FirstBank teams up with Proparco to tackle climate change

Comfort Ecremé, Business Editor

First Bank of Nigeria has partnered with Proparco, a development finance institution, to integrate climate action into its business operations and strategy.

This aims to deliver comprehensive integration of climate action on reducing Greenhouse Gas (GHG) emissions through a clear strategic pathway and position the Bank as an African Climate Bank.

FirstBank Chief Risk Officer for Agriculture, Patrick Akinenor, highlighted the bank’s commitment to mainstreaming climate action, saying, “FirstBank is intentionally working to redefine our climate impact.”

“We are identifying climate finance opportunities to improve our portfolio and reduce carbon emissions associated with our processes and operations.

“Banks are creating climate finance opportunities for their clients, such as renewable energy and energy efficiency products, as well as implementing emission accounting mechanisms for loans,” he said.

The 130-year-old financial institution is now implementing a system to calculate operational emissions at all branches and offices.

This involves calculating data on electricity usage, diesel usage, water consumption, waste management methods, fuel consumption, business travel, etc. to determine the bank’s emissions standards and innovative opportunities to reduce emissions in its operations.

First Bank is developing the necessary capabilities and capacity through investments in its employees and in the right infrastructure to integrate climate action into the bank.

The two-day Partnership Strategy Workshop session with IPC and Valoris, the Austrian consultants involved in Proparco’s climate mainstreaming project, reviewed all implementation areas of First Bank’s climate change efforts, determined progress across the bank’s operations and empowered the strategy department.

This includes the Credit Risk team, Human Capital Management and Development (HCMD), the bank’s learning institute FirstAcademy, Corporate Banking, Retail Banking, SME Banking, Procurement, Branch Operations and General Services teams to deepen their understanding of climate risks in their processes.

The six workstreams for implementation include identifying funded and avoided emissions to support reporting, supporting operational emissions measurement and analysis, integrating physical climate risk assessments, opportunity analysis, climate strategy and policy development, and staff capacity building to support strategy implementation.

“Among our various engagements with financial institutions on climate mainstreaming, FirstBank is the only one that can provide data on both the asset location of their portfolios and the headquarters of their clients. We are impressed with the progress we have made together,” said Dr. Martin Steindl, Managing Director of Vallauris in Austria.

Nigeria has committed to reducing greenhouse gas emissions by 20 percent by 2030 and reaching net-zero emissions by 2060. This is an ambitious target, but it points the way for Nigerian businesses to at least support greenhouse gas emissions reduction strategies in national plans and targets.

First Bank is committed to achieving this goal, as evidenced by the bank’s signatory to the African Business Leaders Climate Statement launched by African Business Leaders at COP27 in Sharm El Sheikh, Egypt in 2022. Union (ABLC).