NDB Bank’s sustainability advocates Melody Wickramanayake (Vice President – Legal and Chairperson of the CS Committee) and Sharon De Silva (Senior Manager – Corporate Sustainability) emphasize the crucial role of sustainability in the bank’s strategic agenda. They assert that NDB Bank’s sustainable business approach prioritizes significant environmental, social, and governance impacts for all stakeholders while creating value. Recognizing that organizations are embedded in a broader environmental and social framework, the bank acknowledges the pressing need to address the challenges of climate change and sustainability. To this end, the bank aligns its business strategies with values-driven sustainability to achieve long-term success, build investor trust, enhance reputation, pursue new growth prospects, meet customer expectations, and ensure employee satisfaction while pursuing UN Sustainable Development Goals.
How have you integrated profitability, innovation, and sustainability into the core of your business and aligned people – shareholders, employees, and customers – to it?
NDB Bank is raising the bar on responsible business practices. By integrating economic, environmental, and social considerations into its strategy, we are generating long-term value for all stakeholders, while also championing climate action and inclusivity. To ensure our staff is well-equipped for this mission, we offer specific training on ESG (Environment, Social & Governance) to relevant employees, as the bank strives to align its financial goals with ESG considerations.
As part of its innovation drive, NDB Bank has embraced digital transformation to boost productivity and efficiency, while also redefining stakeholder interaction. With technology at the forefront, the bank has overhauled its operations, sharpened its competitive edge, and improved profitability.
In addition to its impressive sustainability efforts, NDB Bank is also exploring opportunities for sustainable finance. By issuing thematic bonds with support from an international institute, the bank is expanding its reach and impact. And it’s not just talk: we have already reduced the bank’s carbon footprint by 300 tonnes in FY2022.
As the bank sets its sights on even greater achievements, it remains transparent and accountable, with regular reporting on its ESG performance in its annual report. With strong policies in place and guidance from respected stakeholders like IFC, Norfund, and DEG, NDB Bank is making a meaningful impact and setting a high bar for sustainable business practices.
Can you take us through your sustainability initiatives and innovations and their impacts on the banking business?
NDB Bank has carved out a distinctive place in the banking sector through its unwavering commitment to sustainability and innovation. Its Environmental, Social and Governance (ESG) initiatives have proven to be a game-changer, reinforcing the bank’s resilience and minimizing downstream emissions. This approach has helped nurture an ESG-conscious risk culture, with the bank a leading player in financing renewable energy projects.
In line with its commitment to enhanced customer experience, NDB Bank has adopted a digital-first approach through its “Digi Loans” initiative, resulting in over 85% of its transactions being conducted via digital channels. This has also contributed to minimizing downstream carbon emissions. The bank has also made women’s socio-economic empowerment a priority through its “Banking on Women” programme, offering financial cum advisory support to female customers, including homemakers, salaried females, and female entrepreneurs, with lending for women-led projects amounting to over LKR 33 billion.
In addition to these initiatives, NDB Bank has also prioritized sustainable procurement, implementing a policy that sets out the criteria for ethical and sustainable screening of suppliers and products, taking economic, social, and environmental aspects into consideration. The bank has also taken significant steps to minimize its environmental impact, through energy-saving measures, resource-saving and efficiency practices, waste minimization, and recycling programmes, as well as introducing process innovations that promote a paperless operation.
All of these initiatives highlight NDB Bank’s commitment to creating long-term value for all stakeholders, supporting climate action, promoting inclusivity, and contributing to sustainable growth. By adopting a sustainability-first approach, NDB Bank is well-positioned to navigate the challenges of an ever-changing business landscape, while also making a real difference in the lives of people.
As you contemplate the future of banking and the economic trajectory of our economy, why is prioritizing sustainability crucial to NDB Bank?
Banks have always been a cornerstone of the economy, holding the key to financial stability and progress. But as we stare down the barrel of climate change, it’s becoming increasingly clear that banks must play an even greater role in shaping a sustainable future.
Consumers are demanding that organizations take decisive action to reduce their carbon footprint and adopt sustainable practices. And as a responsible bank, we believe it is our duty to heed this call and place sustainability at the top of our agenda.
Not only will this ensure that we contribute to mitigating environmental and social issues, but it will also pave the way for innovative solutions and expanded capabilities, enabling us to make a real difference in the lives of people.
By prioritising sustainability, we are not only setting ourselves apart from the competition but also empowering our customers to make informed decisions and embrace a greener, more equitable future. And for SMEs in particular, our support and guidance can be the difference between stagnation and success.
So let’s take this opportunity to lead by example, embrace sustainability as a competitive advantage, and chart a new course towards a brighter, more sustainable future for all.