A new vision for Africa’s future
Where finance, sustainability, and prosperity go hand in hand
As Africa approaches a critical juncture in both climate action and economic growth, financial services are at the forefront of championing a bright future, spearheading Africa’s drive toward sustainable prosperity.
The eyes of the
world
The eyes of the world are firmly placed on Africa. As the home to the world’s fastest-growing population, with McKinsey estimating its population will nearly double to 2.5 billion by 2050, what happens on the continent will be felt across the world in the coming decades.
However, Africa’s economic outlook remains mixed. While the continent features several of the fastest-growing economies in the world, according to the World Economic Forum the average growth rate still falls below the global average.
As the continent most susceptible to global climate change, there is also an imperative to ensure that sustainability is at the heart of any growth plan. To fund this change, attention has turned to leaders in the finance world.
As one of the fastest-growing sectors in Africa, its actions have an ever-growing impact on the ability of the continent to prosper.
“The financial sector – the lifeblood of the continent’s real economy – has played an important role in Africa’s recent progress,” says the African Development Bank Group, “It is vital to achieving inclusive growth and the transition to green growth.”
The expectations of the financial services sector to deliver are higher than ever before, and Access Holdings – as Africa’s largest provider by customer base – is on the frontline of meeting them.
The financial sector is vital to achieving inclusive growth and the transition to green growth.
African Development Bank Group
Financing the
future
In stressing the importance of the financial sector in leading the fight against climate change, the IMF notes that “long-term institutional investment can help with rebalancing and redistributing of climate-related risks and maintaining financial stability.”
With the sustainable finance market now reaching $1.6 trillion globally, Access has seized the moment to provide fully realised, commercially viable, sustainable banking. By incorporating robust Environmental, Social, Governance (ESG) principles into its business strategy, Access has created a framework for driving positive environmental and social impact while maintaining strong governance.
Access’ journey towards sustainability began in 2008, and the following year they were the first financial institution in Nigeria to adopt the Equator Principles, meaning that a pre-condition to the bank’s involvement in any major project is an assessment of the environmental impact, including recommendations on how to mitigate any risk.
Jump forward a decade and Access Bank, the banking subsidiary of Access Holdings, issued the first Climate Bond Initiative (CBI) certified corporate green bond in Africa, with the proceeds of the bond used to finance/refinance environmentally friendly projects.
From green lending to sustainable investing, Access is empowering individuals and businesses that prioritize environmental and social responsibility, fostering sustainable growth on the continent.
This work has led to global recognition, with Access being the first commercial bank in Africa to achieve the highest level of sustainability certification under the Sustainability Standards and Certification Initiative (SSCI) program by the European Organization for Sustainable Development (EOSD).
Leading by
example
It is not enough for sustainability to solely apply to the external activities of a business. This is because ESG considerations play an important part in a bank’s role as a lender and financial service provider. Also, an organization’s ability to live by its own ESG principles has a major impact on its integrity as a market leader.
Access has therefore set itself apart with a remarkably low environmental impact.
On energy, Access has saved an average of 5 to 6 million KWh yearly through its early shut-down policy, off-grid energy consumption, and investments in cleaner energy such as solar. On emissions, its journey to carbon neutrality is being driven by internal energy-saving initiatives and volunteer tree planting. And on waste, Access has pioneered waste recycling within Nigeria’s financial sector, expanding its recycling operations to 75 locations across the country.
To ensure the next generations of leaders are equipped to tackle the challenges ahead, the company has made major strides in sustainable education.
The Climate Leadership Fellowship is a testament to this ethos and the Group’s dedication to advocacy and leadership as a way of building climate resilience. The fellowship caters to secondary school students through the establishment of sustainability clubs, while empowering young adults to take on the role of climate mentors. Through this initiative, Access Holdings has trained 13,089 beneficiaries on climate action to build climate resilience and nurture a generation of informed and passionate environmental advocates.
“Development is, at its core, the process of making investments now that increase the future growth of a country,” says Patrick Behrer, Researcher at the World Bank’s Development Research Group. “There are few investments one can make that have as high a payoff as investing in human capital and education.”
Beyond banking
At this critical crossroads for our planet, the finance and banking sector plays a pivotal role in driving sustainable growth.
Access Holdings stands as a shining example of how finance and banking can be catalysts for sustainable prosperity. By embracing a green and ethical approach, it is not only shaping its own future but also lighting the way for Africa’s journey towards a greener and more prosperous tomorrow.
