Posted by: Anouk Verheijen, Senior Consultant, Sustainable Business Practices
Social and Environmental Performance Management is a new field for Angolan banks. Angola’s economy is overwhelmingly driven by the oil sector and the country is suffering from high unemployment rates (26%), significant poverty, and high income inequality. In this context social and environmental risks relating to corporate lending are high, while plenty of opportunities exist for designing specific financial offerings to promote green growth and financial inclusion.
Banco de Poupança e Crédito (BPC), an Angolan government-owned commercial bank, is the first Angolan bank to implement a Social and Environmental Management System (SEMS) to enhance its social and environmental performance. Enclude’s team of consultants has worked together with the bank, as well at with the Angolan Ministry of Environmental Affairs and the African Development Bank (AfDB), to design this system. The system provides BPC with the necessary tools to assess social and environmental (including climate change) risks of prospective clients. In addition, it enables the bank to measure and improve on the bank’s own social and environmental footprint and to develop new loan offerings promoting green growth and social inclusion.
AfDB’s Principle Social Development Specialist Rachel Aron says of the recent completion of the new system: ‘We congratulate BPC on becoming the first and only Angolan bank with a SEMS!’
More insights about and a summary of the SEMS can be found on the BPC website.