Financial institutions have been advised to identify and pursue sustainability strategies integrated into the Sustainable Development Goals (SDGs).
They were also educated on the need to measure their achievements and integrate them into their sustainability reporting process for a viable future.
These and many more dominated discussions at a 2-day event to commemorate Access Bank Sustainability Awareness Week 2019 with the Theme ‘Together for a Sustainable Future’ at Access Bank headquarters in Lagos.
One of the panelists at the event, Dr. Tayo Taiwo, an environmental expert, identified environmental, social and financial risks as factors why financial institutions must embrace Sustainable Development Goals (SDGs) because of its ambitious and wide-ranging set of global environmental, social and economic targets.
Dr. Taiwo, who is also the MD of Xploits Consulting Limited explained that considering environmental and social risks as part of the risk appraisal process for transactions helps a financial institution to decrease its exposure to overall risk and contributes to its long-term financial viability.
According to him, a financial institution can do so by developing an Environmental and Social Management System (ESMS), which can be integrated into its existing risk management framework including the risk assessment process for transactions.
“A well-developed Environmental and Social Management System can lead to decreased exposure to environmental and social risks, increase market opportunities, and an enhanced reputation, which help contribute to the long-term financial viability of the company,” he added.
In his own comment, Chief Responsibility Officer,Parallel Point Consult, Abiola Oshunniyi, said there is a broad consensus that the financial services industry, of which Access Bank Plc plays an important role has a vital role to play promoting sustainable development.
He said given the strategic importance of banks in the value chains of critical sectors such as agriculture, energy and trade, the role of banks in the sustainable development of Nigeria cannot be underestimated.
According to him, the goals are chiefly designed to promote the transition to a more viable future. “These goals are ambitious and embrace a wide range of environmental, social and economic issues, including climate change, energy, water stewardship, marine conservation, biodiversity, poverty, food security, sustainable production and consumption, gender equality and economic growth.”
Executive Director, HACEY, Ms Rhoda Robinson, also a member of the panel, said the adoption of SDGs by banks will clearly pave the way for better diffusion of sustainable banking, noting that Banks are highly committed to sustainability but need key success factors in place to realize the full benefits of their sustainable banking efforts.
“By incorporating sustainability principles into corporate strategy funding decisions and product/service definition processes, banks can be influential in supporting and promoting environmentally and/or socially responsible projects and enterprises,” she added.
Earlier in her remark, Head of Sustainability at Access Bank Plc, Mrs. Omobolanle Victor-Laniyan said as the achievement of the SDGs progresses, the importance of finance, and the role of financial organizations has become increasingly crucial.
“This places significant responsibility on banks to influence corporate environmental discipline through financial policies and guidelines that are beneficial to environmental issues, sustainable development and resources.”
She said Access Bank has been at the forefront of the campaign for sustainability, hence the need for stakeholders to discuss the importance, and integrate sustainability into their financial regulations was necessary.
Other participants at the event includes; Manager, Future Wox, Ademulegun Olowojoba; Country Manager, G.B.C Health, Ochuko Keyamo-Onyige; CEO, Victory Bridge, Victor Okhai and many other key decision makers in the sector.
