Bank of Industry Launches Sustainable Finance Framework for Nigeria
The Bank of Industry (BOI) has unveiled its Sustainable Finance Framework, a pivotal initiative aimed at fostering inclusive growth and enhancing climate resilience in Nigeria. This framework serves as a strategic blueprint, aligning the bank’s financing activities with global sustainability standards and leading practices in environmental, social, and governance (ESG) criteria.
Understanding Sustainable Finance
Sustainable finance encompasses a broad range of investment processes that prioritize environmental and social factors. It primarily manifests through various financial instruments, including both debt and equity. The demand for sustainable finance is witnessing rapid growth on a global scale, with projections indicating that sustainable assets under management could exceed $50 trillion by 2025, representing approximately one-third of total global assets.
Objectives of the Sustainable Finance Framework
The framework is designed to empower Nigerian enterprises and aligns closely with BOI’s corporate strategy for 2025–2027. This strategy emphasizes long-term developmental impact, environmental stewardship, social inclusion, and the creation of shared value, while simultaneously addressing both national and global challenges.
Dr. Olasupo Olusi, the Managing Director and Chief Executive Officer of BOI, emphasized the significance of this framework, stating, “This marks a significant milestone in our journey to become a fully sustainable development finance institution. It reflects our strategic intent to finance enterprises that yield both economic value and measurable social and environmental benefits.”
Key Features of the Framework
A few notable aspects of the Sustainable Finance Framework include:
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Alignment with Global Principles: The framework adheres to global sustainability standards, including the United Nations Sustainable Development Goals (SDGs), the Paris Agreement, and the Principles for Responsible Banking. Additionally, it integrates BOI’s internal ESG policies that guide its sustainability management practices.
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Triple-Bottom-Line Approach: Central to the framework is BOI’s commitment to a triple-bottom-line model that focuses on People, Planet, and Profit. This ensures that the bank’s investments yield financial returns while also promoting inclusive and environmentally sustainable outcomes.
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Programmatic Financing: The framework facilitates the issuance of Green, Social, and Sustainability Bonds and Loans. This initiative aligns with the latest principles and guidelines from the International Capital Market Association, Loan Market Association, and Loan Syndications and Trading Association.
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Independent Evaluation: S&P Global Ratings has independently evaluated the framework, providing a second-party opinion that confirms its compliance with international sustainable finance standards. This validation enhances BOI’s credibility among institutional investors looking for impactful ESG-aligned investment opportunities within emerging markets.
Supporting Sustainable Businesses
Through the implementation of this framework, BOI aims to support businesses that are committed to sustainable practices. The initiative is expected to unlock access to blended and concessional capital while advancing national priorities such as climate resilience, job creation, gender inclusion, and export diversification.
The framework will further enhance BOI’s ability to scale its impact across various priority sectors. These include:
- Renewable Energy: Investments in sustainable energy sources to reduce reliance on fossil fuels.
- Clean Transportation: Development of transportation systems that minimize environmental impact.
- Agro-Processing: Enhancing agricultural productivity and sustainability through innovative practices.
- Healthcare: Supporting initiatives that improve health outcomes for communities.
- Education: Financing educational projects to elevate learning standards and accessibility.
- Digital Infrastructure: Investing in technology to promote digital transformation across sectors.
Conclusion
As Nigeria’s oldest and largest development finance institution, the Bank of Industry is dedicated to transforming the industrial sector of the nation. Operating across 33 states, BOI provides financial and advisory support for the establishment of projects and enterprises of all sizes, as well as the expansion and modernization of existing businesses. The launch of the Sustainable Finance Framework marks a significant step toward fostering a more resilient and inclusive economy in Nigeria, positioning the country to meet both current and future challenges.
