The World Bank poverty index is not looking good for sub-Saharan Africa. While the global rate of poverty is declining, its rate in sub-Saharan Africa is rising. But to reduce poverty rate in the region requires collective action from financial institutions and implementation of sustainable banking principles that promote financial inclusion and Corporate Social Responsibility (CSR).
For instance, two years ago, about 28 per cent of the African population was found to be severely food insecured, rising about three per cent from 2014.
The continent is also found to have the highest prevalence of undernourishment, which is about 20 per cent. Besides poverty as a primary factor, others such as conflict, lack of investment in agriculture and environmental challenges, have been said to be responsible for this. Those living in poverty cannot often afford food of sufficient quality or quantity to live a healthy life.
In 2018, the World Bank reported that extreme poverty has rapidly declined globally, with estimates showing that the number of extremely poor people- those who live on $1.90 a day or less—has fallen from 1.9 billion in 1990 to about 736 million in 2015. However, the number of people living in extreme poverty keeps increasing in the sub-Saharan Africa, actually peaking in 2018 with 437 million people, and then slowly will decline again to reach 416 million in 2030.
This year, most Nigerians were disturbed by the World Bank data referring to the most populous black country on the planet as the ‘poverty capital of the world’, with 86.9 million Nigerians still living in extreme poverty.
The country is faced with numerous challenges, most of which are captured in the Sustainable Development Goals (SDGs) – poverty eradication, hunger and food security, adequate provision of good health, education, advancing gender equality and women empowerment, developing infrastructure, provision of water and sanitation, provision of clean and affordable energy and taking effective action on climate change.
In order to address these, a leading financial institution, Access Bank, facilitated the birth of the Nigerian Sustainability Business Principles (NSBP), by bringing together stakeholders in the financial sector with the aim of securing buy-in for the development of the nine principles. They include environment and social risk management, environment and social footprints, human rights, women’s economic empowerment and financial inclusion.
They also include environment and social governance, capacity building, collaborative partnerships and reporting. These principles are today being adopted by all banks in Nigeria, including the Central Bank of Nigeria (CBN). This year (2018) marks the fifth anniversary of the implementation of the NSBP in the Nigerian financial sector.
Since 2008, the bank has successfully built a sustainability strategy driven by sustainable financial services, such as developing innovative services that enhance the lives of customers and enables them reduce environmental and social impacts, building sustainable economies; facilitating and financing sustainable economic growth through financial inclusion and education, sustainable societies; supporting vibrant and successful communities in every market, environmental responsibility; having a competitively low environmental impact for a bank in its markets, and best in class operations; and providing best in class expertise, tools and capabilities to helping drive down costs and increase value.
Specifically, Access Bank recognises the importance of climate action, supporting people, businesses and communities in building sustainable enterprises, all of which led to several awards both locally and internationally. Recently, it also received top honours at the 2018 Karlsruhe Sustainable Finance Awards in Germany, emerging as the winner in two categories and the Euromoney Awards for Excellence as ‘Africa’s Best Bank for Corporate Social Responsibility’ in London in July.
During the bank’s Sustainability Awareness Week, a week-long activity to celebrate its remarkable achievements since 2008, Access Bank Group Managing Director/Chief Executive Officer, Herbert Wigwe, expressed the bank’s determination to create meaningful impact around the world and its subsidiaries by increasing awareness of best sustainable practices that can be implemented within its operational areas.
He also listed profit, planet, and people as the pillars on which corporate sustainability are entrenched, stating that “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.”
Banking thrives in an environment where lenders promote activities that make life better for the people. Indeed, banking should strive to meet the triple bottom line: People, Planet, and Profit. Beyond the profit motive, banks should ensure that the people and the environment where the business is done have something to cheer.
Banking is not all about profitability. It should be done with human face and recognition that the communities where the business is conducted should benefit from the profit that comes from it. The CBN, the Nigeria Deposit Insurance Corporation and Deposit Money Banks (DMBs), agreed that banking can only thrive in an environment where CSR and commitment to the communities where the business is done are given a priority. The CBN has, therefore, encouraged the adoption of sustainable banking practice by banks, given that environmental and social responsibility support business success and long-term growth.
Sustainability, Enterprise and Responsibility Awards, also known as SERAs CSR, has helped to highlight various factors for improvement and national development, especially in working with different organisations to eradicate poverty and engender transformative change, which guarantees a safe, equitable and sustainable world for both the current and future generations.
The SERAs award is an annual project which aims to promote as well as raise awareness about the roles organisations play with an emphasis on their responsibility towards stakeholders and the social development of Africa. The SERAs aims to substantiate the case that corporations who are socially responsible stand to gain huge benefits in regards to the triple bottom line – economic, social and environmental capital.
For Access Bank Plc, banking also includes empowering the people and giving their lives a positive meaning. That explains why it has continued to take steps that promote the common good. For instance, the Operations Unit of Access Bank Plc. recently handed over two blocks of classrooms it renovated to the Keke Nursery and Primary School, Agege, Lagos. The Bank did not only strengthen the dilapidated buildings and fortified them with iron formations, it also changed the roofs, windows and painted the classrooms to give them new looks.
Speaking on the gesture, the Access Bank’s Head of Sustainability, Victor-Laniyan, said: “The fact is that in every environment we operate, we must make the people better, the environment better while trying to drive profit. So, we are not just focused on making money – it is just one aspect of the things we are keen on. So, if you listen to Access Bank, some of the things we talk about is based on how we have brought sustainability and governance into how business is done within the financial market.”
According to the CBN and NDIC, 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 encourage sustainability practices in their reports.
To further involve corporate organisations, the CBN Governor, Godwin Emefiele and the NDIC Managing Director, Umaru Ibrahim said the regulators will continue to renew its commitment towards the implementation of the NSBP, the achievements of the United Nation’s Sustainable Development Goals (SDGs) and the Paris Climate Change Agreement.
Source The Nation