Investing in our environmental and cultural heritage
Some environmental issues are critical in Mauritius and every local actor has a role to play to contribute to a cleaner footprint. A large proportion of waste is exported since the country lacks local recycling infrastructures. Local biodiversity is endangered, and both the air and the oceans suffer from pollution. Institutions like MCB have a double impact and contribution to the environment: direct impact through its operations and indirect impacts through its financing activities.
MCB’s Carbon footprint analysis in 2018 follows the GHG Protocol5. This approach identifies direct and indirect emissions sources related to MCB Ltd’s activity:
- Direct GHG emissions: from sources that are owned or controlled by the Bank.
- Indirect GHG emissions: are a consequence of the activities of the Bank, but occur at sources owned or controlled by another entity.
The GHG Protocol categorises GHG emissions caused by an organisation into three broad scopes. In accordance with this categorisation and considering the consolidation approach selected by MCB Ltd (control approach), our carbon footprint analysis is broken down into scope 1 & 2 emissions. Additional scope 3 emissions related to employee commuting and business travel are also included. This year, the Bank has extended its carbon footprint analysis to account for an estimation of the carbon emissions associated to its loan products i.e. scope 3 – Use of products category.
This year, MCB has sought to assess its environmental impact beyond its operations by estimating the impact of its lending activities. Sustainability consulting firm Utopies undertook the study below, using its LOCAL FOOTPRINT® NATURE model. The model measures the environmental impacts of the monetary flows of the Bank’s loans throughout the supply chain in Mauritius and a large number of countries worldwide, establishing monetary equivalence on three given environmental impacts, namely carbon, raw materials and water. The study covers loans disbursed by the Bank in calendar year 2018.
As an island state, Mauritius is particularly exposed and vulnerable to the adverse effects of climate change. Rising sea levels and coastal erosion, ocean acidification and the subsequent irreversible damages to marine ecosystems, and the intensification of extreme weather events and cyclones, all pose a significant threat to the country’s economy and to the livelihood of many Mauritians.
MCB’s MCB Group’s ‘Success Beyond Numbers’ philosophy therefore entails a pledge for contributing to a 1.5°C-compatible pathway through a structured climate strategy to be launched in 2020.
As of 2019, MCB had taken its first steps towards the fight against climate change by monitoring the climate impacts of everyday operations i.e. Scope 1 & 2 emissions and Scope 3 emissions – Business travel and employee commuting, representing 18,413 tCO2eq, about 0.35% of Mauritius’ net GHG emissions10. MCB will intensify its efforts to lower its emissions and will seek to compensate any remaining direct emissions through local projects, contributing to making Mauritius a carbon-neutral territory.
What does it entail?
- Preferential interest rates
- An investment grant (cash-back) of:
- 5% on climate change mitigation projects, such as renewable energy projects, energy efficient equipment and installations
- 15% on climate change adaptation projects, such as water saving installations, rain water harvesting, seawater desalination, thermal insulation building techniques
- Additional grants offered to clients committing to assess gender balance within their organisations and undertake a gender action plan, as well as gender equality-related investments.
- Repayment period: min. four years
- Financing of up to 100% of the investment, subject to the fulfilment of the eligibility criteria
Statistics on Green Loans exposures as at 30 June 2019
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