Case study: How Orabank works with its clients and customers to encourage sustainable practices
Orabank is a banking group managed by Oragroup, a holding company based in Lomé, Togo, and operates in twelve West and Central African countries, serving more than 717,000 active clients. Orabank 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 2022 Principles for Responsible Banking Self-assessment by Orabank, 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 Orabank proceeded with stakeholder identification and consultation, and
- How Orabank 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.
Since 2017, when Oragroup initiated an extensive online consultation involving 2,300 stakeholders, both internal and external, for a materiality assessment, it hasn’t formally reengaged with all stakeholders.
Between 2017 and 2023, the group experienced significant growth in both size and regional importance, culminating in its listing on the regional stock exchange. As a result, the group is currently focusing on two key initiatives: a) conducting a new materiality/impact assessment involving external stakeholders, and b) determining the most efficient method for regular stakeholder engagement. The proposal for this fresh impact assessment is scheduled for discussion during the 2024 budgetary session. Subject to approval by the board of directors, it will be conducted in 2024, with the aim of presenting its outcomes in Oragroup’s 2024 Principles of Responsible Banking report. In addition to sharing the results of the stakeholder impact assessment, Oragroup will also present the frequency and method of stakeholder engagement selected.
How did Orabank work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?
In its 2022 Principles for Responsible Banking Self-assessment Orabank reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:
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- Retail Customers: Oragroup addresses transportation-related pollution by exclusively financing next-generation vehicles that consume less fuel and emit lower carbon emissions. Additionally, the group offers an extensive range of products accessible via smartphones or internet-connected laptops, reducing the need for customers to visit bank branches.
- Business & Institutional Banking: Oragroup has developed an Environmental and Social Management System (ESMS) to identify environmental and social risks associated with each financing opportunity. This system includes an Environmental, Social, and Governance (ESG) policy and detailed procedures ensuring consistency in ESG risk management practices across all Oragroup subsidiaries. The ESMS also integrates the IFC exclusion list.
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The group’s next objective is to identify the clients with the most significant impacts, both positive and negative, and encourage sustainable practices through commercial incentives and awareness campaigns.
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), 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.
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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 Orabank, 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.orabank.net/sites/default/files/PRB_Orabank_2022_Sept 19.pdf
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