K OF NIGERIA n Department Financial Policy & Central Business Dis Garki, Abuja.

TQ9-46237401 mail: fprd@cbn.gov.ng May 6, 2013 FPR/DIR/CIR/GEN/03/004 Circular to all Banks, Discount Houses and Development Finance Institutions EXPOSURE DRAFT OF THE REPORTING TEMPLATE FOR THE NIGERIA SUSTAINABLE BANKING PRINCIPLES (NSBP) Recall that the Central Bank of Nigeria had, in September 2012, issued a Circular directing banks, discount houses and development finance institutions to implement the Nigeria Sustainable Banking Principles. The institutions were also informed that the CBN will subsequently issue reporting requirements to guide the reporting of their compliance with the Principles and Guidelines.

In view of the need to ensure uniformity in reporting their implementation efforts towards compliance with the Sustainable Banking Principles, the attached draft reporting template has been developed for banks, discount houses and development finance institutions. As part of the CBN's resolve to engage stakeholders on policy issues, the draft framework is hereby exposed for comments/inputs.

In view of the above, we hereby attach the exposure draft of the reporting template for your review, comments and inputs. The exposure draft can be accessed at the Bank's website, www.cbn.gov.ng.

Kindly send hard copies of your comments to the Ag. Director, Financial Policy and Regulation Department while soft copies should be e-mailed to feahonhkai@cbn.gov.ng and aumahmood@cbn.gov.ng within four (4) weeks from the date of this letter.

T. NW Ag. DIRECTOR, FINANCIAL POLICY AND REGULATION DEPARTMENT

Nigeria Sustainable Banking Principles Proposed Reporting Format For Compliance Status Reporting

Introduction

The Bankers' Committee approved the adoption of the Nigerian Sustainable Banking Principles (the NSBP or the Principles) and the three sectoral guidelines (Power, Agricultural and Oil & Gas, hereinafter referred to as the Guidelines).

Subsequently, the CBN issued a circular referenced FPR/DIR/CIR/GEN/01/33 dated September 24, 2012 on the implementation of the NSBP.

The Circular, which took effect on September 26, 2012:

1. Mandated the full adoption of the Principles and Guidelines by all banks, discount houses and development finance institutions; 2. Required the concerned financial institutions to submit regular reports in line with reporting requirements which will be made available to the industry; and 3. Informed the institutions that the CBN will provide incentives, where necessary, to those institutions that take concrete measures to embed the provisions of the Principles and Guidelines into their operational, enterprise risk management and other governance frameworks.

To meet the need to provide the institutions with a format for the rendition of returns on their compliance status with the principles and guidelines, the attached NSBP Reporting Template has been developed. All terms and definitions contained in this document are consistent with those contained in the NSBP and accompanying Guidance Note.

Nsbp Reporting Guidelines

Industry r eporting requirements will be grouped into two phases: (1) Year 1 milestones; and (2) all subsequent reporting years.

1 Year 1 milestones will be submitted in both hard and soft copies to the Financial Policy and Regulation Department of the CBN, while all subsequent reporting will be completed through eFASS.

Reporting Requirements For Year 1 Milestones A)

By 30 June 2013, each bank will have:

1. Developed and submitted to the CBN an overarching Sustainable Banking commitment, which articulates: (a) how banks will apply the Principles and Guidelines (b) how E&S risk management considerations have been integrated into the Enterprise Risk Management framework; and (c) the Bank's implementation targets and milestones, including a five-year plan.

2. Engaged its respective Board of Directors on the Principles and Guidelines.

3. Designated a Sustainable Banking Desk or Unit responsible for implementation of the Principles and Guidelines as well as reporting to the CBN and other relevant stakeholders where appropriate.

4. Begun capacity building with relevant stakeholders.

See Appendix 1 for 2nd Quarter 2013 Reporting Template

B)

By 30 September, 2013, each Bank will have:

1. Developed and submitted to the CBN its Sustainable Banking Policies which include: a. An E&S Management policy for its Business Activities. The policy is to: (i) describe scope and applicability; (ii) include assessment, categorization, and management of E&S risks and opportunities; (iii) incorporate Human Rights, Women's Economic Empowerment and Financial Inclusion action plans; and (iv) reference applicable international standards; 2 b. An E&S Footprint policy for its Business Operations, which should include (i) the organizational structure indicating key functions and offices (ii) the process for generating/collecting and reporting data (iii) measures/strategies for minimizing the negative E&S impacts of the banks' operations.

c. An articulation of how each of the sector guidelines (Agriculture, Power, and Oil & Gas) will be applied to the bank's Business Activities.

2. Obtained the approval of its Board of Directors for its Sustainable Banking Policies.

3. Provided capacity building to its key functions/business units responsible for the implementation of the Principles and Guidelines.

See Appendix 2 for 3rd Quarter 2013 Reporting Template C) By 31 December, 2013, each Bank will have:

1. Developed and submitted to the CBN: a. E&S Management procedures (including the various methodologies deployed to ensure that the bank's clients comply with the Sustainable Banking requirements as well as demonstrate commitment, capacity [structures/systems/processes] and track record to minimize potential E&S risks while maximizing the opportunities available).

b. E&S Footprint Management procedures.

2. Continued capacity building on the Principles and Guidelines to the relevant functions/business units.

See Appendix 3 for 4th Quarter 2013 Reporting Template From no later than March 31, 2014, each Bank will have:

1. Implemented its E&S policies and procedures; 2. Implemented specific strategies and action plans for the nine (9) Principles and 3 sector guidelines.

2. Delivered against specific targets and milestones.

3. Trained relevant functions/business units required to implement the Principles and Guidelines.

All reporting for this period onward will be completed through eFASS on a quarterly and annual basis.

See Appendix 4 for the Reporting Template NSBP REPORTING GUIDELINES FOR OTHER RELEVANT STAKEHOLDERS In addition to quarterly and annual reporting to the CBN, the Banks will be required to report their implementation activities as follows: u Regular reports to Management, Relevant Board Committee: Every bank should have a system in place which enables it to render regular reports on its sustainable banking activities to its Management and its Board/relevant Board Committees.

I OR Standalone Reports Annual Inclusion in = Annual Sustainability/Corporate Social Responsibility (CSR) reports, which may be distributed electronically to stakeholders of the banks and/or made available on the banks' corporate website.

Nigeria Sustainable Banking Principles Draft Reporting Format For Returns Rendition By Banks

ONE-OFF REPORT FOR SUBMISSION TO THE CBN (FIRST REPORT)
B	Policy Formulation and Governance	and the	e and the	and the
Briefly describe how your bank will apply the Principles to its business
1.1.1	activities and business operations
1.1.2	Brietly describe how E&S risk management considerations have been
integrated into your Enterprise Risk Management framework	Provided	Not Provided
Please provide your bank's implementation targets and milestones
1.1.3	including a five-year plan
Brielly describe how the principles and guidelines have been
1.1.4	infroduced to the Board of Directors
Hos a Sustainable Banking Unit/Office/Desk been established? What	Yes	No	Remarks
1.1.5	date was it established?
Please provide the revised organogram of the bank (which includes	Provided	Nol Provided
1.1.6	the Sustainable Banking Office/Unit/Desk)	Status	Experience
1.1.7	Status & Experience of the Officer heading the S8 Unit	Provided	Not Provided
1.1.8	Please provide the job description for the Head of the Unit	Composition
1.1.9	Details of staffing (manning levels) of the unit	Name	Designation	Department
	a provide and the see the state the the the the the the the the state the
12	Capacity Building
Ust the capacity building activities on the Principles and Guidelines
1.2.1	underlaken to date for your:
(a)	Board
(b)	Senior Management
(c)	Risk Management Unit
Other Employees
(c)	Customers
(c)
(1)	Service Providers
ONE-OFF REPORT FOR SUBMISSION TO THE CBN (SECOND REPORT)
1 2,1	Sustainable Banking Policies/Processes	and the same	e and the state
Please cttach the E&S Management Policy for your bank's Business	Altached	Not Attached
2.1.1	Activities	Altoched	Nol Altached
Attach the E&S Footprint Policy for your bank's Business Operations
2.1.2	Describe the processes by which your bank will apply the sector
guidelines to the bank's Business Activities in the follawing Sacrloss:
2.1.3

(a)	Agriculture
(b)	POWER
(C)	Oil and Gas
Date of Board meeting in which the Sustainable Banking policy was
2.1.4	approved by your Board of Directors	Allached	Not Attached
Please attach any relevant minutes or documentation
2.1.5	Provided	Not Provided
Provide the title and number of capocity buliding programmes
conducted including dates and number of staff
2.1.6	Allached	Not Attached
Please attach the list of participants, their job roles and urils
2.1.7	ONE-OFF REPORT FOR SUBMISSION TO THE CBN (THIRD REPORT)
3.7	Framework, Syslems and Procedures
Attach a summarized copy of the E&S Management Procedures for	Allached	Not Attached
your bank's Business Activities
3.1.1	Atlach your E&S Footprint Management Procedures for your bank's	Allached	Not Attached
3.1.2	Business Operations	Provided	Not Provided
Provide the litte and number of capocity building programmes
3.1.3	conducted including dates and number of staff	Allached	Not Attached
Please attach the list of participants, their job roles and units
3.1.4

and and	Principle 1: E&S Management System for Business Activities	e and the same	and the states	Year-10-
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	date	Remarks
1.1	Total number of transactions underlaken
1.2	Total value of the transactions
1.3	Number of transactions screened/assessed for E&S risks
1.4	Value of transactions screened/assessed for E&S risks
1.5	Percentage of total portfollo screened/assessed for E8.S risk
Attach the Ist of transaction or client risk categorization	i.e. Calegory
1.6	A/B/C or High/Medium/Low risk)
1.7	Attach the risk categorization by financial product type
1.8	Attach the risk categorization by industry sector
1.9	Atlach the risk categorization by location (state and/or region)
Number of clients or relationships exited for poor E&S performance, non-
complance with agreed E&S Action Plans, or breach of loan
1,10	documentation covenants/concitions
No of client engagements on E&S issues which resulted in positive
I.II	autcomes for the clent and the Bank
Principle 2: E&S Footprint Management for Business Operations	e the may	r and the
i 2	ear-to-
	Guarter 3	Quarter 4	date	Remarks
	Quarter 1	Quarter 2
Number of buildings/branches and facilities included in this report out
(0)	of total facilities
Total floor space of buildings included in this report out of lotal floor
[ii)	space
[ii)	Total number of employees	Year-to-
	Quarter I	Quarter 2	Quarter 3	Quarter 4	date	Remarks
2.1	Environmental Footprint

Report For Submission To The Cbn

2.1.1	Energy consumption - trom the national grid and from generators
	Total amount of electricity purchased from the national grid in Gwh or
2.1.1.1	Kwh
2.1.1.2	Total amount used per employae in kilowatts hour
2.1.1.3	Total Itres of fuel used to run the generator
2.1.1.4	Total Tires used per employee
	Number of branches/business offices powered by alternative sources of
2.1.1.5	energy [e.g. solar energy]
	Number of ATMs powered by atternative sources of energy (e.g. solar
2.1.1.6	energy)
2.1.2	Paper use - in kgs/tonnes
2.1.2.1	Total paper consumption in kilograms
2.1.2.2	Use of recycled paper as a percentage of total paper consumption
2.1.23	Total paper consumption per employee
2.1.3	Water use
2.1.3.1	From the main water supply - Total consumplion
2.1.3.2	From the main water supply - Use per employee
2.1.3.3	From own sources [e.g. boreholes] - Total consumption
2.1.3.4	From own sources [e.g. boreholes] - Use per employee
2.1.4	Sollid waste production - in kgs/tonnes
2:1.4.1	Total amount of solid waste generated
2.1.4.2	Total amount of solid waste generated per employee
	Amount of solid waste disposed to recycling plants as a percentage of
2.1.4.3	total generated
	Business travel (miles travelled, mode of fransport, number of trips and
2.1.5	number of employees traveling]
2.1.5.1	Company Fleet
	No of vehicles in the company fleet (Company fieel excludes those
2.1.5.1.1	cars that are not maintained by the bank)
2.1.5.1.2 Total mileage clocked by company fleet
2.1.5.1.3 Total fuel consumption by fleet cars
2.1.5.1.4 Total number of employees using fleet cars
2.1.5.1.5	Average tuel use per employee
21.5.2	Air travel
2.1.5.2.1 Total number of business trips
2.1.5.2.2 Total mileage
2.2	Social Footprint
	Attach the Isl showing the composition of employees by gender, roce,
2.2.1	efinnicity or nationality
	Altach a list showing gender distribution of employee workforce in
2.2.2	management positions
2.23	Rate of absenteeism/lost hours
2.2.4	Number of emplayee education and counseling programs conducted
	on health & safety; e.g. serious diseases, such as HIV/AIDs
	Number of education/training/other career enhancement programs
2.2.5	designed for employees especially wamen employees
	Number of employees that utilized grievance mechanisms or
2.2.6	procedures in place
2.2.7	Number of physicaly challenged employees in the workforce
	Number of creches in the bank's facilities to cater for nursing-mother-
2.2.8	employees
2.2.9	Number of stress management programmes organized for employees
22.10	Number of gymnasium and recreational facilities provided for staff
2.3	Community support and Investment
2.3.1	Total number of employees involved in voluntary community activities
23.2	Total time (hours) spent by employees in voluntary community activities

Donations per capita (based on total number of employees in the
2.3.3	workforce)
2.3.4	Gifts-in-kind
2.3.5	Value of donations to orphanages
2.3.6	Number of boreholes constructed
2.3.7	Value of sports sponsorships
2.3.8	Value of hostels and lecture theatres provided
23.9	Value of schools/classroom blocks donated and renovation of schools
2.3.10	Value of transporialion vehicles donaled
2.3.11	Value of hospital equipment provided
2.3.12	Number of employee seconded to a community organization
2.3.13	Value of furniture or equipment donated (in estimated market value)
2.3.14	Others (Please specify)
2.4	Number of community complaints resolved via griovance mechanisms
2.5	Third party E&S standards
Number of suppliers, contractors and third parly service providers
2.5.1	screened
Number of third party relationships exited due to poor E&S
2.5.2	performance/standards or lack of E&S policies	STERE AND PRODUCTION
3 3	Principle 3: E&S Management System for Business Activities Activities	feel of	Year-lo-
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	date	Remarks
Number of Iransactions assessed for human rights risks such as child
labour, discrimination on the bass of gender, ethnicity, relgion, political
31	persuasion, etc.
3.2	Number of relired employees granted access to free health care	a province in	e the	e and
== 4	Principle 4: Women's Economic Empowerment	Year-lo-
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	date	Remarks
4.1	Total number of female employees
4.2	Attach a Ist of temale employees by business unit
4.3	Number of temale employees in management positions
4.4	Number of temale on Board of Directors
Total expenditure on capacity building for female employees
4.5	Number of reported regulations against women (e.g. discouraging
women from manying or having children unfil after a defined period of
4.6	employment)
Number of repealed regulations barring women from registering their
spouses for health benefits and/or claim allowances for their husband
47	and children
Number of new female-oriented products and services developed and
4.8	brought to market
4.9	Number of loans made to women:
(a) Individuals
(b) Women-owned businesses
4.10.	Total value of all lending made to women:
(c) Individuals
(b) Women owned businesses
5.	Principle 5: Financial Inclusion - Station Comments of the Mark - 1 -	Year-to-
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	date	Remarks
Number of new/innovative products or service offerings designed for
5.1	disadvantaged groups and amounts involved.
Number of previously unbanked individuals who received financial
5.2	services or products for the first time
Attach a list of agent banks established by state
5.3	Number of individual and SME accounts held with the bank
5.4	Number of branches that can be easily accessed by physically
5.5	challenged persons

6 Principle 6: E&S Governance Manager Manager Station Comments of the Market Comments of the Career of Children
	Year-to-
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	date	Remarks
6.1	Review of E&S Governance
Number of Internal audit raviews conducted to assess progress and
6.2	monitor effectiveness of E&S governance structures
External audit conducted to review the bank's campiance with
6.3	Sustainable Banking (Answer yes or no)
7	Principle 7: Capacity Building Julia	e and	Year to
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	date	Remarks
7.1	Training:
Sustainable Banking Iraining programs developed and delivered
7.1.1	inclucing:
7.1.1.1	Number
7.1.1.2	Formal (Altach)
Content (Attach)
7.1.1.3	Number of participants trained and in what functions/roles within the
7.1.1.4	Bank (Attach)
7.2	Number of other capacity building activities:
7.2.1	General awareness raising
7.2.2	Serrinars
7.2.3	Press releases & bulletins
7.2.4	In-plant programmes
7.2.5	Study tours, knowledge sharing, community of practice	e and the contribution of the subject of the subject of the subject of the station of the subject of the subject
8	Principle 8: Collaborative Partnerships	Year-to-
	Quarter 1	Quarter 2	Quater 3	Quarter 4	date	Remarks
Membership and/or leadership roles in Nigerian sector-wide Sustainable
8.1	Banking initiatives, programs or working groups (Attoch)
Membership and/or leadership roles in international Sustainable
Banking or other sustainability-related initiatives, forums, or events
(including the Equator Principles) (Allach)
8.2
8.3	Number of participations in peer review programmes
Participation in vitual networks on Sustainable Banking e.g. IFC's e-
8.4	Collaborate
Number of international Development Finance Institution(s)
8.5	collaborated with on sustainability issues.
B.6	Collaboration with development finance institutions	e a
9	Principle 9: Reporting	cast	Year-to-
	Quarter 1	Quarter 2	Quarter 3 Quarter 4	date	Remarks
Confirmation of Sustainable Banking inclusions in Annual Report or
2.1	publication of standalone Sustainability Report (Answer yes or no)
Confirmation that reporting is consistent with requirements specified by
9.2	the CBN (Answer yes or no)
SECTORAL REPORT
10	AGRICULTURE DE BERE FREE FOR BE FOR BE BE BE BE	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year-for
F	Number of agriculture-related transactions booked:
1.1.1	Total
1.1.2	By NIRSAL value chain category and name (affach)
1.1.3	By type of commodity (attach)
Value of agriculture-related transactions booked:
1.2	Total
1.2.1
1.2.2	By NIRSAL value chain category and name (altach)
1.2.3	By type of commodity (attach)
Number of agriculture-related fransactions screened/assessed for E&S
1.3	risks
1,3,1	By state (attach)

2 POWER CE POWER FREE FROM FILE FOR FOR	e and the same	Year-to-
	Quarter 1	Quarter 2	Quarter 3 Quarter 4	date	Remarks
Number of power-related transactions booked
2.1
2.1.1	Tolal
2.1.2	By category:
Power generation sources and associated facilities
2.1.3	Electricity transmission
2.1.4	Electricity distribution
2.1.5
2.2	Value of power-related transactions booked
2.2.1	Tolcl
2.2.2	By category:
2.2.3	Power generation sources and associated facilities
2.2.4	Eloctricity Iransmission
2.2.5	Electricity distribution
2.3	Number of power-related transactions screened/assessed for E&S risks
2.4	Number of high-risk transactions
2.5	Number of medium-risk transactions
Amount of lending to:
26
2.6. I	Energy efficiency projects
2.6.2	Clean Technology
Renewable energy (please specify: solar, clean coal, wind, biomass,
2.6.3	letc.I
3 3	OIL AND GAS I THE THE LEAST THE LEASE	e and	Year-lo-
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	date	Remarks
3.1	Number of oil & gas related transactions booked:
3.1.1	Total
3.1.2	By category:
3.1.2.1	Upstream
3.1.2.2	Midstream
3.1.2.3	Downstream
3.1.2.4	Servicing (i.e. provision at technical support services for the upstream.
midstream and downstream segments in the areas of drilling, well
completion, well simulation, logistics, equipment supplies, etc.]
3.2	Value of Oil and Gas-related transactions booked:
3.2.1	Totcl
3.2.2	By category:
3221	Upstream
3.2.2.2	Midstream
3.2.2.3	Downstream
3.2.2.4	Servicing
3.3	Number of Oil & Gas-related transactions scieened/assessed for E&S
risks
3.4	Number of transactions by E&S Categorisation (A, B or C)