skye Bank Plc recently organised a stakeholder conference on sustainability, which was attended by representatives of banks and other companies, to share current trends and ideas relating to the subject. Festus Akanbi, who was at the event, reports
The Central Bank of Nigeria (CBN) about two years ago rolled out guidelines on the Nigerian Sustainable Banking Principles (NSBP) with the aim of integrating environmental and social policies into decision-making processes in commercial banks, discount houses and development finance institutions. This policy direction was dictated by the trend in international business reporting, which takes account of the impact of business on the environment and the social and economic risks attendant to the operations of business concerns.
As the new reporting system gained currency and acceptance globally, a few Nigerian banks and organisations embraced the practice to reflect and embody sustainability practices in their reports for global competitiveness and alignment.
Sustainability Reporting
Sustainability reporting allows organisations measure, understand and communicate their environmental, social and governance performances. In the financial services industry in Nigeria today, Skye Bank, a foremost financial institution has shown real commitment to the implementation of the sustainable banking principles by collaborating with the Global reporting initiative towards efficient reporting since 2013. Skye Bank is able to reassure that a partnership with the Bank will equip all its customers adequately for the foreseeable future. The bank recently hosted a stakeholder conference on sustainability, which was attended by representatives of banks, and other companies to share current trends and ideas relating to the subject.
The bank’s CEO Mr. Timothy Oguntayo in his speech at the Global Reporting Initiative seminar said Skye Bank was determined to take full advantage of all sustainability opportunities both locally and globally whilst ensuring that our actions and decisions do not compromise the ability of the future generations to meet their own needs.
Before the stakeholder conference on sustainability reporting, Skye Bank also held another capacity building programme on sustainability reporting for the Board members. The programme dwelt on financing and the environmental, economic and social risk impact on the economy and provided a guide to how to achieve sustainable development for business.
Mrs Abimbola Izu, Executive Director, Legal and Corporate Services, Skye Bank Plc, said the Board chooses to go on the training to further enhance its knowledge of sustainability reporting to enable them provide effective direction on issues of sustainability finance.
“We have just embarked on a comprehensive sustainability training for our Board members(executive and non-executive) as part of the Bank’s commitment to the implementation of the Nigerian Sustainable Banking Principle while the Bank continues to take all necessary steps to manage the impact of its business on the environment and society while creating value for the communities”, she explained.
Corporate Governance
The prominence of board of directors in corporate governance is evident in model definitions of corporate governance which sees corporate governance as the processes and structures by which the business and affairs of an institution are directed and managed in order to improve long-term shareholder value by enhancing corporate performance and accountability, while taking into account the interest of other stakeholders.
Yet in another breadth, and in furtherance of its commitment to promote the highest standards of corporate governance, sound reporting and accountability, the bank is leading the national campaign for corporate organisations to embrace sustainability reporting. In pursuance of this goal, the bank recently hosted over 40 delegates from different institutions, including banks and regulatory authorities, for the 2015 stakeholders conference on sustainability reporting under the auspices of the Global Reporting Initiative (GRI).
Achievements
Skye Bank commenced the implementation of sustainability in February 2013 with the establishment of its sustainability department which has the mandate to integrate sustainability in the bank policies and implement the Nigerian Sustainable Banking Principles. Consequently the path of sustainability has become a business strategy and opportunity for future growth as the bank is convinced on the need to extend its sustainability focus beyond industry regulations.
In the bid to continuously create a measurable framework that will contribute to a more sustainable financial planet and build limitless opportunities for stakeholders of Skye bank, the Sustainability team has been able to lay the foundation for sound sustainable banking framework and has made considerable progress in the following areas amongst many over the last 29 months:
A lesson to learn from Skye Bank professionalism:
Integrating Sustainability
The team has been able to achieve several milestones by first undertaking several sensitisations with both Internal and External Stakeholders through several engagements/buy-in, and continuous capacity building sessions in the last 29 months have been undertaken at all levels including the Bank’s Board of Directors (Executive & Non –Executives) and the process is still ongoing.
Similarly, the Bank continuously engages its customers in a broad spectrum of activities including SME Business seminar series bundled with sustainability initiatives, customer interactive fora, focused group sessions especially in the retail area, as the Bank’s strategy is presently aligned with the growth of SMEs and Retail business to compete with the internal competitors. There is also a deliberate increase in the channels choices as recommended to ensure greater access to banking services at all times, in addition to increase the number of wheelchair accessed branches for handicapped customers.
Environmental, Social Risk Management, Social Footprint
Because a safe and clean environment for all is important, the bank does not only ensure that its activities do not negatively impact the environment, but also contribute to reducing global warming and climate change by supporting activities aimed at reducing the level of carbon emissions and undertaking steps to control our carbon footprint.
In order to continue to serve its vast clientele and deliver value and high returns to its shareholders and other stakeholders on a continuous basis, Skye Bank Plc has embraced and adhered strictly to the letter and spirit of the Central Bank of Nigeria Code of Corporate Governance for Banks in Nigeria 2006 and the Securities and Exchange Commission Code of Corporate Governance 2011. As an international Bank, it also imbibes international best practice and adapts them to local circumstances.
In ensuring utmost adherence to the code, the bank has put in place a competent and efficient board, sets up various board committees to make the board effective, as well as appoints independent directors for corporate accountability.
Board
The board is headed by Mr. Tunde Ayeni, a lawyer and businessman, with Mr. Timothy Oguntayo, the Group Managing Director/Chief Executive Officer, leading the team of Executive Management. The other members are of the board are also seasoned professionals in various fields with rich experiences that make it easy for them to provide leadership and direction for the bank.
As a forward looking organization with short, medium and long term objectives, the bank has also instituted a succession planning policy both for Board and management to mitigate the impact of sudden and unplanned exits.
In line with governance practices, the annual evaluation of the performance of the board is conducted by an independent consultant, which covers the board composition, committees, responsibilities, process, among others. The board members are also regularly trained under the continuing professional education and development programme designed to enhance their competence and knowledge.
In compliance with the Code of Corporate Governance, the bank has on its board, two independent non- executive directors. The two independent directors-Mr. Victor Odozi, a former Deputy Governor of the Central Bank of Nigeria and Mrs. Amuna Lawan-Ali- provide rich and critical perspectives to issues.
The board adopts a formal, transparent and rigorous board appointment process designed to ensure both continuity and orderly change on the board. Regular training programmes are organized for the board members to keep them abreast of developments in the financial industry as well as to familiarize them with the bank’s operations, objectives, business environment, among others.
Overall, there is no conflict of interests among the board members as the disclosure rules are strictly enforced and adhered to
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