Online Reporter
Nelson Gahadza, Senior Business Reporter
ZB Bank has become the first banking institution in the country to receive sustainability certification, with the central bank saying the integration of sustainability into the financial services sector regulation increases the positive impact of the banking sector and enhances financial sector stability.
The apex bank also noted that sustainability practices would drive financial sector performance, and the benefits would accrue to the real economy.
Reserve Bank of Zimbabwe (RBZ) acting governor Mrs Jesimen Chipika, speaking at the ZB Financial Holdings media briefing on its sustainability certification, said the achievement was part of an initiative by the RBZ that sets a new benchmark for the nation’s financial sector.
“We are expecting more banking institutions to be Sustainability Standards Certification Initiative (SSCI)-certified in the very near future.
“So far, out of our 19 big banks in the country, 15 of them are already enrolled in the SSCI because we want the whole financial sector to be moving together to bring up the country. In addition, we have three smaller ones, bringing the total to 18 institutions, which is more than 90 percent of the banking sector,” she said.
Sustainability certification is supported by the European Organisation for Sustainable Development (EOSD), a rigorous international benchmark that validates a financial institution’s commitment to holistic sustainability, integrating environmental, social and economic responsibility into its core business strategy and operations.
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).
Mrs Chipika said by recommending the standard to the local financial sector, the central bank is looking for the renewal of the sector in the country because the sector is prone to a number of threats.
“In this renewal process, we are building strong financial institutions that are profitable because the standards are so rigorous to ensure banks generate a higher profit,” she said.
Mrs Chipika added that the standard also builds resilient financial institutions to avoid scenarios in which banks go under — due to different factors.
“It is very easy for financial institutions to go under, and we are saying it is really these strong institutions that we are looking for, but not just for the sake of getting profit.
“We are saying in the central bank-led sustainability drive, these strong institutions will support companies correctly in a sustainable manner without over-exploiting the natural resources of the country,” she said.
Mrs Chipika highlighted that central banks are placing renewed emphasis on balancing their core mandates of macroeconomic stability with the economic growth and development and structural transformation objectives for development to take place in a country.
However, apart from aligning with SDGs, ZB’s high-impact goals also align with National Development Strategy 1 and include stimulating the agriculture value chain to promote financial inclusion and foster investments in sustainable infrastructure development.
ZB Financial Holdings group chief executive Dr Shepherd Fungura said the certification, valid for three years, is a key milestone for the country.
“We have been certified as a nation from that point to say that the manner in which we want to conduct business is meeting the standards required at the international level on a sustainability basis.
“The certification of ZB bank typifies the manner in which the bank is structured, its governance and manner of doing business, policies and markets in which it does business,” he said.
Dr Fungura said the group is also working with other financial institutions to get them certified.
ZB Bank chief executive officer Mr Elisha Chibvuri said ZB’s SSCIS certification was part of the five-year journey, which started in 2020.
“As an institution, we ran through five-year strategy cycles. We ran one from 2021 to 2025, and we are starting another one from 2026 to 2030.
“But in the strategy for 2021 to 2025, the group and the bank embedded sustainability as a key tenet of our strategic pillars,” he said.
Mr Chibvuri said sustainability was also included in a review of the group’s vision, mission and values at that stage.
“That marked the change in terms of the way we are repositioning the bank on the market and the way we want to be known by our stakeholders,” he said.
Mr Chibvuri said the bank’s high-impact goals included promoting financial inclusion, stimulating the agricultural value chain and fostering investment in sustainable infrastructure.
“It means our way of doing business is to continue evolving, to change policies, processes, products, services and all the solutions that we offer, to make sure that they are societally conscious and have a positive societal impact,” he said.
Mr Chibvuri said on financial inclusion, the bank will be aligning with National Development Strategy 1 (NDS1), which supports national development.
“We also want to make sure that we use the SSCI accreditation as a reference to Green Climate Fund accreditation, which we’re also working on,” he said.
