Banking on Value: A New Approach to Credit Risk in Africa

The objective of this study is to firstly assess the extent to which ESG issues feature in South African and Nigerian credit risk assessment policies; and secondly, to provide guidance for implementing environmental, social and governance issues, or sustainability issues, in credit risk assessments. This study is expected to serve as guidance for financial institutions seeking to define sustainability policies in the field of credit risk management. Furthermore, it is hoped that by providing insight to the opportunities presented by embracing sustainability in the financial sector, it allows financial institutions throughout Africa to identify their relative strengths and weaknesses, and assist in improvement.