Sustainability

Transforming lives and enterprises responsibly

We are committed to ensuring sustainability across our business operations to drive strategic, social, economic, and environmental impact in the communities we serve.

The Bank of Industry Limited (BOI) is Nigeria’s oldest, largest and most successful development financing institution (DFI). It eBy the very structure of our business and the objectives of our corporate strategy, we are positioned to be a force for global sustainable development driving economic impact by leveraging sustainable finance to alleviate poverty, reduce inequalities, and drive industry, innovation and infrastructural development, whilst promoting decent work and economic growth.
The implementation of sustainability in our corporate strategy helps us create long-term value through an integrated approach to social, environmental and economic development across our business operations and practices. This serves as the key guiding principle for the Bank’s strategic efforts toward sustainable development. It is our mission to transform lives and enterprises responsibly through sustained interventions in economic development, environmental protection, social impact, ethics, governance and partnerships; improving the world for generations to come. xists to facilitate the transformation of Nigeria’s industrial sector by providing financial and advisory support for the establishment of large, medium and small projects/ enterprises, and the expansion, diversification, rehabilitation and modernisation of existing enterprises.

In the execution of our sustainability strategy, we operate following leading frameworks to ensure continuous high performance, including the Nigerian Sustainable Banking Principles (NSBPs), the Paris Climate Agreement, the UN Sustainable Development Goals (SDGs), United Nations Global Compact, United Nations Environment Programme Finance Initiative Principles for Responsible Banking (UNEPFIPRBs), World Economic Forum amongst others. In doing so, we focus our strategy on the SDGs that are most relevant to our Bank’s operating context. This may sometimes require us to focus on specific targets and indicators underlying those SDGs. These frameworks are clearly outlined within the sustainability-focused policies of the Bank including our Environmental, Social and Governance (ESG) Policy which guides the Bank’s activities around managing the ESG risks within our institution and the businesses we finance; and the Corporate Social Responsibility (CSR) Policy which directs our efforts towards giving back to the communities we serve through interventions that improve our social, economic and environmental footprint.

Environmental and Social Risk Management

Utilizing Appropriate and International Standards of ESG Performance

As a responsible Development Finance Institution transforming the Nigerian industrial sector through sustainable finance, the Bank of Industry is committed to embedding sustainability in its business practices to drive strategic social, economic and environmental impact in the communities we serve and the world at large.

By the very structure of our business and the objectives of our corporate strategy, we are positioned to be a force for global sustainable development driving economic impact by leveraging sustainable finance to alleviate poverty, reduce inequalities, and drive industry, innovation and infrastructural development, whilst promoting decent work and economic growth. The implementation of sustainability in our corporate strategy helps us create long-term value through an integrated approach to social, environmental and economic development across our business operations and practices. This serves as the key guiding principle for the Bank’s strategic efforts toward sustainable development. It is our mission to transform lives and enterprises responsibly through sustained interventions in economic development, environmental protection, social impact, ethics, governance and partnerships; improving the world for generations to come.

Market Focus

Factors that determine if a business is suitable for BOI to partner with:

Integrate E & S risk management into the bank's end-to-tend credit and investment appraisal and monitoring process

Ensures compliance with leading international standards while taking cognisance of specific local requirements on E & S risk management in all sectors in which its resources are to be committed

Ensure that its partners (in co-financed deals) share a common commitment to managing E & S risks.

Ensure the effective management of E & S risks in the bank's portfolio by appropriately categorising transactions based on their potential E & S impact

Committed and credit-worthy promoters with a project contribution of at least 25%, excluding land.

Borrowers with no prior record of unpaid loans to development finance institutions and commercial banks.

Partnerships for Change

Commitment through Partnerships for a Better World

Collaborative partnerships create opportunities for the Bank to further drive the sustainable development of the local and global economy and society. In the execution of our strategy, we will collaborate in local, international and sector-wide efforts to drive improved standards and progress on Sustainable Development:

The United Nations Global Compact is a voluntary initiative based on CEO commitment aimed at mobilizing a global movement of sustainable companies and stakeholders to create the better world we seek. The UN Global Compact supports companies to do business responsibly by aligning their strategies and operations with the 10 Principles on human rights, labour, environment and anti-corruption; and by taking strategic actions to advance broader societal goals, such as the UN Sustainable Development Goals, with an emphasis on collaboration and innovation. The Bank of Industry has been an active member of the UN Global Compact, joining the international community to dedicate resources towards global efforts aimed at bridging the gap for the achievement of the SDGs. We also participate in the activities of the local network in Nigeria, collaborating to address social, environmental and economic development issues locally through strategic interventions and programmes.

United Nations Environment Programme Finance Initiative (UNEPFI) is a partnership between UNEP and the global financial sector to mobilize private sector finance for sustainable development. UNEP FI works with more than 400 members – banks, insurers, and investors – and over 100 supporting institutions – to help create a financial sector that serves people and the planet while delivering a positive impact. In 2021, the Bank joined the initiative as part of our strategy to further align our business with global best practices for sustainable development whilst collaborating with the global Banking industry to drive sustainable finance for the socio-economic development of society. Through this partnership, we were able to achieve a pioneering impact for the Bank and our industry at large:

Becoming the First Nigerian DFI signatory to the UN Principles for Responsible Banking: the Bank became an official signatory of the UN Principles for Responsible Banking – a single framework for a sustainable banking industry developed through a partnership between banks worldwide and the United Nations Environment Programme Finance Initiative (UNEP FI). Banks who have signed the Principles commit to being ambitious in their sustainability strategies, working to mainstream and embed sustainability into the heart of their business, while allowing them to remain at the cutting edge of sustainable finance. Over 240 banks have now joined this movement for change, leading the way towards a future in which the banking community makes the kind of positive contribution to people and the planet that society expects. These banks represent more than a third of the global banking industry. This is a journey of unprecedented scale and scope at a time when such ambition is urgently needed. BOI emerged as the first Development Finance Institution in Nigeria to do so.

Becoming founding signatories to the UN’s collective commitment to financial health & inclusion: BOI joined the United Nations Environment Programme Finance Initiative (UNEP FI) to launch the Collective Commitment to Financial Health and Inclusion – a first-of-its-kind initiative of the banking sector to promote universal and financial inclusion. The Collective Commitment to Financial Health & Inclusion is a new initiative of the United Nations Environment Programme Finance Initiative (UNEP FI) dedicated to promoting universal financial inclusion and the financial health of banks’ customers.

The World Economic Forum (WEF) The World Economic Forum (WEF) is the International Organization for Public-Private Cooperation bringing together stakeholders from all sectors of society to shape the future for the better and generate great impact through purpose-driven communities and impact-driven platforms. Reinforced by a track record of success over five decades, WEF is the trusted platform for high-level, multi-stakeholder interaction on sustainable development. In 2021, the Bank became a member of the World Economic Forum alongside over 750 global business leaders. This partnership is in line with the Bank’s vision to be Africa’s leading DFI operating under global best practices; and will strengthen our efforts to increase sustainability impact. Through this partnership, the Bank has made significant progress in joining the global community to collaborate for sustainable impact:

Becoming a member of the World Economic Forum’s Sustainable Development Investment Partnership (SDIP): Becoming a member of the World Economic Forum’s Sustainable Development Investment Partnership (SDIP): A joint initiative of the World Economic Forum and the Organisation for Economic Co-operation and Development (OECD), SDIP is a global independent platform of 42 public, private and philanthropic institutions with the shared ambition to scale finance for the SDGs and overcome the barriers hindering private investments in emerging and developing countries. BOI joined this partnership to contribute to the strategic discussions and shape policies and interventions that would foster the finance of

The Sustainability Standards & Certification Initiative (SSCI) The Sustainability Standards & Certification Initiative (SSCI) is an all-encompassing framework of the European Organization of Sustainable Development that delivers a holistic, robust, evolving, and locally-sensitive set of standards to make value-driven financial institutions more resilient and profitable. It is a framework for holistic integration of sustainability to drive innovation in the organizational culture, enabling institutions to create new income streams and thrive for the long term in an ever more volatile world.

In July 2021, the Bank of Industry was accepted into the Sustainability Standards and Certification Initiatives of the European Organization for Sustainable. This highlights our continued commitment to driving sustainable development through strategic social, environmental and economic investments and interventions across Nigeria.

CLIMATE

Optimizing operations for environmental protection

We understand that our activities impact the environment in which we operate, through our consumption of energy and resources as well as through the waste we produce. We also recognize that the financial services we provide present both risks and opportunities relating to environmental protection.

Thus, we will work to be a driving force for good in the natural environment in which we operate by finding ways to avoid, minimize or offset the negative impact whilst innovating new means to achieve positive gains.

Climate change and Greenhouse Gas emissions reduction: The Bank ensures energy efficiency by promoting or utilizing renewable power generation and adopting green standards and practices for operating and maintaining our facilities and buildings. Through our Large Enterprise directorate, we promote the use of renewable energy in our local communities by providing loans to support emerging renewable energy players in Nigeria. This ensures that renewable energy solutions reach both rural and urban areas.

Reduction in Energy consumption: We are committed to reducing our energy consumption across all our offices, driving down both cost and emission reductions. We continuously monitor energy consumption across our property portfolio and where possible, switch to more energy-efficient equipment (e.g. LED lighting, optimised Air Conditioning etc.). This helps us reduce our energy consumption significantly.

Water Efficiency: we promote the efficient use of water and seek to sustainably manage our use of water resources through the use of water cisterns in our offices to enable us to reduce, reuse and recycle our water consumption. This helps us reduce the water we consume making us more efficient.

Waste Management: we strive to manage our waste more effectively by eliminating, reducing, and recycling product and paper waste; using not only less material (e.g. less paper, less packaging, etc.) but also implementing more efficient waste management systems to responsibly dispose of waste produced.

Manage emissions from logistics and business travel: we continue to address and manage emissions from our logistics operations and business travel. Where possible, we minimize business travel and switch to digital platforms for internal and external meetings and events. Our COVID-19 protocols have promoted more virtual work solutions in our business process, enabling us to increase online attendance and reduce the need for business travel most significantly in recent times.