Fidelity Bank is committed to climate resilience as a core business imperative - Atta Gyan

Fidelity Bank Ghana is committed to integrating climate adaptation into its lending strategy. The bank aims to mobilize private capital for a climate-resilient future.

Atta Yeboah Gyan, Deputy Managing Director, shared this approach at a panel discussion. The event took place at the Africa Adaptation Acceleration Program Partnership Forum in Ghana. The theme was "Unlocking growth through climate resilience and private sector leadership."

Mr. Gyan emphasized that climate adaptation is a strategic imperative for the bank. He stated it is both a risk management issue and a value creation opportunity.

He explained that the bank identified climate risk as critical through an assessment. This assessment is part of their environmental and social governance processes.

The commitment includes a robust Environmental and Social Management System (ESMS). This system aligns with IFC Performance Standards and the Bank of Ghana’s Sustainable Banking Principles.

To manage climate risks, Mr. Gyan mentioned conducting portfolio-level scenario analysis recently. This analysis covered Retail and Corporate & Investment Banking segments.

The assessment included potential disruptions to branches and ATMs. It helped create detailed climate risk heatmaps, enhancing understanding of exposure.

Fidelity Bank's three-year Climate Implementation Plan supports Ghana’s Nationally Determined Contributions (NDCs). This ensures financing aligns with national climate adaptation priorities.

The bank integrates climate risk screening into credit assessments, focusing on vulnerable sectors like agriculture and SMEs.

Mr. Gyan provided examples from their portfolio, especially in agriculture. They are piloting tools to assess drought and flood vulnerability for clients.

He also stressed the importance of training staff on adaptation indicators. This training helps staff recognize issues in markets where solutions are not visible or monetized.

Beyond internal management, Fidelity Bank seeks to unlock private finance for adaptation in Ghana.

Mr. Gyan highlighted initiatives like an Electric Vehicle (EV) Financing product promoting green transport. They also offer asset finance products for schools and hospitals to integrate solar energy.

Through their Bridge-in-Agriculture initiative, they have created over 12,000 jobs. They empowered more than 20,000 smallholder farmers, with over 60% being women.

Mr. Gyan believes blended finance is crucial for expanding lending to underserved segments. Working with development partners can help de-risk investments in climate-smart projects.

Looking ahead, Fidelity Bank made recommendations for the Global Center on Adaptation (GCA).

They urged support for building technical capacity in commercial banks regarding climate risk tools. They also called for de-risking instruments to increase appetite for adaptation finance.

Additionally, they suggested co-developing pipelines of bankable adaptation projects in agriculture and infrastructure. Promoting standardized localized physical risk maps would improve decision-making across banking sectors.

Mr. Atta Yeboah Gyan concluded by stating that adaptation is essential for resilience and can be profitable too. Fidelity Bank aims to lead this effort in Ghana while collaborating with various stakeholders to enhance collective impact.