Case study: How ALEXBANK 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.

ALEXBANK highly values stakeholder engagement in promoting responsible banking and recognizes their vital role in advancing its sustainability efforts. The bank’s stakeholders include Employees, Senior Management, Customers, Suppliers and Business Partners, Communities and NGOs, Governments and Regulators, and Shareholders.

ALEXBANK emphasizes key material topics relevant to each stakeholder group. For employees, the focus is on retention, diversity and inclusion, health and safety, data security, and integrity. Senior management concentrates on governance, ESG risk management, and maintaining integrity. Customer priorities encompass responsible lending, green finance, sustainable agribusiness, financial inclusion, data protection, and delivering an exceptional customer experience. Suppliers and business partners are engaged on issues such as integrity, responsible lending, green finance, ESG risk management, and digital accessibility. Communities and NGOs play a crucial role in areas like responsible lending, green finance, sustainable agribusiness, financial inclusion, and community empowerment. Regarding governments and regulators, the bank emphasizes responsible lending, green finance, environmental stewardship, governance, and data security. Lastly, for shareholders, strong governance and effective ESG risk management are of paramount importance.

Partnerships for Impact

• ALEXBANK collaborates with the European Investment Bank (EIB) through various initiatives intended to promote sustainable development in Egypt. Under the Green Economy Financing Facility (GEFF), ALEXBANK and the EIB committed a total of $15 million to finance renewable energy adoption and energy efficiency projects in Egypt’s industrial, commercial, and agricultural sectors.
• In addition to the above, in October 2024, ALEXBANK and the EIB issued a second disbursement of USD 7.5 million for sustainable energy solutions. This collaboration, supported by the European Bank for Reconstruction and Development (EBRD) and the European Union, seeks to enhance energy efficiency and renewable energy adoption in privately owned commercial buildings across Egypt. Eligible businesses will receive financial incentives of up to 2% of the facility’s aggregate amount, with sub-borrowers benefiting from incentives ranging from 10% to 15%.
• ALEXBANK has partnered with Life Vision to improve the livelihoods of 400 female farmers in Upper Egypt. The project sets up Farmer Field Schools & Farm Business Schools, offering 36 training sessions over 10 months on advanced farming and irrigation practices. The training curriculum enhances smallholders’ farmer’s capacity and productivity. Additionally, the participants received 5 financial literacy sessions as part of the Central Bank of Egypt’s financial inclusion initiatives.
• 36 sessions
• Total project amount: 1200000
• Direct Beneficiaries: 1161 farmers aged 36-45
• ALEXBANK, in collaboration with WFP and CBE, launched the project “Innovative Financing by the Banking Sector to transform smallholder farmers in Upper Egypt.” The project commenced in July 2023 in upper Egypt, specifically in Hayah Kareema villages, focusing on financing interventions to increase productivity. By December 2025, activities will be implemented in 2 villages in AlMinya Governorate to improve water use efficiency and create sustainable livelihoods.
• Total Project amount: 3000000
• Total Direct Beneficiaries: 6054
• Through a partnership with GIZ Egypt, ALEXBANK is actively promoting financial inclusion in rural Egypt. This collaboration focuses on farmers in Beni Suef and Minya governorates, offering access to ALEXBANK’s financial services and financial literacy programs. By the end of 2024, 8 financial literacy sessions were conducted as part of the Central Bank of Egypt’s financial inclusion (FI) activation. This program aimed to equip farmers with the necessary knowledge to make informed financial decisions, helping them maximize their income.
• ALEXBANK remains committed to empowering rural women entrepreneurs in agribusiness by collaborating with the Alinea International under the Opportunities for Women in Agribusiness project (OWAP). In 2023, ALEXBANK supported 50 women-led environmentally sustainable startups in Beni Suef and Minya governorates. These women were provided with essential resources such as financial education and diverse funding sources. In a final competition held in October 2024 virtually, 10 women entrepreneurs were awarded 10k each to help expand their businesses.
• Total project amount: 100,000
• 10 awarded female-led startups
• Direct Beneficiaries: 270 (190 female & 80 male)
• In October 2024, ALEXBANK, as part of Intesa Sanpaolo Group, signed a five-year MoU with Cassa Depositi e Prestiti S.p.A. (CDP), Italy’s National Promotion Institution. This agreement seeks to improve access to microcredit and expertise for Egyptian agricultural SMEs, promoting sustainable development in Egypt’s agribusiness sector.

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

In its 2024 Sustainability Report ALEXBANK reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

ALEXBANK is fostering a culture of responsible banking among its relationship managers by offering targeted training on sustainable finance, circular economy, and financial inclusion to enhance their understanding of these areas. These initiatives aim to prepare relationship managers for client engagement, especially in sectors such as fruit and vegetable processing, wholesale food, beverages, and tobacco, enabling them to better understand client needs and develop customized products that will support them in their transition. Additionally, ALEXBANK intends to enhance client engagement by raising awareness of sustainability and of the broader social and national impacts of their business activities.

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 ALEXBANK, 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.alexbank.com/en/retail/our-group/sustainability/publications.html

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