Case study: How BANK OF AFRICA 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.

In 2005, BANK OF AFRICA issued its inaugural social responsibility report, aimed particularly at social rating agencies and a broader range of stakeholders. BANK OF AFRICA-BMCE Group has established itself as a pioneer in the Moroccan and African banking sectors by providing non-financial information along with social, societal, and environmental performance indicators.

The Group is among the most attentive players to advancements in reporting concepts, discussions, and standards. It is recognized as a leader in the development of dual materiality sustainability reporting.

BANK OF AFRICA has committed to monitoring and reporting, to the best of its ability, on both how its natural and social environments influence its growth model and on the intended and unintended effects of its activities and products on the rights, interests, and expectations of employees, customers, shareholders, and others, as well as on the natural environments of the regions where it operates.

This commitment is reflected in the CSRD (Corporate Sustainability Reporting Directive) established within the European Union. The Group is also dedicated to adhering to the emerging CSRD framework, which is being developed by the International Sustainability Standards Board (ISSB) and extends from the TCFD (Task Force on Climate-Related Financial Disclosures). Since 2019, BANK OF AFRICA has taken a leading role as a founding signatory of the Principles for Responsible Banking, demonstrating its commitment to align its operations with the United Nations Sustainable Development Goals (SDGs) and the objectives of the Paris Agreement on climate change. By adopting the Principles for Responsible Banking, BANK OF AFRICA has joined a global network of banks committed to sustainability while continuing its long-standing efforts to incorporate ethical, social, and environmental principles into its strategy, governance, practices, and products.

Complying with these principles aims to enhance the efficiency, transparency, and credibility of the financial sector concerning environmental protection, climate change adaptation, and safeguarding the interests of all stakeholders.

In line with these principles, BANK OF AFRICA’s operations are conducted in accordance with the directives of Bank Al-Maghrib (BAM) and the Moroccan Capital Markets Authority (AMMC). The bank draws from best practices and international standards.

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

In its 2024 PRB Reporting and Self-Assessment Template BANK OF AFRICA reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

BANK OF AFRICA’s quality policy is fundamental to its growth strategy, focused on continually enhancing the quality of its products and services. The primary goal is to meet the evolving needs of customers and ensure their satisfaction by actively considering their feedback, which informs ongoing process improvements.

This quality policy is anchored in an enhanced customer feedback system, with the ISO 9001:2015 standard serving as the framework for these efforts. BANK OF AFRICA was the first Moroccan bank to achieve ISO 9001 certification in the early 2000s.

The bank has established a formalized policy through its Code of Ethics and Quality Policy, which provides customers with comprehensive information about products and services, including detailed insights into potential risks and benefits. This is aimed at ensuring that suitable products are offered to clients, aligned with their risk profiles, and preventing misleading marketing tactics, mis-selling, or coercive sales practices. An accessible formal complaint handling system is in place, with clear procedures for addressing any customer complaints. The Code of Ethics and Professional Conduct outlines the principles and guidelines governing the professional and ethical standards for all BANK OF AFRICA Group entities.

The year 2023 was one of consolidation and innovation. The Compliance Division bolstered its risk management system, integrating technological advancements and adopting a broader strategic approach. This proactive strategy has resulted in improved operations and an effective response to heightened regulatory demands.

BANK OF AFRICA has shown a robust capacity to adapt and evolve within a complex regulatory landscape. The advancements achieved reflect a commitment to upholding the highest compliance and ethical standards, while also supporting the bank’s aspirations for growth and operational excellence.

In its dedication to thorough compliance management, BANK OF AFRICA SA continued to play a vital role in combating money laundering and the financing of terrorism in 2023 and adhering to international economic sanctions and embargoes, protecting personal data transparency (FATCA), and preventing and combating corruption—all while upholding its ethical and deontological principles.

At the Group level, BANK OF AFRICA has made strides in implementing projects to enhance compliance, in line with BAM Directive n°6/W/2021 regarding due diligence protocols for credit institutions and similar entities. Notable developments in 2023 included the operationalization of a new Group Compliance organizational structure, consolidating subsidiaries and instituting systematic evaluations of Compliance Officers by the Group AML/CFT Manager. Significant progress has also been made in automating processes, such as activity reporting and centralized transaction monitoring, with several major projects nearing completion, including the automation of compliance risk mapping.

Moreover, the compliance framework has been revised to encompass all areas of compliance and to strengthen management across the Group, with a significant impetus also given to strengthening staffing levels.

Regarding capital market integrity, the Group Compliance provided reports on its ethical activities to the Moroccan Capital Market Authority (Autorité Marocaine du Marché des Capitaux, AMMC). Throughout its various activities and service offerings, BANK OF AFRICA prioritizes the interests of its clients. The bank ensures transparent, fair, and impartial treatment of customers, offering products and services that meet their needs while providing clear and precise information about all terms, conditions, and pricing. Multiple channels are available for customer complaints, which are addressed by dedicated teams and forwarded to the relevant departments within reasonable timeframes.

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 BANK OF AFRICA, 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.ir-bankofafrica.ma/sites/default/files/2024-09/4th PRB-Reporting-and-Self-Assessment- BANK OF AFRICA 2024 __.pdf

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