombia 2.883Leasing Bancolombia 3.967Proyecto Innova 3.751Sufi 3.150Other affiliates/foreign affiliates 12.694Outsourcing 279Grand total 157.397

As compared to 2009, there was an increase of 49,844 participations, equivalent to an additional 68.33%.

Number of participations in face-to-face training

Company Face-to-face

Bancolombia 18.514Banca de Inversión Bancolombia 188Factoring Bancolombia 349Fiduciaria Bancolombia 1.114Valores Bancolombia 812Leasing Bancolombia 678Proyecto Innova 1.304Sufi 297Other affiliates/foreign affiliates 169Outsourcing 112Grand total 23.537

As compared to 2009, there was an increase of 3,791 participations, equivalent to an additional 19.19%.


Induction into Grupo Bancolombia Induction is the first training program encountered by recently hired persons at the orga-nization. Its objective is to facilitate for the participants the understanding of the organi-zational culture, so that their future development is in line with the strategic direction of the Group.

The number of participations in 2010 was:

• Face-to-face induction

• Virtualinduction

No. of Participants

Grupo Bancolombia 2.320

No. of Participants

Grupo Bancolombia 898

Hands-on-training The participants are the collaborators appointed in critical positions for customer ser-vice in branches, in order to train them in handling the products, processes and tools.

Company No. of Participants

Training to tellers 856

Training to assistants 164

Training to advisors 193

Total 1.213

Development plan In 2010, we continued the Development Plan strategy, with the goal of promoting the concept of the employee as the protagonist of his growth, since it is the collaborator that selects the programs in which he will participate, depending on his knowledge, needs for improvement and training plan assigned to him.

Programs of the development plan in 2010

Programs of the development plan Number of participants

Cash in dollars 70

International trade for offices of legal tender 299

Training of sales teams 435

Commercial training for managers 686

Mentoring management 361

Graphology and fingerprinting 369

Total 2.220


Internal Credit Certification In 2010, 21.41% of the Area managers, Branch managers and executives passed the Internal Credit Certification program, which allowed them to determine the level of their knowledge and consolidate their skills in handling credit risk, a fundamental technical competence for the success of our business. Taking into account that in 2009 we cer-tified 69.39% of the managers, we achieved an indicator of 90.81% of certifications for these positions between 2009 and 2010.

Bancolombia Excellence Scholarships The objective of our Bancolombia Excellence Scholarships program is to offer advanced training abroad to employees with outstanding performance and projection in the organi-zation.

Under a rigorous analysis, which refers to criteria of performance, commitment, projection of the collaborator in the Group, seniority and relevance of his study leave of absence, at Grupo Bancolombia we sponsor the development of outstanding collaborators through the Bancolombia Becas Excelencia program, which has several types of scholarships: Fulbright, London School of Business and Finance, the CFE scholarship, that of Turin and Milan, and the scholarship of the University of Leipzig in Germany and the Corporate Scho-larship, the latter allowing the candidates to study in Europe and Australia.

In 2010, we selected four collaborators of the Group to travel to the United States with the Fulbright Scholarship, five collaborators traveled to London to the London School of Busi-ness and Finance and five additional employees obtained corporate scholarships to study for master’s degree and MBAs at prestigious universities in Australia, Spain and London.

The total investment in the scholarship program was $409,234,504 COP.

The objective of the Bancolombia

Becas Excelencia [Excellence Scholarships]

program is to offer advanced training abroad to employees with outstanding performance

and projection within the organization.

Internal communication

At Grupo Bancolombia, we are convinced that com-munication is the best tool to integrate, inform and promote the participation of our collaborators in

Colombia and in the countries where we are present.

We are aware that the best way to integrate our nearly 22,000 employees in the regions ofColombiaandthecountriesofLatinAmericawherewearepresentisthroughfluid,respectful, simple and close communication.


The challenge of an organization like ours, which, in addition to having a large number of employees, is permanently growing and evolving, is to have innovative communication thatreflectsitsreality.Forthisreason,in2010,weorganizedactionstargetedtooffermeans for our employees to participate at the new home page Inform@te, with informa-tion in real time on the key facts of the organization and space for our collaborators to participate with their opinions and comments concerning the life of Grupo Bancolombia. Furthermore, on the Intranet, we have collaborated sites for the protagonists themselves to tell us what is happening and thus generate communication that is not only directional but also collective, in which all and every one can participate and be protagonists.

In each of our means of communication, we try to tell stories, in a warm, close manner, which integrate and represent our people in the places where we are. Thus, we have structured a portfolio of mass media communications for the entire Group and speciali-zed for internal communities, by different electronic, audiovisual and printed channels.

Our communication management helps integrate the collaborators, report the realities of the teams and of the business, keep all employees informed about the dynamics of the organization and bring the groups together around the vision and strategy of the business.

We will continue providing communication spaces, innovative means and contents that reinforce our organizational culture and identity.

• Corporate Portal. In 2010, we advanced in the consolidation of the project of Massification of the Corporate Portal, where we created 19 sites for vice presi-dents and units, 8 for Group affiliates, 40 corporate site with fundamental topics for the management and development of the community of Grupo Bancolombia and 71 private sites for the use and interaction of the members of each area. We stress the collaborative areas created at the sites to generate interaction and communica-tion spaces between the employees.

• [email protected] is the name of the information page to which most employees of Grupo Bancolombia have access. There, they find information in real time about what is happening in the business, in the regions and with the people. It also allows us to interact with the employees and find out their opinions on various topics.

• Specialpodcast.Every Monday, we present to the collaborators of the Group the summary of the news in five minutes, narrated in the manner of radio news. This is the opportunity for the collaborators to hear the news while performing other acti-vities, in an innovative manner. In this content, we include interviews and the voices of the protagonists who complete the news with their testimonies. In addition to the podcast, we present a special of the week, where we analyze an economic, political and social event in a pedagogical manner, which impacts our business as a way to contribute to the financial education of our collaborators.

• Corporate Communications. This is an electronic bulletin published daily that tries to integrate in a single email the latest information published in the various information systems. Its permanent consultation allows the collaborators of the


Well-being for employees and their families

The employees of Grupo Bancolombia have benefits that give them better economic options, sports, re-creation, among other things. This contributes to the

achievement of their dreams and those of their families.

Our benefit system is inspired from our commitment to our collaborators, to offer them a series of alternatives that add value in an environment of trust and respect, ideal for maximum deployment of individual and collective talent, allowing them to develop as persons and professionals, as well as reaching higher performance levels. In addition, in this fashion, we effectively contribute to the achievement of the corporate objectives and make our employees enjoy their stay at the entity even more.

We consider that the growth and development of our employees is decisive for them to feel motivated and, to the same extent, to give the best of themselvesto the organiza-tion and the country. For this reason, we take care of providing and allowing for better opportunities in terms of study, sports, recreation, culture and activities that contribute

Group to have the records, day by day, of corporate news, information letters and circulars, regional and national events, press information, classified, financial infor-mation and other relevant topics at Grupo Bancolombia.

• En Familia Magazine. This is a publication addressed to the families of the colla-borators of Grupo Bancolombia as a means of coming close to the homes and to position the organizational culture, report on current events related to the actions of the Group, present the opinion of the collaborators and protagonists of the sto-ries and teach through content that contributes to improving the quality of life of the employees, their families and the community.

• CorporateCommunicationsEmail.This allows us to send key information to guarantee the continuity of the business and to report on specific topics on the latest events or send segmented messages to each audience.

• VirtualBulletinBoards.At the headquarters of the General Management, in addi-tion to other administrative headquarters where almost 4,000 employees work, we have an audiovisual means by which we transmit ample content, prepared accor-ding to the information needs of the community. In addition to current news, we also deal with topics of well-being, campaigns, economic figures, service and we directly transmit internal events, among other things.


to the achievement of their dreams.

The first condition is to have an appropriate work environment for growth and learning, based on the respect of the person, solidarity and service. In addition, we have very good work conditions, as indicated below.

[margin:] We consider that the growth and development of our employees is decisive for them to feel motivated and, to the same extent, to give the best of themselves to the organization and the country.

Salaries and benefits

At Grupo Bancolombia, the persons are the key to success, and we work every day to keep the employees proud and satisfied. For this purpose, we permanently support the competitiveness of the salaries we offer and improve in real terms the income and purchasing power of our collaborators, as an additional commitment to the well-being and growth of our human team; these conditions are indispensible to achieve the stra-tegic purposes we have set for ourselves.

Salaries and benefits*

Item Grupo Bancolombia Bancolombia and Affiliates

Total paid in salaries and benefits 63.742

Social security contributions 125.566 6.687

Para-fiscal contributions 53.952 280

Variable compensation 64.332 22.043

Assistance to personnel and others 142.687 6.012

Retirement pensions 10.824 602

Total investment 1.134.331 99.365

[*] Figures in millions of pesos.

Loans for employees

At Grupo Bancolombia, we significantly contribute with a novel system of benefits, offering our employees preferred rates for lines of credit, thus allowing them to achie-ve their goals and improve their living conditions and those of their families.

Line Number of employees Amount

Vehicle 986 31.793.´871.305

Housing 1.296 86.062´524.568

Disaster 96 514´950.500

Consumption 2.671 13.043´831.125

Education 398 2.144´708.168

Total 5.447 133.559´885.666

In 2010, we disbursed

133,559,855,666 loans for housing, vehicles, study, disaster and consumption for our collaborators.


Comparative graph of loans approved and disbursed in 2008, 2009 and 2010:

Education loans

Disaster loans

Loans for personal purposes

Loans for housing

0 500 1500 2000 2500 3000 35001000

2010 2009

Loans for vehicles

2008

398425

297

96120154

2.6713.305

3.219

986750757

1.2961.2021.186

Loan type Customer rate Employee rate

Consumption - personal purposes 1.45% matured month DTF

Loans in pesos for low-cost housing 12.68% EA 7.30% EA

Loans in pesos for housing above low-cost 12.68% EA 9.00% EA

Loans in UVR for low-cost housing UVR + 9% UVR + 2%

Loans in UVR for housing above low-cost UVR + 9% UVR + 4.50%

Insurance

We are committed to the well-being of our employees and their families and, therefore, we contribute significantly to facilitate access to comprehensive health plans.

Contribution for health protection Value in millions2010

% Contribución año 2010

Contribution of the Organization 15,207 59%

Contribution of the Employees 10,551 41%


Other Insurance Employees and beneficiaries

Aporte organización (millones año

2010)

Aporte empleados (millones

año 2010)

Automobiles 4,406 $1,848 COP $3,716 COP

Group life (employer) All with affiliates $1,574 COP $0 COP

Personal accidents (employer) All with affiliates $298 COP $0 COP

Group life and employee income (voluntary) Employees: 3,258 $0 COP $1,167 COP

Group life and spouse income (voluntary) Spouses: 1,170

Life (housing debtors) 1,150 $0 COP $107 COP

Fire (housing debtors) 1,058 $0 COP $132 COP

Habitat 722 $118 COP $158 COP

All premiums paid 0 $3,838 COP $5,280 COP

Mutuocolombia Mutual Investment Fund

The main objectives of the fund are:

a. Encourage employee savings.

b. A stronger relationship between employees and companies of the Group through bonds of mutual participation and collaboration.

c. Employees benefit from the contributions of the companies and the yields obtained

by the fund in its operations.

We highlight the main figures achieved this year:

Companies Total affiliates

Affiliates’ contribution

(millions)

Employees’ contri-bution (millions)

Bancolombia 9,931 $11,844,424,761 COP $3,708,657,350 COP

Business lines 1,246 $2,013,947,753 COP $666,295,746 COP

Total 11,177 $13,858,372,514 COP $4,374,953,096 COP

Affiliates additional health plans Number of affiliates in 2010 % 2010

Employees 9.840 39%

Relatives 12.485 50%

Parents 2.824 11%

Grand Total 25.149 100%


Variable compensation, SVA

The variable compensation plan Sistema de Valor Agregado, SVA [Value Added Sys-tem], works as a guide for the corporate strategy and links all collaborators in striving for a common goal: Generating value for the various stakeholders of the organization in a sustainable manner.

In 2010, we decided that as of the second half of the year, first level collaborators of Banco Agrícola would be incorporated in this variable remuneration plan that allows aligning the interests of the shareholders with those of the employees.

Approximately 5,034 collaborators of the Group participated in SVA in 2010.

Well-being programs

The main purpose of our well-being programs is to bring alternatives for the construc-tive use of the free time of the employees, retirees and their core family group through activities and programs that support their integration and togetherness.

Activities:

• Formative and cultural: Musical groups, art workshops, dances, among others.

•Recreational:Family events, recreational vacations, observation caravans, many games, among others.

•Sports:Internal and external tournaments, teaching sports disciplines, gyms.

• Social and integrating: Commemoration of old branches and staff, year-end integrating activities for the collaborators and their families.

These programs strengthen our organizational culture and become effective change strategies to achieve self-realization and personal fulfillment, in the search for quality and excellence as individuals.

Colegio Fundación Colombia

Colegio Fundación Colombia, designed from its inception as an educational institution dedicated to educating the children of the employees of Grupo Bancolombia in Bogo-tá, has been established over 38 years of work as one of the schools with high levels of education. Its emphasis on finance and banking reinforces the administrative and financial training of its students, which prepares them to respond in the field of higher education and on an employment and professional level. This training is complemented by the experience of the institutional principles and values, making the students people with high critical thinking skills, who are respectful, caring and have clearly defined life projects.

Grupo Bancolombia contributes with an investment of nearly

$4.5 billion COP for the implementation

of well-being activities.


Colegio Fundación Colombia, conceived from its inception as an educational ins-titution dedicated to the training of the children of the employees of Bancolom-bia, is today one of the schools with the highest levels of academic training in the country’s capital.


For the seventh consecutive year, the school has stayed at the Very High level, ac-cording to Icfes state tests. Today, Colegio Fundación Colombia is responsible for educating 900 students. To achieve this purpose, it has a faculty of 53 professors and a management, administrative and service team composed of 46 employees. The school is managed by Caja Colombiana de Subsidio Familiar, Colsubsidio [Colom-bian Family Subsidy Fund]. Our contribution to this institution as an organization was $4,227,386,111 COP in 2010.

Grupo Bancolombia demographics

Wepresentbelowthedistributionoftheemployeesbyregions,reflectingourdiversityin the regions.

Colegio Fundación Colombia

of Grupo Bancolombia is classified at the Very

High level and has about 900 students.

Bancolombia

Leasing

Fiduciaria

Valores

Banca de Inversión

Factoring

Renting

Región

Antioquia and D.GBogotáCaribbeanCentroSouthTotal

Bancolombia Fiduciaria Factoring Renting TotalValores Banca de InversionLeasing

16.191

6.683

1.5701.7952.119

627

326

402664

451

92

114

14

527

351

295

45

154

99

73

15

301

168

418

29

18.329

7.767

1.6981.8412.286

78

48

4.024 171 330 97 30 55 4.73730


Employees in other countries

No. of Participants

Country

Panamá in Colombia 3

Puerto Rico 12

Panamá in Panamá 103

United States 18

El Salvador 2.593

Peru 80

Total Group No. of employees

December 2009 20,268

December 2010 21,138

Distribution by gender

Company No. of Women % No. of Men % Total

Bancolombia 10.318 63,73% 5.873 36,27% 16.191

Banca de Inversión 30 38,46% 48 61,54% 78

Factoring 108 70,13% 46 29,87% 154

Fiduciaria 284 62,97% 167 37,03% 451

Leasing 431 68,74% 196 31,26% 627

Valores 309 58,63% 218 41,37% 527

Renting 177 58,80% 124 41,20% 301

Panamá en Colombia 1 33,33% 2 66,67% 3

Miami 12 66,67% 6 33,33% 18

Panamá 67 65,05% 36 34,95% 103

Puerto Rico 5 41,67% 7 58,33% 12

Banagrícola 1.411 54,42% 1.182 45,58% 2.593

Peru 36 45,00% 44 55,00% 80

Total 13.189 62,39% 7.949 37,61% 21.138


Average age of employees

Company Women Men Total

Bancolombia 33,00 35,40 34,00

Banca de Inversión 33,43 33,00 33,17

Factoring 32,38 33,28 32,65

Fiduciaria 31,93 32,82 32,26

Leasing 32,99 34,11 33,34

Valores 33,03 33,72 33,31

Renting 31,88 34,33 33,32

Panamá en Colombia 19,38 39,98 33,11

Miami 35,07 39,05 36,39

Panamá 33,53 33,62 33,51

Puerto Rico 36,62 37,54 37,16

Banagrícola 35,84 36,14 35,97

Peru 30,83 33,15 32,10

Overall total 32,30 35,09 33,87

Average time with the organization

Company Women Men General Average

Bancolombia 8,60 10,71 9,37

Banca de Inversión 6,23 5,55 5,81

Factoring 5,31 6,79 5,75

Fiduciaria 5,20 5,09 5,16

Leasing 6,17 6,67 6,32

Valores 6,30 5,86 6,12

Renting 3,12 3,84 3,55

Panamá en Colombia 0,28 11,62 7,84

Miami 3,60 4,96 4,05

Panamá 5,87 4,06 5,24

Puerto Rico 5,39 4,15 4,67

Banagrícola 11,52 10,44 11,03

Peru 1,38 1,64 1,52

Overall total 5,31 6,26 5,88


Fundamental principles for employees’integral development

We offer our employees decent working conditions and guarantee the rights of freedom, equity, securi-ty and respect for human dignity. We also promote

equality and transparency in labor relations.

The principles and fundamental rights of the Declaration of the International Labor Orga-nization, ILO, are consistent guidelines in our actions. The prohibition of child labor and discrimination in matters of employment and occupation, the elimination of forced and compulsory labor, and respect for the rights of association and collective bargaining are defining principles in the selection process of the employees and managing labor relations at Bancolombia Group.

Other principles inherent in the way we relate and that show our respect for human dignity are:

• Equalopportunities.

•Righttoprivacyandprivatelife.

•Freedomofexpression,withinthelimitsofourcorporatevalues.

•Recognitionofculture.

In this vein, at Grupo Bancolombia we act in strict compliance with regulations and in line with corporate values to provide our employees with conditions of freedom, equity, security and respect for human dignity. We also promote equal opportunities and trans-parency in labor relations, avoiding any form of discrimination or favoritism in matters of employment and occupation.

Collective relationships

The current collective bargaining agreement signed between the Bank and the unions Uneb and Sintrabancol runs through October 31, 2011. In order to build increasingly harmonious working relationships, we continue to create spaces for dialogue and confidence building. For this purpose, we constantly maintain communication spaces in addition to those spe-cifiedbylaw,topreventandresolveconflictsinatimelymanner.Thecollectivebargainingagreement covers approximately 11,115 employees, whose positions are included in the operational positions scales, i.e. 69% of the working community of the Bank.

The human management processes indicate the respectful approach and the leadersof the organization have a clear recognition of the dignity of each of our employees and collaborators.

The Ethics Line has been consolidated as a channel in the Group for all of us to be able to anonymously report any situation we consider irregular. The cases presented by this channel are resolved in a timely fashion.


Safety and health

Our actions within the Occupational Health program in 2010 were focused on prevention and control of the risk factors present in the workplaces.

Some of the activities were:

• Implementationofcorrectiveactions topreventoccupationalaccidentsordisea-ses.

• Designandimplementationofthehealthsub-processfortheworkreincorporationand rehabilitation of collaborators with disabilities generated by work accidents, occupational diseases or disturbances of a group origin.

• Definitionandapprovalofmethodstoevaluatelaborrisksthatmayaffectthehealthof the collaborators.

• Occupationalcheckupsinseveralareasofthecountrywithemphasisonthemus-culoskeletal system.

• Healthpromotionprograms,suchasfemaleandmalecancerprevention,andma-nagement of cardiovascular risks.

• Preparationforpreventionandemergencycareinadministrativebuildingsandbran-ches, and the respective drills.

• Managementprogramforthepreventionandmonitoringofmusculoskeletalrisksinthe upper limbs and spine.

• HelpingtheDepartmentofProcurementandAcquisitionswiththetoolformeasu-ring the safety and health of contractors.


Our collaborators actively participa-te in building the social fabric through Bancolombia volunteering, where they channel their time and knowledge to give communities a better quality of life.


Commitment to society

At Grupo Bancolombia, we are committed to the development of the communities in which we are present. For this purpose, we seek to offer a com-

plete range of financial services for all sectors of society and to support dreams such as having one’s own house or the possibility to finance infrastructure projects in the country, among other things.

Universal Bank Structure

As Grupo Bancolombia, we have structured for our customers a portfolio of service and products in Colombia and abroad with specialized business lines: fiduciary company, Fidu-ciaria Bancolombia; stock broker, Valores Bancolombia; financial corporation, Banca de In-versión Bancolombia; financing companies, Leasing Bancolombia, Factoring Bancolombia and Sufi, and the banking and transactional services of Bancolombia.

Based on this structure, we generate for our customers higher competitiveness and effica-cy, which are the key to success in business.

Bankarization

To increase the number of individuals from various strata who can access the financial system and therefore the benefits and guarantees that are part of a regulated entity, acting under the principles of Good Governance, we offer to citizens the tranquility and safety that comes with the proper handling of their savings and investments, as well as the pos-sibility of obtaining profit from the financial products and services such as financing and credit. Our bankarization strategy strives to reach more citizens through various channels, such as Non-Bank Correspondents, CNB, or Mobile Service Points, PAM, which allow us to be present in the most remote municipalities of the national territory; we also offer spe-cialized service to micro-entrepreneurs with programs such as Bancolombia Mi Negocio [Bancolombia My Business] or Colombians abroad who want to buy their home in Colombia thanks to the projects we have carried out such as Mi Casa con Remesas [My House with Remittances]. In addition, we have sought other alternative through products such as the Tarjeta Éxito [Success Card] or insurance policies.

Loans

We are also committed to the development of the country when, daily, an average of 200 microloans are given to individuals in order to expand a business and prosper, or a mort-gage loan* to 29,160 families in order to achieve the dream of having their own home through CPT or 1,101 families who did so through CPT Leasing.

*Créditos otorgados

cada día hábil de 2010.


In 2010, we continued lowering interest rates to historic lows, even lower than those achieved in 2006 when the CPT at 1% rate was launched, when the benefit conferred by the Government was applied to them.

We also launched the CPT for 20 years, in order to allow more Colombians to achieve the dream of homeownership. Outside of Colombia, more than 1,600 families achieved the dream of having their own home. Our international presence, through our allies in the United States and Spain, and participation in fairs and events, allowed thousands of Colom-bians abroad to access housing loans.

Infrastructure

Our affiliates of Grupo Bancolombia conducted infrastructure projects in 2010, strengthe-ning synergies between Leasing and Renting to offer a broader portfolio tailored to the needs of this sector. At Fiduciaria Bancolombia, we closed business such as the trusts in the first sector of the Ruta del Sol, the Fondo de Prevención Vial [Road Prevention Fund], the Aqueduct of Bucaramanga, those of the Northeast Airport Concessions, among others, as well as power generation projects and the designation as managing agent of a syndicated loan for a project in the energy sector in Central America.

Moreover, at Banca de Inversión Bancolombia S.A. Corporación Financiera, we structured and put in place a private equity fund to finance a power generation project in Guatemala (Jaguar), we brought new names to the public stock market as was the case of the bonds issue of Empresa de Energía del Pacífico S.A. E.S.P. (Epsa) for $600 billion COP and the securitization of Inversiones Conconcreto S.A. We also sold our investment in Telefónica Metrotel Redes and Inversiones IVL, among other sales. The main purchases were made in Ruta del Sol III, Reintegra and Vivayco: dedicated to the purchase and management of the written-off banking portfolio.

We maintain our supply of loans to the projects in this sector that countries need for their development and growth.

Internationalization

Our presence in the region through our affiliates of Grupo Bancolombia in El Salvador, Panama, Puerto Rico, Cayman and Peru, and our agency in Miami and office Guatemala, have helped to consolidate our portfolio of services, and expanded our customer base by offering more and better coverage to their needs for growth, which has always been our strategy. Today we have corporate clients in Chile, Brazil, Mexico and Costa Rica, to which we provided solutions according to their business needs.

Easier financial services

We are in a process of transformation, in order to make financial services easier for our customers through a modern and competitive technological platform that allows us to face the global market. To achieve it we are adopting new technologies and simple processes focused on the customer.


Education

For several years we have been working on the issue of education from our business with initiatives, such as Banconautas, Bus Escuela, our savings campaigns and, some time ago, the campaign Aprender Siempre Trae Cosas Buenas [Leaning Always Brings Good Things]. Furthermore, through Fundación Bancolombia, we supported the educational pro-gram Las Letras Van por Colombia, which, between 2008 and 2010, benefited 102 rural educational institutions, 65,000 students, 1,220 heads of family and 10,714 teachers in Córdoba, Cundinamarca, Antioquia, Santander, Sucre, Atlántico, San Andrés, Bolívar, Valle del Cauca, Nariño, Magdalena, Casanare and Arauca, with 49,000 texts. In 2010, we added to this educational offer by starting the Educación Financiera Bancolombia [Bancolombia Financial Education], through which 1,891 teachers were trained, 50,508 students were benefited and 127 educational institutions were impacted by the project.

Financial education, the core of our Corporate Responsibility

At Grupo Bancolombia, we are convinced that edu-cation is the best tool to overcome poverty and inequality. Today, we carry out our Corporate Res-

ponsibility strategy, which is focused on financial educa-tion, in order to bring development to the communities.

One of the challenges we face to help with the development of the country is working for education. At Grupo Bancolombia, it is a priority, not only because it makes a country more prosperous and equitable, but because we believe it is the bedrock of a society’s economic growth and, at the same time, the best guarantor of equal opportunity and social mobility.

We understood the challenge that education offers as a commitment from all people and, therefore, tackle it with our knowledge and skills. Our business requires us to educate those who work with our organization on financial matters every day, giving them the right information at the right time and according to their needs.

Thus, education becomes the focus of our Corporate Responsibility and translates into different programs that meet the needs of citizens in matters of education, especially in financial education. For more than three years, we sought to teach some sectors of the


population basic financial concepts so that they could make sound decisions that would increase their quality of life.

For example, in the expert advice we provide to our customers, we focus on ensuring that each individual masters his personal finances properly, learns how to create a budget and calculates revenues and expenditures in order to assess his ability to pay.

We also believe that financial education is a learning process that accompanies the citizen throughout his life and, therefore, we have a program that caters especially to children, young people and teachers from public and private educational institutions. Some topics covered by educational materials include: designing a life plan, selecting a financial pro-duct in accordance with one’s risk profile, establishing the difference between wants and needs, managing daily finances with impeccable skill and projecting future finance within the framework of the law.

Thus, at Grupo Bancolombia, we understand the importance of working towards financial education as a way for people to acquire attitudes and behaviors that support their living conditions, understand and analyze the decisions made at both a personal and family level and be prepared to face the present and future, resulting in a better quality and standard of living for people. Thus, we also promote the construction of responsible citizenship.

[right margin:] Education becomes the focus of our Corporate Responsibility and translates into different programs that meet the needs of citizens in matters of education, especially in financial education.

Education becomes the focus of our Corporate Responsibility and translates into different programs that meet theneeds of citizens in matters of education, especially in financial education.

Fundación Bancolombia

The Financial Education Program, Grupo Bancolom-bia volunteering, Las Letras Van por Colombia and productive suppliers are the actions we lead at Fun-

dación Bancolombia throughout the country. Because being close to Colombians Always Brings Good Things.

For 40 years, at Fundación Bancolombia, we have worked to realize the social and commu-nity commitment of Grupo Bancolombia through development programs with an emphasis on reinforcing education, supporting sustainable productive projects and promoting culture in vulnerable rural and urban communities.

Our programs are:

• GrupoBancolombiaVolunteering.• FinancialEducationProgram.


• LasLetrasVanporColombia.• SustainableProductiveProjects.

In recent years, at Fundación Bancolombia, we also had significant growth and, the-refore, a positive impact on the quality of life of Colombians:

Our presence in the country

Our programs have reached 24 of the 32 departments of Colombia.

We support development initiatives by building the

social fabric and organizing programs that foster the quality of life of

Colombian families.

Antioquia, César, Cundinamarca, Tolima, Valle del Cauca, Atlántico, Magdalena, Tolima, Huila, Boyacá, Cauca, Putumayo, Córdoba, Santander, Risaralda, Caldasand Quindío.

10000

CONTRIBUTIONS OF FUNDACIÓN BANCOLOMBIA

Billions of pesos

8000

6000

4000

2000

2008 2009 2010 2011

0


Financial education is the fundamental pi-llar of our strategy. Since 2008, we have been working to implement programs from Fundación Bancolombia, focusing on the benefit of the communities, mainly children and young people from educatio-nal institutions.


Fundación Bancolombia Programs

Grupo Bancolombia Volunteering

At Grupo Bancolombia, we support and promote the volunteering program because we consider it fundamental for the personal and professional growth of the collaborators; in addition, it favors the quality of life of the communities where we are present.Thus, we consider that those who participate in volunteering develop a social sensitivity and sense of responsibility and commitment to the community that makes them better citizens.

In order to foster this program, at Fundación Bancolombia we guide the processes that allow taking advantage of the time and knowledge of the collaborators of Grupo Banco-lombia by offering the employees the opportunity to support productive projects, actions that favor the quality of education and recreational programs, health and administrative and financial reinforcement with NGOs.

The joining of efforts was essential to obtain the results of this year:

GRUPO BANCOLOMBIA VOLUNTEERING

Fundación Bancolombia

Volunteers

Social Institutions

One of the programs we promote among the

collaborators and their fami-

lies is volunteering. An opportunity to share with the others care, knowledge

and companionship.


At Grupo Bancolombia, we bet on the preservation of the environment and the development of sustainable management through an Environmental Management strategy that we support together with our stakeholders.

CATALINA CORREA GAVIRIAPhotography Club


Grupo Bancolombia VolunteeringCity No. of Participants

Armenia 37

Barranquilla 122

Bogotá 467

Bucaramanga 143

Cali 16

Cartagena 48

Cúcuta 161

Ibagué 30

Manizales 5

Medellín 882

Montería 26

Neiva 109

Pasto 113

Pereira 94

Popayán 8

Santa Marta 20

Sincelejo 14

Tunja 13

Valledupar 21

Villavicencio 32

National Total 2,361

El voluntariado se desarrolló en 20 ciudades de Colombia:

Two years ago, I became acquainted with Bancolombia volunteering and I believe that it is the most beautiful and satis-factory social activity in which I have participated. From a personal viewpoint, it made me more aware of the needs of the others, of sharing and valuing what I have and what I receive day after day. I was engaged in activities every fifteen days with Fundación Caminos de la Esperanza, in a boarding school located 40 minutes from Villavicencio. There are children from several towns in and out of Meta who need a smile, love and learning. Their various family situations brought them to this foundation; some stayed there two or three or more months without seeing their families. When we arrived to carry out recreational activities, they were happy, they wanted to run, to shout, to talk, to laugh, to leave their routine of studying, cleaning and doing field work. Every day, we finish, as we commonly say, fatigued from the sun and exhausted but spiritua-lly and mentally relaxed because I forgot about the co-called “problems” I thought I had; by learning their histories, I realized that I had everything; playing and doing activities with them made me feel like a little girl again.

Edna Carolina Acevedo Velásquez,Executive of Portafolio Red de Sucursales Banca Hipotecaria

[Network Portfolio of Mortgage Banking Branches], Villavicencio, Meta.

In 2010, volunteers

contributed 17,502 hours of their time, valued

at $3.557 billion COP.

25.188 persons benefited

from volunteering activities in 103 social institutions

of the country.


Training programs for volunteers

In 2010, at Fundación Bancolombia, we trained our volunteers, offering a training program for those who were enrolled in recreation and technical programs to promote and encou-rage reading. Approximately 513 volunteers participated in the program, which lasted a whole day.

I am happy in the volunteering program, because it is an experience of personal and professional growth in which we all gain; the entity we are helping receives our knowledge and we receive an opportunity to feel that we are doing something good for society.

Adriana Arango Restrepo, Administrative Assistant, Operative Support Desk, Medellín.

2.361 volunteers in 2010.

Bancolombia Financial Education Program

Hay evidencia de la positiva incidencia de la educación financiera en el bienestar y en el There is evidence of the positive impact of financial education on the well-being and development of the countries. At Grupo Bancolombia, we are convinced that one of our social duties, and at the same time one of our opportunities for the sustainability of our companies, consists of extending our financial knowledge to the community, especially by delivering basic elements and essential concepts so that a larger number of persons may master and administer their personal finances in a healthy and responsible way, impecca-bly and within institutional formality.

Thus, in 2008, we created our Financial Education program as a support to the educational sector in reinforcing the quality of education, developing financial skills that would allow the children and young people to have savings and healthy consumption habits, provide for their future and better use the available economic resources.

Our objective is to develop the following financial skills in students who are in grades four to eleven:

1. Design a life project to guide their actions.

2. Handle day to day finances impeccably.

3. Make decisions on long-term financial opportunities within the framework of the law.

In 2010, we reached, with the program, face-to-face, official educational institutions of the country and established alliances with the secretariats of Education and with public and private entities from various regions.


We learned how to invest our money, how to save and how to have orderly finances. I am taking my knowledge home becau-se, for example, I gave advice to my father, not to let himself be overwhelmed by debt

María Isabel Pérez, student, ninth grade, Educational Institution José Eusebio Caro, Medellín

The Financial Education program may be included in the area of the institution as a new unit of the curriculum for which the professors were not trained

Guillermo León Yepes, rector of the Educational Institution Dios Carvajal. Medellín

• Virtual Program

In 2010, we started the digitalization of the Financial Education material on a plat-form of Fundación Bancolombia itself. This initiative will allow a large number of pu-blic and private educational institutions of the country to benefit from the program. The electronic address to access the program is: www.fundacionbancolombia.org

• 2011 Projection

− We will continue developing the program face-to-face in the 127 educational institu-tions with which we started in 2010.

− We will reach 93 new institutions, with a total of 220 benefitting educational institu-tions.

− The program will be in the departments of Antioquia, Cundinamarca, Meta, Tolima, Santander, Quindío, Atlántico, Córdoba, Valle del Cauca and Cauca.


BARRANQUILLA25 educational institutions

16,196 students331 teacher

MEDELLÍN27 educational institutions

19,554 students362 teachers

MIRANDA1 educational institution

51 students3 teachers

PUERTO TEJADA1 educational institution


CALI12 educational institutions


BUGA1 educational institution


EL CERRITO1 educational institution


FLORIDA1 educational institution


GINEBRA1 educational institution


GUACARÍ1 educational institution


JAMUNDÍ: 1 educational institution245 students10 teachers

PALMIRA4 educational institutions1,078 students5 teachers

RIOFRIO1 educational institution215 students16 teachers

TULUÁ3 educational institutions658 students31 teachers

YUMBO1 educational institution167 students12 teachers ZARZAL1 educational institution313 students16 teachers

CAJICÁ6 educational institutions


COGUA3 educational institutions


COTA 2 educational institutions


EL ROSAL1 educational institution


LA VEGA3 educational institutions


LA CALERA4 educational institutions


NEMOCÓN2 educational institutions526 students46 teachers

MADRID: 3 educational institutions956 students39 teachers

PACHO7 educational institutions1,580 students121 teachers

SOPÓ3 educational institutions855 students45 teachers

SUBACHOQUE2 educational institutions530 students17 teachers

TABIO1 educational institution295 students16 teachers

TOCANCIPÁ2 educational institutions496 students27 teachers

UBATÉ5 educational institutions1,321 students88 teachers

ÚTICA1 educational institution211 students21 teachers

ZIPAQUIRÁ5 educational institutions1,468 students78 teachers

In 2010, we started implementing the Financial Education program in the departments of Colombia: Cauca, Valle del Cauca, Atlático, Cundinamarca and Antioquia.


Las Letras Van por Colombia

The objectives of the program is to improve the reading and writing skills, through work-shops, training and allocation of school libraries, reinforcing the quality of the education and the use of free time in the communities where Grupo Bancolombia is present.

This project, which we develop in the Colombian rural sector, starts from the training of the teachers, heads of family and the students, so that they build a reading plan, read aloud to the students, learn how to properly manage a school library and strengthen the programs that organize reading and writing.

Each library is made up of a series of books selected for each institution according to its Institutional Educational Project, PEI.

Between 2008 and 2010, we served 102 rural educational institutions, 65,000 students, 1,220 heads of family and 10,714 teachers, in Córdoba Cundinamarca, Antioquia, Santan-der, Sucre, Atlántico, San Andrés, Bolívar, Valle del Cuaca, Nariño, Magdalena, Casanare and Arauca, delivering 49,000 texts.

In my neighborhood, there are some good things. The other day, we saw a rainbow, and it was very pretty. In a story, we read that there is a treasure behind it. When I grow up, I want to be an artist in order to paint rainbows and look for treasures.

Alison Dayana Pardo, Age 10, resident of the neighborhood Altos de Cazucá, in Bogotá, on the day of delivery of the library.

In these neighborhoods, where marginality seems to have said it all, the experience of enhancing certain values of living together, respect, goodness, takes on a higher meaning. This library donated by Fundación Bancolombia cannot be understood as a distraction in the life of these children, but as something more fundamental and final: it is a space to dream, to imagine, to believe that there is possibility to have a better world, their own, that of each boy and girl. This is a revolution. It must be

Adriana Puentes, Age 23, teacher in the neighborhood Altos de Cazucá, in Bogotá.

2011 Projection

We will deliver 31,500 titles in 105 educational institutions, located in 23 municipalities in nine departments: Quindío, Cauca, Cundinamarca, Boyacá, Huila, Tolima, Antioquia, Cesar and Magdalena.


With our program Las Letras Van por Co-lombia, we strive to improve the reading and writing skills of children and young people, through workshops, training cour-ses and allocations of school libraries.


Sustainable Productive Projects

We support Sustainable Productive projects such as the one carried out in the North of Cauca in the towns of Caloto, Puerto Tejada and Padilla with 871 peasant families who cultivate cocoa, fruit and vegetables and sell their products directly. This allows the rural communities to grow, obtain value and develop to face new and better challenges. In alliance with the public and private sector, at Fundación Bancolombia we carry out organizational and productive processes in order to improve the use of resources and income generation to ensure the sustainability of the peasant families and avoid their leaving for the large cities.

In 2010 we participated in the following projects:

• La Avención community sugarcane mill: Around the cultivation of sugar cane and the production of panela, we worked with a community that participates in collective processes and took on the challenge of developing each of their inha-bitants. The actions carried out improved the productive, social and educational infrastructure of 169 families in the Bareño and la Cumbre sections in the munici-pality of Yolombó, Antioquia.

• Fruqueña:We improved the living conditions of small fruit producers by contribu-ting to the cultural and social transformation of Eastern Antioquia and increasing the levels of association, competiveness and solidarity for 26 families.

• Vallenpaz: We supported production alternatives which, in addition to improving family income, allow establishing community processes based on recognition and development of the territory. The participants were 871 peasant families in the municipalities of Caloto, Puerto Tejada, Padilla and Guachené in the department of Cauca and an additional 266 peasant families in the rural area of Buenaventura in the department of Valle.

In the development of the projects, the peasants and their families participated in training programs to learn better production practices, improve the community infrastructure, and reinforce educational and health services. Thus, we work in an integral fashion to improve the quality of life of the peasant families.

We improved the products thanks to the technical training we received, since they brought us agricultural techniques to this region. We started bagging the plantain and were able to take the project to the big supermarkets. The advantage is that we have a sure market and the economy is better because you sell all the kiliao; this way the bunch looks better

Norley Banguero, plantain grower in the municipality of Guachené, Northern Cauca.


Commitments to the victims of the rainy season

Achí

In the community of Achí, in southern Bolívar, we built housing for 29 families. In this work, we had the solidarity of our employees and the contributions of Fundación Banco-lombia, in alliance with other corporate foundations. With this intervention, we improved the housing conditions and quality of life of the people. We also built a school and made adaptations for community mobility and dynamics.

In 2011, we continued identifying areas of the national territory that needed interventions of this type, where we could carry out actions to improve the living conditions of the populations affected by natural catastrophes.

2010 Christmas Campaign With our Christmas Campaign, we brought Christmas joy to thousands of families, who received boxes full of goods and toys. Most of these people were affected by the rainy season.

The deliveries, generously prepared by the collaborators of Grupo Bancolombia, reached 15 cities: Medellín, Bogotá, Barranquilla, Santa Marta, Cali, Pereira, Armenia, Manizales, Pasto, Bucaramanga, Cúcata, Villavicencio, Tunja, Neiva and Ibagué.

At the national level, we delivered more than 2,500 boxes for the same number of families, who found in the solidarity of the collaborators of Grupo Bancolombia and the leadership of Fundación Bancolombia a true commitment to their well-being at Christmas 2010.

We also delivered goods and gifts contributed by the employees of Medellín in the sector of La Gabriela, in the municipality of Bello, a community which was seriously affected by the rainy season.

We worked for the Millennium Development Objectives Los Objetivos de Desarrollo del Milenio representan las necesidades humanas y los dereThe Millennium Development Objectives represent the human needs and the basic rights that any individual on the planet should be able to enjoy:

Objective 1: Eradicate extreme poverty and hunger.Objective 2: Achieve universal primary schooling.Objective 3: Promote equality between the genders and the autonomy of the woman.Objective 4: Reduce child mortality.Objective 5: Improve maternal health.Objective 6: Combat HIV/AIDS, malaria and other diseases.Objective 7: Guarantee the sustainability of the environment.Objective 8: Support a world association for development.

Grupo Bancolombia, in our various internal and external Corporate Responsibility pro-grams, places special emphasis on some of the objectives, such as:

With our 2010 Christmas campaign, we delivered

goods and gifts to thousands of families, many of whom were victims of the rainy season, in 15 cities of the country.


Our support for Fundación Dividendo por Colombia

At Grupo Bancolombia, we established a connec-tion with this foundation through the contribution of economic resources for the development of its

activities. We will also jointly carry out various activities intended to reinforce the quality of education at the natio-nal level.

In 1998, a group of Colombian businessmen wanted to offer the country an alternative for the joint exercise of the social responsibility of the employees and employers, cons-tituting Fundación Dividendo por Colombia.

At Grupo Bancolombia, at the time of Banco Industrial Colombia, BIC, we were one of its founders along with Fundación Suramericana, Almacenes Éxito, IBM de Colombia, Proc-ter & Gamble, Cesar Rovira Coopers, Lewin & Wills Abogados, Coca-Cola FEMSA, Coca-Cola servicios de Colombia and Centro Colombiano de Responsibilidad Social. Today, we are one of the 120 companies connected with Dividendo and members of its Board of Directors. Even though our Fundación Bancolombia is independent from Fundación Divi-dendo por Colombia, we work in cooperation and alliance on various activities intended to reinforce the quality of the education and support corporate volunteering.

- Achieving universal basic education is the fundamental principle for Fundación Ban-colombia. We promote not only the quality but also the stay of the students at the educational institution. Our commitment is shown by the implementation of two of our programs: Las Letras Van por Colombia and Financial Education, as well as our support for the initiatives of Fundación Dividendo por Colombia.

- Guaranteeing environmental sustainability through programs and projects targeted at reducing social and environmental risks.

- Supporting a global association for development, confirmed by our connection to various global initiatives, such as the Principles of Ecuador and the Global Compact.

In addition, all projects that are part of the volunteering program are in line with some of the eight Millennium Development Objectives, so that each collaborator who participates in the program may take active part in the development of the country.


In 2010, 6,854 collaborators of Grupo Bancolombia made a contribution of $848,380,000 COP which, added to the same amount contributed by Grupo Bancolom-bia, gave a total of $1,696,761,594. With these funds and the time delivered through various volunteering activities, we helped 38,892 boys, girls and young people in vul-nerable situations develop the skills and values necessary to be included in social and productive life in better conditions. Starting from the premise “Helping a Colombian child study means helping him forever,” Dividendo por Colombia focuses its efforts on three phenomena that make good school performance and carrying out social work at the school difficult: truancy, repeating classes and dropping out.

The children and young people who are under eighteen represent a little over one-third of the population.1 Of these, more than 22,000 students2 entered the school system at an age over the average to study at a certain level, and even worse, a high percentage of them drop out of school. According to data of the National Department of Planning, the national dropout rate exceeds 7% annually and repeating classes is 4%, while the per-centage of minors who remain outside of the public education service reaches almost 17%.3 According to a study of the General Controller’s Office, in 2004, it was calculated that only 47.31% of the students who started ended the complete education cycle.4

Faced with this situation, Dividendo por Colombia is committed to the development of programs that facilitate the enrollment and stay in the public education system of girls, boys and adolescents in vulnerable situations. The programs are implemented through two strategies: establishment of public-private alliances and the selection of interven-tions with the greatest likelihood of being effective, sustainable and generating durable impacts.

These programs are: Basic Learning, Learning Acceleration and Reading and Writing in School.

Basic Learnings

Program targeted at children who cannot read or write.

In 2010, Grupo Bancolombia, with the support of our collaborators and in alliance with 21 secretariats of Education of the country, served 1,306 children between the ages of nine and 14 who could not read or write. To start their learning process, these children were served in 52 classrooms distributed as follows throughout the Colombian regions: 1,069 in the Central region, 135 in Antioquia, 60 in the Caribbean region and 42 in the Southern region.

Our contributions of the organization and our collaborators were brought to fruition through:

• Trainingprocessesfor52teachers.

• Delivery of 10,306 sets of letter cards and numbersmethodwithwhich1,306children started learning to read, write and do basic arithmetic and acquired the basic skills to enter the education system.

• Allocationtoeachofthenewclassrooms(22)ofabasiclibrary,with120titlesofchildren’s books.

The measurement of the Service Quality perceived by the customers had a very good rating of

91 points, with the maximumbeing 100.

1 1 More than 16 million people.

2 As estimated for 2009. DANE, Colombia.

Number of Students Registered by Educa-

tion Level and Area. Final information – Year

2008.

3 Iregui, A.M., Melo, L., and Ramos, J. Eva-

luation and analysis of the efficiency of

education in Colombia, Banco de la Repú-

blica [Bank of the Republic], Borradores de

Economia, Bogotá, February 2006.

4 General Controller’s Office of the Republic.

School dropout in basic and medium educa-

tion. Department of Sectoral Studies, 2004

National Education Agenda.


Learning Acceleration

The late entry into the school system, the repetition of grades and recurrent dropping out are problems that extend much beyond the school itself and that affect the student, the family and the community at large. For this reason, Dividendo has been supporting, since 2002, six secretariats of Education of the country in the implementation of the educatio-nal model: Learning Acceleration. This model allows the children and young people who already know how to read and write to attend courses and finish two or more grades of their basic primary education in one academic year.

As a result of this program in 2010, and thanks to our contributions, 3,564 boys, girls and young people who were outside the educational system or who were older than the appropriate age in 36 Colombian municipalities found an opportunity to complete their basic primary studies and enter the formal education system.

We supported 142 teachers who were in charge of these classrooms in the process with training and qualification, endorsed by the Ministry of National Education. Nearly 3,564 students, organized in 142 classrooms, received 8 modules written and designed in the form of workbooks, organized in 7 projects, which allowed them to advance towards personal and academic success.

Reading and Writing at School

According to the latest Saber 2009 national tests, 18% of fifth-grade Colombian stu-dents and 15% of ninth-grade students are at an insufficient level of performance in the field of language. Only 11% of fifth-grade students and 5% of ninth-grade students are at an advanced level of performance.

Equally, the Pisa studies conducted in 2006 report that Colombia obtained an avera-ge lower than the other participating countries, showing that 30.43% of the country’s students do not reach the minimum level of skills in reading, and only 0.61% reach the higher level.

Given these results, Dividendo por Colombia, in alliance with the secretariats of Educa-tion of Bucaramanga, Buga, Cali, Envigado, Montería, Moñitos, Soacha, Urabá, Zipaquirá and municipalities of Eastern Antioquia developed the Reading and Writing at School program, whose purpose is to improve the communication skills of the basic education students and to favor school change through an intervention strategy that ensures the presence of reading materials to support the development of reading and writing habits among students and teachers.

Our contributions at Bancolombia allowed implementing the program in 192 schools serving 8,100 teachers and 32,400 students, distributed as follows: 20,972 in the Antioquia region, 5,203 in the Caribbean region and 6,225 in the Southern region. Fur-thermore, we delivered 76 libraries, significantly contributing to the education of readers and writers at school.

The Learning Acceleration program is intended to en-

sure that children and young people who already know

how to read and write may finish, in an academic year, two or more grades of their

basic primary education.


In 2010, with the contributions of Banco-lombia and the 6,854 collaborators con-nected with Dividendo por Colombia, we benefitted 1,622 boys and girls, 982 in the Antioquia region and 640 in the Cen-tral region, who were served in 125 Bien-estar Familiar [Family Well-being] com-munity centers.


Early childhood

Mary Eming Young, a specialist in child development at the World Bank, affirms that “early childhood, defined as the period from birth to age six – and especially the interval from zero to age three – brings unique opportunities to change the course of the develo-pment of the most vulnerable children.” The specialist cites Colombian figures to stress the importance of early intervention: “There in Colombia, 60% of the population lives in poverty and more than 50% of the poor live in urban areas.”

Based on these considerations, it is impossible to postpone a joint effort of the entire society to offer appropriate parenting patterns and social and cultural opportunities to stimulate child development.

Since 2008, Dividendo por Colombia, in alliance with Save the Children, started a pro-ject to contribute to the reinforcement and qualification of Family Well-being Community Centers, based on a educational intervention in highly vulnerable socioeconomic environ-ments, with a comprehensive focus on early childhood development.

In 2010, with contributions from Bancolombia and 6,854 collaborators connected with Dividendo por Colombia, we served 1,622 boys and girls, 982 in the Antioquia region and 640 in the Central region, who were served in 125 Family Well-being community centers, whose community mothers received instructional courses and the allocation of teaching materials.

In 2011, Grupo Bancolombia and our collaborators will continue to be committed to early childhood education, and to be aware of the scope and impact of our contributions to the well-being and future of the disadvantaged child population.

The voice of the protagonists

Miguel Gómez, 14 years old.Miguel left school for the first time at seven, because he did not want to study anymore. He spent his time selling candy in the street, work for which his mother paid him. After three years, he went back to school, and this time his father enrolled him in the Learning Acceleration classroom, where had had to make up the lost time.“I learned to multiply and divide, and also natural science. I also learned to respect, not to be impolite, to live together. Now I love studying.”

Johan Sebastián Romero, 12 years old.Johan Sebastián thinks that Learning Acceleration taught him many things through the modules and believes that this year he reinforced his reading by reading 12 books.“The last thing they taught me was about my city and my municipality. I also learned the names of the heart and things about language. (…) the book that I liked most was the one about the three little pigs.”

Mónica Yiseth Blanco, 12 years old.Mónica Yiseth states that after two years of being in Family Well-being, she spent the year not studying, and that situation made her feel very bad.“I felt bad because I needed to study. This is the most important thing, because it helps me get ahead and help my family. (…) if my sister, who works selling stuff, had studied, she would have a better future.”

In 2010, nearly 6,725 employees made a contribution to Fundación

Dividendo por Colombia on the order of

$841,403,310 COP, and Grupo Bancolombia

matched the same amount with a total of

$1,682,806,620 COP.


We created special sites on the Internet for children dedicated to teaching them about financial services and generating in them savings habits with the programs of Banconautas in Colombia and Club Chi-quiMax in El Salvador.


Institutional Projection

In 2010, we will continue with our interest in backing up and supporting the values that give identity to our coun-try through participation and educational programs, with

emphasis on spreading culture, financial education, citizen training and the country brand.

At Grupo Bancolombia, we strive to reinforce the customs and traditions of our com-munities through educational programs. For this reason, we have actively participated in citizen training initiatives that promote a healthy coexistence.

Culture

Some of the entities we supported in 2010 are:

Museum of AntioquiaWe continued our alliance with the Museum of Antioquia, where we adopted the Fernando Botero room and also supported the museum with its fences in the Metro of Medellín. Thus, we sought to promote visits to this cultural space and bring art close to the city’s inhabitants.

In the last quarter of 2010, we sponsored the Interdependencias exhibition, which be-ginswithareflectionaboutthe200yearsofrepublicanlifeinColombiaandotherLatinAmerican countries. What was done was a significant show concerning the processes that led to the current nation.

Modern Art Museum of Medellín, MammAs part of our commitment to art and culture at the Modern Art Museum of Medellín, we sponsored the exhibition Yo Fui Pintando Lo Que Fui Viendo [I Painted What I Saw], a pre-sentation of a country by Débora Arango. This exhibition presented ceramics, drawings and paintings which are part of the museum collection, of the collection of the artist’s family and of private collectors.

In addition, the exhibition shows a series of museographic elements that invite the visi-tors to go through the various aspects of Colombian history in the mid-twentieth century, trying to relate them to the current time.

The City and the ChildrenThis project of Grupo Bancolombia and Mamm strives, through work, play and affection seen together, to give children the experience of educational and cultural spaces of the city and offer new forms and options of living in Medellín.

Some cultural events at which we were present

in 2010 in Colombia were the Summer Festival in

Bogotá and the Carnival of Arts in Barranquilla and

the Flower Fair in Medellín.


Educational, creative, artistic components and project training fit the guidelines of tea-ching that we set at Grupo Bancolombia, aimed at strengthening the cultural develop-ment of our communities. To achieve this, we organized instructional courses for chil-dren and young people in the areas of music, dance, theater, visual arts and writing.

Classical Music SeasonIn 2010, we maintained our presence in the Classical Music Season that takes place throughout the year at the Teatro Metropolitano de Medellín, where the following con-certs took place with our sponsorship:

- Friedrich Kleinhapl, cello, and Andreas Woyke, piano, who performed sonatas by Beethoven and Cesar Franck.

- Pepe Romero, Spanish guitarist, who performed works by Isaac Albéniz and Francis-co Tárrega.

- The work of Igor Stravinsky, The Soldier’s Tale, was a special piece for children.

Summer FestivalThis year, with the celebration of the 472nd birthday of Bogotá, we were present at various activities as part of our commitment to the entertainment spaces and cultural development for the inhabitants of the capital.

We participated in activities, such as Festifantasía in the Novios park, an event in which children and adults enjoyed games, cotton candy and balloons from Grupo Bancolombia. We also supported the International Kite Festival in the Simón Bolívar park, with a large kite 10 meters long and organized volleyball championships at Playa de Verano.

Flower FairIn August, Medellín lived and vibrated with the Flower Fair. Grupo Bancolombia participa-ted in this celebration that promotes the traditions and culture of the country with events like the Parade of Silleteros, the Parade of Classic and Antique Cars and the Orchids, Birds and Flowers exhibition.

In this event, which brings together all of Antioquia and thousands of tourists visiting Medellín, we promoted the importance of maintaining proper values and citizen behavior during this celebration with suggestive messages.

Fundación La Cueva - Carnival of the ArtsWe support the Carnival of the Arts, a four-day event, designed to provide a tribute to the greatest creators of the world, learning about their life and work, studying their creative processes and stimulating among the residents a thorough reflection on the variouselements that make up and compose the traditional Carnival of Barranquilla, declared a World Heritage Site by UNESCO.

At Grupo Bancolombia, we support this initiative as part of Institutional Projection and the interest in the development of art and culture. Similarly, we want to present this event as an art project to contribute to education in the Caribbean region of Colombia.

At Grupo Bancolombia, we sponsored the City of Children project that strives to give children the experience of educational and cultural spaces and offer new forms and options of living in Medellín.


Training As part of our commitment to the country, with its transformation and development of communities in the regions where we are present at Grupo Bancolombia, we have sup-ported institutions with a significant impact on the well-being of society and promoting education, especially financial education.

Caribbean ObservatoryIn 2010, we helped support the Caribbean Observatory, seeking the dissemination of good practices of competitiveness in different cities of the country, which serve as reference in the Caribbean region of Colombia to formulate strategies, programs and projects that help increase their competitiveness.

LaceaWe supported the 15th annual meeting of the Economic Association of Latin America and the Caribbean, Lacea, in our policy of promoting education and social development at all levels.

This event brought together expert economists from various countries and representa-tives from multilateral agencies to discuss issues such as the deepening of integration between Colombia, Chile and Peru, the informal work in Latin America, the effects of recessions in the long term, falling levels of inequality in Latin America and the increasing rate of unemployment in Colombia, among other things.

Agreement with Universidad Sergio ArboledaWe continued with the agreement and the academic partnership with the Sergio Arboleda university institution in Bogotá. In October, we organized the panel Colombia in Globaliza-tion, an event organized with the university, with the aim of bringing together recognized businessmen, public figures, analysts, thinkers and scholars on topics such as globaliza-tion and global economic development.

Country identity

As part of our commitment to culture and education, we supported initiatives that reinfor-ce the values and traditions of Colombia.

Caracol and Bancolombia Más CercaCanal Caracol and Bancolombia began issuing Caracol and Bancolombia Más Cerca in 2004, with the goal of bringing a bit of optimism and raising awareness of the remote and forgotten, but infinitely beautiful, regions of our country.

This micro-program, which is broadcast daily on the news at noon and is repeated again in summary on the night broadcast, is part of the programming of the Channel and is a contribution to the civic education of the Colombians.

TelethonIn December, we were present at this important solidarity event for the disabled, which, this year, joined the Humanitarian Colombia campaign of the Office of the President of the Republic to support those affected by the rainy reason in the country. There, Grupo Bancolombia made a donation of $300 million COP.

In order to promote the training of our

stakeholders, we support institutions such as the

Caribbean Observatory and academic events such as the

annual meeting of the Latin American and Caribbean

Economic Association.


We have developed a brand strategy ba-sed on optimism, which lets us promote people’s dreams with campaigns such as “closeness.”


Parque del Café For several years we have been supporting the signage at Parque del Café, in Quindío, a place that brings to life the coffee culture.

Parque Chicamocha We were present at one of the new seven natural wonders of the world, branding 21 of the 39 cars of the second longest cable car in Latin America, at Parque Chicamocha, Santander.

Santa Fe ZooSince 2007 we have been supporting the Santa Fe zoo in Medellín in its transformation, which seeks to reinvigorate this place of recreation and knowledge for the community.

Parque Explora We are still present at Parque Explora in Medellín, with the adoption of the Colombia Geodiversa room, a place for knowledge that has become an icon of the country.

[left margin:]Behind our Bancolombia brand is a philosophy that is based on optimism, because we are convinced that it is the engine that Colombians need to grow.

Brand strategy

In 2010 we continued the brand strategy of Grupo Bancolombia, focused on generating closeness and developing emotional ties with the community.

Through emotional communication, we have been close to all our employees, customers and the community in general, to develop an optimistic strategy that allows us to be advocates for people’s dreams in our country. We have achieved it thanks to various communications and advertising campaigns that have this message implicitly, such as the dreams of loans and the closeness campaign in which we present what Colombians do to be close to their loved ones.

Behind our brand is a philosophy that is based on optimism, because we are convinced that it is the engine that Colombians need to grow.

We spare no effort to communicate that we believe that good things always come, that working, fighting, learning, living, having ideas, being happy, being an entrepreneur, Always Brings Good Things.

In 2010, brand studies and research gave very positive results for our indicators: we rea-ched a Top of Mind of 42%, thirty points above the second entity in the ranking. Similarly, purchase intent was 9%, noting an overall decline across the banking sector, earning four points over the second one on the list.

Brand actions

- Education The year 2010 was important in terms of education, as we approached the

community and learned from it, better understanding their needs and together creating solutions that improve the quality of life of Colombians. To achieve this, we implemented the following strategies:

Behind our Bancolombia brand is a philosophy that is based

on optimism, because we are convinced that it is the engine

that Colombians need to grow.


• TheSchoolBus,whichtravelsthroughthemaincitiesofColombia,isequippedwith educational resources that allow us to teach the importance of saving for adults and children, the use of different service channels of the Bank and the importance of security in the management of financial resources.

• BancolombiaGreen(BancolombiaVerde)isastrategyinwhichwepromotecarefor our planet and the environment. In 2010, we continued fueling the virtual sta-tement campaign in which, for every five customers who choose to receive their statement online, the Bank plants a tree. This initiative was joined by 300,000 people, including customers and employees.

• Weare present in social networks as away to be closer to our customers,know them, listen to them and learn from them. Social networking is a channel ofconstantinteractionwithoursupporters,andwherewereflectourpolicyoftransparency and honesty.

2011 Projection

In 2011 our pillars will remain closeness, optimism, the country’s identity and education, enabling us to come closer to our audiences.

Our challenge is to build emotional ties with the community and be remembered as the financial institution that educates and gets closer to its shareholders, employees and customers, and establish new channels of dialogue to deepen relationships.

Corporate Responsibility in Latin America

We included social initiatives organized by our foreign affiliates such as Bancolombia Panamá, Banco Agrícola and Bancolombia Puerto Rico.

Bancolombia Panamá

At Bancolombia Panamá, we have been part of the visionary group of companies committed to the development of Panama; we were a founding member of Fondo Unido de Panamá - United Way, an organization created in May 2010, with the purpose of promoting the deve-lopment of the neediest people and communities in Panama. With this fund, we had an efficient way to [support] contribution and interaction among diffe-rent sectors of Panamanian society, with the goal of capturing and channeling the contribu-tions from private sector enterprises and employees to the three basic pillars that support the fund: education, decent jobs and health for projects in the communities with the greatest needs of the country.

United Way has a presence in Colombia through the Dividendo por Colombia foundation, which is one of the biggest contributors.

In 2010, at Bancolombia Panamá, we doubled our contributions in social responsibility through more than 20 entities that mobilize efforts for better education, health and quality of life in the country.


We also continue to work for the development and well-being of the community through contributions to organizations such as:

- Orfelinato San José de Malambo - Asociación de Damas Colombo Panameñas- Asociación Nacional de Scouts- Cámara de Comercio, Industria y Agricultura de Panamá- Fundacancer, campaña cinta rosada y celeste- Casa Esperanza- Casita de Mausi- Colegio Moisés Castillo Ocaña- Despacho de la primera dama de la república de Panamá- Fundación Carol Vallarino de Montenegro- Fundación Las Niñas de la Capital- Fundación Pro Niños del Darién- Nutre Hogar- Opat - Organización Panameña Antituberculosa - Operación Sonrisa - Organización Niños Felices- Sociedad de Esposas de Banqueros, Seb- Unión Nacional de Ciegos de Panamá- Maternidad del Hospital Santo Tomás

At Bancolombia Panamá, we are the founding partner

of United Way, or Fondo Unido de Panamá, a private non-profit organization that promotes the development

of the neediest people and communities in Panama.

Contributions in USD 2009 2010

Bancolombia Panamá 12.245 29.911, 51

Banco Agrícola

JoiningHandsforElSalvador(ManosUnidasporElSalvador)For the seventh consecutive year, at Banco Agrícola we developed our main social res-ponsibility program called: Manos Unidas por El Salvador, where we organized 19 pro-jects that have improved the education conditions of over 19,000 students, through the computer center equipment, science laboratories, virtual libraries, study rooms, clas-sroom construction and expansion of school infrastructure in the public sector educatio-nal institutions at the national level.

Pro-rehabilitation Telethon At Banco Agrícola, we continued to be the bank of the Telethon, to play the role of moti-vator and the main channel for funds. In 2010, we contributed to the active and voluntary participation of more than 2,000 collaborators and their families, and the technological resources that supplemented the economic contribution of both the staff and the institu-tion. The effort and enthusiasm of the family of our bank in 2010 allowed us to reach our goal of $1,706,726 million COD. The funds collected were used for the maintenance of three rehabilitation centers that are reaching 12,000 Salvadoran families.

Abansa financial education programIn 2010, we supported the continuation of the Abansa financial education program ca-lled: The Efficient Management of Your Money (El Manejo Efectivo de su Dinero), which aims to spread the culture of good use of financial products. During the year, we obtai-ned the participation of the staff.


of customer companies in the financial education workshops, offered through Abansa, serving more than 8,000 people.

During the year, we also continued and maintained the exhibition called The Children’s Bank (El Banco de los Niños) in the installations of the Tin Marín Children’s Museum (Mu-seo de los Niños Tin Marín) in order to support the savings habit and to educate them, from an early age, about topics related to handling personal finance and the correct use of financial products and services.

Cultural support programWe presented our new publishing project titled: El Salvador, natural resources, a publi-cation that complements the El Salvador, a magic corner (El Salvador un rincón mágico) collection, which consists of 18 publications promoting the culture and natural beauty of this country.

Bancolombia Puerto Rico

During the year, we channeled all our social responsibility efforts through Fondos Unidos de Puerto Rico, an entity of United Way.

For the fourth consecutive year, at Bancolombia Puerto Rico, with the support of our collaborators, we contributed money and time to Fondos Unidos de Puerto Rico, an entity that is highly recognized in the country, because it is a member of United Way. For each dollar contributed by the collaborator, the bank contributed one additional dollar to the fund.

Equally, 33% of the staff participated in their free time in the Regala un Día activity, which helped United Way in Puerto Rico organize a food warehouse for various non-profit institutions.

Job generation

In 2010, nearly 1,392 people became part of Grupo Bancolombia, with the opportunity to grow from a personal and professional viewpoint, engaging in high-value and high-content activities and contributing, through their performance, to the development of the country.

For the fourth consecutive year, we contributed money and time to Fondos Unidos de Puerto Rico.

El 33% of the staff of Bancolombia Puerto Rico participated in their free time in the Give a Day (Regala un Día) activity.

Contributions in USD 2009 2010

Employees 254 281

Bancolombia Puerto Rico 254 281

Total 508 562


Commitment to our customers

An ample portfolio of products and services integra-ted under the Universal Banking model, easier and simpler services with extensive coverage that at-

tempts to reach more corners of the country, make up our confidence in customers.

Universal Banking Model

At Grupo Bancolombia, we set up a single portfolio of products and services in Colom-bia and abroad to meet all the financial needs of the customers in a single window and online, in order to generate, for our customers, better competitiveness and efficiency, a key to success in business.

Under the Universal Banking model, we delivered customers the services they need with specialized, expert attention in financing, investment, savings, comprehensive cash management, international trade, capital market, corporate finance, ordinary portfolio, money market payments, collection, credit cards, loans, operating and financial leasing, mortgage loans – CPT – (Home Ownership for All (Casa Propia Para Todos)), promissory notes, draft discount, funds in foreign and local currency, shares, CDT, international transfers, savings, debit card, Mobile Banking, Telephone Branch, Virtual Branch, Non-Bank Correspondents, Proximity Service Point (Punto de Atención Cercano) – PAC –, Mobile Service Point – PAM –, Insurance Banking and Retirement Banking, among other products.

We are convinced that the Universal Banking model is the best one to support the deve-lopment and growth of the country.

Some benefits for our customers

Financial solutions tailored to our customers.

Comprehensive, personalized, prompt and complete attention.

Efficient and convenient service.

Easier to resolve financial needs.

Making financial services and products simpler and within the reach of all Colom-bians.

Bringing banking and financial services to groups of the population.

Responsible banking that contributes to the development and growth of the market and of the economy of the country.

Universal Banking is the best way to offer

more extensive coverage with timely, comprehensive

and appropriate advice for each of the needs

of our customers.


We have set up the School Bus, which tra-vels through Colombian municipalities in order to spread the use of electronic means to access financial services securely and to create awareness about the importance of savings to turn dreams into reality.


Easier financial services At Grupo Bancolombia, we constantly work to make financial services easy. For this reason, we make the virtual and physical channels available to our customers for their prompt service and provide our employees with the technical tools necessary to obtain immediate information and make the right decisions.

In 2010, we took concrete actions, such as the implementation of the Murex system for Cash, which allowed us, for the second consecutive year, to obtain international acknowledgement in the prestigious Computerworld Honors Program.

Every day, our team of engineers works with dedication to keep the transactions and ser-vices available, to adapt the infrastructure, and to respond to the growth of transactions.

Security and risk control continue to be one of our main focuses; we contributed to re-ducing fraud by implementing identity control and authentication mechanisms. We have permanent monitoring that makes it possible to maintain updated infrastructure and systems in order to fend off attacks that may take place.

We continue to work to offer our customers easier, more agile and more effective finan-cial services.

Inclusive infrastructure

In order to make the Bank accessible to persons with physical limitations, we remodeled 135 branches in Colombia that already had guaranteed access for handicapped custo-mers and the elderly. In 2011, we will continue to adapt our branches and tellers with architectural solutions that eliminate external barriers to access these sites, with ramps or mechanical assistance and special cash registers and electronic device solutions.

Every day, our team of engi-neers works with dedication

to keep the transactions and services available, to adapt the infrastructure to

respond to the growth of transactions and to

make the growth of channel networks possible.


Commitment to our suppliers

At Grupo Bancolombia, we seek to develop our suppliers by supporting initiatives that improve in-frastructure conditions, efficiency in processes, the

relationship with the stakeholders and other structural to-pics that guarantee continuous growth of their business and better dynamics of the sectors to which they belong.

Supplier policy

At Grupo Bancolombia, we seek the build alliances that generate value with our suppliers, based on principles of collaboration and cooperation that bring both parties continuous improvement and sustainable growth.

Important actions in 2010

• Wedefinedthedesignofthegovernancesystemthatincludesthestrategyofde-velopment of suppliers and follow-up on the performance of commitments related to social and environmental responsibility.

• Supplierselectiongoesthroughaprocessthatinvolvesriskassessment,financialstatements, environmental standards, among other things. In 2010, we obtained 116 strategic suppliers.

• Wechanneled,throughTodo1(DigitalMarket),98invitationstobidand9auctions.

• Ourstrategicsuppliershavecarriedoutthesocialandenvironmentalself-evalua-tion; we visited 50 of them to get first hand knowledge of their practices in these aspects. The results of these self-evaluations are taken into account when contrac-ting services and to reinforce or end our commercial relationship.

• Thecontracts includeconcreteclauses inenvironmental andsocial compliance,occupational health and industrial safety, in order to cover our strategy and comply with our voluntary commitments, adopted through our adhesion to the Global Com-pact.

• Themainoutsourcingsuppliersareevaluatedbyallemployeeswhoreceivetheirservices through an annual survey, which allows us to identify levels of satisfaction and aspects that need improvement.

We try to generate alliances that consolidate our suppliers as strategic partners of the Group.


• Wetrainednearly120employeesofoursuppliersconcerningtheefficientuseofpublic services and proper solid waste management.

• Thedefinitionofasociallyresponsiblesupplierwasimplementedandcommunica-ted to service suppliers through our channels, such as on the website: Suppliers Portal.

• Wehaveaservice,complaintandclaimlineforsuppliers,throughwhichtheycanpresent their concerns, suggestions, disagreements or claims about the processes or officers of Grupo Bancolombia. We also have the Supplier Ethics Line, which allows them, as service suppliers, to anonymously report real and potential viola-tions through incorrect acts of collaborators of Grupo Bancolombia.

Commitment to our shareholders

Guaranteeing business continuity is our first respon-sibility to our shareholders, and to achieve it, we implemented strategies targeted at sustainable

development and compliance with the service promise.

Business continuity

Business continuity is the strategic, tactical and operational capacity of the organization to plan and respond to interruptive events, which allows continuing the operation at an acceptable level that has been defined previously. At Grupo Bancolombia, we implemen-ted business continuity strategies based on sustainable development, compliance with the service promise and the expectations of our stakeholders.

In 2010, our business continuity program was focused on, in addition to complying with the drill and disclosure plan, the implementation of the following strategies:

• WeevaluatedtheGrupoBancolombiaBusinessContinuitymaturitymodelinlightofan international model (Bccm ® of Virtual Corporation, U.S.).

• WeimplementedBusinessImpactAnalysis,BIA,focusedonchannelsandservicesfor Grupo Bancolombia.

• Wereinforcedthedefinition,disclosureandimplementationofthestrategytoma-nage crisis situations. We implemented and carried out drills for moving to an alternative governance site for top management and the crisis management team.

Business continuity is the strategic, tactical and operational capacity

of the organization to plan and respond to interruptive events,

which allows continuing the operation at an

acceptable level that has been defined previously.


• Wecarriedoutthedefinitionandtechnicalset-upandpilottestforthemigrationofprocesses supported at the Alternative Operation Center, CAO, towards a Virtual Alternative Center, CAV, strategy.

• WeexecutedtheBusinessImpactAnalysis,BIA,forFiduciariaBancolombiainPeru.

• In the knowledge management strategy, we progressed 95% in the review andupdate of first-level critical charges for vice presidencies and affiliates; we cons-tructed the critical charge map for the Innova project, and we implemented a pilot project for transfer of knowledge, which allowed building a training route for new managers across the country.

• WeprogressedintheacquisitionandimplementationoftheRecoveryPlannertoolfor the management of the business continuity program and crisis management.

Based on a union and social vision, our commitment, preparation and diligence at Grupo Bancolombia regarding the development of a business continuity program has included the financial sector, thanks to our participation and contributions in various venues and scenarios.

We have also helped suppliers comply with current regulations (circular 052/2007) and helped customers through the certification of the continuity plan, which gives them con-fidence in our compliance with service provision.

Based on a union and social vision, our commitment, preparation and diligence at Grupo Bancolombia regarding the development of a business continuity program has included the financial sector.

Commitment to authorities

We comply with the regulatory provision and con-tribute, with our tax contributions, to the inves-tment of the governments and the construction

of public policies that create benefits for the communities where we are present.

At Grupo Bancolombia, by complying with our tax obligations, we contribute to national and territorial finance by paying taxes, contributions and fees. At the end of 2010, we had paid $595,925 million COP. In addition, as a financial institution, we facilitate the collection of various national, departmental and municipal taxes.

Our leaders in the organization participate with their knowledge, experience and sus-tainability focus in union and inter-union committees, which are consulted by various government entities for the construction of public policies.

922 0 1 0 R E P O R TC o r p o r a t e R e s p o n s i b i l i t y

TAXE

S PO

STED

TO

ACC

OUN

TIN

G AT

DEC

EMBE

R 31

, 201

0

Type

s of

taxe

sBa

nkLe

asin

gFi

duci

aria

Valo

res

Rent

ing

Fact

orin

gBa

nca

Tota

l

Incom

e ta

x an

d co

mpl

emen

tary

313

,838

,314

,773

.04

44,8

22,2

88,6

94.2

2 34

,660

,356

,781

.15

1,2

45,2

82,6

15.0

0 1

,636

,324

,000

.00

417

,800

,293

.77

18,6

32,1

76,7

25.2

2 41

5,25

2,54

3,88

2.40

-

Asse

t tax

- -

- 1

,178

,911

,998

.00

625

,846

,000

.00

- -

1,8

04,7

57,9

98.0

0 -

VAT

108

,132

,510

,751

.21

2,3

41,3

69,4

03.4

6 1

,568

,180

,750

.66

827

,109

,327

.06

3,6

55,3

24.0

0 6

19,1

65,7

89.7

8 1

,172

,342

.41

113

,493

,163

,688

.58 -

Stam

p 4

85,2

10,2

58.0

0 6

,372

,269

.00

150

,697

,380

.46

25,

085,

030.

55

10,

098,

541.

00

11,

550.

00

677

,475

,029

.01 -

Char

ge o

n fin

an-

cial m

ovem

ents

- -

760

,198

,133

.97

462

,609

,947

.69

806

,171

,453

.00

2,2

78,3

40,8

94.4

4 -

4,3

07,3

20,4

29.1

0 -

Indus

try a

nd

com

mer

ce 3

4,86

6,57

4,22

8.00

6

,126

,775

,488

.00

1,6

39,7

79,3

20.7

8 1

,720

,777

,984

.33

2,5

13,9

21,4

65.0

0 6

33,5

98,6

95.7

5 5

0,46

2,74

8.00

4

7,55

1,88

9,92

9.86

-

Land

6,0

25,3

30,0

78.0

0 1

,312

,008

,966

.00

12,

568,

379.

00

33,

429,

116.

00

21,

812,

657.

00

7,4

05,1

49,1

96.0

0 -

Vehic

les

84,

075,

693.

00

8,8

95,0

00.0

0 3

,351

,000

.00

4,3

91,8

00.0

0 3

,397

,409

,132

.00

4,0

39,9

00.0

0 2

,888

,900

.00

3,5

05,0

51,4

25.0

0 -

Surc

harg

e an

d ot

hers

169

,793

,271

.79

8,3

38,0

68.0

0 2

9,87

0,14

3.76

-

- 5

53,7

75.0

0 1

,500

,000

.00

210

,055

,258

.55 -

Regi

stra

tion

79,

526,

737.

00

1,4

67,9

82,0

57.0

0 -

- 1

44,9

93,6

11.0

0 2

4,88

6,20

0.00

1

,717

,388

,605

.00

Tota

l tax

es 4

63,6

81,3

35,7

90.0

4 56

,094

,029

,945

.68

38,8

25,0

01,8

89.7

8 5

,497

,597

,818

.63

8,9

93,4

25,9

15.0

0 4

,120

,317

,166

.74

18,7

13,0

86,9

15.6

3 5

95,9

24,7

95,4

41.5

0


We support the construction of public po-licies through the participation of our lea-ders on union and inter-union committees.


Commitment to the environment

We carry out environmental management, together with our collaborators, customers and suppliers, in order to contribute, with our actions, to the care of the environment.



We carry out environmental management, together with our collaborators, customers and suppliers, in order to contribute, with our actions, to the care of the environment.



At Grupo Bancolombia, we are committed to carrying out environmental mana-gement in each of our business actions and promoting the awareness and care of the environment among our stakeholders

Environmental management

We have an environmental management strate-gy that starts from our corporate values, is implicit in regulatory compliance and supports

the sustainable growth of our collaborators, customers and citizens.

The preservation of the environment is one of the main challenges for the sustainable deve-lopment of humanity and the continuity of the economic and corporate models.

The financial entities as engines of savings and investments that promote the development of the economic sectors of the countries indirectly participate in generating environmental impacts. In this way, we have a great opportunity to help mitigate these impacts, so that, together with the stakeholders, we may build a better tomorrow.

Sensitive to this reality, at Grupo Bancolombia, we continued, in 2010, to develop our environmental management strategy.

Pillars (GRI FS1)

The strategy covers all financial companies of Grupo Bancolombia, the development of their acti-vities, business and operations, both at the local and international level, and relies on the following principles:

[left margin:] At Grupo Bancolombia, as a financial institution, we indirectly participate in the gene-ration of environmental impacts. We assume this role with full commitment and, in order to achieve it, we developed our environmental management strategy.

At Grupo Bancolombia, asa financial institution, we

indirectly participate in the generation of environmental

impacts. We assume this role with full commitment and, in

order to achieve it, we developed our

environmental management

strategy.


Corporate Values

Growth of Stakeholders

Sustainable Development

Regulatory Compliance

- Visits from customers who are experts in matters of the environment and energy efficiency.

- Events for customers of SME banking in the main cities of the country.

- Visits to suppliers to evaluate the environmental and social impact.

- Suppliers portal on the Internet for permanent consultation.

- Annual sustainability report and website for presentation of progress.

- Evaluation of investments made by capital funds.

- Inter-industry working roundtables with community participation.

- Financed projects evaluated with citizen participation.

- Meetings with national and regional environmental authorities.

- Cooperation agreements for cleaner production.

- Face-to-face events for training and consultation.

- Website for recommendations and observations.

Customers

Suppliers

Employees

Investors

Authorities

Community

Policy (GRI FS1)

In 2008, the Board of Directors approved the environmental management policies of Grupo Banco-lombia in order to establish the reference framework, the structures, the principles and guidelines for the planning, organization, implementation, monitoring, control and continuous improvement of the Comprehensive Environmental Management System of Grupo Bancolombia.

See document at: www.grupobancolombia.com

Department (GRI FS1)

The Environmental Management Department is the area responsible for coordinating the Comprehensive Environmental Management System, Siga, of Grupo Bancolombia, maintaining permanent contact with outside entities, multilateral bodies, government en-tities and environmental advisors. In addition, it must propose the environmental mana-gement policies of the Group and coordinate, with the people responsible for each vice presidency and business line, the formulation and implementation of the environmental management plan.

Participation of stakeholders (GRI FS1)

In order to identify the needs of the stakeholders, In 2010, we had several meetings, in which we presented the environmental management strategy of Grupo Bancolombia.

For us, it is essential to keep permanent communication with our stakeholders in order to understand their needs.


STAK

EHO

LDER

SEx

pect

atio

ns -

Nee

ds

STAK

EHO

LDER

SSu

stai

nabl

e De

velo

pmen

t

Strategic Guidelines

Environmental Policy Environmental Plan

Corporate Values

EnvironmentalRisks

Green Lines and Products

Eco-efficiency

Adhesion to protocols

Environmental Education

Companies Market Communication

P

H

V AContinuous

ImprovementInternal Control

Supp

ort

Mis

sion

En el Grupo Bancolombia hemos realizado adhesiones voluntarias como:

At Grupo Bancolombia, we have carried out voluntary adhesions, such as:

Principles of EcuadorSince the end of 2008, we have been committed to implementing the envi-ronmental and social risk evaluation processes in the financing of projects. With the support of financial institutions, under the Principles of Ecuador, we were able to concretely progress in this goal.

Global CompactWhen we jointed this initiative at the end of 2008, considered to be one of the greatest at the global level in terms of corporate responsibility, we took a step forward in the consolidation of human rights, labor practices, environ-mental and anti-corruption topics.

Cecodes – WbcsdWe have worked with Cecodes, the Colombian chapter of the Wbcsd and the entity considered to be the global leader in matters of sustainability, since the end of the ‘90s. With them, we reviewed our sustainability report under GRI standards and our carbon footprint under the GHG Protocol.

Model (GRI FS1)

This is the environmental management model we follow in order to carry out actions in environmental matters:

Adhesion to protocols (GRI FS1)

In the development of our environmental responsibility strategy, we discovered, in va-rious protocols and work groups, the possibility of bringing continuous improvement to our management system and the processes associated with it.

Our environmental management strategy

is guided by the pillars, the model and adhesion

to protocols and relies on allies the carry out environmental care

management.


GRISince our sustainability report from 2008, we have been using the guidelines generated by the Global Reporting Initiative, GRI, especially those defined in the supplement for the financial sector. Today, it is easier to compare with other entities through standardized indicators.

UNEP –FISince 2007, we have been in contact with the regional coordinators of this United Nations program for the environment. In this initiative for the financial sector, we found topics regarding training, climate change and green products. We hope to adhere in 2011.

Carbon Disclosure ProjectIn our sustainability report from last year, we presented the calculation of our car-bon footprint. For this purpose, we took into account the guidelines of the GHG Protocol of the Wbcsd and the WRI. For this year, we have the Cecodes review, with which we started our carbon report through CDP.

Dow Jones Sustainability IndexesSam Group confirmed the inclusion of Bancolombia in the Dow Jones Sustainability World Enlarged Index. This index, with nearly 500 companies, includes the top 20 in sustainability out of the 2,500 largest companies listed in the Down Jones Global Total Stock Market Index.

Some of them are:

Fundación NaturaPlanting programs to offset Bancolombia’s carbon footprint.

WWFPrograms led by WWF, such as Soy ECOlombiano and Earth Hour (La Hora del Planeta).

OMMS – [World Organization of the Scout Movement (Organi-zación Mundial del Movimiento Scout)]Environmental education programs in natural reserve areas.

Allies (GRI FS5)

We have the support of, help from and a relationship with allies at the global level who carry out environmental care management.

We are included in the Dow Jones Sustainability World Enlarged Index. This index includes the top 20 in sustainability out of the 2,500 largest companies listed in the Down Jones Global Total Stock Market Index.


Agenda del MarEducation programs that use teaching material for children and young people.

InecorePilot for reducing water consumption at branches.

AviaturMeasurement of the carbon footprint for business travel of Grupo Bancolombia.

EcothermiaHelp to customers in energy efficiency projects.

Eco-efficiency Help to customers in cleaner production projects.

CNPMLHelp to customers in projects that reduce environmental impact.

South Pole CarbonHelp to customers in projects with potential for the carbon market.

IDBHelp to identify business opportunities.

IFCHelp to identify business opportunities.

LitoManagement of electrical and electronic waste. Raee national collection campaign.

Kimberly ClarkProgram for waste recycling related to the Eco-efficiency strategy.

SodexoAlly leader in the Eco-efficiency program and manager of information on the CO2 foot-print.


For the management of our Comprehen-sive Environmental Management System – SIGA –, we are in permanent contact with outside entities, multilateral bodies, government entities and environmental advisors.



Mission Fronts

Below are the main lines on which we develop our environmental management strategy.

Project Category Status Opinion

Transfer from river to dam A Evaluated In favor

Maintenance of air terminals B Evaluated In favor

Replacement of ovens in brick factories B Evaluated In favor

Hotel in La Guajira B Evaluated In favor

Road concession B Evaluated Conditional

Energy self-generation B Evaluated Conditional

Expansion of maritime port B Evaluated Conditional

Gas pipeline construction B Evaluated Conditional

Divided highways concession B Evaluated Conditional

PET recycling plant B Under study Undetermined

Energy self-generation B Under study Undetermined

Rehabilitation of roads B Under study Undetermined

Transport of hazardous substances B Under study Undetermined

Medical hospital services B Under study Undetermined

Construction of the Peru hydroelectric plant B Under study Undetermined

Expansion of oil pipeline Undetermined Under study Undetermined

Glass manufacturing plant Undetermined Under study Undetermined

Thermal treatment line Undetermined Under study Undetermined

Natural carbon to coke Undetermined Under study Undetermined

Environmental and social risks (FS1/2/3)

We try to mitigate the indirect environmental and social risks that may materialize in the projects and activities we finance and through the suppliers with whom we work. We particularly focus on evaluating environmental, social, occupational health and industrial safety aspects, following regulatory guidelines and international standards.

Projects financed (FS1/FS3)

We have a policy based on evaluating the environmental and social risks of the projects we finance. We have established a value, based on which we make this analysis, which is 10 million U.S. Dollars. Through this action, we meet our commitment to adhere to the Principles of Ecuador:


Corporate loan (GRI FS1)

Our commercial strategy focuses on paying special attention to our customers, according to the business sector in which they work. Each of these activities has been classified according to the environmental and social risks associated with their activities. Between January and December, we disbursed 247 loans for amounts above 10 million U.S. Dollars to various economic sectors, which have the following environmental risk rating, according to the sectoral activity carried out by the customers that benefitted from the financing.

43 76 128

High risk Medium risk Low risk

Real estate Leasing (GRI FS1/2)

Taking into account the property involved in real estate leasing contracts on the lands where our customers carry out their activities, and given the legal vacuum because of the lack of knowledge of these types of contracts in environmental regulation, we are evaluating the environmental and social risks related to their operation:

Project Category Status Opinion

Residual water treatment system B Evaluated Favorable

Gas stations B Evaluated Favorable

Carbon thermoelectric generation project A Evaluated Conditional

Extraction of gold and platinum A Evaluated Unfavorable

Water concession for industrial use B Under study Undetermined

Textile manufacture B Under study Undetermined

Discharge of industrial residual waters B Under study Undetermined

Thermal treatment line Undetermined Under study Undetermined

Natural carbon to coke Undetermined Under study Undetermined

Suppliers (GRI FS1/3)

In an attempt to guarantee a sustainable supply chain, we developed evaluations of the environmental and social risks of our suppliers, whom we consider allies in our operation and an extension of our activities. For this purpose, we strive to help them in their deve-lopment and therefore reach adequate industry standards in each of them:

Opinion Progress Si No NAVisited 91,2% 8,8% 31 3Under evaluation 61,8% 38,2% 21 13With plans of action 47,1% 41,2% 11,8% 16 14 4


Supplier Rating A - A + B - B + C

Maintenance 1 4

Goods and Services 2 4 8

Civil works and refurbishing 1 1

Total 0 3 4 13 1

Riesgo A- es el más alto y riesgo C es el más bajo.

SuppliersVisited Evaluated

2009 2010 2009 2010Maintenance 1 10 1 5Goods and Services 3 14 2 14Civil works and refurbishing 6 7 4 2Total 10 31 8 21

As a result of the evaluations that we performed on suppliers in 2010, we identified in some of them environmental and social practices that must be stressed due to their commitment to their stakeholders and their alignment with our sustainability strategy. These are: - Arquitectura Integral - Lito - Multimpresos - Impresos El Día

Environmental businesses (GRI FS7/8)

We offer attractive financing options to our customers to make their activities more efficient and clean using the current benefits for projects that generate the least impact on the environment and the community.

Model of environmental businesses (GRI FS1)

General Environmental Business Strategy

Topics

Feasibility

InternationalDeveloper

LeasingBancolombia

BankBanca de InversiónFiduciariaDeveloper

Customer

Developer

Valores Bancolombia

Developer

Technology Financing ImplementationERC

Negotiation

Cleaner ProductionEnergy EfficiencyRenewal Energy SourceSustainable ConstructionMechanisms of Clean Development

OwnResources

DevelopmentBanking

Sources Lines

Environ-mental Feasibility

CooperationFeasibility

Risk CapitalTax Discount

Benefits

Participation of Grupo Bancolombia in the Carbon Market

Participation of Grupo Bancolombia in the Esco Model

Multilaterales


Through Bancolombia’s environmental volunteering, we succeeded in planting 2,200 trees with the assistance of the Fundación Natura, 1,950 more than last year.



Esco Model (GRI FS7/8)

Esco is a model energy service company whose mission is to identify possible savings in the consumptionofenergythroughself-generationandturnthemintotangiblecashflowforthebenefit of customer companies. Under this model, in which we have the help of Ecothermia, acting as an Esco, we have identified 14 projects for which technical and financial studies were presented to 5 of our customers, some of which have already included them in their 2011 investments. At Bancolombia, we will be careful to finance them with innovative arran-gements in which the service of the debt is covered with the savings generated by the lower energy expenditure.

Environmental credit line (GRI FS7/8)

The environmental credit line is a loan for companies to improve their eco-efficiency and ob-tain a subsidy of up to 25% from the Swiss government. This credit is particularly designed for investments that intend to achieve a positive impact on the environment. Local technical support to determine the positive impact and to obtain the benefit is given by the National Center for Cleaner Production (Centro Nacional de Producción Más Limpia). In 2010, we carried out 11 new disbursements of $1.9 billion COP for small and medium sized compa-nies that reduced emissions. There have been nearly 60 operations in the last four years.

Carbon markets (GRI EC2)

Thanks to the support of the Inter-American Development Bank, IDB, we continue to identify opportunities in the carbon markets. In, 2010, we progressed in the detailed evaluation of five projects by South Pole Carbon; for two of these, terms of reference were signed: the first corresponds to a change of fuel which, due to its good profitability, was not subject to the concept of additionality, so we continued its development without the resources of the carbon market. The second, focused on forestry matters, is still in the process of being registered.

We have financed several projects that are registered in the compliance market without considering carbon credits as a source of payment (in that market, payment is made by reducing greenhouse gas emissions, measured as tons of CO2; companies interested in offsetting their emissions buy these reductions), especially in matters of co-generation with biomass, renewable energy and Bus Rapid Transit, BRT. To reduce the risks of registration time, which may be more than 24 months, we are evaluating together with the IDB the pos-sibility of registering, with their support, PoAs Activity Programs (which allow speeding up the registration process of similar projects with the United Nations Framework Convention on Climate Change, UNCCC, on projects of small hydroelectric plants, changes of fuel and renewable energy.

In the quest to reduce the risk of the carbon credit market, arising from the volatility of prices in European and American markets, we are in contact with First Climate for its initia-tive on guarantees for the carbon market, backed by Deutsche Bank. These options would provide financing for carbon market projects as if it were a regular financing backed by a letter of credit issued by a leading international financial institution.

In 2010, we carried out 11 new disbursements of

$1.9 billion COP for small and medium sized companies that

reduced emissions.


Expert consulting to customers (GRI EN26)

Through our alliances with companies that are experts in environmental matters, climate change, carbon markets, energy efficiency, renewable energy and cleaner production such as South Pole Carbon, Ecothermia, Eco-efficiency and Environmental Protection, in 2010 we succeeded in having more customers identify opportunities to develop their activities in a more efficient, profitable and responsible manner with regards to the environment and the nearby community.

30 60 2

Corporate customers SME Customers Investment customers

We will continue our financing and assistance strategy, hoping to obtain more business for the organization that favors sustainable development and helps our customers carry out their activities in harmony with the environment and the community.

Eco-efficiency

Our challenge is to be an eco-efficient organi-zation and to connect, with good practices, our customers, suppliers and the commu-

nity, in order to contribute in our daily activities to the care of the resources.

Energy consumption (GRI EN3/4)

Energy is paramount for the development of activities that leverage the growth of econo-mies. Using efficient alternative and renewable energies help to create a better tomorrow for everyone. The energy used in Colombia under normal climate conditions is hydric in more than 78%.

2010 Goals: Reduce energy consumption per capita by 2%


92.639 MWwas our energy consumption. 99% coverage.

Apart from these new options that reduce the identified uncertainties, these markets are still risky, complex and, especially, slow due to their registration time. In addition, part of the local legislation should be addressed to enable financial institutions to operate such financial instruments in a clear manner that does not involve interpretations that can be subsequently challenged by the control entities.

We will continue to work on this front, convinced that, beyond the 24 projects registered with those closed by Colombia in 2010, there are interesting opportunities to increase this figure if the framework in which they are conducted will provide greater clarity to its players.


Main achievements- We continued with the program of branch automation reaching 99 offices.

- We successfully implemented the Lumine program into the General Management, in Medellín, with savings of 1.7 GW.

- We evaluated the energy efficiency of the administrative headquarters of San Martín, in Bogotá, and found improvement opportunities.

Water consumption (GRI EN8)

Water is vital for life on the planet; its responsible and efficient use helps to make the water footprint of the companies as low as possible in an environment where many of the communities we reach are just in the process of obtaining dignified and quality access to this resource.



Jan

23.254

14.085

40.26647.328

33.573

50.374

42.541

56.262

38.285

71.840

30.055

35.920

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

483.783 M3

fue nuestro consumo de agua.Cobertura del 99%

Main achievements- We launched the pilot water consumption in the toilets of Inecore with savings of 50%.

- The collection of rain water provided 49% of the air conditioning consumption at the General Management.

- The reduction in water consumption per employee was 3.4 m3, equivalent to 14.82%.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

6.973

6.602

8.146

7.8247.576

9.171

8.127

7.925

7.772 7.932

7.039

7.552


Paper consumption (GRI EN1)

Sustainable processes for paper manufacture are the best alternative for companies and individuals to reduce the impact on the environment due to improper practices. 100% of the office paper we use at Bancolombia comes from the bagasse of sugar cane.

2010 Goals: Reduce paper consumption per capita by 15%

2011 Goals: Reduce paper consumption per capita by 10% 155.009 Kgwas our paper consumption. 99% coverage.

Main achievements - We reduced the consumption of paper per employee by 3.7 kg, equivalent to a reduc-

tion of 49%.

- We connected more than 120,000 customers to the virtual statement, reducing the use of paper.

- Valuation processes originating from paper recycling gave us income of $178 million COP.

Business travel (GRI EN16)

Air transportation contributes 2% to the global emissions of CO2. Although the industry is looking for options to reduce this impact, it is important to use alternatives to mitigate our own impact. We have videoconference rooms in all our administrative headquarters so that employees may communicate with people from other regions without having to travel.

2010 Goals: Reduce the kilometers travelled per capita by 2% ☹

2011 Goals: Reduce the kilometers travelled per capita by 2%

1.9MM kmstravelled. 99% coverage.

Jan

23.254

14.085

40.26647.328

33.573

50.374

42.541

56.262

38.285

71.840

30.055

35.920

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

87.791

178.605

180.333 201.890203.670

138.094

98.804 88.378

206.362 205.300

173.732

133.599



Main achievements- Use of videoconference availability in 2010 was 75% of its capacity.

- We had the help of Aviatur to calculate our carbon footprint by travel.

- We obtained a per capita reduction of 3.4 km equivalent to 2.44% compared to 2009.

Waste management (GRI EN22/24)

Methane represents 23% of the global greenhouse effect gas emissions and among them, sanitary waste is the most representative. Reducing the amount of waste we send to the landfill is our objective, and to do this, we have a waste management program.

2010 Goals: Implementing the comprehensive waste mana-gement plan

2011 Goals: Reducing ordinary waste generated per capita by 5%

6.340 Tonfueron los residuos

generados por el Grupo Bancolombia en 2010.

Cobertura del 87%


516,43

510,90

526,30 515,54511,30

527,18

521,24

511,06527,58

592,34

515,14

510,21

Main achievementsOrdinary waste4,391 Tons with 100% management by authorized companies.

Recyclable waste340 Tons valued at 100% by Kimberly.

Electronic waste58 Tons with 95% recycling managed by Sodexo.

Organic waste48 Tons with 100% recycling managed by Sodexo.

Hazardouswaste5 Tons with 100% treatment managed by Lito.


Water is vital for life on the planet. At the companies, we are committed to being responsible and efficient to help the water footprint be as small as possible and thus contribute to its care.

SAK ORTIZBosque de Toro Negro [Black Bull Forest], Puerto Rico


Other managed resources (GRI EN19/10)

We also manage other resources which are within our reach to carry out our daily acti-vities.

Main achievementsDiesel 46,792 Gallons Diesel for energy plans used only in emergencies.

Gas40,936 M3 Gas used in the eating areas of some corporate buildings.

Ozone Depleting Substances 2,765 Lbs. Generated in the use and recharge of air conditioning coolants.

Recyclables1,498 Ton. Generated in branches and delivered without processing. Rain water3,900 M3 Captured in DG saves 49% of consumption in air conditioning.

Support fronts

On these fronts, we guide the work that supports mission fronts in order to achieve the objectives of the Environmental Management strategy.

Educación ambiental (GRI FS4/EN26)

Environmental education (GRI FS4)

Based on methodologies of multilateral bodies and the practice of Bancolombia, which are appropriate for local regulations, we have the virtual training program on the analysis of environmental and social risks present in the financing of projects, in the contracting of suppliers and in creating products. This program trained more than 1,233 analysts on credit, contracting and purchasing, risks and products in 2010, for a total of 1,883 persons in its two years of existence. Currently, it is available to continue the training of new analysts.

Corporate eco-efficiency (GRI EN26)

With this program we strive to create awareness in our employees concerning the proper use of the resources they have available to do their work at Grupo Bancolombia. Thus, we reduced the consumption of energy, water, paper and other inputs, improved recy-cling processes and decreased business travel to make a positive contribution to our carbon footprint. Thus, we became a carbon neutral entity, offsetting our footprint by planting trees in areas designated for reserves. In 2010, its first year of operation, we trained 3,774 employees.

More than 1,233 credit,

contracting and purchasing analysts were trained in

virtual training programs on the analysis of

environmental and social risks present in the

financing of projects.


Environmental businesses (GRI FS4)

With the support of consultants who are experts in climate change and energy efficiency, we continue the training process in environmental businesses for our salespeople in Corporate and Government Banking. This program trained 120 Account managers and had activities in the field with customers who have the highest potential for their type of economic activity.

Other programs developed (GRI FS4/EN26)

In 2010, we implemented other training programs that helped support the strategy:

- Optimal use of home public services with the support of EPM. 573 employees in Medellín.

- Appropriate solid waste management with the support of Sodexo and Kimberly C. 1,573 employees.

- Corporate eco-efficiency coordinated by the Environmental Department. 150 persons at the general management.

- Analysis of environmental and social risks provided by the Environmental De-partment. Practical cases - 100 analysts.

Disclosure (GRI EN26)

Internal (GRI EN26)

Intranet: We have an environmental management corporate site located on the intranet of the organization. On this site we present the strategies and their progress.

Corporate communications: We permanently communicate to all collaborators the progress in the environmental management strategy. In 2010, we published about 60 articles about the topic.

En Familia Magazine: We present responsible environmental practices to implement at home, through this bimonthly publication that reaches the families of all the employees.

External (GRI EN26)

Internet: Our environmental responsibility website presents to our stakeholders relevant information about our main achievements and fields of action.

Capital Inteligente Magazine: We reach customers through articles related to energy efficiency, climate change, sectoral environmental risks and eco-efficiency through this specialized magazine of Grupo Bancolombia.

Optimal use of the home public services, appropriate solid waste management, corporate efficiency are other training programs that support our strategy.


Activos Magazine: We bring our customers information about the assets that help reduce their environmental impact, improving their operating efficiency.

Mass media: In 2010, we prepared several articles for periodicals and magazines with national and international circulation on topics like Principles of Ecuador, environmental management strategy and carbon market, among other things. We also gave interviews to the national radio and television media with the progress obtained.

Collectibles: In the framework of Soy ECOlombiano we participated in one of the co-llectible chapters of the periodical El Espectador, in order to spread our mission lines.

Events (GRI EN26)

FInternational Environmental Fair

We supported the Ministry of the Environment in organizing the second version of this specialized fair, which brought together the latest trends in products and services for clean production and environmental preservation. We worked together with the Ministry at the institutional stand which, through the Garden of Environmental Awareness, invited and motivated the participants to sign their commitment to the Soy ECOlombiano strategy and adopt a sustainable lifestyle.

Environmental Credit Line, LCA

In association with the National Cleaner Production Center (Centro Nacional de Producción más Limpia), we developed information events of the Environmental Credit Line in Medellín, Bogotá, Cali, Bucaramanga and Barranquilla, with good reception from SMEs and environmental consultants. Nearly 400 attendants participated in training seminars which had the support of Andi.

Campaigns (GRI EN26)

In, 2010, we joined the following campaigns, where we found significant leverage for our strategy:

Soy ECOlombiano

This strategy promotes environmental awareness through the unified national concept of being visible to the various sectors of society, being inclusive, participative, capable of awakening and increasing the interest of the public and generating a sense of ownership of its wealth. Thus, it is possible to induce responsible environmental behaviors inten-ded to preserve the environment, improve quality of life and the rational use of natural resources.

Share your car

The Metropolitan Area of Valle de Aburrá and Breath Deeply (Respira Profundo) launched a campaign that linked more than 120 companies in order for their employees to share

We actively participated in environmental

campaigns such as Soy ECOlombiano, Comparte

Tu Carro, Recolección de Raee and Earth Hour.


the room in their car. This initiative tries to reduce air contamination by reducing the city’s fleet.Wejoineditwiththe60parkingspacesthatwehaveatourGeneralManagementintended for cars that contribute to reducing air contamination. By this, we hope to redu-ce 201 tons of CO2/year.

Raee collection This campaign, in its second edition, intended to collect electric and electronic waste in the five main cities of the country (Barranquilla, Bogotá, Bucaramanga, Cali and Medellín) for 30 days in order to generate direct employment in the social program of Lito S.A. and create environmental awareness on correct waste management. We contributed 52 kilos.

EarthHour

On Saturday, March 27, the whole world witnessed an unprecedented phenomenon, more than one billion persons, 4,000 cities and hundreds of monuments and represen-tative places around the planet turned off their lights for an hour between 8:30 p.m. and 9:30 p.m. At Grupo Bancolombia, we turned off the lights in the administrative buildings and branches and we also promoted it on internal and external media.

We also developed internal campaigns intended to generate environmental awareness among our 22,000 employees. These campaigns focused on the following matters:- Efficient water use. Savings in corporate and home bathrooms

- Efficient energy use. Savings in the work place and at home

- Appropriate solid waste management. Management of recycling in offices and homes

- Efficient use of transportation. Tips for drivers

At our General Management, where nearly 4,200 employees work, we coordinated a campaign to collect batteries in which we reached the sum of 22 kg, equivalent to nearly 1,100 AA batteries which were delivered for appropriate final disposal.

We continue to invite our customers to join these two campaigns:

Free miles (GRI EN26)

We invited our customers with credit card service to redeem their miles in the Bancolom-bia point program to dedicate these resources to tree planting or protection of species that are in danger of extinction.

Statements - adopt a tree (GRI EN26)

We invited our customers to start receiving their statements virtually. For every five customers voluntarily joining this initiative, we will plant one tree. The technical planting function is carried out by Fundación Natura.


Planting program for the statement campaign The massive campaign was closed in April 2010 and nearly 120,000 customers joined voluntarily. Together with Fundación Natura, we evaluated the land for the planting pro-cess in the vicinity of the municipality of El Retiro, in Antioquia, conducting several visits to determine the plan to be implemented.

Weather conditions have not spared the planting areas; the first half of the year was hit by a drought which did not guarantee the survival of the species to be planted and the secondhalfhadhistoricrainfallrecordswithfloodingandexcesswaterwhichagainputthe campaign’s trees at risk.

For the last quarter, looking to fulfill the commitment to our customers and with caution due to the rainy season, we started planting, redirecting to the nearby municipality of Guasca, in Cundinamarca, on the grounds of the Encenillos nature reserve of Fundación Natura. This planting is expanded in the areas of Marbella, Marbella 1 and Marbella 2 in the municipality of Sasaima, which are areas of protection of property of the department of Cundinamarca and are being managed by Fundación Natura.

With these actions, we completed the trees we wanted to plant before the end of 2010. By a strategic decision, we will continue with additional plantings on the grounds of the municipalities of El Retiro and La Ceja, which were delivered to Fundación Natura for this purpose.

After overcoming the difficulties of time, we

succeeded in planting trees in 2010 and responding to

the 12,000 customersenrolled in the virtual

statement campaign.


In 2010, we succeeded in planting nearly 31,317 trees for our programs in various reserve areas managed by Na-tura, especially in the municipalities of Sasaima, Guasca and Envigado.



Climate change

At Grupo Bancolombia, we carry out concrete ac-tions to care for the environment and avoid impacts on the climate

Carbon footprint (GHG Protocol) (GRI EN16/17)

The calculation of the carbon footprint was based on the GHG Protocol of the Wbcsd and the WRI and was reviewed by Cecodes, the Colombian chapter of the Wbcsd.

EnergyMW

92.639

GasMt3

40.936

TravelKms

1.9MM

CO2

Footprint12.190 Ton

DieselGl

6.792

Total EmissionsScope 1: 146Scope 2: 10.150Scope 3: 1.894

Direct emissions

Indirect emissions

Carbon indicators for Bancolombia in Colombia (GRI EN16/17)0.665 Tons of CO2 per employee, 0.030 Tons of CO2 per Mt2, 33,517 trees planted.


Banco Agrícola, El Salvador

Outside the review carried out by Cecodes concerning our footprint in Colombia, with in-formation provided by Banco Agrícola in El Salvador, we calculated their carbon footprint at 1,731 tons of CO2, of which 195 tons are direct and 1,536 tons are indirect.

Calculation of the carbon footprint of Grupo Banco-lombia 2010 – Cecodes (GRI EN16/17)

The calculation of the carbon footprint of Grupo Bancolombia was done by Cecodes, with information we provided from the organization. For this measurement and reporting of greenhouse gases, the methods used are recognized internationally: ISO. International Standard ISO 14064-1. First edition. 2006; 30p.; and, WBCSD, WRI. Greenhouse gases protocol: Corporate Accounting and Reporting Standard. Revised edition. 2005; 138p.

In preparing this report, we took the emission factors from recognized sources for which it is considered that there is no uncertainty and the information on the current levels was provided by the company with the precision and accuracy characteristic for its proces-ses. It is therefore considered that the uncertainty is low. This does not mean that there are no options for improvement in the quality of the information.

Direct emissions (scope 1) Natural GasConsumption 40,936.0 M3

Lower calorific power 33.8 MJ/Nm3

Emission factor 55,101.0 Kg/TJCO2 emissions 76.2 Ton CO2

ACPM - DieselConsumption 6,792.0 Gl 25,710.4 Lt 21,974.9 KgLower calorific power 42.4 MJ/KgEmission factor 74,869.0 Kg/TJCO2 emissions 69.7 Ton CO2

Total direct emissions (scope 1) 145.9 Ton CO2 equivalentIndirect emissions (scope 2)Electric energyConsumption 79,296,830.0 KwhEmission factor 128 gr CO2 / KwhCO2 emissions 10,150.0 Ton CO2

Other indirect emissions (scope 3)Business travelDistance travelled 1,896,555.0 KmsCO2 emissions 1,894.6 Ton CO2 equivalentTotal emissions 12,190.5 Ton CO2 equivalentTotalHuelladeCarbono2011 12,191 Ton CO2 equivalent

The Colombian Corporate Council for Sustainable Development (Consejo Empresarial Colombiano para el Desarrollo Sostenible), Cecodes, is the Colombian chapter of the World Business Council for Sustainable Development, WBCSD, which joins 200 leading companies in the world united by the commitment to sustainable development through its three pillars: economic growth, ecological balance and social progress. The emis-


Compensation (GRI EN26)

The compensation system of the carbon footprint that we have defined is aimed at eli-minating carbon by planting processes that we are coordinating with Fundación Natura in areas managed by them, some of which have been donated by Grupo Bancolombia.

Fundación Natura

In 2010, amid the difficulties of the summer in the first half of the year and the tough winter in the second half, we were able to plant nearly 31,317 trees for our programs in various reserve areas managed by Natura, especially in the municipalities of Sasaima, Guasca and Envigado.

Environmental volunteering

Through Bancolombia’s environmental volunteering, which is coordinated by Fundación Bancolombia and which has the participation of the employees of the various companies of the Group along with their families, we were able to plant 2,200 trees with the assis-tance of Fundación Natura, 1,950 more than the previous year.

This is just the beginning of an extensive planting process that will require logistic and economic efforts in the coming years to offset our carbon footprint. However, we believe that providing more room for nature reserves will leave a clear mark for the future about what we expect in terms of a healthier environment for ourselves and future generations.

Support for mitigation (GRI EN26)

With the help of the Inter-American Development Bank, IDB, South Pole Carbon and Ecothermia, we are moving forward in identifying opportunities for our customers to develop their projects with the support of the carbon markets. We have identified many project ideas to be implemented that were not yet in the budgets of the customers, which has led to response times that are longer than estimated. We continue to help those who have made the decision to move forward and we hope to derive more financing for such initiatives. Our carbon strategy brings together the lines of banking, leasing, investment banking, fiduciary and stock brokerage in supporting customers that are backed up by an international developer with the experience to take them to the carbon markets.

sion factor for electricity consumed from the national grid is 128 g of CO2/kW h, and is published for Colombia by the International Energy Agency. The emission factors of ACPM emission factors and generic natural gas are 74,869 kg CO2/TJ, and 55,101 kg CO2/TJ, respectively, and they come from the table of Emission Factors for Colombians Fuels, Fecoc. To estimate GHG emissions during travel, we used the tool provided by the International Civil Aviation Organization (ICAO).

31.317 trees were planted by our

programs in various reserve areas managed by Natura.


For credit institutions, the identification of the carbon footprint of the projects we are financing has become an important aspect to evaluate, since it allows identifying the indirect impact on climate change.

SAK ORTIZCaverns of Rio Camuy, Puerto Rico


Carbon risk in financing (GRI EN16)

For credit institutions, identifying the carbon footprint of the projects we are financing has become an important aspect to evaluate, as it allows identifying its indirect impact on climate change. We are evaluating the implementation of metrics similar to those used by RiskMetrics (MSCI brand).

For some international loans which are syndicated, expert consultants are evaluating the impact of such projects.

Disclosure (GRI EC2)

At the invitation of the Inter-American Development Bank, the World Bank and the sponsoring organizations in each country, we participated in various events in which we report our experience in identifying opportunities and risks for the carbon market.

Sao Paulo, Brazil, July 13, 2010

Tools for carbon finance, challenges and opportunities for commercial banks, sharehol-ders, asset management firms and regional stock exchanges. Organized by Bovespa.

Santo Domingo, Dominican Republic, October 13-15, 2010

Fifth carbon forum of Latin America and the Caribbean. Regional platform established to promotetheflowofknowledgeandinformationandfacilitatethecreationofabusinessenvironment between the various players.

San José, Costa Rica, October 21, 2010

Workshop on climate change: challenges and opportunities for financial institutions. Its aim is to contribute to raising awareness of climate change and to help financial institu-tions to identify risks and opportunities.

Mexico City, DF, Mexico, November 11-12, 2010

Environmental Sustainability and Carbon: Challenges and Opportunities for the Financial Sector in Latin America and the Caribbean. This event sought to provide knowledge on climate change and environmental sustainability. It was organized by BMV.

Bogotá, Colombia, November 18-19, 2010

Mitigation of Climate Change and Environmental Sustainability: Roles that can be played by development banks at both levels. Financing challenges were presented in the context of climate change mitigation.

The identification of the carbon footprint

of the projects we finance has become an important aspect

to be evaluated by credit institutions, because it allows

us to identify the impact of these projects on

climate change.


Perspectives (GRI EC2)

The response times of United Nations Framework Convention on Climate Change, Un-fccc, in relation to the projects registered in the Clean Development Mechanism, which enables developed countries to buy CO2 emission reductions from developing countries, have led to registration times in excess of 24 months, which goes against the expecta-tions of short-term returns in the financial sector. This, coupled with the uncertainty about the goals for a second commitment period under the Kyoto protocol, adds additional risks that make it difficult to predict the volatility that can exist in the carbon markets in relation to the prices of Emission Reduction Credits, ERCs. This, even with the reduction commitments of 20% of their emissions by 2020 expressed by the European Union and Japan, raises issues to consider, because in the event of not reaching a world agreement for a second commitment period under the Kyoto protocol, the negotiations to purchase ERCs will be bilateral. If the position expressed by the national environmental authority, which is to support global negotiation, continues, it is possible that if it is not achieved, it will be too late to enter into agreements with these two players that are already com-mitted. In this scenario, we will continue to review guarantee options for this type of market which transfer the risks expressed to vehicles that are easier to understand and implement by the financial sector.

Acknowledgements

At Grupo Bancolombia, we received acknowledge-ments for our environmental management. This motivates us to continue making contributions

towards a healthier world.

Metropolitan Environmental Award

This is an acknowledgement given by the Metropolitan Area of Valle de Aburrá and its Área Educada [Educated Area] program to organizations that had projects, products or experiences on specific actions to protect the environment or practices that created and promoted environmental values and culture from academia and companies.

Acknowledgement for commitment to air quality

The Metropolitan Area gave Bancolombia an acknowledgement at an event held on De-cember 21 in the auditoriums of the General Management of Medellín, due to its outstan-ding interest in preserving the environment and developing actions and strategies that contribute to increasing shared vehicle use among its collaborators.

The carbon market represents an opportunity for the financial sector, which must study how to transfer its risks to vehicles that are easier to implement.


Corporate buildings, sustainable con-structions

We strive to obtain Leed certification for our corpo-rate headquarters such as the General Manage-ment. This would mean that we have sustainable

constructions.

Visit to the UsgbcIn June 2010, we visited the facilities of the U.S. Green Building Council, or USGBC, in Washington. The objective was to get more out details about their Leed Platinum certi-fied facilities, learn from their practices and identify potential training issues and Leed certification processes.

Certification process of the General Management

Our General Management building in Medellín, which houses 4,200 employees of the Group and was opened in 2009, is being certified as a sustainable construction by the USGBC in the existing building category, which evaluates, among other things, aspects of design, environment, energy and water.

Our General Management

headquarters in Medellín is registered as an existing

construction by the U.S. Green Building Council for certifica-tion as a sustainable building

under Leed standards.


Our General Management building in Me-dellín is being certified as a sustainable construction.

BESTRIZ ELENA OSORIOPhotography Club


Environmental investments

Below, we show our investments in en-vironmental management during 2010.

Item Amount

Environmental and social risks $100.000.000

Eco-efficiency $400.000.000

Environmental business $900.000.000

Environmental education $1.900.000.000

Disclosure $200.000.000

Events $80.000.000

Campaigns $250.000.000

Adhesion to protocols $50.000.000

Climate change $3.182.000.000

LEED Certification – EB $470.000.000

Santa Elena Case $1.750.000.000

Total investments $9.282.000.000

Santa Elena Case

At Bancolombia, we have a lot in Cartagena, given as payment in the eighties and at which traces of conta-mination were later found. We work with the Ministry of

Environment, Housing and Territorial Development to achie-ve the remediation of the site.

The Santa Elena case corresponds to a property located in Cartagena delivered to the Bank as a payment in 1987 by the Federación Nacional de Algodoneros [National Fe-deration of Cotton Growers]. Subsequently, traces of contamination with herbicides and pesticides were found in these lands. At Bancolombia, although we did not cause this contamination, we worked together with the Ministry of Environment, Housing and Terri-torial Development to achieve the remediation of the site and of the containment area.

One of our major investments is intended to reduce the carbon

footprint to avoid climate change with an investment of

$3,182,000,000


In 2010, we organized a tender for the remediation of the lot and, among the bidders, we chose the firm Environmental Resources Management, ERM, a world leader in envi-ronmental issues present in 39 countries, including Colombia. The bid selected consists of an advanced oxidation process at the location. We are working with the community to keep it informed about the progress of the process. A recent study commissioned by the Ministry of Social Protection concludes that the current situation of the lot does not have a negative impact on the mental and physical health of the surrounding population, nor does it represent an imminent danger to it.

Looking ahead

We will continue carrying out actions to advance our environmental management, together with our sha-reholders, customers, employees and citizens. We

are convinced and committed to play an important role to promote and educate on environmental issues.

In 2011, we face major challenges for the environmental management of the organiza-tion. The consolidation of the model defined and the progress in the various mission and support fields will continue to provide clear generation of value for stakeholders. In each action taken, we will be thinking about a better future for all.

Item Objective

Environmental and social risks Support the strategic revision of the Principles of Ecuador

Eco-efficiency Achieve the goals proposed in each aspect

Environmental business

Increase the use of the Environmental Credit Line.Consolidate the first projects under the Esco model.Design the model of PoA activities program.Give advice to the customers of Corporate and SME banking.Implement proposal for vehicle model.

Environmental education Develop the environmental education plan

Campaigns

Continue our relationship with Soy ECOlombiano.Join Earth Hour.Implement phase II of Comparte tu carro [Share your car]Make progress in planting plans and projects with Natura.

Adhesion to protocolsAdhere to UNEP-FIReport the footprint in the Carbon Disclosure ProjectBe listed in the DJSI

Climate change Reduce the carbon footprint by 3%

LEED Certification – EB Obtain Leed certification for the General Management building

Santa Elena case Carry out the first remediation stage proposed by ERM

We will continue to progress with our environmental management model, focusing on environmental and social risks, eco-efficiency and education, among other issues.


Contribution to economic growth

We strive to generate value in each of our actions to foster the development and growth of our shareholders, customers, employees, suppliers, public administrations and the community.



We strive to generate value in each of our actions to foster the development and growth of our shareholders, customers, employees, suppliers, public administrations and the community.



One of our main functions is to create value and dis-tribute it among the various audiences with which we interact: suppliers, employees, shareholders,

public administrations and the community in general.

The financial system plays a crucial role in the economic activity of societies. Mobilizing savings into productive investment, encouraging the exchange of goods and services, facilitating the diversification and risk management and helping achieve macroeconomic stability are some of the basic functions that are identified as key to stimulating econo-mic growth.

The dynamic and sustainable performance at Grupo Bancolombia has allowed us to create permanent value in the economies where we are present. In 2010, we boosted economic growth by securing resources from public deposits, keeping the level of risk in operations low, participating actively in the generation of loans to all economic sectors, expanding the range of products and services to different market segments, generating employment directly and indirectly, and acting as an essential facilitator of the economic activity of households, businesses and public administrations.

We present below the Group’s generation of economic value in 2009 and 2010 and how it was brought to the stakeholders with which it interacts. We prepared this information using the methodology proposed by the Global Reporting Initiative, GRI, and it is consis-tent with the consolidated financial statements at December 31 of each year.

We foster economic growth by actively

participating in the generation of loans, generating jobs and

acting as an essential facilitator of economic activity,

among other aspects.


Economic value generated and distributed

Economic Value Generated

Economic Value Distributed

Brokerage marginNet feesInsurance activityOther regular income*

SuppliersEmployeesPublic AdministrationShareholders**Minority shareholdersSubordinatesSociety

Provisions, depreciation and amortizationReserves

Dec -09

3.985.374 3.669.5931.607.713 1.680.367

12 2.808

Dec -10

Economic Value Retained

417.991 590.992

6.011.090 5.943.689

1.331.7131.150.330

690.572501.688

15.081

3.506

1.417.6271.300.211

792.870526.77313.217

13.008

3.692.890 4.063.706

1.563.037

755.162

970.262

909.721

2.318.200 1.879.983

Includes net operating income other than fees and interest, net non-operating and exchange difference

Figures in millions of pesos

*

*

A financial institution creates value by the net income it receives from the marketing and administration of its products and services: investments, portfolio, leasing contracts, insurance, retail services, ATMs, network of offices, Virtual Branch, among other things. In December 2010, the economic value we generated at Grupo Bancolombia amounted to $5.9 billion COP, slightly below the level recorded a year earlier. The reduction of 7.9% per year in income from brokerage, associated with the low reference rates of Banco de la República, was partially offset by an increase of 12.1% annually in net fees and other regular revenue. The resources generated by the insurance activity grew substantially, but its impact on the result is low because of the lower relative size of the businesses within the organization.

A portion of the economic value generated at Bancolombia and our affiliated compa-nies is distributed among the various audiences with which we interact: to shareholders through dividend payments, to employees as wages and benefits, to suppliers through payment for their products and services, to the State through compliance with tax obli-gations and to the community in the form of social investment. In December 2010, our distributed economic value increased 10% annually, reaching $4.0 billion COP and representing 68.4% of the total value generated. The participation of the stakeholders is presented below:

A portion of the economic value generated at Bancolombia and our affiliates is distributed among the various audiences with which we interact: to shareholders, to suppliers, to the State and to the community in the form of social investment.


Suppliers are one of the major audiences to which value is distributed at Grupo Banco-lombia. In December 2010, payments for the provision of goods and services totaled $1.4 billion COP, with annual growth of 6.5%. Fees, insurance, maintenance and repairs, transportation, advertising and public services are the most important items within this category. In the organization, we have nearly 2,500 suppliers, between corporate custo-mers and individuals and, through outsourced services, we generated nearly 6,500 jobs.

Employees, meanwhile, were allocated 32% of the total value distributed in 2010. Per-sonnel costs amounted to $1.3 billion COP, with major expenditures for salaries, be-nefits, premiums, bonuses and severance. Other benefits such as loans at preferential rates, contributions for health protection and savings, scholarships for postgraduate studies abroad and wellness programs in cultural, recreational, sports and occupational health areas improved the well-being of collaborators and their families.

As a taxpayer, Grupo Bancolombia acts by being guided by trust in institutions, ethics, respect for the law, civic responsibility and social solidarity. At the end of 2010, our con-tribution to public administrations in the regions where we do business reached $792.87 billion COP, 14.8% higher than during the same period in 2009. The State allocates these resources to promote national development and well-being of citizens, through social, cultural, educational, public safety and infrastructure programs. The creation of value for shareholders is produced by dividend payments, which totaled $526.773 billion COP, representing 36.7% of net income obtained at December 2010. Taking into account that at the date of this report, the General Shareholders’ Meeting that approves the creation of the various reserves had not yet taken place, the exercise was conducted with the proposed distribution of profits in 2010.

A financial institution generates value through the net income

received for the marketing and management of its

products and services. At December 2010, our

generated economic value was $5,943,689 million COP.

0,3%

0,3%

13,0%

32,0%

34,9%Suppliers

Employees

19,5%

Public Administration

Society

Minority shareholderssubordinates

Bancolombia Shareholders

Economic Value DistributedDecember 2010


As an essential part of our corporate responsibility at Grupo Bancolombia, we support various initiatives for culture, recreation and sports, financial literacy, civic education, national identity, bankarization and environmental protection. The social investment of the companies of the Group grew 271% last year, reaching the sum of $13.008 billion COP. This contribution is supplemented by contributions from Fundación Bancolombia in self-sustaining productive projects and programs to support vulnerable populations.

Finally, the retained economic value refers to the portion of the profit of the year kept by the organization as reserves, to ensure business continuity and to generate greater value in the future. It also includes items to meet its obligations to customers and for the replacement and maintenance of the productive capacity. At December 2010, this item amounted to $1.9 billion COP and represented the remaining 31.6% of the total generated.

68.4% of the economic value we generate at Grupo Bancolombia was contributed to the stakeholders with which we interact. At December 2010, our distributed economic value increased 10% annually, totaling $4.0 billion COP,

SUSTAINABILITY REPORT – GLOBAL REPORTING INITIATIVE PAGE ECO REPORT

PAGE SOS REPORT

GCOMPACT LEVEL

STRATEGYANDINFORMATIONONTHEPROFILEOFTHEORGANIZATION

Strategy and analysis

1.1 Declaration of the top executive of the organization 18-69 10

Profile of the organization

2.1 Name of the organization 1 1

2.2 Main brands, products and/or services 6-10 80

2.3 Operational structure of the organization 14-15 22

2.4 Location of the headquarters of the organization 18

2.5 Number of countries where the organization operates 18-19

2.6 Nature of ownership and legal form Rating EE FF

2.7 Markets served by the organization 72-117

2.8 Scale of the organization that prepared the report 28-30

2.9 Significant changes during the period covered by the report 18-69 10

2.10 Awards received during the period covered by the report 58-62

Report parameters

3.1 Period covered by the report 9

3.2 Date of the most recent prior report 9

3.4 Contact to answer questions 9

3.5 Definition of the reporting process 9



PAGE SOS REPORT

GCOMPACT LEVEL

3.6 Coverage of the report 9

3.7 Concrete limitations of the scope or coverage of the report 9

3.11 Significant changes from prior periods 9

3.12 GRI content index To be defined

Governance, commitments and participation of stakeholders

4.1 Governance structure of the organization 14-15 22

4.2 Indicate whether the President of the top governance body is also an executive 1 1

4.3 Declare the number of members of the top governance body who are independent and/or non-executive members 1 1

4.4 Mechanisms by which shareholders and employees can make recom-mendations or offer indications to the top governance body 140-143 42

4.14 List of stakeholders participating in the organization 19

ECONOMIC PERFORMANCE INDICATORS OF GRI

Economía

Aspect: Economic Performance

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital suppliers and gov-ernments.

127-131

EC2 Financial implications and other risks and opportunities for the organiza-tion’s activities due to climate change. 117

EC3 Coverage of the organization’s defined benefit plan obligations. 59-75

EC4 Significant financial assistance received from governments. 102

Aspect: Market Presence

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. 87-88

EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. 1 / 50-51

Aspect: Indirect Economic Impacts

EEC8 Development and impact of infrastructure investments and services provided primarily for the public benefit through commercial, in-kind, or pro bono engagement.

59-75

ENVIRONMENT

Aspect: Materials

EN1 Materials used by weight or volume. 108 PG 8

EN2 Percentage of materials used that are recycled input materials. 106 / 122-123 PG 8

Aspect: Energy

EN3 Direct energy consumption broken down by primary sources. 107 PG 8

EN4 Indirect energy consumption broken down by primary sources. 107 PG 8



PAGE SOS REPORT

GCOMPACT LEVEL

EN7 Initiatives to reduce indirect energy consumption and reductions achieved. 108 PG 9

EN8 Total water withdrawal by source. 108 PG 8

EN9 Water sources significantly affected by withdrawal of water. 108 PG 8

EN10 Percentage and total volume of water recycled and reused. 112 PG 9

Aspect: Biodiversity

EN11 Description of lands adjacent to or located within natural protected areas or unprotected areas with high biodiversity. Indicate the location and size of lands owned, leased or managed, with high biodiversity value in zones outside protected areas.

116 PG 8

EN13 Habitats protected or restored. 116 PG 8

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. 116 PG 8

Aspect: Emissions, Effluents and Waste

EN16 Total direct and indirect greenhouse gas emissions, by weight. 109 / 118-122 PG 8

EN17 Other relevant indirect greenhouse gas emissions, by weight. 118-120 PG 8

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.

106 / 107 / 109 PG 9

EN21 Total waste water discharge, according to its nature and destination. 108 PG 8

EN22 Total weight of waste generated, according to type and disposal method. 110 PG 8

Aspect: Products and Services

EN26 Initiatives to mitigate environmental impacts of products and services, and degree of impact mitigation. 102-104 PG 9

Aspect: Compliance

EN28 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental regulations. 102-104

Aspect: Transportation

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transport-ing members of the workforce.

109/118 Page 8

Aspect: Environmental investments

EN30 Total environmental protection expenditures and investments by type. 126

LABOR PRACTICES AND DECENT WORK

Aspect: Employment

LA1 Total workforce by employment type, employment contract, and region. 50-52

LA2 Total number and rate of employee turnover by age group, gender, and region. 52 PG 5

LA3 Benefits provided to full-time employees that are not provided to tempo-rary or part-time employees, broken down by main activity. 44-49

Aspect: Labor/Management Relations



PAGE SOS REPORT

GCOMPACT LEVEL

LA4 Percentage of employees covered by collective bargaining agreements. 54 PG 3

LA5 Minimum notice period(s) regarding significant operational changes, in-cluding whether it is specified in collective agreements. 54 PG 3

Aspect:OccupationalHealthandSafety

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region. 54

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

54

LA9 Health and safety topics covered in formal agreements with trade unions. 54

Aspect: Training and Education

LA10 Average hours of training per year per employee, broken down by employee category. 37-40 PG 6

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing the end of their professional careers.

37-40 PG 6

Aspect: Diversity and Equal Opportunity

LA13 Composition of corporate governance bodies and staff, broken down by gender, age group, minority group membership, and other indicators of diversity.

1 PG 6

LA14 Ratio of basic salary of men compared to women, broken down by professional category.

HUMANRIGHTS

Aspect: Investment and Procurement Practices

HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. 110 PG 1

HR2 Percentage of significant suppliers and contractors that have under-gone screening on human rights and actions taken. 110 PG 1

Aspect: Non-discrimination

HR4 Total number of incidents of discrimination and actions taken. ?

Aspect: Freedom of Association and Collective Bargaining

HR5 Company activities in which the right to exercise freedom of associa-tion and collective bargaining may be at significant risk, and actions taken to support these rights.

54 PG 1

Aspect: Child Labor

HR6 Activities identified as having a potential risk for incidents of child labor, and measures taken to contribute to the elimination of child labor. 53 / 110 PG 1

Aspect: Forced and Compulsory Labor

HR7 Operations identified as having significant risks for incidents of forced or compulsory labor, and measures taken to contribute to the elimination of forced or compulsory labor.

53 / 110 PG 2

IMPACTOFPRODUCTSANDSERVICES–SPECIFICFORTHEFINANCIALSECTOR

Aspect: Disclosure on Administration

FS1 Policies with specific environmental and social components applied to business lines.

56-57 / 96-104 PG 7



PAGE SOS REPORT

GCOMPACT LEVEL

FS2 Procedures for evaluating and screening environmental and social risks in business lines. 102-104 PG 7

FS3 Processes for monitoring the implementation of environmental and so-cial requirements agreed upon with customers for their transactions. 103-104 PG 7

FS4 Processes for developing employees’ skills to comply with environmen-tal and social policies and procedures as applied to business lines. 112-113 PG 8

FS5 Interactions with customers, investors and business partners regarding environmental and social risks and opportunities. 99-100 PG 8

Aspect: Product Portfolio

FS6 Percentage of the portfolio by business line, specific region, size and sector. 34-49

FS7 Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose. 34-49 104-107 PG 9

FS8 Monetary value of products and services designed to deliver a specific environmental benefit for each business line broken down by purpose. 104-107

Aspect: Audit

FS9 Coverage and frequency of audits to evaluate the implementation of environmental and social policies and risk evaluation procedures. 102-104

Aspect: Active Ownership

FS10 Percentage and number of companies held in the institution’s portfolio with which there has been interaction on environmental or social issues. 68-113 PG 9

FS11 Percentage of assets subject to positive and negative environmental or social investigation. 288-289

FS12 Voting policies applied to environmental and social issues for invest-ments over which the entity holds the right to vote or advises on voting. 107

SOCIETY

Aspect: Community

SO1 Nature, scope, and effectiveness of any programs and practices that evaluate and manage the impacts of operations on communities, including entering, operating, and exiting of the company.

130-132 98-99

FS13 Access points in low-populated or economically low-income areas by type 130-132

FS14 Initiatives to provide access to financial services to disadvantaged people 69-73 12

Aspect: Corruption

SO2 Percentage and total number of business units analyzed for risks re-lated to corruption. 120 PG 10

SO3 Percentage of employees trained in the organization’s anti-corruption policies/procedures. 137 PG 10

SO4 Actions taken in response to incidents of corruption. 120 / 136-139 PG 10

Aspect: Public Policy

SO5 Public policy positions and participation in public policy development and lobbying activities. 90

Aspect: Regulatory Compliance

SO8 Monetary value of significant sanctions and fines and total number of non-monetary sanctions for noncompliance with laws and regulations. 140-146



PAGE SOS REPORT

GCOMPACT LEVEL

PRODUCT LIABILITY

Aspect: Disclosure on Administration

FS15 Policies for the fair design and sale of financial products and services. 116-132

Aspect:CustomerHealthandSafety

PR1 Life cycle stages in which health and safety impacts of products and services are evaluated for improvement, and percentage of categories of significant products and services subject to such procedures.

125-133 98-99

Aspect: Product and Services Labeling

FS16 Initiatives to enhance the capacity to understand the products and services by type of beneficiary. 51-52 18-25

Aspect: Marketing Communications

PR6 Programs for adherence to laws, standards, and voluntary codes re-lated to marketing communications, including advertising, promotion, and sponsorship.

23 / 93 PG 7

Aspect: Regulatory Compliance

PR9 Cost of significant fines for noncompliance with regulations concerning the provision and use of products and services of the organization. 140-146

Corporate Responsibility

Documents

Transcript of Corporate Responsibility