Case study: How QNB works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

QNB engages in regular and transparent communication with its stakeholders to address their interests and concerns. The Bank actively gathers their input through a variety of internal and external engagement channels, ensuring that feedback is incorporated into decision-making processes. QNB’s stakeholders include employees, customers, suppliers, investors, regulators, government bodies, and the broader society impacted by its activities.

QNB seeks to build strong partnerships with both national and international organizations and programs. By collaborating with these entities, QNB aims to strategically direct capital toward businesses, projects, products, and economic sectors that contribute to Egypt’s sustainable development. Through these collaborations, QNB seeks to enhance the positive impact of its investments and further promote economic growth and regional stability.

How did QNB work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2023 Principles for Responsible Banking (PRB) Report QNB reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

QNB follows an Environmental and Social Risk Policy (ESRP) Framework that encompasses a robust set of rules and standards. This Framework outlines the Bank’s approach, in line with QNB Group, to environmental and social (E&S) issues in sustainable financing and operations, ensuring alignment with the Group’s sustainability policy, strategy, and ESG commitments. It adheres to the minimum standards established by the Group’s ESRM policy Framework.

The Policy Framework places emphasis on the E&S Risk Management Overview in Lending Activity, while a separate Environmental and Social Risk Assessment (ESRA) model—detailed in another document—applies to transactions that may be funded by the EBRD or other multilateral institutions on a selective basis and as required by the related multilateral institutions. QNB may also choose to apply the ESRA to specific sectors or clients.

This Framework outlines the Bank’s approach to E&S matters in terms of:

• Commitments
• Operational impacts
• Related risk management activities in sustainable lending

As needed, this Policy Framework will be supplemented by additional procedures and training, in conjunction with relevant internal policies, to ensure effective implementation across all relevant divisions.

The framework guides client engagement strategies, ensuring that lending practices uphold QNB’s commitment to environmental and social responsibility. This includes:

• Screening all loans against the Exclusion list. When establishing new client relationships, clients must demonstrate compliance with relevant laws and regulations, particularly concerning environmental and social responsibilities. This compliance should be validated through appropriate licenses or permits directly linked to their activities.
• Categorizing clients based on risk—high, medium, or low—according to the Pre-Defined Categorization List, which aligns with the EBRD E&S Risk Categorization List. Clients with medium and high E&S risk activities undergo a thorough risk assessment, including site visits, to mitigate potential risks. An action plan may be developed based on the E&S questionnaire to assess the client’s capability to manage E&S concerns.

Responsible Communication

QNB prioritizes responsible communication with clients, enabling them to make well-informed banking decisions. The Bank also engages with clients through various channels, including digital campaigns and social media, aligning with Group objectives. Regular press releases and articles provide stakeholders with a transparent overview of the Bank’s achievements and efforts, fostering trust within the community.

Sponsorships tied to business lines are integral to client engagement. The Bank participates in conferences, summits, financial inclusion initiatives, and other activities that encourage robust communication with clients. These sponsorships not only reflect QNB’s commitment to relevant causes but also offer networking opportunities to showcase products and services to QNB’s target audience.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• • • FBRH is a GRI Certified Training Partner (Global), ISEP Training Centre and a member of CPD.
    • FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by QNB, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.qnb.com.eg/sites/qnb/qnbegypt/document/en/enPRBReport

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