Sustainable Banking Principles, Addressing Environmental And Social Challenges

Channels Television  
Updated February 8, 2014

There seems to be more global awareness by banking institutions in recent times towards addressing the environmental and social impacts of their services.

In Nigeria, there is a set of principles on sustainable banking which is geared towards ensuring that these financial institutions are environmentally friendly.

Bank’s financial services are used too often for activities which are harmful to the environment, human rights and social equity.

However, in whatever way we look at it, banks can be powerful agents of change.

Environmentalist, Lekan Fadina, helps to highlight the economic relevance of climate change to businesses and return of investments.

Fadina lauded the Sustainable Banking Principles as adopted by Nigerian banks in the year 2012. He noted that if properly implemented, it would address the issues of environment, economy and all that could be as a result of climate change.

Special Assistant to the CBN Governor of Sustainable Banking, Dr Aisha Mahmud, explained that there are certain global forces that are making businesses and organisations to imbibe sustainability, such as the recent financial crisis.”

She however said, “Nationally there are pressing environmental and social issues, such as poverty, youth unemployment, gender inequality, climate change, deforestation, food insecurity that made the Nigerian financial sector to come together and develop this Nigerian Sustainable Banking Principles.

“Basically what it means is that, instead of focusing on profit, we now have to do a balancing act and look at environmental and social considerations as well, and this is for us to be able to achieve sustainable development.”

Earthfile presents how the financial institutions would do their business operations and activities to achieve the goals of the Sustainable Banking Principles.  It starts by highlighting the environmental and social risks involved in their operations.

Enjoy the video.