In August, Crown Agents Bank (CAB) achieved its B Corporation certification, which establishes that the bank has met the highest standards of environmental, social and governance (ESG) performance, as well as transparency.
The UK-regulated institution, which facilitates payments and foreign exchange in emerging and frontier markets, is one of the first banks in the country to become certified. As an early adopter, the bank believes the accreditation showcases its commitment to sustainable and responsible business practices to its employees, clients, partners and regulators.
Two years in the making, the rigorous B Corp certification process has touched all areas of the bank, including CAB’s articles of association. Charlie Bronks, head of ESG at CAB, spearheaded the certification and spoke to The Banker about the challenges and milestones, and provides advice for other banks looking to become a B Corp.
Q: Why was becoming a B Corp of importance to CAB?
A: When we began thinking about it, CAB was owned by private equity firm Helios Investment Partners, which was a B Corp and wanted us to have good ESG credentials. Then as we started our research into it in early 2020, we realised that the accreditation aligned with our DNA as an organisation.
B Lab stood out for us because it led on indicators around transparency, accountability and trust, which we thought was critical for any financial institution but particularly for a bank working in some of the most demanding markets across the world.
The B Corp certification recognises responsible businesses and holds us all to the highest standards in social and environmental performance. This is important to regulators and stakeholders, such as clients, partners and suppliers. Additionally, it makes the staff proud to be part of a B Corp and helps us attract talent.
Q: How did you start the journey?
A: I was keeping an eye on ESG off the side of my desk for about six months, which is often how sustainability in small to medium-sized businesses start. But to become a B Corp, we would need someone focused on this full-time because it is basically changing the way we do everything.
Our CEO Bhairav Trivedi, together with our chief risk officer [CRO] Chris Green, recognised the need for a role leading our ESG focus. I volunteered and Chris become our very supportive ESG board champion.
Embarking on the journey was made easier with strong board sponsorship. And while having that sponsorship at board level is important, we also have support throughout the whole organisation.
I report directly to the CRO. ESG sits within the risk and compliance team in CAB, which is unusual among banks, but that is where it fits best for us. One important step we took was to establish the B Corp Steering Group, which is chaired by the CRO. This allowed me to involve people from different parts of the organisation to be part of the plan, especially from compliance.
We put our submission to B Corp in November 2021, which started the assessment process. B Lab assigned an account handler and then it was almost two years of consistent effort until our certification.
Q: What hurdles did CAB have to overcome?
A: To become a B Corp, we had to legally change our articles of association — which define the bank’s purpose — to embed a stakeholder-focused mindset, so it is not just about shareholder value. It is a commitment to being a responsible and sustainable business, taking into consideration both people and the planet.
Other challenges were similar to those in any big project, such as competing business priorities. We were in the midst of a massive growth phase, so we had to align the rapid expansion with the rigorous requirements of the B Corp certification. In hindsight, the certification process was a powerful tool for readying ourselves for growth. Ensuring our business was adhering to all the sustainability standards during that accelerated growth tested us, but was also rewarding.
Engaging and managing stakeholders was challenging, but we established clear and consistent communication. Continual education also helped. If I wasn’t getting something through, I would do a broader education piece to keep people on track and engaged.
In addition, some of the challenges we had with the B Corp process was as a result of what we do and where we do it. Any financial institution that works in the more complex geographies, as we do, will face this challenge. The nature of our business is moving money to where it’s needed, often with governments, international development organisations and aid agencies operating in difficult conditions, such as natural disasters and conflict zones. That work is vital in helping those who need it most. Sometimes it can be highly sensitive, so it was challenging to evidence this work. We had to work closely with B Lab to demonstrate social impact, while keeping the appropriate information confidential.
That was a learning curve for us and for B Lab, but, importantly, B Lab was willing to work with us. And as more banks or companies that work in frontier markets apply for B Corp status, it’s good that they understand some of the challenges we faced in articulating that.
Q: What were the milestones during the journey and how did you identify them?
A: One milestone was establishing the B Corp Steering Group, which was very powerful because a change this big can’t be done on the periphery of an organisation.
We worked with a partner called Junxion, which is an agile and dynamic consultancy. It didn’t hand-hold us through the process, but it helped us think about our ESG focus and navigate through the complexities of our B Corp application. I am thankful that I chose the right partner because we are not a typical lending bank, and Junxion helped us articulate how our business model fits into B Lab’s framework.
Of course, achieving the certification was the crowning glory. When it was announced, we celebrated with all the CAB staff by bringing in wonderful stuff from other B Corps for our staff. Everyone got goodie bags. It was great fun.
Q: What benefits will this bring to the bank?
A: It proves that we are contributing to positive social change, so our staff, clients, partners and other stakeholders know that we are doing the right thing. Many of our partners are operating in challenging environments, and they need to know that who they’re working with can be trusted. B Corp status contributes to those credentials.
We can also demonstrate regulatory alignment. Clients and partners benefit from our alignment with sustainability and responsible business practices; the certification ensures we operate within the framework of current and future regulations.
As mentioned, we wanted to be an early adopter to attract talent. There’s always going to be a war on talent for the best people and many would rather work for a B Corp given the choice.
And everyone benefits from building a more resilient ecosystem, where sustainability and ethical considerations are prioritised.
Q: What advice would you give to other banks thinking of a B Corp certification?
A: Reach out. I’m happy to talk to you as I think it is worth doing. And it would be great if we had more B Corp banks.
My main piece of advice is to ensure that you have the time and dedicated resources needed to go through with it. And the commitment to making change. You need to have a management-level understanding of the huge commitment, because ultimately, sustainability touches your entire organisation. Without that political will in the organisation, it will fall flat.
We also looked at it from the perspective of what is the risk of not doing it; fundamentally, we wanted to be an early adopter to protect the bank. Having good sustainability credentials is the right thing to do, but, ultimately, it will protect the bank in the long term because we are doing the right thing.
Q: What are the next steps for CAB?
A: We are focused now on continuous improvement in our operations. B Corps need to recertify every three years, which involves a thorough assessment of our continued commitment to B Corp principles. We have committed to publishing an annual impact report, which we will wrap into our sustainability report.
I also want staff to engage with the ‘B Hive’ — the B Corp community — which regularly talk about what organisations are doing to improve. That will be helpful for us, especially as regulations are constantly changing.
We want to keep our B Corp Steering Group engaged, and one of the projects we’re looking at is a carbon tax. While our carbon emissions as a business are not that big, we all travel a lot. So we are looking at how we can put something in place that ensures we are paying the proper cost for carbon.
We’ve just attained certification, so have only taken the first step. There’s still a lot of work to do.
