Online Reporter
Nelson Gahadza
Senior Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) says it is undergoing the Sustainability Standards Certification Initiative (SSCI) certification process for central banks to enhance its commitment to sustainable financial practices.
The SSCI is a holistic global framework requiring a business to not only be profitable but also to do business responsibly, caring for people and the planet.
This also aligns with environment, social, and governance (ESG) standards and connects directly to the United Nations Sustainable Development Goals (SDGs).
In Zimbabwe, ZB Bank became the first financial institution to receive sustainability certification. With the central bank prioritising these standards, the bank hopes to lead by example and encourage other financial institutions to adopt similar practices.
“As a country, we move together from our central bank; therefore, we are also undergoing the standard because later, after the days when the standards were modified for central banks, we jumped on board to see if the thing is for us.
“Resultantly, currently the central bank is undergoing SSCI certification for central banks so that we are starting at the highest level where monetary policy is being made,” said deputy governor Mrs Jesimen Chipika at a recent ZB media briefing.
She said the certification of the RBZ will set a precedent for the financial institutions, as they are the ones who fund the industry.
“The SSCI standards for industry are also now available, and together, we will raise our economy to be 20 to 30 times better than we are now,” she said.
Mrs Chipika also noted that sustainability practices would drive financial sector performance and the benefits would accrue to the real economy.
“This initiative aims to integrate environmental, social, and governance considerations into the bank’s operations and decision-making processes. As part of this initiative, the RBZ is expected to implement various policies that promote sustainable investment and
support green projects within the country,” she said.
Mrs Chipika said by recommending the standard to the local financial sector, the central bank was seeking to drive the renewal of the sector which was prone to a number of threats.
