Egypt’s NBE joins UNEP-FI Principles for Responsible Banking initiative

25 / 02 / 2022

By Mohamed El Ghobashy - - | Edited by Marwa Nassar

Egypt’s National Bank of Egypt (NBE) joined the UNEP-FI Principles for Responsible Banking initiative, thus becoming the largest bank in Egypt to sign the initiative which aims to intensify the positive impact of banking institutions, promote the concept of management of social and environment risks in the banking sector and encourage working with clients and the parties concerned to encourage sustainable banking practices.

NBE Board Chairman Hisham Okasha said the bank’s inking of the UNEP-FI initiative falls within the framework of activating its strategic role in promoting the sustainable financing agenda.

He noted that more than 300 financial institutions – including 275 banking institutions – joined the initiative, adding that the assets of these institutions stand at 72 trillion dollars collectively.

The NBE’s move also falls within the framework of the Guiding Principles on Sustainable Finance of the Central of Egypt (CBE) which was issued in July 2021.

The NBE issued its first sustainability report in December 2020 in accordance with the Global Reporting Initiative (GRI) standards, he said.

The bank has also merged sustainability in its activities and internal operations to be at the core of its strategy, he added.

The bank also plays a pioneering role in the environment domain, he said, referring to the NBE’s activation of the Egyptian Pollution Abatement Program (EPAP) through the Environment Ministry which is in the third stage now.

The EPAP is implemented at 120 million euros in partnership with the European Investment Bank (EIB) and the French Development Agency (AFD), the KfW Development Bank and the European Union (EU).

NBE Deputy Chairman Yehia Aboul Fottouh highlighted the bank’s key role in supporting the United Nations Sustainable Development Goals in accordance with Egypt Vision 2030 whose targets include eradicating poverty, achieving gender equality, securing decent jobs, promoting innovation and achieving justice.

He noted that the bank was one of major supporters of CBE’s initiatives that contribute to promoting economic growth.

He added that the bank’s portfolio of small and medium sized enterprises initiatives hit EGP 74 billion serving 87,000 clients.

Also, the bank’s portfolio to the real estate financing initiative recorded EGOP 11.5 billion, he said, noting that the bank offered EGP 1 billion facilities for the initiative for converting cars to operate by natural gas.

The bank also offered EGP 2.9 billion for buttressing the tourism sector, he added.

Meanwhile, NBE Deputy Chairman Dalia El Baz said the bank contributed EGP 2 billion for social responsibility (CSR) activities in the 2019-2020 FY.

She noted that the bank allocated EGP 8.5 billion over the past six years for CSR activities.

The bank earmarked about EGP 3.5 billion for developing slum areas and about EGP 2.25 billion for the health sector.

The bank channeled about EGP 800 million since the coronavirus outbreak for supporting the sectors affected by the pandemic.

NBE has continuously proven its commitment to enhancing the lives of Egyptians. As one of Egypt’s top contributors to social responsibility, NBE demonstrated its unwavering support and pioneering role in financing healthcare, education, and economic projects that directly impact the living conditions of Egyptian citizens.

As a foundational financial institution in society, NBE proudly continues to uphold its stalwart function in the national economy and consistent support of the Egyptian people.