Stanbic IBTC’s vision is to be a leading end-to-end financial solutions provider in Nigeria, through innovative and customer focused people. We are however committed to being more than just a provider of financial products and services, by being a catalyst for inclusive and sustainable social, economic, and environmental growth in Nigeria, and by making life better for our stakeholders.
Sustainability, to us, is the creation of financial and economic value, as well as long term environmental and social value for a wide range of stakeholders with consideration for the needs of future generations. The sustainability of Stanbic IBTC is inextricably linked to the prosperity and well-being of stakeholders in the societies in which it operates.
Our sustainability pillars
As a part of our strategy to position the Stanbic IBTC Group as a leading sustainable financial institution in Nigeria, we aim to create financial and economic value as well as long-term environmental and social value for our stakeholders (which includes shareholders, customers, employees, suppliers, communities and partners) with particular consideration for the needs of future generations. We also aim to be recognised by our peers, society and wider group of stakeholders as being at the forefront of sustainable financial solutions and innovation as well as a responsible and ethical corporate citizen.
To achieve these, we focus on our four sustainability pillars:
This pillar serves as the anchor for Stanbic IBTC environmental footprint management, which includes carbon emission, waste and water. The pillar helps advance our commitment to offering innovative and cost-effective solutions.
To build environmental resilience, promote a green culture and a sustainable workplace, Stanbic IBTC focuses on three priority areas, including:
The reduction of carbon emission by engaging in climate change mitigation and adaptation activities across our value chain
The efficient management of waste, including e-waste, the enhancement of reuse and recycling activities
This pillar helps us continuously develop innovative solutions that enhance our status as a people-oriented organisation that respects human rights, promotes women economic empowerment, value and empower our employees, customers and community where we operate.
We will continue to enhance our social relationships by focusing on employees’ engagement and well-being, sustainable partnerships as well as collaboration with relevant stakeholders, and empowering communities through sustainable finance and investment solutions as well as community programs.
This pillar helps position Stanbic IBTC as a market leader in sustainable finance and investments solutions as well as in innovation. It enhances our capability to galvanize our employees to drive innovative solutions, develop sustainable finance and investments products, create new markets and develop sustainability driven supply chain.
We will continuously drive sustainable socio-economic growth and progress through our sustainable finance and sustainable investment innovative solutions and offerings. These include the acceleration of financial inclusion solutions and offerings across the Stanbic IBTC Group, social finance and investments in education, health, sustainable agriculture, climate finance and investment in clean energy technology like solar energy, green buildings to enhance climate change mitigation and adaptation, and environmental and social risk management. Stanbic IBTC will continuously drive the development of a sustainability driven supply chain. This includes engagement with critical suppliers and vendors on sustainability solutions.
This pillar enhances our capability to develop the required leadership and governance for a holistic sustainability integration and implementation. Stanbic IBTC will develop and implement appropriate sustainability/Environmental Social and Governance (ESG) data management. We will seek to embed sustainability considerations in applicable processes and policies. We are proactive in our compliance approaches to applicable frameworks and regulations and will accelerate reporting of sustainability activities using an international sustainability reporting framework.
Our Social, Environmental and Economic (SEE) outcome
Stanbic IBTC recognizes that, to achieve our purpose, our core business activities must support and contribute to inclusive and sustainable economic growth in our countries of operation. The economic value we generate for our shareholders should be underpinned by the creation of value for society.
We have adopted SEE impact as one of our six strategic value drivers – alongside financial outcomes, client focus, employee engagement, risk and conduct and operational excellence.
Risk and conduct
SEE recognises our need to ensure that we are supporting the well-being of our clients and potential clients, now and in the future, to ensure the sustainability of our business. It provides us with an opportunity to grow our business by providing innovative solutions to address societal, economic and environmental challenges in the markets in which we operate.
SEE also requires us to think differently about the broad impacts of our business decisions, including indirect impacts. It enables us take a long-term view, and to assess the positive and negative impacts of every business decision not just for the Stanbic IBTC Group, but for the communities in which we operate. We need to be comfortable that the positive SEE impacts of any project, product or client relationship outweigh the negative impacts, in line with our strategy and purpose.
We have identified seven areas in which we believe we can maximise our SEE impact.
In identifying the impact areas, we considered our core business as a provider of financial products and services, our commitment to drive growth, and the priorities identified by developmental initiatives such as The United Nations (UN) Sustainable Development Goals (SDG’s) and the African Union’s Agenda 2063.
We work with our clients to understand their challenges and priorities, provide them with appropriate financial solutions to support their growth and expansion, and deliver digital solutions to meet their unique needs
We facilitate trade and investment flow between Nigeria and other African countries and key global markets by providing innovative trade finance solutions and cross-border payments and investment solutions
We support better health outcomes for people by financing healthcare providers and health infrastructure and equipment, providing business development support to healthcare practitioners, investing in our people’s health, safety, and well-being, and investing in health-focused Corporate Social Investment programmes
We work with our clients to develop appropriate solutions for mitigating and adapting to the effects of climate change and developing innovative financial products and services that support the green economy and social development
We support the development of infrastructure to enable inclusive and sustainable industrialisation by financing large-scale infrastructure projects; and partnering with our clients to ensure environmental and social risks are appropriately managed and minimised
At Stanbic IBTC, we seek to drive positive social, environmental, and economic impacts in the communities where we operate, while minimising our negative impacts on the society and the environment. As a financial institution, we believe we can drive significant positive impacts though our business activities.
Some of our sustainable business case studies include;
We assisted the Lagos State Government with its bond issuance programme and was instrumental in its successful issuance of a ₦100 billion Series III bond under its ₦500 billion bond programme. The bond proceeds will be utilised to finance the state’s social and infrastructure projects.
GB Foods, through its subsidiary Tomani Farms and Agro-Industry Limited (TOFAI), rolled out its backward integration project to address the shortfall in tomato supply versus demand in the country. TOFAI using its strong expertise in the entire value chain of tomato, had rolled out its backward integration project, which is scheduled to be executed in three phases from 2017 to 2022. In 2020, Stanbic IBTC Bank provided funding in the form of medium-term and trade facilities to the tune of ₦13.6 billion to support the project. The successful execution of this project will generate significant social and economic impact for Nigeria, with over 7000 direct jobs created and potentially 28,000 indirect jobs.
In 2020, Stanbic IBTC provided a short-term facility of ₦2.3 billion to Starsight Power Utility Limited over a tenor of 18 months to support its capital expenditure purpose and aid the company’s expansion plans across the country. The Group played vital roles as arranger and lender to the transaction. The transaction launches Stanbic IBTC Capital Limited into the off-grid power sector value chain and is a key milestone in the Group drive to support the sector. Starsight also provides solar power to 14 branches of the bank nationwide.
We provided a ₦12.5 billion facility to Free Zone Utilities LFTZ Enterprise (FZU) over a tenure of 10 years to support the development of ancillary infrastructure for the companies in the Lagos Free Trade Zone. This facility ensures that immediate capital is available for the client to support critical infrastructure development and help achieve its expansion plans. The transaction demonstrates Stanbic IBTC’s ability to structure, coordinate and execute innovative financial solutions for fast-growing clients in the infrastructure sector and further underpins our status as one of Nigeria’s leading financial services provider for infrastructure companies.
In 2020, Stanbic IBTC Capital Limited coordinated Stanbic IBTC Bank participation in the five-year amortising €65 million loan facility as part of the €1 billion syndicated facility raised for BOI. Through this, Stanbic IBTC supports the development of Nigeria’s industrial sector and projects with potential developmental impact and generates considerable multiplier effects such as industrialisation, job creation, and poverty alleviation, which would have significant positive effects on the socio-economic conditions of Nigerians. Being the only Nigerian bank in the transaction, we demonstrate our ability to add value and successfully participate in a global syndication.
We provide on-lending financing for Other Financial Institutions (OFI) such as microfinance banks, mortgage banks and fintech companies, using their performing loan book as collateral. This is a deviation from the usual practice of using legal mortgages as securities for facilities availed to such financial institutions. This is because the OFIs and fintech companies usually do not have many physical assets to use as collateral.
Stanbic IBTC Pension Managers Limited and Stanbic IBTC Asset Management Limited pursued initiatives focused on making positive social impacts as institutional investors. In 2020, Stanbic IBTC Pension Managers Limited made impact investment worth ₦15.98 billion while Stanbic IBTC Asset Management Limited made impact investments worth ₦7.32 billion in the following areas:
₦18.84 billion in Sukuk bond and Sukuk linked notes to support the federal government initiative on infrastructure development.
₦3.15 billion in infrastructure funds/bonds to increase the productive capacity of the Nigerian economy and support job creation and economic development.
Solar-powered boreholes for three schools in Kano
The PBB Operations team of Stanbic IBTC Bank PLC provided clean, safe, and readily available water sources in each of these schools. The team contributed ₦5.07 million while Stanbic IBTC also made a matching contribution of ₦4.02 million, making a total of ₦9.08million.