The document outlines the Nigerian Sustainable Banking Principles established by the Central Bank of Nigeria to help banks identify and mitigate environmental and social risks. It consists of 8 overarching principles that guide banks to integrate sustainability into decision making, respect human rights, promote financial inclusion, implement robust governance, build institutional capacity on sustainability issues, and regularly report on progress. The principles aim to help banks manage risks while also positioning them to capitalize on opportunities in global sustainable finance.
The study was conducted to find out the Present scenario of green banking practices in Bangladesh. Green
banking is not just a corporate social responsibility activity; it is all about going beyond to keep the world livable
without any significant damage. Green banking that considers all the social and environmental factors is also
called ethical banking. The main objective of green Banking is to ensure the use of organizational resources in
favor of the environment and society. Green banking as a concept is proactive and smart way of thinking with a
vision for future sustainability of our only Spaceship earth. Bangladesh Bank is the first central bank in the world
that has taken real initiatives to facilitate the way of Green banking practice. With some specific guidelines and
legal frameworks the central bank of Bangladesh has been urging all the commercial banks in Bangladesh to
develop their own Green Banking Policies.
In this presentation, given to a roundtable of 25 senior executives, I discussed some of the China centric trends that are catalyzing maturing in CSR. Followed by
The study was conducted to find out the Present scenario of green banking practices in Bangladesh. Green
banking is not just a corporate social responsibility activity; it is all about going beyond to keep the world livable
without any significant damage. Green banking that considers all the social and environmental factors is also
called ethical banking. The main objective of green Banking is to ensure the use of organizational resources in
favor of the environment and society. Green banking as a concept is proactive and smart way of thinking with a
vision for future sustainability of our only Spaceship earth. Bangladesh Bank is the first central bank in the world
that has taken real initiatives to facilitate the way of Green banking practice. With some specific guidelines and
legal frameworks the central bank of Bangladesh has been urging all the commercial banks in Bangladesh to
develop their own Green Banking Policies.
In this presentation, given to a roundtable of 25 senior executives, I discussed some of the China centric trends that are catalyzing maturing in CSR. Followed by
Green and Sustainable Banking: A Pathway to Environmental ResponsibilityFarhatUddinSojib
# Green and Sustainable Banking: A Pathway to Environmental Responsibility
## Abstract
Green and sustainable banking has emerged as a pivotal approach for integrating environmental considerations into the financial sector. This paper explores the evolution, principles, and practices of green banking, its benefits, challenges, and future prospects. By examining case studies and regulatory frameworks, we demonstrate how sustainable banking not only mitigates environmental risks but also enhances financial stability and promotes economic growth. This thesis underscores the necessity for a cohesive strategy involving stakeholders, policy makers, and financial institutions to foster a sustainable future.
## Introduction
### Background
The increasing awareness of environmental degradation and climate change has necessitated a shift in how industries operate, particularly the financial sector. Green and sustainable banking represents an essential transformation aimed at incorporating environmental responsibility into banking operations. This approach not only addresses ecological concerns but also aligns with global sustainability goals.
### Objectives
This paper aims to:
1. Define green and sustainable banking and its core principles.
2. Analyze the benefits and challenges associated with sustainable banking.
3. Review case studies of successful implementation.
4. Discuss regulatory frameworks supporting sustainable banking.
5. Propose strategies for advancing green banking practices.
### Methodology
This thesis employs a mixed-method approach, including qualitative analysis of case studies, regulatory reviews, and quantitative data on the impact of green banking initiatives. Primary sources include academic journals, industry reports, and policy documents.
## Defining Green and Sustainable Banking
### Concept and Principles
Green and sustainable banking refers to the practice of providing financial services in a way that supports environmental conservation and sustainability. This includes financing environmentally friendly projects, reducing the carbon footprint of banking operations, and promoting sustainable business practices among clients.
### Key Principles
1. **Environmental Risk Management:** Assessing and mitigating the environmental risks associated with banking activities.
2. **Sustainable Investment:** Prioritizing investments in renewable energy, energy efficiency, and other green sectors.
3. **Green Products and Services:** Developing financial products that incentivize sustainable practices, such as green bonds and eco-friendly loans.
4. **Transparency and Reporting:** Ensuring clear communication about environmental impact and sustainability efforts.
## Benefits of Sustainable Banking
### Environmental Impact
Green banking initiatives contribute to reducing greenhouse gas emissions, promoting renewable energy, and supporting conservation projects. By directing capital towards sustainable ventures, banks can play a significan
Banking with a Green Heart: Embracing Sustainable Practices for Environmental...Laurie Suarez Corporation
As climate change and environmental concerns intensify, businesses across industries are increasingly recognizing the need for sustainable practices. In the banking sector, there is a growing movement towards incorporating environmental responsibility into their operations. Sustainable banking practices focus on mitigating environmental impacts, promoting renewable energy, and supporting eco-friendly initiatives. In this blog, we will explore the significance of sustainable banking, its impact on the environment, and how financial institutions can champion environmental responsibility.
Green Bank is like a normal bank, which considers all the social and environmental / ecological factors with an aim to protect the environment and conserve natural resources”. It is also known as ethical bank or sustainable bank. Their purpose is to perform banking activities but with an additional plan towards taking care of earth’s ecology, environment, and natural resources including biodiversity.
Employees' Perception towards In- House Green Banking Activities of the Comme...Dr. C.VIJAI
The most important themes of 21st century are the environmental protection and sustainable ecological balance, and it becomes an important issue that must be considered by all functional areas. However, green banking is still a major issue and can take an important role for the development of India. Even though the Indian banks have identified the need for greening their activities, they are running behind their counterparts that of developed economies. In addition to mitigating risks, green banking opens up new markets and avenues for product differentiation. The present study focuses its main attention to answer what in-house green banking practices are followed by the select commercial banks? In this context, the researchers have made an attempt to examine the perception of employees towards in-house green banking activities of the commercial banks in Cuddalore district. By adopting multi-stage sampling 175 employees were selected. As an essential part of the study, the primary data were collected from 175 bank employees with the help of schedule. The perception of the employees have been analyzed using student t test, analysis of one-way variance, analysis of co-efficient of variation, discriminant function analysis, and multiple regression analysis. The results of the study reveal that there is no significant relationship among the acceptance levels of the respondents of different genders, age groups, educational status groups, monthly salary groups, tenure of experience, place of work, bank belongs to, and type of bank towards in-house green activities of the select commercial banks. Security and privacy issues, technical issues, lack of infrastructure, lack of coordination among stakeholders, lack of awareness and capacity building, higher operating expenses, reputation risk, diversification issues - limiting and restricting the business, infant nature of green concept and liquidity issue are the problems stated by the bank employees in regards green banking. The researchers suggest various measures to improve the scope of green banking.
Green and Sustainable Banking: A Pathway to Environmental ResponsibilityFarhatUddinSojib
# Green and Sustainable Banking: A Pathway to Environmental Responsibility
## Abstract
Green and sustainable banking has emerged as a pivotal approach for integrating environmental considerations into the financial sector. This paper explores the evolution, principles, and practices of green banking, its benefits, challenges, and future prospects. By examining case studies and regulatory frameworks, we demonstrate how sustainable banking not only mitigates environmental risks but also enhances financial stability and promotes economic growth. This thesis underscores the necessity for a cohesive strategy involving stakeholders, policy makers, and financial institutions to foster a sustainable future.
## Introduction
### Background
The increasing awareness of environmental degradation and climate change has necessitated a shift in how industries operate, particularly the financial sector. Green and sustainable banking represents an essential transformation aimed at incorporating environmental responsibility into banking operations. This approach not only addresses ecological concerns but also aligns with global sustainability goals.
### Objectives
This paper aims to:
1. Define green and sustainable banking and its core principles.
2. Analyze the benefits and challenges associated with sustainable banking.
3. Review case studies of successful implementation.
4. Discuss regulatory frameworks supporting sustainable banking.
5. Propose strategies for advancing green banking practices.
### Methodology
This thesis employs a mixed-method approach, including qualitative analysis of case studies, regulatory reviews, and quantitative data on the impact of green banking initiatives. Primary sources include academic journals, industry reports, and policy documents.
## Defining Green and Sustainable Banking
### Concept and Principles
Green and sustainable banking refers to the practice of providing financial services in a way that supports environmental conservation and sustainability. This includes financing environmentally friendly projects, reducing the carbon footprint of banking operations, and promoting sustainable business practices among clients.
### Key Principles
1. **Environmental Risk Management:** Assessing and mitigating the environmental risks associated with banking activities.
2. **Sustainable Investment:** Prioritizing investments in renewable energy, energy efficiency, and other green sectors.
3. **Green Products and Services:** Developing financial products that incentivize sustainable practices, such as green bonds and eco-friendly loans.
4. **Transparency and Reporting:** Ensuring clear communication about environmental impact and sustainability efforts.
## Benefits of Sustainable Banking
### Environmental Impact
Green banking initiatives contribute to reducing greenhouse gas emissions, promoting renewable energy, and supporting conservation projects. By directing capital towards sustainable ventures, banks can play a significan
Banking with a Green Heart: Embracing Sustainable Practices for Environmental...Laurie Suarez Corporation
As climate change and environmental concerns intensify, businesses across industries are increasingly recognizing the need for sustainable practices. In the banking sector, there is a growing movement towards incorporating environmental responsibility into their operations. Sustainable banking practices focus on mitigating environmental impacts, promoting renewable energy, and supporting eco-friendly initiatives. In this blog, we will explore the significance of sustainable banking, its impact on the environment, and how financial institutions can champion environmental responsibility.
Green Bank is like a normal bank, which considers all the social and environmental / ecological factors with an aim to protect the environment and conserve natural resources”. It is also known as ethical bank or sustainable bank. Their purpose is to perform banking activities but with an additional plan towards taking care of earth’s ecology, environment, and natural resources including biodiversity.
Employees' Perception towards In- House Green Banking Activities of the Comme...Dr. C.VIJAI
The most important themes of 21st century are the environmental protection and sustainable ecological balance, and it becomes an important issue that must be considered by all functional areas. However, green banking is still a major issue and can take an important role for the development of India. Even though the Indian banks have identified the need for greening their activities, they are running behind their counterparts that of developed economies. In addition to mitigating risks, green banking opens up new markets and avenues for product differentiation. The present study focuses its main attention to answer what in-house green banking practices are followed by the select commercial banks? In this context, the researchers have made an attempt to examine the perception of employees towards in-house green banking activities of the commercial banks in Cuddalore district. By adopting multi-stage sampling 175 employees were selected. As an essential part of the study, the primary data were collected from 175 bank employees with the help of schedule. The perception of the employees have been analyzed using student t test, analysis of one-way variance, analysis of co-efficient of variation, discriminant function analysis, and multiple regression analysis. The results of the study reveal that there is no significant relationship among the acceptance levels of the respondents of different genders, age groups, educational status groups, monthly salary groups, tenure of experience, place of work, bank belongs to, and type of bank towards in-house green activities of the select commercial banks. Security and privacy issues, technical issues, lack of infrastructure, lack of coordination among stakeholders, lack of awareness and capacity building, higher operating expenses, reputation risk, diversification issues - limiting and restricting the business, infant nature of green concept and liquidity issue are the problems stated by the bank employees in regards green banking. The researchers suggest various measures to improve the scope of green banking.
Green Banking means ensuring environment friendly practices in banking sector and thereby reducing internal and external carbon footprints.
The concept of green banking helps to create cleaner and greener future as Green Banking has direct impact on the environment.
The paper draws a distinction between risk-based and risk-informed [RIDM] decision making process and highlights the importance of RIDM is corporate sustainability.
The presentation explores how risk management can be agile and robust to be able to respond to the dynamics of the environment especially with respect to the global Covid-19 pandemic.
This paper argues that SMEs are indeed engine of growth in most economies of the world, including Nigeria and goes further to propose strategies for propelling the sector for stellar and optimal performance
This paper was presented at the Future of SMEs Banking Conference organised by Business a.m on 27th November, 2019 in Lagos. For SMEs to be able to play the role of engine of growth, Banks and other financial services provider need to be creative in managing funding and credit risks.
This paper which I presented at a training program provides invaluable input into the concept, principles, features of Public Sector Reforms. It also explores the role of international organisations in PSR.
The paper describes the visioning process and how effective leadership can help transform individuals that would replace them through effective coaching for corporate sustainability.
This presentation highlights the point that great leaders are visionaries and usually transform, empower and mentor others to ensure sustainability of organisations.
This presentation provides a highlight of the key issues in the management of Market Risk. It touches briefly some of the elements of the Basel 2 Accord with respect to Market Risk
Some risks can be partially mitigated through thoughtfully designed, diversified investment strategies.Frontier markets offer an unfolding opportunity for investors who are seeking growth along with global diversification. But the risks of investing in these less mature markets need to be well understood.
Frontier-market investors should: · Make sure they are thoroughly educated about the asset class and its potential risks, including keeping up to date on developments in this fast-moving area of investment, especially since the “frontier” label refers to a shifting roster of nations. For example, Qatar and the United Arab Emirates graduated from frontier to emerging market status in 2014. ·Need to gain exposure to the asset class through a broadly diversified approach. · Incorporate an allocation to frontier markets in a broadly diversified portfolio. There is no doubt that the risks and costs of investing in frontier markets are greater than in emerging and developed markets.
But when it comes to some risk factors, such as fiscal stability, frontier markets may be less risky than many assume. Beyond that, some risks can be partly mitigated through thoughtfully designed, diversified investment strategies. It is possible that in some situations, adding a frontier markets allocation to a portfolio may actually lower its overall risk, given historically low correlations between FM, EM and developed market indices.
Additionally, frontier markets offer growth potential, and low correlations within markets and with other asset classes, along with relatively attractive valuations. These nascent markets represent an opportunity that growth-minded investors should not overlook.
This paper identifies the risks in financial inclusion from the perspective of both the user and provider with a viewing to staying out of the threat curve. The paper was actually delivered at the 1st Annual Financial Inclusion Summit in Nairobi, Kenya on July 1, 2016 at Sarova Hotel.
More from Dr. Emmanuel ABOLO, fica,fnimn,ficn,sirm (20)
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
The European Unemployment Puzzle: implications from population aging
Sustainability Banking and CBN Guidelines: Implications and Imperatives for NEXIM Bank.
1. By
Dr. Emmanuel M. Abolo
Chief Risk and Compliance Officer
Nigerian Export-Import Bank, Abuja.
Nigeria
Sustainability Banking and CBN
Guidelines:
Implications and Imperatives for NEXIM Bank.
2. Quotable Quotes
• Plans to protect air and water, wilderness and wildlife are
in fact plans to protect man.
- Stewart Udall
• When one tugs at a single thing in nature, he finds it
attached to the rest of the world.
- John Muir
3.
4. Environmental and Social Issues: The Global
Perspective
In recent times, there has been an increased awareness of
environmental and social issues and this has become a major driver of
changes in the way organizations conduct businesses and investment
decisions are made internationally.
Environmental issues such as climate change, hazardous waste, oil
spillage and nuclear energy are of global concern and there has been
increased focus on countries with increased activities that are impacting
negatively on the environment to develop strategies to minimize these
impacts.
In this regard, countries like China, Brazil and Bangladesh have
developed policies, as well as provided incentives for companies
operating in their jurisdiction to adopt principles that minimize their foot
print on the environment.
5. Environmental and Social Issues: The Global
Perspective
The increasing global attention being devoted to environmental and
social concerns is reflected in the Environmental, Health, and Safety
(EHS) Guidelines issued by the International Finance Corporation (IFC)
and the Equator Principles (EPs) issued by the 77 adopting financial
institutions.
There has been increase in the number of financial institutions that have
adopted these standards as industry international best practices for
environmental and social risk management.
– The EHS Guidelines are reference documents with general and
industry-specific examples of Good International Industry Practice
(GIIP).
– EPs is a credit risk management framework for determining,
assessing and managing environmental and social risk in project
finance transactions.
6. Environmental and Social Issues: The Global
Perspective
Financial institutions that have adopted the EPs principles commit not to
provide loans to projects where the borrower will not or is unable to
comply with applicable social and environmental policies and
procedures.
Time has come therefore, for Nigeria to join the league of other countries
in protecting the environment by promoting and encouraging companies,
especially those that operate in the Oil and Gas, Agriculture, Solid
Minerals and Power sectors to adopt international best practices that will
help in minimizing the negative impact of their foot print on the
environment.
7. Sustainability: Why the Focus on Banks
The business activities of the clients that Banks fund can have
potentially negative impacts on the environment or local communities
where their clients operate. These negative impacts can include air or
water pollution, destruction of biodiversity, threats to human health and
safety, violations of labour rights, or displacement of livelihoods.
Each of these issues may have hidden external costs which in turn
hinder the overall growth prospects of the economy and society. When
Banks provide financial products and services to clients with poor E&S
performance, they not only enable such clients to impose these negative
impacts on the environment and society, but expose themselves to risk
in the form of credit risk, reputational risk, and legal risk.
In addition, a bank’s business operations may potentially have negative
impacts on the environment or local community in which it operates.
8. What is sustainability?
The concept of sustainability was established in the 18th century,
when it meant that the amount of wood cut should not exceed the
amount of new trees planted.
According to the International Finance Corporation (IFC),
sustainability is define as a decision by banks to provide products
and services only to customers who take into consideration the
environmental and social impacts of their activities. This goes on to
explain that sustainable banking aims at benefiting its customers
and the economy as a whole without impacting negatively on the
society and natural environment.
9. Sustainability Involves...
Recycling programs, improvements
in energy efficiency and socially
responsible initiatives
Examples: support for cultural
events, improved human resource
practices and charitable donations.
Pursuit of environmental
and sustainable
responsibility in a bank's
operations through
environmental initiatives:
Integration of environmental and social
considerations into product design,
mission policy and strategies.
Examples: integration of environmental
criteria into lending and investment
strategy, and the development of new
products that provide environmental
friendly businesses with easier access to
capital.
Integration of sustainability
into a bank's core
businesses:
10. Sustainability Involves...
There are basically three dimensions to sustainable banking-
economic, social and environmental, this is usually referred to as
“the three bottom line” approach.
Sustainability
Economic
Social
Environmental
11. Sustainability: “The Three Bottom Line” Approach.
The Economic
Dimension: A
bank’s activities
should contribute to
overall economic
growth and stability,
with minimal
negative impact on
the environment or
society.
• Giving customers
what they want
fairly, responsibly
and transparently.
• Providing good
working conditions
for staff and
delivering
profitable growth
for shareholders.
The Social Dimension:
A bank must manage the
impact of its activities on
the society.
• Following ethical
business principles.
• Operating employment
policies that ensure
that staff comes from
diverse backgrounds
(gender, race, religion
etc)
• Investing in
communities by making
donations, involving in
volunteering activities
and giving other
assistance to charities
and other good causes.
The Environmental
Dimension: Banks
must minimize any
negative impact their
activities may have
on the environment
and, if possible,
ensure their activities
have no negative
impact at all.
• Refusing to lend to
businesses whose
actions cause
unacceptable harm
to the environment.
• Insisting that key
suppliers adhere to
prescribed
sustainability
standards.
12. Relationship Between Sustainable Banking and
Risk Management
Effective risk management backed by good governance is the bedrock
of the sustainable banking.
Establishing appropriate structures for risk management, as well as
implementing a sustainability policy entails amongst others mandatory
compliance with relevant laws, regulations and industry standards.
The implications of the bank not establishing appropriate risk
management procedures, to manage sustainability issues could be
grave. For instance, if the bank treats a customer unfairly or its
activities end up harming communities or the environment, not only
would it be affected commercially, its reputation and perception by the
public will also be harmed.
Also the environmental and social risks of lending to power,
manufacturing, mining, agriculture etc, are high therefore requiring the
bank to be circumspect about such activities.
13. The Nigerian Sustainable Banking Principles
To enable banks indentify and mitigate the environmental and social
risks associated with their business operation and activities, the
Central Bank of Nigeria (CBN) introduces the Nigerian Sustainable
Banking Principles.
The adoption of the Principles will not only help banks in mitigating the
E & S risks associated with their business operation and those of their
clients, but also help them to achieve greater efficiencies and better
position them to take advantage of opportunities in the global market
place where environmental and social issues are becoming
increasingly important.
14. The Nigerian Sustainable Banking Principles
The Nigerian sustainable banking principle comprise of the following
documents:
1. The Nigeria Sustainable Banking Principles;
2. The Nigeria Sustainable Banking Principles Guidance Notes;
3. Nigeria Sustainable Banking Principles Power Sector
Guidelines;
4. Nigeria Sustainable Banking Principles Agriculture Sector
Guidelines; and
5. Nigeria Sustainable Banking Principles Oil and Gas Sector
Guidelines.
The principles took effect from September 17, 2012.
15. The Nigerian Sustainable Banking Principles
Principles
Principle 1: We will integrate
environmental and social
considerations into decision-
making processes to avoid,
minimise or mitigate negative
impacts.
Principle 2: We will seek to
avoid, minimise or mitigate
the negative impacts of our
business operations on the
environment and local
communities in which we
operate and, where possible,
promote positive impacts.
Principle 3: We will respect
human rights in our business
operations and business
activities.
Principle 4: We will promote
financial inclusion, seeking to
provide financial services to
individuals and communities that
traditionally have had limited or
no access to the formal financial
sector.
16. The Nigerian Sustainable Banking Principles
Principle 5: We will implement robust
and transparent governance practices in
our respective institutions and assess the
governance practices of our clients.
Principle 6: We will develop individual
institutional and sector knowledge, skills
and capacity necessary to identify,
assess and manage the environmental
and social risks and opportunities
associated with our business activities
and business operations.
Principle 7: We will collaborate across
the sector and leverage international
partnerships to accelerate our collective
progress and move the sector as one,
ensuring our approach is consistent with
international standards and Nigerian
development needs.
Principle 8: We will regularly review and
report on our progress in meeting these
Principles at the individual bank and
sector level.
Principles
17. Summary of the Nigerian Sustainable
Banking Principles
Eight Over-Arching Principles
1. Environmental and Social Considerations (indirect)
2. Environmental and Social Footprint (direct)
3. Human Rights
4. Financial inclusion
5. Governance
6. Institutional Capacity
7. Collaboration and Partnerships
8. Reporting
18. The Nigerian Sustainable Banking
Principles: Agricultural Sector Guideline
The objectives of the Agricultural Sector Guideline are to:
– Provide guidance to the Nigerian financial sector on sustainable
banking activities as they relate to the sector;
– Ensure that the provision of financial products and services to the
sector is undertaken in a socially relevant and environmentally
responsible manner; and
– Strategically position agriculture as an attractive, rewarding and
sustainable business in Nigeria.
Banks that actively lend and invest in this sector may leverage on their
relationship with the client to influence the sustainable development of
agriculture. It is intended that the guideline will provide the minimum
standards for banks in ensuring that financial services to the sector are
both socially and environmentally sustainable.
19. Agricultural Sector Guideline
Agricultural lending accounts for only 1.4% of formal lending, and has been on
the decline since 2006. This situation is partly explained by the fact that banks
typically perceive agriculture as a high-risk investment due to their limited
understanding and lack of confidence in the sector.
In response to this challenge, the Central Bank of Nigeria (CBN), the Bankers’
Committee and the Federal Ministry of Agriculture & Rural Development have
recently developed an initiative known as the Nigerian Incentive-Based Risk
Sharing System for Agricultural Lending (NIRSAL).
NIRSAL is expected to be a catalyst for innovative risk management strategies,
long term financing for agribusiness and improve the capacity of financial
intermediaries to provide credit, refocus credit provisioning on integrated value
chains and establishment of a differentiated guarantee mechanism to share
credit-related risks in the value chain.
20. Scope and Applicability
The Guideline covers:
• All activities of the agribusiness value chain contained in the
approved NIRSAL framework
• The provision of financial services and products for any activity
along the value chain.
• All lending instruments, including project and structured commodity
finance, equity and debt capital market activities, retail banking and
advisory services provided to new and existing clients in the
agricultural sector.
• Existing clients may not be required to retroactively implement E&S
requirements, but the guideline will apply to any additional facilities
or services to existing clients.
• The Guideline does not apply to activities related to non-agriculture
related insurance and asset management.
21. Commitment of Banks to Agriculture
Sector Financing
Consistent with the Principles and Guidance Note and to promote
the sustainable development of agriculture in Nigeria, banks shall:
– Conduct E&S risk analysis and assessment of agricultural clients
and activities, and ensure that identified risks are adequately
monitored and manage; and
– Adhere to local E&S laws and international best practices
22. E&S Risk Categorisation of Agribusiness
Typically agribusiness will be categorised as high, medium or low
based on the nature of the E&S impacts associated with the client’s
agriculture activities and the client’s ability to manage such impacts.
The purpose of categorising the risk of a transaction or engagement is
to guide banks on the degree of E&S due diligence required to
determine credit risk approval decision-making and the appropriate
level of E&S risk management that should be applied to the
transaction.
– A high-risk investment is one where activities carry potential
significant adverse E&S risks and/or impacts that are diverse,
irreversible, or unprecedented.
– A medium-risk investment is one where activities carry potential
limited adverse E&S risks and/or impacts that are few in number,
generally site-specific, largely reversible and readily addressed
through mitigation measures.
23. Agricultural Sector Client Engagement and
Monitoring
Banks should engage with their Agriculture sector clients to
encourage good E&S risk management practices as well as promote
sustainable agriculture practices. Where some clients have not met
certain standards due to a number of factors, they would be
expected to develop a credible, documented, time-bound “action
plan” to achieve the standards over time. E&S conditions or
covenants will be included in the transaction documentation, where
appropriate, to ensure E&S risks are monitored and on-going
compliance is addressed with the client.
24. Agricultural Sector E&S Reporting
In addition to general E&S risk reporting guidance provided, banks
should consider adopting international best practice for reporting.
The Global Reporting Initiative guideline provides detailed reporting
guidance on certain activities and E&S risk issues.
25.
26.
27. Implementation of the Principles
To implement the policy, the Bank shall:
• Set the tone from the top.
• Establish sustainable banking policy and procedures. The policy will:
– Articulate how the Principles are relevant to the Bank’s specific
Business Activities.
– Integrate the Principles into business decision--‐making
processes.
– Incorporate relevant international E&S standards and industry
best practice.
– Define clear E&S governance structures.
– Measure and report progress.
• Build and maintain sufficient institutional capacity.
• Leverage collaborative partnerships.
28. E&S Related Laws and Regulations for the
Agricultural Sector
The following list of E&S related laws and regulations have been
provided to draw attention to relevant issues. This list is not
exhaustive.
– National Environmental Standards and Regulations Enforcement
Agency Act 2007.
– Environmental Impact Assessment Act of 1992.
– Harmful Wastes (Special Criminal Provisions etc.) Act of 1988.
– Land Use Act 1978.
– Other local and international laws.
29. Why E&S Risk Management Is Important to
the Bank
Reputational
issues
Competitiveness
issues
Compliance with
law
It is a policy issue
and in line with
the Bank’s vision
Safeguard of
assets
In line with the
tenets of
sustainable
development
30. Conclusion
Every institution should want to run their business in a lasting and
responsible way, to position their business to take advantage of an
increasingly uncertain future, and to leave behind a positive legacy.
That, in a nutshell, is what sustainability is all about - protecting the
Bank from the risks of today while ensuring that it can respond to the
challenges and opportunities of tomorrow.
Sustainable businesses are those which can adapt to changing
conditions and turn crisis into opportunity. Businesses that are not
sustainable cannot expect to endure.
Therefore, no bank today can really afford to ignore social and
environmental risks, those that do run the risk not just of falling foul
of legislation but of being at a commercial disadvantage.