To establish a strategic relationship to address the climate change impact in Zambia, First National Bank (FNB) Zambia and Worldwide Fund for Nature (WWF) Zambia have entered into a partnership through a Memorandum of Understanding (MOU).
Speaking during the signing of the memorandum of understanding to cement the partnership, FNB Zambia Chief Executive Officer, Bydon Longwe said, as a bank that is constantly evolving with the ever-changing needs of the customers and society, the partnership with WWF amplifies FNB’s intent to help create a better world and society for all, in line with its ethos.
Longwe stated that FNB is aware that the Environmental, Social and Governance (ESG) topic has become critical in how business is undertaken.
“I would like to congratulate Nachilala Nkombo and her WWF team on the successful launch of the second PachiPanda Innovation Challenge in Zambia last week. I understand that challenge is aimed at encouraging and supporting innovative solutions that address pressing environmental and societal challenges within the country. I am pleased to state that FNB is pledging to support the challenge through the provision of sustainable financial advice and other key initiatives to the shortlisted teams. I believe this will amplify our collective commitment towards a sustainable world.” Stated Longwe in a statement availed to the Zambian Business Times.
Meanwhile, WWF Zambia Country Director, Nachilala Nkombo stated that measuring the potential effects of climate change on financial institutions is a challenging task adding that WWF Zambia partnering with FNB Zambia will support the bank in developing tools, methodologies and processes to address the climate risk that banks face.
“In this context, it is important to note that WWF Zambia is better placed to assist in assessing environmental risk to FNB Zambia and outlining investment opportunities in a rapidly changing climate and environment by utilising various methods. Methods such as the water risk filter, biodiversity risk filter, science-based target initiatives, and sustainable banking assessment.” She added.
FNB Zambia and WWF Zambia’s partnership will cover but will not be limited to the following key initiatives built on the sustainability umbrella:
1. Financial Intermediation: Linkages for investors to borrowers in a quest to improve access to capital. Strong demand often outstrips supply which may result in attracting a more diversified pool of investors.
2. Transaction Structuring: This will include assistance to customers/investors in realising the benefits to be accrued for their sustainability investments and structuring of green bonds among other sustainable finance needs.
3. Conditional Underwriting: Offer customers the option to access finance or re-financing for eligible green assets/projects.
4. Other Assistance: Provide guidance on use of Proceeds, Management of Proceeds, and Process for Project Evaluation & Selection and Reporting; including demonstration of links to Renewable Energy, Biodiversity Conservation, Sustainable Water Management, Pollution Prevention & Control and Green Buildings, among other initiatives.
FNB Zambia and WWF Zambia has since pledged to continue to work with like-minded organisations committed to driving the sustainability agenda in the country and beyond.
