KBZ Bank: Path to Sustainability
Responsible Business Practices
At KBZ Bank, we are committed to enabling individuals, businesses and, through them, the country, to thrive. Through our products, processes and policies, we drive progress in ways that are both inclusive and sustainable, improving lives and livelihoods, and promoting development.
Myanmar is a fledgling economy that has opened up in the last decade and it is making a critical shift to a market-driven economy. Being able to draw on the experiences of our neighbours and the latest developments in both thinking and technologies means both the private and public sectors can leapfrog while considering the sustainability implications of growth strategies.
As one of the nation’s largest financial institutions, KBZ Bank embraces that mindset, even as it fulfils a critical role in Myanmar’s development. And as we ensure a continuous supply of capital to individuals and businesses across the country, our commitment to sustainability and inclusive growth ensures that our activities have a positive social and environmental impact.
We also believe in equitable growth. That is why we build products and services that benefit people across a wide cross section of sectors and social groups. Our priority is to be relevant and accessible to Myanmar and its people and to work tirelessly to strengthen communities and institutions for the long-term, forming the right foundations for nation-building.
“MCRB has welcomed KBZ’s participation in our discussions and workshops around responsible business over recent years, and in particular the leadership they have shown on disability inclusion, and the role they play as a founding member of the Business Coalition on Gender Equality. We look forward to working with them on other collective actions by business – particularly banks – to strengthen Myanmar’s ability to deliver on the Sustainable Development Goals.”
Vicky Bowman, MCRB
KBZ’s Pillars of Sustainability
KBZ Bank’s path to sustainability has been both deliberate and systematic. Our Sustainability Strategy, which is aligned to a number of the United Nations’ Sustainable Development Goals (SDGs), is centred around three core pillars that address current, continuing and future needs:
- Promoting 100% financial inclusion in Myanmar
- Driving equitable growth for Myanmar’s economy and its communities
- Creating Myanmar’s workforce of the future
We have recently formed a sustainability task force for ESG, D&I and Human Rights with representatives with different backgrounds such as Risk Management, Legal and Compliance, Human Resources, Social Purpose, Corporate Communications and an independent external consultant. This task force supports the bank in the implementation of various initiatives, policies and guidelines related to these areas.
Progress on Sustainability Strategy
We have engaged an external consultant to assist with the development of our sustainability/ ESG strategy and report with the aim to structure our approach on ESG.
The first phase of the process has completed in the second quarter of 2022, i.e. assessed the gaps between KBZ Bank current practices and various local and international standards such as Pwint Thit Sa Transparency Report, WWF, Fair Finance, etc.,.
The gap analysis will help us to develop a sustainability roadmap together with a practical action plan. After this phase, the core priorities for its path to sustainability will be identified. Ultimately, we will develop a Roadmap as an integral part of our business strategy with various action plans that address the top material issues that are important to our stakeholders. We’re also engaging with external stakeholders to help us understand the current ESG topics and trends.
In the second phase, we aim to build our capacities on various topics related to ESG as we strongly believe that our people will be instrumental to shifting mindset and behaviours, internally and externally. Various trainings and e-learning modules will be developed to ensure a common understanding across different functions and teams. To measure our sustainability journey, we will monitor the implementation of action plans mapped out under the first phase. Finally, we will structure and deliver the first sustainability report for KBZ Bank by the end of 2023, which will be aligned with the UNGP, the TCFD, the GRI Standards and the Integrated reporting frameworks.
These concrete steps underscore our commitment to embracing sustainability within the Bank. Over the next 5 years, the bank will be focusing on increasing awareness of sustainability principles and sustainable development amongst our network of stakeholders. Our goal is to create value for each of our stakeholder groups in the form of positive environmental, economic and social impacts.
Promoting 100% financial inclusion in Myanmar
We believe that financial inclusion is critical to reducing inequality. Access to financial services gives individuals and communities the resources – and an opportunity – to lift themselves out of poverty and improve their quality of life. We give them the tools to begin saving, accumulating assets, and reducing their dependence on public aid and welfare. They can access everyday accounts to save and track spending, shopper loans to finance bigger purchases, and make payments to digital services without needing to hold a bank account.
That is why financial inclusion is one of the goals that KBZ Bank pursues with great determination. In a country where some 90 percent of the population remains unbanked, we have prioritised digital financial services that bring more people into the formal financial economy by putting banking at their fingertips. Our financial literacy programmes, meanwhile, give them the confidence to manage their finances and make sound money-related decisions.
SDGs | UN Targets for 2030 | KBZ Bank’s Initiatives (2019) |
Goal 4: Quality Education | Ensure inclusive and quality education for all and promote lifelong learning | ● Develop talent and leaders through a Value Centre model, continuous learning programmes, a strong commitment to diversity and inclusion, and supporting youth education |
Goal 5: Gender Equality | Achieve gender equality and empower all women and girls | ● Empower women through microfinance ● Diversity and inclusion at the workplace ● Equal opportunity employer |
Goal 8: Decent Work and Economic Growth | Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all | ● Nurture entrepreneurship and support small business owners |
Goal 9: Industry, Innovation and Infrastructure | Build resilient infrastructure, promote inclusive and sustainable industrialisation, and foster innovation | ● Create financial connectivity beyond bank branches by introducing products and services that support a Mobile First Myanmar ● Finance national infrastructure projects ● Strengthen institutions ● Power new industries |
Goal 10: Reduced Inequalities | Reduce inequality within and among countries | ●Promote truly inclusive banking by giving the underserved and unbanked access to digital financial services through KBZPay |