Commercial banks, Discount Houses and Development Finance Institutions (DFIs) are committed to the Central Bank of Nigeria’s (CBN’s) directive on the implementation of the Nigerian Sustainable Banking Principles (NSBP). The principle allows banks to decline funding for projects that degrade the environment and provide innovative solutions that support global efforts in addressing social, environmental and economic challenges, writes COLLINS NWEZE.
The Central Bank of Nigeria (CBN) has rolled out guide-lines on the Nigerian Sustainable Banking Principles (NSBP) aimed at integrating environmental and social policies into decision-making processes in commercial banks, discount houses and Development Finance Institutions (DFIs).
The regulator said trends in international business reporting takes account of the impact of business on the environment and the social and economic risks that affect business concerns. According to it, sustainability reporting allows organisations measure, understand and communicate their environmental, social and governance performances.
Although the reporting system has gained currency and acceptance globally, only a few local banks and organisations are promoting sustainability practices in their reports.
However, what is often missing is the view that corporate commitment to sustainability is more than a strategy. It is first and foremost an organisational orientation committed to reducing its negative impacts and increasing its positive impacts on its different stakeholder groups (customers, shareholders, employees, regulators, the government, unions, local communities). It entails creating shared value and win-win outcomes for business and society. Framed as such, commitment to sustainability is a way of life – the how of “how we do business” – guided by certain principles.
Since its launch in September 2012, there have been a series of initiatives and dynamism towards embedding sustainability in the Nigerian banking sector.
For instance, Access Bank Plc is a strong advocate of the implementation of sustainable banking principles by lenders. The bank is marking its Sustainability Awareness Week designed to deepen the sustainability culture among its employees and mark a decade of implementing sustainable banking practice.
Part of the activities for the week will be the workshops and training on sustainability and the employees volunteering day, a day dedicated to employees sharing their experience working on Corporate Social Responsibility (CSR) projects in Lagos. The bank is therefore encouraging employees to come up with projects that will touch the lives of a community or people of their choice.
Access Bank’s Group Managing Director/CEO, Herbert Wigwe, said the lender defines sustaina-bility as providing innovative solutions to support global efforts in addressing social, environmental and economic challenges.
Access bank chief expressed the lender’s determination to continue to create meaningful impact around the world and its subsidiaries by increasing awareness of best sustainable practices that can be implemented within our industry.
He explained that corporate sustainability is entrenched on three pillars: Profit, Planet and People, and these pillars have been embedded into how the bank carries out its business across various locations.
“This comes with a vision to be the most sustainable and respected bank in Africa, financing and facilitating brighter futures for all of our stakeholders through innovative services and best in class operations,” he said.
He said the lender has in line with the sustainability practices, continued to develop simpler and smarter products and services that are relevant to Nigerians, not losing focus of its vision to be the world’s most respected African Bank.
Also, Access Bank invested over N3.48 billion in Corporate Social Responsibility (CSR) and impacted over 853 in communities. The lender reached 20,071,453 lives, 358 Non-Governmental Organisations beneficiaries and invested N1.4billion in capacity building programmes for female employees of the bank. Its employees volunteered a total of 1,761,156 hours, in 142 strategic community initiatives across six geo-political zones.
Besides, the Access Bank Lagos City Marathon is encouraging healthy living in communities through sports.
The bank also partnered with UNICEF and Fifth Chukker on Polo Tournament to support orphans and vulnerable children. “There is also 130 branches friendly to the physically challenged, dedicated Women Banking team and establishment of the Access Women Network (AWN) to provide a platform for its female employees to accelerate their professional and personal development. The Board of Directors is led by a female chairman – Mosun Belo-Olusoga,” it said in a statement.
Likewise, Fidelity Bank Plc has in its bid to enhance the lives and wellbeing of children with disabilities donated special learning aids to Precious Kids International School in Jalingo, Taraba State. The bank under the auspices of the ‘Fidelity Helping Hands Programme’ (FHHP), its multi-purpose vehicle for corporate social responsibility (CSR) programme, also provided stationeries and writing materials to the children as part of continuous efforts to improve the standard of education in the country.
The project was initiated by staff of Jalingo Branch whose personal contributions were matched by the bank, in line the bank’s CSR philosophy. Speaking in Jailing during the ceremony, Fidelity Bank CEO, Nnamdi Okonkwo said the bank recognises the importance of education as a powerful tool for socioeconomic transformation.
FirstBank recently organised its week long CSR event with the theme: “Touching Lives; You First” which offered FirstBank employees the opportunity to give their time and resources to the service of humanity. The week-long event was simultaneously carried-out across its business communities in Nigeria, United Kingdom, Democratic Republic of Congo, Ghana, The Gambia, Guinea, Sierra-Leone and Senegal, a testament of the bank’s brand promise to always put stakeholder needs first, while reinforcing its role in driving sustainable development in the communities where it operates”.
Nigeria’s Green Bond market
At a recent launch of Nigeria’s Green Bond market development programme in Lagos, the Group Deputy Managing Director, Access Bank, Roosevelt Ogbonna said: “Our strategy, together with a solid corporate governance structure, has enabled Access Bank to retain its leadership position, contributing significantly to the economic growth of Nigeria and the broader African continent”.
“We recognise that a better and prosperous future is linked to the well-being and health of our planet. Thus, the protection of the environment is relevant to us. This encourages us to continue to invest in innovative technologies and techniques that promote the efficient use of resources and address sustainability issues when managing risk.
Lagos State Governor, Akinwunmi Ambode, while addressing guests at the formal launch of the bond said that the initiative would present profitable investment opportunities to stakeholders and investors, adding that the finance would help to reduce greenhouse emission and mitigate harsh effects of climate change in the state.
Ambode, who was represented by Lagos State Deputy Governor, Oluranti Adebule, assured that his administration would take maximum advantage of the opportunity embedded in the Green Bond Market to reverse the current harsh trends of climate change.
Climate Bonds, Director of Market Development, Justine Leigh-Bell said: “The Nigeria Green Bonds Market Development Programme is a big step towards unlocking the full potential for domestic issuance while developing a pipeline of green investment opportunities and engaging with local and international investors. We are excited about the future in the region.”
Sustainable banking initiatives
Every year, one per cent of the Access Bank’s profit before tax is allocated to sustainability initiatives incorporating environmental, social and governance (ESG) rating as part of lending criteria.
The bank’s efforts in this regard over the past few years, Wigwe added, has resulted in improvement in environmental footprints. For instance, waste reduction initiatives form a key part of the bank’s cost reduction strategy.
The Save Paper initiative launched across several business locations was aimed at cutting printing paper use by 50 per cent while N1.4 billion has been invested in capacity building for female employees of the bank who are now happier and better committed to delivering excellent services.
In terms of gender balance, the bank said its board composition is above the CBN regulation of 30 per cent. It carried out early branch closure policy to cut down electricity costs and introduced employee volunteering scheme to provide employees with a platform for giving back to society.
On economic development, Access Bank introduced ‘Beta Mama Beta Pikin’ to promote savings culture amongst the lower band of society whilst providing an opportunity for mothers and their children to gain access to health insurance. It supported 30 hospitals through the Hospital Facility Upgrade Support Scheme (HFUSS) and launched N1billion Access Nolly Fund: a new and innovative financial service aimed at improving and providing solutions for the Nigerian Movie industry.
On environmental responsibility, its efforts in this regard, over the past few years, have resulted in improvements in the environmental footprints. For instance, it resulted in 63.4 per cent reduction of emissions from electricity, 16. 7 per cent reduction in Emissions from petrol across Nigeria; led to 28.8 per cent reduction in emissions from diesel across Nigeria as validated by the NSBP.
The bank’s sustainability footprints have also led to 24.9 per cent reduction in diesel usage from early shutdown policy since June 2017, even as it has introduced over 413 solar-powered Automated Teller Machines (ATMs).
“Our Ogunlana Drive branch is fully powered by solar energy with no connection to the national grid, we have four solar-powered branches, 311 branches powered by hybrid of alternative energy sources and national grid and we have LED lightings in all our facilities nationwide,” Ogbonna said.
Partnerships/Disclosures
To underscore the importance of collaborative efforts in achieving the SDGs, Access Bank and the FMDQ securities market recently formalized partnership with the Financial Sector Deepening Africa and Climate Bonds Initiative United Kingdom. Access Bank won multiple awards at the Sustainability, Enterprise and Responsibility Awards (SERAs) including awards for Best Company In Climate Action. It won the Most Outstanding CSR Practitioner of The Year received by Omobolanle Victor-Laniyan, Head, Sustainability at Access Bank; Sustainability Champion of the Year given to Herbert Wigwe, GMD/CEO, Access Bank among others.
Leave a Reply