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A bit about JS BANK
A bit about JS BANK Commercial bank, majority-owned subsidiary of Jahangir Siddiqui & Co. Ltd. � 345 branches in 172 cities , with total deposits of PKR 321 billion as at Dec � 31, 2018 � 4626 employees (approximately 13% females) Commenced operations in Pakistan as a fully scheduled bank on December 30, � 2006 � First international branch in Manama, Bahrain; plans to expand further in the GCC � Service offerings include trade finance, treasury, institutional banking, corporate banking, and private banking & wealth management 3
Steps JS BANK has taken for becoming more sustainable
Steps JS Bank has taken for becoming more sustainable Second commercial bank in South Asia to be a GCF accredited entity � � A signal that we meet GCF’s stringent standards which are based on financial standards, environmental and social safeguards, and a gender plan and that we have specialized capacities in driving climate action. � Incorporated Environmental and Social Risk (ESR) Rating Template into our credit application for loans � All credit applications at JS Bank now undergo an ESR rating, based on IFC’s Performance Standards 1 – 8 with an impact rating of A (highest), B ( medium) or C (minimal) � With its extensive presence across the country ensuring that all regions have access to climate finance, the Bank has various products geared towards this: � JS Smart Roshni � JS Ghar Apna Solar Financing � JS Zarkhez Solar Tube Well 5
Steps JS Bank has taken for becoming more sustainable First commercial bank in Pakistan to have an ESG Report � � A way for effective disclosure to both communicate what we are already doing and engage in active dialogue to learn and understand what more can be done. First commercial bank in Pakistan to be a WWF-certified Green Office � � Green Office is an Environmental Management System designed for offices. It creates awareness among employees to take steps for energy conversation and waste management. JS Bank is undertaking various initiatives for energy efficiency and reduce resource consumption One of few banks to actively take part in public policy concerning sustainability � and sustainable finance � A member of various political forums such as the MoCC Working Group on Green Finance and SBP’s Focus Group on Green Banking Guidelines. Both forums have been created by government agencies to spread awareness about sustainability and methods we can use for climate mitigation and adaptation 6
GCF accreditation
GCF accreditation � GCF works through a wide range of Accredited Entities and recognizes that individual organizations possess the type of specialist knowledge and experience that can be best utilized to mobilize climate finance on the ground and to channel its financial resources to climate change projects and programs. � The accreditation process assesses whether applicants are capable of strong financial management and of safeguarding funded projects and programs against any unforeseen environmental or social harm . � By gaining GCF accreditation, JS Bank was able to signal that we meet GCF’s stringent standards which are based on fiduciary standards, environmental and social safeguards, and a gender plan and that we have specialized capacities in driving climate action. 8
GCF accreditation � We introduced or updated the following policies: � Environmental and Social Safeguards Policy � Exclusions list � E&S risk rating � Gender Policy � Human resources Gender mainstreaming � Procurement Policy � Procurement oversight of third party projects � Integrity of the process is maintained � Information Disclosure Policy � Transparency and accountability � � Disclosure of E&S reports within certain timelines 9
Implementing SBP’s Green Banking Guidelines (GBG)
Implementing SBP’s Green Banking Guidelines (GBG) Banks have banking relationships with companies that are polluters or could be � in the future. State Bank of Pakistan has issued Green Banking Guidelines (GBG) to reduce � vulnerability of banks from risks arising from environmental and social causes, fulfill their responsibilities for the protection of environment and provide finance to transform the economy into a resource efficient and climate resilient one. � In line with GBG, JS Bank has introduced an Environmental and Social Risk Rating Matrix as part of the credit application process which is applicable on both current and prospective clients for fresh and renewal of current limits. We also actively look at increasing our product portfolio with a focus on SMEs and renewable energy. We are also doing various cost-cutting initiatives to reduce our carbon footprint and environmental impact. 11
Incorporating environmental and social risk rating
Incorporating environmental and social risk rating The Environmental and Social Risk Rating (ERR) mechanism is designed in to assess the impact and probability of all the possible risk on which the environment might be exposed. The ERR template covers the IFC’s 8 performance standards and is a tool for screening the bank’s future lending. The template is divided in 3 sections with total of 10 questions: Initial Transaction Screening: Policies and Standards � Environment and Climate Change � Climate Business and its Periphery � 13
Promoting sustainable products
Promoting sustainable products JS Bank has various environmentally-friendly products geared towards promoting renewable energy and energy efficiency. When coming up with these products, various factors have to be kept in mind: � Households want cheaper systems and good quality service while suppliers require a reasonable market-based profit to stay in business Making systems compatible with the social, cultural, and economic activities of � targeted households � Establishing good partnerships for an available supply for products and services (JS Bank has partnered with over 15 solar vendors) � Training off-grid customers in basic troubleshooting
Promoting sustainable products JS Smart Roshni This is smart solar panel financing solution to businessmen of Pakistan, to become less dependent on the grid for energy requirements. Target Market: SMEs generating electricity, ranging from 4 to 100 KW*, for commercial and/or industrial consumption. Product Features: � Financing: Between PKR 0.5 – 10 Million � Equity: Minimum 20% of the financing amount � Markup: Fixed at 6% per annum � Tenure: Between 3 - 5 Years, with repayment in monthly installments � Collateral: Solar Panel are marked under Hire Purchase Agreement to JS Bank *For farmers with above 100KW to 1 MW requirement, JS Banks offers the above terms but takes full collateral 16
Promoting sustainable products JS GharApna Solar Panel Financing JS GharApna Solar Panel offers a comprehensive financing solution for installation of the solar panel system at residential locations. Target Market: Providing financing solutions for generating electricity for residential consumption ranging from 4 KW and above. Product Features: Financing: Between PKR 0.5 – 2 Million � Equity: Minimum 25% of the financing amount � � Markup: Fixed at 6% per annum Tenure: Between 1 - 5 Years, with repayment in monthly installments � Collateral: Solar Panel are marked under Hire Purchase Agreement to JS Bank � 17
Promoting sustainable products JS Zarkhez Solar Tube Well Solar Tube Well for the farms enables hassle free extraction of water from the ground for drip irrigation, watering the fields & livestock. Target Market: Farming community engaged in any kind of agricultural activity Product Features: Financing: Between PKR 0.5 – 2.5 Million � Equity: 20% of Solar Tube well value � Markup: Fixed at 6% per annum � Tenure: 3 - 5 Years with repayment in quarterly installments(including insurance premium) � Collateral: Bank’s charge on agriculture land/ rural or urban property � 18
Profile of potential customers Our target is to address the electricity shortfall by utilizing the renewable energy by target various groups. JS Smart Roshni – Business � � JS GharApna Solar Panel – Residential Areas (Bungalows) � JS Zarkhez Solar Tube Well - Farmers 19
Profile of potential customers Our target is to address the electricity shortfall by utilizing the renewable energy by target various groups. JS Smart Roshni – Business � � JS GharApna Solar Panel – Residential Areas (Bungalows) � JS Zarkhez Solar Tube Well - Farmers 20
Challenges faced promoting sustainable products
Challenges faced promoting sustainable products � Lack of awareness of solar panel technology � Even though there is growing awareness of solar products, it still has not penetrated deeply into far-flung areas. In such areas, customers lack basic knowledge for troubleshooting of solar products � Technical knowledge at branch levels � Since solar panels are a relatively new product, many bank branches are unaware of their benefits and after-sales service. This makes it hard to convince and sell to probable customers. Because of improperly sized systems, there can be lost efficiency and higher cost per unit of electricity 22
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