Bank of Valletta is to be congratulated on the recent publication of its second Corporate Social Responsibility Report covering 2007.
In its mission statement BOV defines its commitment as being that of playing a leading and effective role in the country’s sustainable development “whilst tangibly proving ourselves to be responsible and caring citizens in the community in which we operate”. The objective of the CSR report is hence that of informing the community as to the manner in which the bank is acting as a responsible citizen. The bank’s CEO makes this even more clear in his statement on page four of the report. In fact, he rightly underlines that while the bank is responsible towards its shareholders it is also accountable towards society.
This is the crux of CSR: the accountability of business towards all stakeholders, the community at large. Profits generated on their own are not a measure of success, as the business of business is not just business!
The bank has ploughed back into the community 1.31 per cent of its profits (Lm350,000 or €815,500) through engagement in seven pillars of activity, namely the arts and culture, heritage, environment, sports, social, education and business sectors.
In particular, BOV has assisted Heritage Malta in preserving the Tarxien Temples. It has furthermore supported the restoration programme at Palazzo Falson, Mdina.
Reading through the BOV 2007 CSR report one encounters many a positive note as to the manner in which the bank is being eco-efficient. First on the list is its Santa Venera centre which, through both design and operation, is energy-efficient. Its Marsascala branch has, during 2007, been equipped with photo-voltaic panels, thereby contributing to an annual reduction of three tonnes of CO2 emissions as a minimum. The other branches await their turn.
BOV recycles its paper and has taken the first steps which will eventually lead to a paperless administration. Furthermore, it makes use of recycled toners and cartridges, not only contributing to less waste going to landfill but also paying less eco-taxes as a result. Reducing environmental impacts has a positive financial impact too!
The BOV report does not mention the environmental impacts generated by the use of transport (by both the bank and its employees). Nor is any reference made to the use of water in its branches, including the collection and utilisation of rainwater.
BOV has also sponsored a number of environmental initiatives aimed at the environmental education of the community.
While BOV is setting a good example which should filter through the business community, this should be seen as only a first step. In addition to improving the management of its direct environmental impacts, thereby reducing them, BOV can move forward, in the process retaining its leading role in banking CSR in Malta.
BOV should, on the basis of this eco-efficient experience, move on to new initiatives that address the eco-effectiveness of the banking system. In addressing its corporate responsibilities, BOV as any exemplary citizen would undoubtedly ask whether its services are being misused. In particular, whether any of its customers have used its services to contribute towards the ever-increasing national environmental deficit.
It would be interesting if in a future report we could read about environmental criteria applied in the consideration of requests for business loans, including those utilised to finance the construction industry. Additional interesting information would be whether BOV has refused its services to any client on the basis of environmental criteria.
The financial balance sheet on its own does not measure progress. It is only concerned with profits. The environmental and social balance sheets need to be addressed too, thereby having a “triple bottom line” approach to measuring progress.
Through its 2007 CSR report, BOV has proven that it is serious about managing its direct impacts. It now needs to move further by managing its upstream and downstream impacts. Managing its upstream impacts signifies addressing the environmental impacts generated by its suppliers – hence the introduction and maintaining of a green procurement service. Managing its downstream impacts would address the environmental impacts of those using its services. When this is done successfully BOV would be eco-effective, as a result contributing to a reduction of Malta’s environmental deficit.
BOV has taken the lead. I hope others will follow because profits and principles can co-exist.