Staff Writer
National Building Society (NBS) says it has partnered with the European Organisation for Sustainable Development to implement environmental, social and governance (ESG) initiatives.
The society’s bold step towards sustainability aligns with the Reserve Bank of Zimbabwe’s goal of promoting sustainable development in the financial services sector.
“Through initiatives like the sustainable and socially conscious investing program, NBS aims to build strong institutions that contribute to long-term stability and prosperity. The society has completed the Sustainability Standards Certification Initiative preparatory phase and is now moving forward with implementation,” NBS chairperson Shingai Mutumbwa said in the society’s financials.
ESG aspects are emerging as core values of companies, major financial institutions and shareholders around the world.
The central bank directed banks to integrate their sustainability principles, including those covering environment and climate-related issues and social areas, into their corporate governance framework and risk management systems and practices.
The Reserve Bank of Zimbabwe (RBZ) gave financial institutions an April 30, 2024 deadline to submit board-approved climate risk management strategies.
The requirements, in line with Guideline No.01-2023/BSD, will incorporate risk appetite, and risk management frameworks including the approach to the identification, measurement, and monitoring of climate-related risks as well as internal control and reporting arrangements.
Central bank governor John Mushayavanhu said climate risk management continues to be a key supervisory focus area for the RBZ.
He said the apex bank continues to institute a series of measures to improve banking institutions’ risk management and supervisory practices on climate-related risks.