Case study: How Land Bank works with its clients and customers to encourage sustainable practices
Land Bank is a state-owned specialist development finance institution primarily focused on the South African agriculture sector. It mainly provides credit for mortgages to commercial farmers, ranging from smallholder to mega farmers and corporate agribusinesses, exclusively within South Africa. Land Bank 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 Reporting and Self-Assessment Template by Land Bank, 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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With this case study you will see:
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- How Land Bank proceeded with stakeholder identification and consultation, and
- How Land Bank 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.
Land Bank engages with a wide range of stakeholders on various issues, as detailed on pages 60-63 of its Integrated Annual Report FY2023.
Land Bank has a Stakeholder Management Policy that guides both formal and informal engagements on diverse matters. Additionally, Land Bank collaborates with other stakeholders on sustainability and ESG issues. The Bank is a member of the DFI alliance on Just Energy Transition Financing and participates in the joint National Treasury-Banking Association of South Africa’s Climate Risk Forum.
How did Land Bank work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?
In its 2024 PRB Reporting and Self-Assessment Template Land Bank reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:
All client engagements through commercial bankers and agricultural economists include discussions on environmental and social matters, alongside the completion of an Environmental and Social Risk Assessment (ESRA). These discussions continue for the duration of the client’s contractual relationship with Land Bank. In future years, once Land Bank has an approved Climate Change Policy, it will engage clients in setting GHG emissions reduction targets and explore how these can be achieved.
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
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- FBRH is a GRI Certified Training Partner (Global), IEMA 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.
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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 Land Bank, 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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