Case study: How AIB works with its clients and customers to encourage sustainable practices
AIB Group primarily operates in Ireland and the United Kingdom and is actively executing its strategy, focusing on initiatives that help the Group fulfill its strategic objectives and generate value for customers and the business. AIB’s sustainability approach is embedded within its overall Group strategy, with Sustainable Communities serving as a key pillar. This aligns with three strategic focus areas: enhancing customer service across the Group, promoting environmental sustainability, and increasing operational efficiency. AIB is a signatory of the Principles for Responsible Banking (PRB) and is, accordingly, working with its clients and customers to encourage sustainable practices and enable sustainable economic activities. Tweet This!
This case study is based on the 2024 PRB Progress Statement by AIB prepared in relation to its implementation of the PRB, that can be found at this link. Through all case studies we aim to demonstrate what ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Which Principles for Responsible Banking have been addressed?
The Principles for Responsible Banking addressed in this case are:
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- Principle 3: Clients and Customers
- Principle 4: Stakeholders
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- How AIB proceeded with stakeholder identification and consultation, and
- How AIB worked with its clients and customers to encourage sustainable practices and enable sustainable economic activities
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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.
Stakeholders’ perspectives, interests, and expectations are fundamental to AIB’s strategy and business model. To understand and serve their best interests, the Group actively engages with stakeholders through various regular channels, including due diligence processes and industry representative groups.
Throughout 2024, the Board maintained direct engagement with key stakeholders such as employees, customers, suppliers, investors, regulators, and the broader community. It received management reports and updates on stakeholder matters.
Additionally, in 2023, as part of the DMA process, AIB engaged with its key stakeholders, with the outcomes communicated to the relevant Executive Committee and Board Committees. In 2024, AIB reviewed the DMA and confirmed that the foundational work completed in 2023 continues to underpin its sustainability reporting and strategic decision-making. This process is detailed in ‘Our approach to the Double Materiality Assessment’ on page 56 of AIB’s Annual Financial Report (AFR).
Through this process, AIB identified the issues most important to stakeholders, guiding its strategic focus. AIB’s SMART Targets related to climate and housing are aligned with these key priorities.
How did AIB work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?
In its 2024 PRB Progress Statement AIB reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:
AIB’s purpose is to empower people to create a sustainable future. In pursuit of this, AIB supports the transition to a low-carbon economy by fostering long-term resilience and sustainability for its customers and society.
AIB is committed to placing people at the heart of everything it does. The bank ensures that its employees feel supported and empowered daily, that it maintains a strong customer-first approach, and that it contributes positively to the economic well-being of the communities it serves.
Aligned with its strategic goal to assist customers in transitioning to a sustainable future, AIB’s Climate Action Fund offers green lending and finances energy efficiency projects, infrastructure, and technological innovations aimed at mitigating and adapting to climate change.
To promote long-term resilience within the communities where AIB operates, the bank actively works to improve the availability and affordability of housing through various initiatives. These include supporting social and affordable housing programs, funding new developments, and providing environmentally friendly and cost-efficient housing options for retail customers through green products such as green mortgages.
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.
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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 AIB, 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:
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