Case study: How NBE 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.

At NBE, there is a continuous dialogue with all relevant stakeholders, including customers, employees, governmental bodies, regulators, shareholders, investors, business partners, suppliers, local communities, and nongovernmental organizations (NGOs). This ongoing engagement enables NBE to actively listen to their concerns, issues, and interests, ensuring adaptation to their evolving needs and expectations. NBE prioritizes gathering stakeholder feedback through various internal and external channels, integrating these perspectives into its materiality assessment and decision-making processes.

NBE’s communication approach is rooted in ethics, clarity, and transparency, fostering trust and understanding with both internal and external stakeholders. NBE collaborates extensively with governmental agencies, ministries, NGOs, and international financial institutions across various sectors, including financial institutions, international relations, SMEs, investments, social responsibility, retail banking, risks, human resources, and research. NBE also leverages expertise from environmental specialists, scientists, and academia to assess potential project impacts and remain informed about the latest technologies and practices.

Customers
NBE addresses customer feedback through multiple channels for receiving complaints, including in-branch staff, a dedicated call centre, Card Center Customer Service, and direct communication with the Central Bank of Egypt (CBE). NBE also ensures that every voice is heard via the “Contact Us” feature on its website. Important issues such as client-employee relationship management, customer service, and sustainable and green finance are fundamental to NBE’s operations.

To effectively manage these concerns, NBE focuses on providing personalized and responsive service by implementing continuous feedback mechanisms and issue resolution processes. The bank prioritizes client-employee relationship management and customer service, promptly addressing concerns to build trust and enhance customer satisfaction. Furthermore, NBE is committed to promoting sustainable and green finance, aligning its offerings with environmental objectives to contribute to a greener future.

Shareholders
NBE maintains connections with its shareholders through annual general meetings, regular internal reports, and comprehensive communication strategies. The CEO and Board of Directors (BOD) offer vital oversight and guidance, facilitating informed decision-making and fostering trust.

NBE addresses essential concerns including financial performance, market share, and other key performance indicators (KPIs). To manage these issues, NBE issues periodic updates on financial performance and implements action plans to respond to concerns and inquiries raised during general assembly meetings. This approach ensures transparency and responsiveness, enhancing shareholder confidence in the bank’s strategic direction and operations.

Employees
NBE actively engages with its employees through various communication channels, including in-person meetings and training webinars. Important topics discussed encompass workplace health and safety, diversity and inclusion, and fair compensation. Regular performance reviews and employee surveys are conducted to ensure alignment between individual goals and NBE’s broader business objectives, fostering a cohesive and satisfied workforce.

Key concerns include workplace health and safety, workforce diversity, training, remuneration, and organizational objectives. NBE’s management approach promotes diversity, inclusion, and a healthy workplace culture. The bank offers ongoing training and competitive compensation while establishing clear organizational goals and targets, providing regular updates and feedback to ensure alignment and engagement throughout the workforce.

CBE and Regulatory Bodies
NBE maintains communication with relevant regulatory bodies, including the CBE, using various methods such as emails, letters, and direct meetings. The bank ensures compliance with regulatory guidelines through regular audits and transparent reporting. NBE’s comprehensive communication strategy, which features a structured schedule for interactions and participation in industry events, facilitates ongoing dialogue with regulatory authorities.

To manage critical concerns such as ensuring alignment with the CBE’s regulations and strategic vision, along with audits, NBE’s management approach emphasizes strict adherence to CBE guidelines. This includes conducting periodic internal audits and engaging in continuous discussions with the CBE. NBE also prioritizes training and capacity building to fulfill regulatory requirements and maintain alignment with regulatory expectations.

Business Partners and Suppliers
NBE collaborates with its business partners through weekly conference calls, questionnaires, workshops, and in-person meetings. The bank underscores the importance of confidentiality and data privacy by undertaking awareness initiatives and implementing risk and control self-assessment (RCSA) measures, along with risk event management to effectively address risks. Legal support is readily accessible, and NBE proactively responds to actions issued by the sector. To tackle critical concerns such as ensuring data confidentiality and promoting educational initiatives, NBE’s management approach includes enforcing stringent data confidentiality protocols, adopting advanced technology, and leveraging feedback from surveys for insights. This guarantees that NBE maintains strong, secure, and informed partnerships with its business associates.

Local Communities and NGOs
NBE actively engages with local communities and NGOs through various initiatives aimed at fostering collaboration and support. One of the key areas of focus is providing educational programmes and facilitating undergraduate internships. To address this, NBE prioritizes capacity building through specialized workshops, ensuring that participants acquire valuable skills and knowledge. By enhancing capacity through these training sessions and internships, NBE seeks to create a lasting positive impact within the communities it serves.

Governmental Entities
NBE collaborates with governmental entities by supplying essential reports, information, and data, while also working closely with ministries to raise financial awareness and promote financial inclusion. Key communication channels include meetings, events, conferences, and published reports. To address critical concerns, NBE prioritizes timely and transparent reporting and engages in collaborative initiatives with ministries such as the Ministry of Planning and Economic Development, the Ministry of Finance, the Ministry of International Cooperation, the Ministry of Social Solidarity, and the Ministry of Environment. This strategy ensures alignment with national goals and fosters strong partnerships with governmental bodies.

Additionally, NBE has established strong partnerships with respected international organizations, financial institutions, and authorities to direct investments toward sustainable development in Egypt. NBE’s partnerships in National and International Loan Agreements create a solid framework for sustainable financing, ensuring compliance with national environmental regulations and contributing to Egypt’s commitments to international agreements, including the Paris Climate Agreement and the Montreal Protocol on Ozone-Depleting Substances. Through these initiatives, NBE aims to generate shared social and environmental value while advancing economic progress for Egypt.

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

In its 2023 PRB Progress Report NBE reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

NBE is taking significant steps to involve its clients in its commitment to responsible banking. As partners in this mission, NBE’s clients play a crucial role in helping the bank achieve its goals of sustainable finance and responsible lending.

While still in the early stages, NBE is working on implementing an Environmental and Social Risk Management System (ESRM) to evaluate the risks associated with its portfolios and collaborate with its clients to manage their environmental and social risks. NBE’s clients are also screened against the CBE’s exclusion list, as well as other international lists, particularly when loan agreements are funded through international credit lines, to ensure that NBE’s portfolio avoids significant environmental and social risks.

NBE’s collaborative journey with its clients involves raising awareness and building capacity to empower their transition to responsible and sustainable practices. Through various awareness sessions, training programmes, and sustainability initiatives, NBE is equipping its clients across all business sectors with knowledge about responsible operations, enabling them to carry out their economic activities in a sustainable manner.

To advance sustainable practices and support the transition to a low-carbon economy, NBE is proactively developing a comprehensive ESG assessment questionnaire. This tool is specifically designed to engage its SME clients, as well as large and medium-sized corporate clients in the energy, agriculture, and chemicals sectors. The primary goal of this initiative is to raise awareness of the importance of ESG factors among these clients and encourage them to gain a deeper understanding of their status in sustainable operations. By tailoring assessment questions to the unique needs of each industry, NBE aims to provide focused support and guidance to its clients as they embark on their sustainability journeys.

As NBE prioritizes circularity as a key area of impact, it intends to engage with the key sectors that have the most significant negative effects on circularity. NBE’s aim is to raise their awareness of circularity and assess their maturity levels, ultimately aiding them in their transition to a circular economy. This engagement will focus on gathering both qualitative and quantitative data on energy efficiency, water efficiency, and waste, tailored to the specific nature and activities of each sector.

Engaging with Retail Clients
To promote usage and enhance customer engagement across NBE’s mobile and internet banking channels, a major end-of-year customer contest, titled “The more you click, the more you win!”, was launched. This campaign aimed to drive registrations and encourage customers to activate their accounts and conduct transactions through these digital platforms. The initiative led to a notable increase in registrations and utilization, achieving an overall rate of 140% in new activations and 211% in new financial transactions added to NBE’s portfolio, compared to the average activity benchmark without a campaign offering cash prizes to the most active users.

In 2023, NBE supported the registration and activation ratios of the mobile wallet “PhoneCash” through a year-long booster campaign that provided newly registered customers with a “Welcome Gift.” This initiative effectively increased activation and usage rates, resulting in an Active Financial Transaction proportion of 14% of the portfolio, while enhancing engagement with valued customers. These campaigns contribute to indirect cost savings by relieving branches and the contact centre of basic transactions that could be executed digitally, thereby optimizing costs and supporting sustainability through “Go Green” initiatives.

The “Data Confidentiality Awareness Campaign,” conducted in partnership with Meeza Digital Network, was designed to educate customers about the risks of sharing passwords or OTPs, ultimately helping them protect themselves against fraud.

Engaging with SME Clients
To enhance digital capabilities for its clients as part of its non-financial services, NBE has formed partnerships with four service providers specializing in e-commerce and digital marketing. This collaboration equips clients with crucial digital tools for their businesses, such as establishing online shops, managing supply chains, and implementing secure transaction and order tracking systems.

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 NBE, 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.nbe.com.eg/AssetsManager/3454ccab-b06c-48d3-8937-5a3905538613.pdf

Note to NBE: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.