NMRC’S APPROACH TO SUSTAINABILITY
NMRC is committed to operationalizing and promoting an appropriate Environmental and Social Management System (ESMS) for itself and for the financial institutions, which it refinances. This is necessary, to effectively assess and manage the E&S risk exposure. The ESMS integrates ESRM into overall procedures for lending operations, supported by NMRC.
Core components of the ESMS are as follows:
- Clearly specified applicable E&S requirements and standards.
- Procedures for screening, identification, assessment, mitigation, and monitoring of E&S risks. These procedures include record keeping, disclosure, and reporting.
- Capacity, roles and responsibilities within the organizational structure of NMRC and Mortgage lenders for managing E&S risks.
- Guidance and tools: Practical resource materials for implementing ESRM provisions, internally by NMRC and mortgage lenders (these tools are developed and improved on an on-going basis).
NMRC’s ESG forms part of the company’s strategy that guides and shapes the core values, knowledge and skills of our people in promoting sustainability and resilience in Nigeria’s complex and evolving housing finance environment. NMRC is committed to promoting economic and social development in the markets we serve sustainably and equitably in line with our mission, vision and core values.
NMRC’s ESG policy sets out how the company integrates sustainability principles into its organizational decision making.
NMRC sustainability builds on its strategic intents, backed by deliberate actions and measurable targets i.e. the adoption of sustainability principles aid the company in tracking mortgage refinance penetration and its sustainable outcomes across our business markets.
NMRC believes that an important component of achieving positive development outcomes is the environmental and social sustainability of these activities, which NMRC expects to achieve through the application of its sustainability Policy.
NMRC’S ENVIRONMENTAL AND SOCIAL SUSTAINABILITY GOVERNANCE
NMRC recognizes that as a primary mortgage refinance company, it is exposed to some Environmental and Social (E&S) risks through the mortgage lending activities of its partner mortgage lending institutions and that this could unfold in the form of financial, legal, and/or reputational risk to NMRC. The E&S risks associated with NMRC’s lending activities depend on factors such as the specific E&S circumstances associated with operations of the mortgage lending institution.
In pursuit of sustainability goals NMRC acknowledges the need to manage environmental and social risks responsibly. As such, NMRC works with its clients to manage these risks and engages with stakeholders, governments and non-governmental organizations to mitigate the impact that results from our investments and refinancing decisions.
Additionally, NMRC also supports its clients to institutionalize and implement adequate policies, procedures and practical tools for environmental and social risk management to ensure adherence to sustainable financing principles. A notable example is NMRC’s partnership with the World Bank and International Finance Corporation’s market transformation initiative tagged Excellence in Design for Greater Efficiency or EDGE. This initiative is in line with NMRC’s strategy towards promoting the building of innovative, sustainable, “green” communities as part of NMRC’s Strategy for improved health, long-term economic and environmental benefits for society.