Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced diesel consumption by 7.27%, resulting in a 14.5% reduction in energy expenditure.
• Reduced total electricity purchased from the national grid by 30.9%
• Reduced total solid waste produced by the head office by 16.7%

Social Achievements

• Invested N2.557 billion (US$8.4 million) in diverse CSR initiatives, a 177% increase from 2015.
• Trained over 5,000 employees on Sustainability and Environmental and Social Risks Management.
• Launched a mandatory system shutdown time, improving work-life balance for employees and reducing carbon footprint.

Governance Achievements

• Developed a policy and framework for integrating environmental and social risk management into business decisions.
• Established an e-fraud desk for 24-hour verification of electronic receipts and payments.
• Provided anti-corruption training for 3,923 employees (66% of permanent staff).

Climate Goals & Targets

Environmental Challenges

• Unstable power supply in Nigeria requiring reliance on fossil fuel generators.
• Indirect environmental footprint from third-party relationships (investees, suppliers, contractors).
• Capturing, documenting, measuring, and monitoring environmental footprints.

Mitigation Strategies

• Implementing energy efficiency policies and transitioning to renewable energy sources.
• Integrating environmental and social risk considerations into credit and investment decisions.
• Developing a 'green supply chain' policy with performance targets and supplier training.

Supply Chain Management

Responsible Procurement

• Preference for local suppliers; integration of UNGC's basic pillars (human rights, labor, environment, and anti-corruption) into supply chain management practices.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 22301, ISO 20000, ISO 27001

Third-party Assurance: Ernst & Young Limited (limited assurance)

Sustainable Products & Innovation

• Zero-balance account products; USSD banking.

Awards & Recognition

• Most Customer-Focused bank in Nigeria (KPMG)
• Best Customer Service Bank Nigeria (Global Banking and Finance)
• Best Corporate Governance Bank Nigeria (Global Banking and Finance)
• Best Bank in Corporate Governance (World Finance)
• Best Commercial Bank in Nigeria (World Finance)

Environmental Metrics

ESG Focus Areas

• Community Investment
• Employee Well-being
• Corporate Governance

Social Achievements

• Made contributions to charitable and non-political organisations amounting to N2,611 million during the year ended December 31, 2017 (December 31, 2016: N2,557 million).

Governance Achievements

• Maintains the highest standards of Corporate Governance and best practice both within the Bank and the Group.
• Complied with the Central Bank of Nigeria (CBN) Code of Corporate Governance for Banks in Nigeria 2014 and Securities and Exchange Commission (SEC) Code of Corporate Governance.

Climate Goals & Targets

Environmental Challenges

• Reduced government earnings due to volatility and decline of crude oil prices.
• Low foreign exchange reserve position.
• Acute shortage of forex liquidity.
• Concerns about reduced capacity utilization in local industries and therefore possibility of increase in Non-Performing Loans.

Mitigation Strategies

• Continue to monitor impact of global economy in commodity pricing, Foreign Direct Investment (FDI) inflows and general behavior of local economy to the changes in the global market.
• Source for cheaper and stable funds
• Drive other income sources
• Pursue other government activities
• Further develop SME/Retail product sales and penetrations
• Develop market hub initiative to drive retail participation
• Ensure that the Net Interest Margin (NIM) is maintained for all changes in interest rates.
• Create additional foreign exchange funding sources
• Pursue and support export strategies
• Increased collections of payments
• Improve customer service delivery
• Stabilize the Bank’s technology/platforms
• Cautiously grow risk assets while maintaining adequate level of capital.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Good Health and Well-being
• Security
• Education
• Youth & Women Empowerment
• Public Infrastructure Development
• Environmental Sustainability
• Financial Inclusion
• Human Rights
• Sustainable Supply Chain Management

Environmental Achievements

• 1,012 ATMs powered by solar energy
• Automation of banking processes to reduce paper consumption
• 90% of transactions valued at over NGN3.7 trillion were screened and assessed for E&S risk

Social Achievements

• NGN2.73 billion invested in CSR initiatives (1.31% of PAT)
• NGN573 million invested in partnerships for community safety
• NGN210 million expended on educational initiatives
• NGN238 million invested in sports development
• NGN345 million invested in maternal healthcare and medical assistance
• 737,628 previously unbanked individuals received financial services
• 48% female representation in total workforce
• Over NGN307 million spent on capacity building for female employees

Governance Achievements

• Compliance with CBN and SEC Codes of Corporate Governance
• Robust compliance framework in place, including comprehensive compliance manual and regular reviews of AML/CFT policies
• Whistle-blowing procedure with anonymous reporting channels
• Annual Board evaluation conducted by PwC

Climate Goals & Targets

Environmental Challenges

• Slow economic growth and challenging business environment
• Security concerns in communities
• Need to improve women's representation in management
• Global macroeconomic headwinds (Coronavirus outbreak)

Mitigation Strategies

• Strategic investments in various sectors to spur economic growth
• Partnerships with government and agencies to improve community safety
• Capacity building programs for female employees
• Proactive risk management strategies to address economic challenges
• Implementation of minimum Loan-to-Deposit Ratio (LDR) to support SMEs and mortgage

Supply Chain Management

Supplier Audits: Periodic screening of third-party business partners

Responsible Procurement

• Code of Conduct for Suppliers, Vendors and Contractors
• Promoting patronage of local ICT vendors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGC, NSBP, GRI

Certifications: ISO 45001

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 12
• SDG 13

CSR initiatives align with UN SDGs

Sustainable Products & Innovation

• Z-Woman Business Package

Awards & Recognition

• Best Company in Promotion of Good Health and Well-Being (SERAs)
• Best Commercial Bank in Nigeria (World Finance)
• Most Valuable Banking Brand in Nigeria (The Banker Magazine)
• Best Digital Bank in Nigeria (Agusto & Co.)
• Bank of the Year (BusinessDay Awards)
• Most Innovative Bank of the Year (Tribune Awards)

Environmental Metrics

ESG Focus Areas

• Social Investments
• Financial Inclusion
• Gender Equality
• Environmental Sustainability
• Carbon Footprint Management
• Human Rights
• Financial Literacy
• Training and Capacity Building
• E&S Governance
• Sustainability Reporting

Environmental Achievements

• 91.7% of projects (over NGN9.63 trillion) assessed for environmental and social risks.
• Automation of E&S Risk Exposure Assessment process.
• Adoption of responsible practices in line with Nigerian Sustainable Banking Principles (NSBP) and UN Environment Programme Finance Initiative (UNEP-FI) Principles for Responsible Banking.

Social Achievements

• NGN4.372 billion invested in CSR (1.79% of PAT), a 33.1% increase from 2020.
• Initiatives in security, healthcare, education, sports, youth and women empowerment, and public infrastructure.
• 52% of active employees and 29% of management staff were women.
• 5,563 employees participated in human and women’s rights training (9% increase from 2020).
• Launched Z-Woman Business Package for women-owned businesses.
• Increased USSD transactions (145.5 million to 237.7 million; NGN912.7 billion to NGN1,256 billion).

Governance Achievements

• Compliance with National Code of Corporate Governance, SEC Code of Corporate Governance, and CBN Code of Corporate Governance.
• Diverse shareholding structure with no single shareholder holding more than 12%.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic's impact on businesses globally.
• Exchange rate volatility.
• Slow moderation in food inflation.
• Supply chain disruptions.
• Compliance and cybercrime challenges due to increased electronic channels.

Mitigation Strategies

• Adapted strategies to leverage opportunities and create value for stakeholders.
• Strengthened Business Continuity Plans (BCPs).
• Increased investment in IT and cybersecurity infrastructure.
• Engaged customers to understand challenges and provide support.
• Strengthened procedures, processes, and operations to ensure compliance.
• Elevated digital literacy and cybercrime awareness.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, NGX, UNGC, UNEP-FI Principles for Responsible Banking, Nigerian Sustainable Banking Principles (NSBP)

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)
• SDG 13 (Climate Action)

CSR initiatives aligned with SDGs through security, healthcare, education, sports, youth and women empowerment, and public infrastructure development.

Sustainable Products & Innovation

• Eazy Account
• EazySave Classic/Premium
• Z-Woman Business Package

Awards & Recognition

• Most Responsible Organisation (SERAs 2021)
• Best Company in Reporting and Transparency (SERAs 2021)
• Best Company in Infrastructure Development 2021 (SERAs)
• Best Company in Gender Equality and Women Empowerment (SERAs 2021)

Environmental Metrics

ESG Focus Areas

• Security
• Healthcare
• Education and skills development
• Sports development
• Youth & women empowerment
• Public infrastructure development
• Financial Inclusion
• Talent Development
• Human Rights
• Women Empowerment
• Environmental Sustainability and Carbon Footprint Management

Environmental Achievements

• Reduced GHG emissions at Head Office by 9.09% from 1.1 tCO2e/m2 in 2021 to 1.2 tCO2e/m2 in 2022.
• Implemented eco-friendly practices, such as seeking alternative energy sources and adopting a resource efficiency approach.

Social Achievements

• Invested NGN1.671 billion in CSR initiatives in 2022 (about 0.75% of PAT).
• Awarded “Best Company in Workplace Practice” at the 2022 SERAS Awards.
• 75% of employees received training on human rights in 2022.
• 53.96% of active employees and 31% of top management staff were women in 2022.
• Launched Z-Woman Business Package to support women-owned businesses.
• Impacted 5,573 male and 7,208 female students through Financial Literacy Day and World Savings Day celebrations.
• Invested NGN727,630,626.46 in employee training in 2022 (25.25% increase from 2021).

Governance Achievements

• Complied with CBN Code of Corporate Governance for Banks and Discount Houses in Nigeria 2014, SEC Code of Corporate Governance for public companies, and National Code of Corporate Governance for Public Companies.
• Maintained a diverse shareholding structure with no single ultimate individual shareholder holding more than 12% of the bank’s total shares.
• Established various Board Committees with well-defined terms of reference to ensure efficient oversight.

Climate Goals & Targets

Environmental Challenges

• Global and domestic economic developments impacting business.
• High inflation.
• Persistent scarcity of Premium Motor Spirit (PMS).
• High energy prices.
• Rising cost of debt servicing.
• Deteriorating fiscal balances.
• Uncertain macroeconomic outlook.
• Heightened global recession risk.

Mitigation Strategies

• Adapted strategies to leverage opportunities and create value for stakeholders.
• Robust risk management framework.
• Significant investment in new technologies and digital solutions.
• Integrated sustainability principles into business operations and investment decisions.
• Continuous investment in branch network expansion, technology infrastructure, and employee training.
• Automated operational activities to reduce turnaround times and operating costs.
• Developed and tested several stress scenarios to assess liquidity, capital adequacy, and earning capacity.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, Sustainable Development Goals (SDGs), Nigerian Sustainable Banking Principles, Nigerian Exchange - Sustainability Disclosure Guidelines, UN Women’s Empowerment Principles, ISSB Sustainability Reporting Guidelines

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• SDG 1 (No Poverty)
• SDG 3 (Good Health and Well-being)
• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)
• SDG 13 (Climate Action)

Not disclosed

Sustainable Products & Innovation

• Z-Woman Business Package

Awards & Recognition

• Bank of the Year, Nigeria (The Banker)
• Biggest Bank in Nigeria by Tier-1 Capital (The Banker)
• Best Bank in Nigeria (Global Finance Magazine)
• Best Commercial Bank, Nigeria (World Finance)
• Best Corporate Governance, Nigeria (World Finance)
• Best Commercial Bank, Nigeria (International Banker)
• Best Corporate Governance Financial Services Africa (Ethical Boardroom)
• Bank of the Year (New Telegraph Newspaper)
• Best Company in Technology for Development (SERAS)
• Best Company in Workplace Practice – SERAS

Environmental Metrics

ESG Focus Areas

• Sustainability
• Corporate Social Responsibility (CSR)
• Climate Risk Management
• Labour Practices
• Human Rights
• Talent Development
• Digital Innovation
• Corporate Governance

Environmental Achievements

• Reduced carbon emissions by 50% at Head Office and annexes through replacement of diesel generators with gas plant
• Avoided 79,488,000 KWh of emissions through solar energy use in 2023

Social Achievements

• NGN5.67 billion invested in CSR initiatives in 2023, focusing on health, education, women and youth empowerment, sports, and infrastructure
• Zenith Bank Delta State Principal’s Cup, Zenith Bank Headmasters’ Cup, and other sports sponsorships
• Zenith Quarterly Financial Literacy Training in secondary schools reached 120,000 students
• Launched Zenith Bank SME Learning Series with over 15,000 participants
• Offered fully paid three-month parental leave to 3352 employees, with 236 returning to work after leave

Governance Achievements

• Strengthened oversight of AML/CFT/CPF policies
• Implemented robust compliance risk management principles
• Adherence to CBN Code of Corporate Governance, SEC Code of Corporate Governance, and National Code of Corporate Governance

Climate Goals & Targets

Environmental Challenges

• Economic headwinds, high inflation, weakening exchange rate, security issues
• Climate-related disasters, deglobalization, trade protectionism
• Emigration of young Nigerians affecting the labor market
• Potential threats to data privacy through third-party integrations

Mitigation Strategies

• Strategic realignment, seizing opportunities
• Investing in technology infrastructure and digital solutions
• Reassessing employment practices to attract talent
• Implementing data privacy and security policies and frameworks, Database Activity Monitoring (DAM), File Integrity Monitoring (FIM), Database Protection (DB Protect), Network Access Control (NAC), e-learning on cybersecurity

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Sustainable Development Goals (SDGs), Nigerian Sustainable Banking Principles, Nigeria Stock Exchange - Sustainability Disclosure Guidelines, UN Women’s Empowerment Principles, SASB, ISSB IFRS S1 & S2 Sustainability Disclosure Guidelines

Certifications: ISO 20000, ISO 22301, ISO 27001, NDPR, PCI DSS

Third-party Assurance: V4 Advisors (ESG Consultants) for GHG emissions audit

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)

CSR initiatives align with UN SDGs, focusing on health, education, and economic empowerment.

Awards & Recognition

• Number One Bank in Nigeria by Tier-1 Capital - The Banker
• Best Commercial Bank, Nigeria 2023 - World Finance
• Best Corporate Governance, Nigeria 2023 - World Finance
• Best Corporate Governance ‘Financial Services’ Africa 2023 - Ethical Boardroom
• Most Sustainable Bank, Nigeria 2023 - International Banker
• Best Bank for Digital Solutions, Nigeria 2023 – Euromoney
• World Finance 100 2023
• Bank of the Year 2023 – Businessday Newspaper