1. Sustainability is gaining traction across industries, including banking and finance. We would love to hear your thoughts on its broader importance and its specific impact on your institution.

Sustainability is a rising concern across industries because businesses need to be responsible stewards of resources, not just profit machines. This benefits everyone: it is good for business, good for the environment, and secures a healthy future for generations to come.

At Absa, we believe that a thriving society built on human dignity, equality, and sustainable practices is the foundation for long-term success – for both us and our stakeholders. We recognize that by promoting the efficient and responsible use of resources, we empower our clients' businesses to flourish, which ultimately leads to our growth as well.

At Absa Bank, we embrace sustainability because we aim to be a Force for Good in our community. Our sustainability strategy is structured around three key pillars: Financial Inclusion, Diversity & Inclusion, and Climate Action.


2. What is your bank's overall strategy and approach to promoting environmental sustainability and combating climate change?

Our efforts to promote environmental sustainability comes under our Climate Action strategic theme and anchored on promoting renewable energy and reducing carbon emissions. We pursue this under the following climate action-related initiatives:

• We provide Climate Financing, offering solutions that empower our clients to improve their energy efficiency and embrace environmental sustainability.

• Further, we focus on resource efficiency and conservation, not only by managing our own internal environmental footprint, but also by influencing our stakeholders to do the same.

• Additionally, we promote environmental greening initiatives by directly planting trees and supporting partner institutions to do the same.

• Finally, we integrate a robust environmental and social risk management framework directly into our lending process.

3. Can you highlight some of the key initiatives or programmes your bank has implemented to reduce its environmental footprint and promote sustainable practices?

Under renewable energy, we installed solar panels at 53 off-site ATMs, producing 318 kW of energy. Additionally, we are piloting a hybrid solar system at two branches, which uses 52 kW solar panels along with conventional energy sources.
To achieve energy efficiency, we have upgraded 300 air conditioning units to models with inverter technology, significantly reducing our electricity consumption. We have also revamped our lighting systems to incorporate energy-efficient fixtures that generate savings for the business.

As a business, we are using water more efficiently after retrofitting all washrooms at our head office with automatic shut-off systems and water-efficient urinals.

Our waste management strategy includes a waste segregation project launched in 2023 at our head office. This initiative categorizes waste to enhance recycling, particularly of plastics, promoting circular economy principles.
In our tree planting efforts, we have planted 5,000 trees as part of the Green Ghana campaign and committed to planting 10,000 trees annually through our Green Care Initiative.

4. How does your bank integrate environmental, social, and governance (ESG) considerations into its lending and investment decisions?
We integrate ESG considerations into our lending and investment decisions in several ways:

First, we have established robust ESG policies and frameworks that guide our approach to lending. This helps us identify, assess, and manage potential environmental and social risks, ensuring that we mitigate issues related to environmental degradation, social disparities, and governance failures.
We take a thorough approach to risk assessment by scrutinizing the environmental and social implications of the lending solutions, ensuring any associated environmental risk is mitigated.

To that end, we continually build the capacity of our team to ensure that our employees are well equipped to integrate ESG factors into their work and decisions. We provide comprehensive training programmes on climate risk and responsible lending practices to colleagues in the Credit chain.

5. What measures has your bank taken to finance and support environmentally friendly projects, such as renewable energy or sustainable agriculture?
We play an active role in financing and supporting environmentally friendly projects through tailored sustainable lending solutions. Consistent with our renewable energy promotion strategy, we assisted a client with a green loan of GHS360m to support the importation of solar panels and related accessories for the construction of a Solar Plant.

Additionally, we provided a medium-term loan of GHS120 million to the private sector for the procurement of over 500 small fuel-efficient vehicles, thereby enhancing mobility solutions for riders in Ghana.

The Bank supports sustainable agriculture by offering solutions that promote environmentally responsible farming practices. This includes loans for projects that improve resource efficiency, reduce emissions, and enhance biodiversity. The Bank also collaborates with agricultural stakeholders to promote best farming practices through responsible lending. Over GHS150m has so far been lent to projects or farmers to promote sustainable agriculture. The smallholder farmers were supported to adhere to sustainable farming practices such as farming practice that reduces the amount of soil disturbance, Conservation Agricultural practices where farmers plant cover crops after harvesting, and Climate-Smart adaptations such as the use of Adaptive seeds.

6. Can you discuss your bank's efforts to promote green buildings and energy-efficient infrastructure within its operations?
Our efforts in this area are guided by a comprehensive set of policies and a commitment to compliance that ensure environmental considerations are integrated throughout our operations. We have established a robust Sustainability and Environmental policy that guides our day-to-day operations and sets the standards for our environmental commitments. It ensures that every decision we make, from the ground up, contributes positively to our sustainability goals. This is evident in our water and energy conservation initiatives.

7. How does your bank engage and educate its employees and customers on environmental issues and sustainable practices?

Our approach to engaging and educating our employees and customers on these issues is comprehensive and multifaceted.

Education forms the backbone of our sustainability strategy. We ensure that all our staff, from the front line to our executive team, undergo annual sustainability training. This is not just about compliance, but about embedding a deep, actionable understanding of environmental issues within our team. Additionally, we provide specialized training for our Relationship Managers and credit teams. This training is crucial as it equips them with the skills necessary to effectively identify, manage, and monitor Environmental, Social, and Governance (ESG) risks in our clients’ businesses.

We actively promote sustainability through various internal campaigns and awareness sessions like our annual Sustainability Week celebrations. These initiatives are help us turn knowledge into action, ensuring that our commitment to the environment is reflected in every aspect of our daily operations.

Engaging our customers is equally important. We conduct various sessions designed to help our customers understand the critical role sustainability plays not only within their businesses but also in the broader market. These interactions help them recognize the benefits of adopting sustainable practices, which can lead to enhanced operational efficiencies, reduced environmental impact, and a stronger bottom line.

8. What challenges has your bank faced in implementing sustainable banking practices, and how has it overcome them?

One of the most significant hurdles has been fostering the necessary behavioural changes within our organization, particularly with initiatives such as our Waste Segregation project.

The second hurdle is stakeholders' willingness to accept initial short-term trade-offs to reap the long-term benefits of sustainable business practices. This is because the initial costs of adopting sustainable practices, e.g., solar power, may seem high as compared to non-green solutions such as diesel.

To address this, we have invested heavily in continuous training and awareness campaigns. Our aim is to cultivate a culture where sustainable practices are second nature, and stakeholder relationships that take a long term-view.

9. How does your bank collaborate with government agencies, NGOs, or other stakeholders to advance environmental sustainability initiatives in Ghana?
We understand that meaningful impact requires collective action, and to this end, we have fostered strong relationships with government agencies, NGOs, and other stakeholders.

As a committed signatory to the Bank of Ghana Sustainable Banking Principles, we not only adhere to but also actively integrate these sustainability principles into our day-to-day operations. Our ongoing cooperation with regulatory bodies is about partnering to shape the future of sustainable banking in Ghana.

Our approach to partnerships is both proactive and strategic. We actively seek and maintain relationships with a variety of stakeholders, including government agencies, international organizations, and NGOs. These partnerships are invaluable as they bring additional expertise and resources to the table, enhancing our ability to promote and finance environmentally friendly projects. Most recently we collaborated with the Citi FM Business Festival on a roundtable series to highlight our sustainability.

Engagement at the community level is also vital. For instance, we have collaborated with the Forestry Commission to plant 10,000 trees and partnered with key private sector institutions to drive our ‘Force for Good Day’ activities. Additionally, we participate in the Ghana National Plastic Action Partnership, where we contribute to discussions and actions aimed at effective plastic waste management.

10. Looking ahead, what are your bank's future goals and plans for further enhancing its commitment to environmental sustainability and addressing climate change challenges?

Looking ahead, we will continue to increase investments in renewable energy, the reduction of carbon emissions, sustainable agriculture, and other projects that contribute to environmental preservation.

To this end, we will deepen our collaborations with customers, regulators, governments, and development finance institutions.

11. If there is one message you would like to get across on the subject, what would that be?

The key message to convey about environmental sustainability is the importance of taking proactive and innovative actions to ensure that our environmental impact is managed responsibly. This must be done in a way that supports a just transition to a low-carbon economy, ensuring that our actions today do not compromise the future. It is about creating a balance that allows for growth and development while preserving the planet and its resources for future generations.

Lastly, it is about building resilience and finding innovative solutions to climate change, leveraging the power of collective action.