BNDE (National Bank for Economic Development) (First Year Implementation)

Signing Date 25 Jun 2024
Region of Headquarters: Middle East & Africa
Current EPFI Reporting Year/Period: 2024
Institutional Reporting: No Report Available

 

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Implementation of the Equator Principles

The National Bank for Economic Development (BNDE) has carried out a structured process to develop an Environmental and Social Management System (ESMS) in line with the requirements of the Equator Principles.

Key milestones include:

Initial diagnosis and review of existing documents

An in-depth analysis of BNDE’s internal documents was carried out. Interviews were conducted with the bank’s various management. The purpose of the document review and interviews was to understand the composition of the different directorates and their roles in the credit process. The diagnosis made it possible to identify the shortcomings and needs in terms of environmental and social management.

E&S Policy Development

A clear environmental and social policy has been formulated, integrating BNDE’s commitments in terms of E&S risk management.

Updating the exclusion list

A list of activities excluded from funding has been revised to include specific criteria aligned with the expectations of the Equator Principles.

Design of the ESMS manual

The ESMS manual has been enriched with references to the Equator Principles and feedback. This manual serves as a practical guide for the assessment and management of E&S risks.

Training and Awareness Planning

A training schedule has been established to ensure ownership of the ESMS by all relevant departments

The implementation of the ESMS has been marked by several concrete actions aimed at integrating environmental and social risk management into BNDE’s operational activities:

Training of internal teams

In May 2024, training sessions were organized for operational teams to raise awareness of the new ESMS tools and processes. These training courses have allowed a better appropriation of E&S requirements.

A training session for the members of the Executive Committee and the Board of Directors is planned for the year 2025.

Phased implementation of the E&S Action Plan (ASPP):
The ASPP has been updated to address identified gaps and include corrective actions with clear timelines.

Verification of client files:
The E&S evaluation sheets of the submitted projects have been reviewed and validated.

Integration of the Equator Principles:
BNDE has adopted the Equator Principles in its financing activity to align its E&S risk management with international best practices.

Challenges in implementing the ESMS

Insufficient human resources in the E&S department (team of 2 people; 4 to be considered)

Environmental and Social Capacity

Environmental and Social Risks Department

Training received by the E&S team

The following trainings were received by the Head of ESG Department between 2023-2024:

  • Certificate in ESG Investing (CFA Training) for the Head of E&S
  • Training on BNDE’s E&S Risk Management and ESMS delivered by GFA for the E&S Dpt Manager
  • Equator Principles (Madrid): Amadou GUINDO and the Head of the E&S Department, Fatoumata DIANE
  • Participation in training seminars in Dakar (GIZ, KfW, Ministry of Environment and Sustainable Development, Upgrading Office) for the head of the E&S Department, Fatoumata DIANE
  • Participation in the technical team with the Ministry of Finance, on the development of the green taxonomy in Senegal for the E&S Dpt manager

Training received by other employees:

2024: Meetings to present the E&S policy with the Headquarters Departments

2024: Training of branch managers and credit officers.

Complaint Management Mechanism

State of play: the procedure exists but has not yet been fully implemented. Currently, only customer complaints are received.

Number of complaints received: none related to E&S risks

Key Issues Raised in Complaints/Inquiries: none related to E&S risks

Corporate Portfolio

Distribution of BNDE’s corporate engagement portfolio by E&S risk categories and business sectors.

Table: Corporate and Financial Institutions Customer Commitments – as of 31/12/2024

INDUSTRY CATEGORY A CATEGORY B CATEGORY C
Public administration 2%
Agriculture, Forestry and Fisheries 24% 0%
Other 2% 1%
Banking, finance, insurance and real estate 4% 0%
Construction 3% 0%
Commerce 22%
Water, electricity and gas 1% 0%
Industry 5% 3% 0%
Services 0% 28%
Transportation and storage 1% 4%
GRAND TOTAL 5% 38% 57%

Data source:  DFINCOM

Distribution of the commitment portfolio undertaken by the BNDE which falls within the scope of the EQUATOR PRINCIPLES.

INDUSTRY CATEGORY A CATEGORY B CATEGORY C
Public administration        0 0 0
Agriculture, Forestry and Fisheries        0 0 0
Other        0 0 0
Banking, finance, insurance and real estate        0 0 0
Construction        0 0
Commerce        0 0 0
Water, electricity and gas        0 0 0
Industry        0 0 0
Services        0 0 0
Transportation and storage        0 0 0
GRAND TOTAL        0 0 0

Data source :  DFINCOM

The following actions will be carried out in 2025, in accordance with the BNDE’s environmental and social action plan:

  • For the whole year 2025:
  • Organization of E&S trainings for all employees involved in the implementation of the ESMS
    • Integration of an E&S training module into the training course for new employees (1h and 1/2 day webinar format) in connection with the DCH
    • Animation and follow-up of training courses for new employees
    • Regular facilitation of information sessions for DBD & DBE teams
Equator Principles
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