s

Investing in our environmental and cultural heritage

Climate assessment & strategy

First insights for a 1.5°c climate strategy

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 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.

However, as is the case for socio-economic impacts, MCB’s responsibility extends to the much greater indirect impacts caused by its loans and investment portfolios.

Asset 56First insightType of impacttCO2e% of Mauritius emissions(Scope 1 and 2)MCB operations 18,4130.35%MCB loans (6 types)375,0557.1%MCB investment portfolioTo be assessed
Representing more than 7% of Mauritius’ emissions, the substantial measured CO2eq. impact of loans disbursed by MCB underlines the necessity to reinforce its green loan offer and to actively contribute to local mitigation and compensation projects, in order to support Mauritius’ transition towards carbon-neutrality.
10 Environment Statistics 2018, Statistic Mauritius
With regards to its investment portfolio, MCB intends to better monitor its carbon-related assets and to assess the climate-related risks attached to its debt and equity holdings. A first, partial analysis regarding oil, gas, and coal-related assets shows an increase in fossil fuel exposure over the past three years, due the growth of our E&C activities. A climaterelated risk and opportunities assessment is expected to allow MCB to define an investment pathway that effectively contributes to economic development while also paving the way to a carbon-neutral society. That being said, it is important to understand that our E&C activities in Africa still contribute to the socio-economic development of the impacted regions by providing access to energy. It is therefore important to understand the energy context and imperatives of the countries in which we operate.
Asset 57Total assets mcbIn USD mJune 2017June 2018June 2019Oil & Gas83914511913Trade Finance69011281303Exploration & Production6599213Project Finance02622Prepayments84198375Coal52121100Trade Finance52121100Total8901,5722,013% of total assets*9.3%15.0%16.3% *Total assets of MCB Ltd
To this regard, 2019 was a turning point for MCB as the Bank, for the first time, denied a loan to a coal-powered power plant project on the grounds of climate responsibility. This choice triggered rich discussions between the project holders and the Bank about more environmentfriendly energy alternatives. This decision paves the way for better integration of climate risks in our investment and financing decisions.

Partnership With The Mauritian Wildlife Foundation

On 8 May 2019, MCB signed a three-year partnership with local NGO Mauritian Wildlife Foundation (MWF), committing to fund five of MWF’s existing programmes to the tune of some Rs 20 m over three years. The terms of the partnership include a direct financing of Rs 5 m every year until 2021 on top of a fund into which MCB pays 10 cents for every transaction clients make using their debit cards. It is estimated that this contribution will amount to between Rs 1.5m to Rs 2m a year.

The rationale behind this partnership is to raise awareness on the need to include the protection of the island’s unique biodiversity in the country’s ongoing economic development and to favour green tourism.

MCB CEO, Alain Law Min and Chairman of MWF, Tim Taylor shake hands on a three-year deal.
The five programmes sponsored by MCB are as follows:
Protection of the fragile biodiversity of Mauritius’ Islets through inclusive participation
This programme consists of raising awareness among users of the islets found in the South East of Mauritius on the unique biodiversity to be found on those islets as well as on conservation efforts so far. The idea is to empower users – fishermen, skippers, boat operators and officers of the National Coast Guard – to act as guardians of those islets and protect conservation efforts on the understanding that they also have a stake in protecting those islets. Training will soon extend to users of northern islets where conservation work is also taking place.
Conservation of the Pink Pigeon
When the MWF was created 30 years ago, there were only nine known individuals of this endemic bird. The population today is estimated to be at 480.
Conservation of the Echo Parakeet
The population of this endemic bird now stands at 800 against nine individuals 30 years ago.
Conservation of the Gunther’s Gecko

This endemic reptile is one of the largest geckos in the world and was listed as a critically endangered species until recently. There are now 200 individuals on the islets.

Conservation of the Round Island Boa

Initially found on Round Island, there were 150 individuals of this small reptile. The population now stands at 1600. Some of them have been relocated on Gunner’s Quoin to ensure their survival.

MCB’s partnership with the Mauritian Wildlife Foundation will extend to printing the NGO’s logo on all MCB debit cards as from September 2019. This will coincide with the replacement of all current debit cards made of plastic with ecological and recyclable cards made from maize.

MCB’s partnership with the Mauritian Wildlife Foundation includes a contribution every time a customer uses his or her debit card.

Partnership With Ebony Forest

Ebony Forest covers 50 ha of almost decimated forest in Chamarel which are slowly being rehabilitated into an endemic forest. Rehabilitation of forests to their original state is a costly matter and MCB has over the years, been a regular sponsor of different activities to help Ebony Forest achieve its target of raising awareness on the importance of conservation work. Mauritius currently only has 2% of endemic forest. With the financial help of partners such as MCB, Ebony Forest has since 2007 planted 145,000 trees, representing a carbon offset of almost 25,000 tons. MCB has also sponsored 1 ha of Ebony Forest, thus taking the responsibility of reforesting this area together with its employees. This year’s sponsorship amounts to Rs 2.2m and includes information packs for school children.

1. Restoring Ebony Forest to its original state has brought back insects that had not been seen in a long time.

2. This, believe it or not, is a sign of a healthy forest!

3. Snug and safe in its natural habitat: The endemic bat at Ebony Forest.

4. Endemic birds are overjoyed with the return of their favourite nourishment!

Plogging the way to awareness

Raising awareness on the need to protect the environment goes through understanding how vast the undertaking is. In May 2019, some 100 MCB employees took to the streets of Les Salines in Port Louis in their plogging attire – jogging gear, gloves and bin bags. As staff jogged through two different trails – a 1 km one and a 4.5km one -, they managed to collect half a ton of rubbish ranging from plastic bottles to disused fridges.

PrevPage

Next_page

Prev_Next1

Prev_Next2