Managing the use of resources such as energy, water, materials, waste, and paper.
Advocating for climate action thought leadership and innovation, and a business behavior that reduces ecological footprints.
“Go Green” strategy
Leading a comprehensive Sustainable Energy Finance program; inciting businesses to regulate and minimize their environmental impact, adopt renewable efficient energy and employ rigorous environmental management habits. Thus, an Environmental and Social Management System (ESMS) was developed to integrate Environmental and Social (E&S) risk management into our credit processes helping our clients understand and manage risk associated with the impact of their businesses on the environment and communities.
Fransabank is the first Bank to issue green bonds in Lebanon and the Levant region to boost the green economy, promote environmentally-friendly projects and help fight climate change. The bonds will help us provide financing to a spectrum of eco-friendly projects in commercial energy efficiency, renewable energy and green buildings. It will support the transformation to a greener Lebanese economy in several sectors, including industry, manufacturing, universities and schools, among others.
The International Finance Corporation (IFC), a member of the World Bank Group, an anchor investor in our green bond program, invested USD 45 million in the first issuance and has board approval to invest another USD 30 million in the program, bringing the total up to USD 75 million. The European Bank for Reconstruction and Development’s (EBRD) subscription of USD 15 million marks the institution’s first debt project in Lebanon.
By the end of 2019, 48 loans were financed via the green bonds for more than USD 44.4 million; saving 18,738,077 Kwh/year of energy and 14,666 tons of CO2 emissions.
As a front-runner act, Moody’s assessed the operation and has given it an “Excellent” rating. In addition, we received the 2019 Green Bond Pioneer Award from the Climate Bonds Initiative, in partnership with the London Stock Exchange Group as an acknowledgement for our ongoing commitment to sustainable finance and awareness making to environmental challenges.
Emphasizing on environmental risk in corporate lending risk assessments and business plans.
Growing an eco-products portfolio that takes climate and environmental issues into consideration.