Climate change, water scarcity and food security present many challenges to Egypt as it works to become a sustainable economy.
Various public and private initiatives have been rolled out over the past decade, prompted in part by Egypt’s commitment to the UN’s Sustainable Development Goals and the country’s hosting of the Cop27 climate summit in 2022.
That year, the Central Bank of Egypt issued rules mandating banks to integrate sustainable finance into their policies and procedures. The regulator continues to encourage innovative financial solutions to advance climate action.
Under Central Bank guidance, Egyptian banks are broadening their services to support sustainability initiatives, for example in renewable energy, agriculture, healthcare and SMEs.
Commercial International Bank (CIB), Egypt’s leading private sector bank, is at the forefront of driving sustainable finance in the region. Its group chief finance and operations officer and executive board member, Islam Zekry, discussed the bank’s strategy in an interview with AGBI.
CIBWhat sustainability challenges does Egypt face and how can banks help?
According to the OECD, Egypt contributes less than 0.7 percent of global emissions. Despite this, it faces significant climate risks and adaptation challenges. Water scarcity and threats to food security are among the most pressing concerns.
The country’s growing population is exacerbating demand on resources, in particular food and energy.
Banks play a crucial role in mobilising capital towards mitigation and adaptation efforts in Egypt by developing innovative sustainable financial instruments, products and business models.
At CIB we are taking the lead on this and raising awareness of pressing sustainability issues by engaging with the entire ecosystem to promote a holistic transition towards a sustainable economy.
Can you summarise CIB’s green strategy?
CIB released its sustainable finance policy in 2021. It emphasises the bank’s commitment to integrating international sustainability and ESG (environmental, social and governance) principles across all of its business lines.
In addition, CIB’s sustainable finance frameworks architecture ensures our practices are aligned with national and global standards. This robust framework reinforces our position as a leading bank for sustainable finance in Africa.
The sustainable finance strategy introduced in 2021 is part of CIB’s five-year corporate strategy. It is guided by two primary goals: leading Egypt’s sustainability transformation and positioning CIB as a regional and global actor in sustainable finance.
These goals are connected to four priority areas – risk management, revenue generation, reputation and ecological footprint – underpinning our activities and strengthened by cross-departmental collaboration.
In 2024, CIB completed a three-year implementation plan for the strategy. It ensures a strong foundation for sustainability systems across the bank, helping us to achieve our sustainability ambitions.
AlamyWhat sustainable finance products and services does CIB offer?
CIB, as industry leader, launched Egypt’s first corporate green bond in 2021, valued at $100 million.
Our aim was to develop an innovative financial instrument that drives climate finance towards projects focused on renewable energy, resource efficiency and water and waste management.
In 2022, CIB launched its Sustaining Sectors programme, giving corporate clients the tools, training and knowledge to integrate sustainability practices into their own business models – fostering growth while addressing climate risks.
We also launched the Sustaining SMEs programme, which provides a range of sustainable finance products and programmes to help Egyptian SMEs transition to a low-carbon economy.
CIB supports sectors including textiles, food and beverage and plastics, and also provides capacity-building sessions for other SMEs and financing products for renewable energy and resource efficiency projects.
How does CIB green up its own portfolio?
Based on the Central Bank’s definitions, CIB’s sustainable finance portfolio represented 17 percent of total direct lending in 2024, demonstrating significant progress in integrating environmental and social considerations into our core business strategy.
We have achieved this by financing eligible sustainable finance projects, thereby increasing the proportion of environmental and social impact initiatives within CIB’s broader portfolio.
The bank has also facilitated the acquisition of green building certifications for numerous projects it has financed by offering technical assistance to real estate developers including SODIC, New Giza and other clients.
CIB has also provided grants equivalent to up to 2.8 percent of the project value as cashback incentives to further encourage sustainable property development.
These certified projects achieved reductions in energy consumption, water usage and energy used in materials, contributing to Egypt’s transition to a sustainable economy.
How is CIB advancing sustainability reporting and disclosures?
CIB’s Environment, Social, Governance, Data and Digitisation Integrated Report 2023 has contributed significantly to the evolution of sustainability disclosures in Egypt.
It provides a comprehensive and transparent overview of the bank’s business performance and sustainability initiatives and is aligned with globally recognised sustainability frameworks, regulations and rating platforms.
The report also helps to broaden our interpretation of sustainable “capital” to include financial, human and social relationships, and natural and intellectual capital, delivering enhanced stakeholder value and sustainability impact.
This increased transparency and accountability positions CIB favourably on the international stage and will undoubtedly enhance the bank’s reputation and attract environmentally conscious investors.
How does CIB promote sustainability at a national and regional level?
CIB places a special focus on the importance of adaptation finance for Africa and the Middle East in our local and global activities.
During Cop27 in Sharm El Sheikh we hosted multiple panel discussions on the challenges facing the African region, with an emphasis on sustainable food systems, the business case for new adaptation finance models and the urgent need to bridge the adaptation finance gap.
These discussions addressed the misalignment between global private funds and adaptation projects in Africa, particularly those tackling agriculture and water insecurity.
CIB also has a presence on the GFANZ (Glasgow Financial Alliance for Net Zero) African Network Advisory Board, helping to shape the global conversation on transition finance, share expertise and spearhead collaborative initiatives to accelerate the transition to a low-carbon and climate resilient economy.
We are leading the GFANZ Africa Capacity Building Workgroup, equipping financial institutions across the continent with the tools and knowledge to implement sustainable finance strategies.
On a national level, CIB conducts regular stakeholder engagement activities for corporations and SMEs, including workshops featuring international sustainability experts, clients, regulators and development agencies.
We also collaborate with our peers through the Federation of Egyptian Banks to discuss the role of lenders in promoting sustainability and sustainable finance in the context of the Egyptian economy.
UNFCCWhat global partnerships has CIB struck to roll out green finance?
CIB participated in the European Bank for Reconstruction and Development’s Green Economy Financing Facility programme last year, obtaining €50 million ($57.6 million). This enabled CIB to provide credit lines to local partner financial institutions to finance small and mid-sized green projects.
We also signed a seven-year, $100 million loan with the International Finance Corporation (IFC) to fund environment-friendly projects, including water treatment and efficiency, green buildings and renewables, as well as sustainable agriculture projects.
Additionally, CIB is an IFC partner through its climate finance advisory programme, which supports the bank in helping clients in carbon-intensive sectors such as oil and gas, transport and real estate to reduce their carbon emissions and increase their competitiveness in local and global markets.
Is there scope for greater collaboration between Egyptian banks?
As chair of the Federation of Egyptian Banks’ Sustainable Finance Committee, CIB is actively shaping industry standards and practices.
Through this role CIB is working to empower all 36 banks operating in Egypt to support the energy transition, by sharing knowledge and tools to adopt sustainable finance principles.
This collaborative approach will contribute to a more sustainable and resilient financial sector in Egypt.
Established in 1975, Commercial International Bank (CIB) is Egypt’s leading private sector bank. Each of CIB’s 8,200-plus employees is dedicated to achieving the bank’s mission: delivering a distinctive customer experience through innovation and data analytics to provide customer-centric solutions and services that meet their needs.
With a well-established network of over 200 branches, first-rate remote channels and digital solutions, CIB provides individuals, households, high-net-worth individuals, large corporations and small businesses with exceptional 24/7 services. CIB has consistently been recognised as the most profitable bank operating in Egypt and is the bank of choice for more than 500 of Egypt’s largest corporations.
