What is sustainable finance? How NBE has taken progressive steps towards green economy?

What is sustainable finance? Sustainable finance refers to the process of taking environmental, social and governance (ESG) considerations into account when making investment decisions in the financial sector, leading to more long-term investments in Small, medium and micro industries and labor-intensive enterprises that create more job opportunities.

First Bank in its news-letter published on Sunday goes through efforts taken by the National Bank of Egypt in fostering and boosting Sustainable finance:

NBE has taken several proactive steps towards providing access to credit facilities and special financing programs to support strategic plans for climate change since 1998. These projects include the pollution control project, energy efficiency conservation project. In addition, the bank has participated in several environmental programs such as Environmental Compliance Program, the Green Economy Financing Facility (GEFF) and the Green Climate Fund.

Moreover, NBE has continued its support to the green finance, any structured financial activity that's been created to ensure a better environmental outcome, through establishing its first solar-powered branch in 2015 that paved the way to implementing a plan for the use of solar energy in its headquarters. In 2022, more than 38 branches and headquarters were powered by solar energy.

NBE launched 1st-ever CSR unit in banking sector:

The NBE was the first to launch a “corporate social responsibility (CSR) Unit” in the Banking Sector in Egypt over 50 years ago.

 In 2019, the bank established a special department for financing programs in the field of sustainable development projects.  Through this department NBE succeeded in providing finance to 96 companies operating in the industrial, tourism and service sectors, with total investments amounting to $424 million. The bank has also provided total amount of $93 million into financing machinery and equipment with the aim of reducing carbon emissions and combating industrial pollution and a total amount of $47 million into green and renewable energy projects and energy efficiency projects. NBE has also pumped a total amount of $284 million into environment friendly projects according to the latest figures announced by the bank last November.

NBE's 1st GRI Comprehensive Sustainability Report

In December 2020; NBE officially published its first GRI -Sustainability Report covering three years’ disclosure2016-2019 (the biggest of its kind within the banking sector) as a baseline year edition. The report has been classified as Comprehensive Global Reporting verses a core disclosure.

NBE’s sustainability efforts are not newly born. Being the biggest Bank nationally and regionally; NBE’s foundational nature, performance and impact extends beyond traditional commercial banking and profit making.

In 2018, NBE embarked on a voyage for aligning Bank Strategic Pillars with Egypt Vision 2030 (updated September 2019); as well as the UN Sustainable Development Goals 2030.

The bank’s first sustainability report profiles the NBE’s performance beyond profit and in alignment with Economic, Environmental, Social and Governance (EEGS) indicators.

NBE is key driver to Egypt’s transition to green economy:

Since 1998, NBE as the Apex Bank, has cooperated with the Egyptian Environmental Affairs Agency (EEAA) and managed the finance of the Egyptian Pollution Abatement Program (EPAP). The program focuses on combating industrial pollution and promoting the concept of cleaner technology in order to mitigate GHG emissions (reducing 670,000 tons of CO2 in 18,000 industrial facilities) in cement, iron and chemical industries.”

NBE was the Apex Bank in one of Egypt’s largest initiatives by the Ministry of Environment and the EEAA. Grant funds reached 7.17 million euors.

NBE took robust measures to enhance efficiency rationalization. Through its increased dependence on renewable energy, NBE has managed to reduce its carbon emissions by 206,000 tons annually.

Moreover, the NBE is the first partner of the European Bank for Reconstruction & Development (EBRD) to finance climate-related projects.

The NBE secured a $ 150 million financing package dedicated to SMEs in the areas of climate change & social inclusion through employment programs.

The banks has allocated a total funding amounted to EGP 28 million to energy preservation initiatives with extending finance for innovative solutions through recycling of sewage waste water and agro wastes aimed to generate electric power with an hourly capacity reaching KW499 / hr for residential areas. This is in addition to replacement and transformation of industrial furnaces to bio-energy or renewable energy driven alongside organic fertilizers production with total financing standing at EGP 40 million.