By Babajide Komolafe

GLOBALLY there have been increasing trend towards sustainable business practices. This move is driven by various factors including government policies as reflected in  PlasTax, a plastic bag tax introduced by the Republic of Ireland in 2002.

Another factor is investors increased preference for environmentally friendly investment as reflected in the sharp increase in demand for and issuance of Green Bonds, which rose by 78 percent to $155.5 billion in 2017. In addition to the above is the increasing recognition by businesses of the long term importance and benefits of embracing sustainable business practice.

Nigerian Sustainable Banking Principle (NSBP)

This prompted Nigerian banks and the Central Bank of Nigeria, CBN, under the aegis of the Bankers Committee to develop and introduce the Nigerian Sustainable Banking Principle (NSBP) in 2012.

Access Bank

Rationale for developing the principle

The NSBP comprised nine principles namely: Environment and Social Risk Management; Environment and Social footprints; Human Rights; Women’s Economic Empowerment; Financial Inclusion; Environment and Social Governance; Capacity Building; Collaborative Partnerships; and Reporting.

Explaining the rationale for developing the principle, the Committee stated: “The members of the Bankers Committee have adopted these principles in recognition of the Nigerian banking sector’s role and responsibility to deliver positive development impacts to society whilst protecting the communities and environments in      which we operate.

We believe that such an  approach, one of  sustainable banking, is consistent with our individual and collective business objectives, and can stimulate further growth and opportunity as well as  enhance innovation and competitiveness.”

Access Bank’ Sustainability Commitment     

One of the driving forces behind the development and implementation of the NSBP is Access Bank Plc. In addition to being appointed the Chair of the Steering Committee on the NBSPs, the bank committed itself to championing the sustainability cause. “Sustainable businesses are ones that are able to ensure their future. They are able to cut down on energy and waste costs, which will in turn have a positive impact on their bottom lines. Ignoring the relevance and importance of sustainability is foolhardy”, said Herbert Wigwe, Managing Director/Chief Executive Officer, Access Bank, in a recent interview with World Finance.

On Access Bank’s philosophy and efforts to integrate sustainability into its operations, Wigwe said: “Sustainability to us is responsible business practices and community investment. Our work in sustainable development primarily focuses on health, arts, sports, education, gender empowerment and the environment of the Bank.

Access Bank Wigwe

“At Access Bank, we recognise the sustainability journey is filled with challenges, and we believe that sustainability must be embedded into the fabric of any business that intends to contribute to economic development while achieving long-term success. Sustainability therefore remains at the core of our operations.”

“We have set up a sustainability committee at the executive management and board level, tasked with the responsibility of steering Access Bank’s sustainability strategy. The committee is responsible for the supervision of the bank’s sustainability activities. This includes monitoring performance and producing public reports of the bank’s sustainability projects.”

Sustainability Initiatives

Deputy Managing Director, Mr. Roosevelt Ogbonna said that Access Bank’s sustainability initiatives are based by the 3Ps of sustainability namely Profit, Planet and People.

Speaking    recently in Lagos at the    recent launch of the Nigeria Green Bonds Market Development Programme, he said: “By recognizing and understanding challenges to sustainability, we are able to manage risk and capture new market opportunities.

“We recognize that a better and prosperous future is linked to the well-being and health of our planet. Thus, the protection of the environment is germane to us

“We are committed to supporting the growth and prosperity of our communities because we see ourselves as an integral part of those communities.”

This prompted the bank    to allocate one percent of its profit before tax to sustainability initiatives. In addition Access Bank incorporated anEnvironmental,  Social  and  Governance  (ESG) rating as part of    its lending criteria. The bank also introduced a financial inclusion strategy which led to development of its USSD platform to drive financial inclusion. In terms of women empowerment the bank, among other things, ensured that more than 30 percent of its directors are women.

To demonstrate its commitment to sustainable environmental, Access Bank introduced a waste reduction initiative as part of its cost reduction strategy. The bank launched a Save Paper initiative across several business locations with the aim of cutting printing and paper use by 50 percent. The bank also introduced an early branch closure policy to cut down electricity costs.

To implement its commitment to people empowerment and growth of the communities, Access Bank introduced an Employee Volunteering scheme to provide employees with a platform to give back to society. It also introduced sustainability as a part of the women (W) initiative targeted at Women Empowerment while the bank has educated 55,000 women though it’s W Academy.

Furthermore, to promote the culture of sustainability among its staff, Access Bank made it    part of the assessment in the performance evaluation process of employees.

Sustainability Impact

The impact of the above initiatives is captured in the bank’s sustainability footprints across the country,    captured in four buckets namely economic responsibility, environment responsibility, sustaining societies, collaborations and partners.

Under economic responsibility, 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. The bank also supported 30 hospitals through  the Hospital Facility Upgrade Support Scheme (HFUSS) while it also unveiled the  ¦ 1billion  AccessNolly Fund, a  new and innovative financial service aimed at improving and providing solutions for the Nigerian Movie industry

In terms of environmental responsibility, Access Bank’s early shut down policy has led to 24.9 percent reduction in its diesel usage. Its commitment to clean energy led to deployment of over 413 solar-powered ATMs, while four of its branches are solar-powered. Also the bank’s      Ogunlana Drivebranch is fully powered by solar energy with no connection to the national grid, while 311 branches are powered by hybrid of alternative energy sources and national grid.

In terms of sustaining societies, Access bank has deployed strategic investments in 853 communities with over 20 million individuals and 358 Non-Governmental Organisations benefiting

The bank also invested N1.4 billion  in capacity building programs for its female employees.

Recognition for Sustainability

In recognition of Access Bank’s    sustainability efforts and impact,    the bank in 2015 became the first African financial institution to    be awarded    the prestigious    Karlsruhe Sustainable Finance Award, which it also won in 2016, 2017.

Access Bank also became the  first West African financial institution to win the Financial Times/International Finance Corporation (FT/IFC) Sustainable Bank of the Year Award, Middle East and Africa. Other awards in recognition of the bank’s leadership in promoting sustainability include: Winner of the 2017 CBN Sustainability Awards 2017 as Sustainable Bank of the Year;

Winner of the 2017 World Finance Awards 2017 – Most Sustainable Bank, Nigeria; and Winner of the 2017 Sustainability, Enterprise and Responsibility Awards (SERAs) – Most Responsible Company of the Year.