Senior Manager, Environmental and Social Management Systems (Group Support) at I&M Bank

Purpose:

The job role entails providing oversight in managing and mitigating the Bank’s risk exposures (i.e., credit risk, liability risk, reputational risk among others) through its customers activities in the lending processes, by ensuring that they are operating in accordance with environmental regulations, guidelines and targets across the supply chain and operations. The role entails carrying out due diligence review and environmental & social risk assessments, identifying risks & opportunities and ensuring that necessary systems are in place to mitigate E&S risks when on boarding customers. It also involves continuous monitoring of clients’ activities and systems for further improvements to ensure the corrective action plans are being implemented and risks mitigated.

PRIMARY RESPONSIBILITIES:

Portfolio Growth & Harmonizing E&S Practices

• The increased E&S portfolio represents significant exposure to environmental and social risks from the Bank's lending activities, particularly for category A and B clients. This demands a close collaboration between the Business and Credit teams and conducting independent onsite visits.
• Portfolio diversification further highlights needs to extend E&S risk monitoring and management to new sectors such as SME, and Agri-lending by developing fit-for purposes due diligence, monitoring and reporting tools. This will require regular engagement with product development team, as well as credit and relationship managers to ensure E&S considerations are effected throughout the investment cycle. Therefore, the E&S Manager is expected to.

Implement and integrate of ESMS and as subject matter expertise provide technical support to all subsidiaries to align to the Group Minimum standards by.

• Overseeing the Group’s E&S risk management and implementation of ESMS procedure manual.
• Ensuring that these procedures are implemented for each project, customer’s activities, and that records of environmental reviews (i.e., appraisal and monitoring) are maintained.
• Developing resources and tools for E&S risk management and training
• Ensuring that all investment decisions are supported by appropriate due diligence documentation, including but not limited to an E&S section in each final Investment memorandum.
• Reporting any major E&S issue to senior management and Board
• In liaison with relationship teams, coordinate E&S due diligence and monitoring of customers across the Group
• Developing proposals to guide the Group on emerging issues and opportunities e.g., green lending.
• Ensuring that appropriate environmental representations, warranties, and covenants are incorporated in each loan or investment agreement.
• Conducting site visits on new and existing high-risk accounts to develop and monitor E&S action plans (if any) by the clients,

Research and Development

• Developing programs for capacity building on ESMS, ESG and Climate risk for Bank’s staff and the Board across the Group, through e-learning modules, workshops etc.
• Providing support in the development of sustainable lending products and services for the bank

Adherence to Emerging Regulations, standards, & guidance

• The new guidelines, including the CBK's climate risks guidance, IFRS S1 and S2 on sustainability and climate, Carbon Markets Regulations 2023, and the Kenya Green Finance Taxonomy (KGFT), require banks and businesses to monitor and disclose performance at both the client and portfolio levels. These regulations necessitate an expansion of the Bank’s E&S manager role to assist in evaluating green loans, both individually and in collaboration with business and credit teams. This role will also involve developing and managing climate risk assessment tools and playing a key part in creating the Group’s IR and sustainability reports.

Based on the foregoing, E&S Senior Manager should guide in among others

• Develop & review of policies and procedures that supports the Group’s ESMS implementation in line with emerging regulations, standards and laws.
• Keep track of upcoming regulatory requirement (e.g., CBK, NSE CMA, TCFD, TNFD, KGFT, GHG accounting) as well as the evolving approach of international Development Financial institutions to E&S and assessing the implication to the Bank
• Continuous refinement of tools and systems to monitor ESMS performance in the Bank’s portfolio.
• Ensure compliance with environmental regulations and legislation and keep up to date with local international regulation and legislation.
• Standardize E&S policies & procedures across I&M Group

Investor Expectations & Management

•  The E&S position is a strategic role that is increasingly viewed through the lens of investors. The Manager regularly interacts with the Bank’s investors regarding E&S performance. Currently, the Bank’s investors are demanding an overhaul of its E&S practices, and the individual in this role will need to allocate a significant portion of their time to collaborating with the Bank’s investors to address several action points identified in the recent ESG due diligence. This project is anticipated to span a period of 12 months.

 For Investor & Management Reporting the Manager is expected to

• Create senior management reports and summaries on E&S risk issues, incidents, trends, and potential impacts.  Prepares key reports monthly to the Risk committee (RISKCO) Credit Risks Management Committee (CRMC) and quarterly to the Board Risk Committee (BRC).
• Prepares annual reports to investors/shareholders that is the Development Financial Institutions (DFIs) on the Bank’s E&S risk exposure including IFC, FMO, Proparco & British International Investments (BII)
• Support in coordinating Group’s Sustainability reporting and publishing
• Coordinate the E&S due diligence implementation recommendations
•  Support the Bank to set up and monitor climate-related financial risk appetite and getting assurance on the effective management and control of the risks and report on group carbon emission prevention, reduction and control methods, as well as the total energy use and efficiency involved in producing its products and services.
• Create awareness on climate-related risks and opportunities and how they impact various business lines.
• Scan the business environment (Internal & External) with respect to climate-related issues in the short, medium, and long-term and determine the impact on the various business lines
• Support design business strategy and its implementation to reflect climate-related risks, for example by setting and monitoring key performance indicators (KPIs) that are cascaded down to operational business areas.
• Identify material climate-related risks at portfolio, counterparty, and where relevant at transactional level. Assess relevant financial implications over short and long-term horizons. Assessment of climate-related risks to take place during client on-boarding, credit initiation, credit evaluation, review investment decisions
• Support the development and implementation of the Group’s ESG policy, strategy, and procedures aligns with national and international standards and best practices
• Support in embedding of all new ESG relevant initiatives across the group
• Support in Coordinating Group’s Sustainability reporting and publishing
• Support in embedding of all new ESG relevant initiative across the group

PERSON SPECIFICATIONS

Academic Qualifications

• Bachelor’s degree plus Professional qualification
• Masters’ Degree

Professional Qualifications

• Minimum of four to six years’ supervisory and 1 to three years' experience in a Climate and ESG Risk Management function;
• Excellent communication and interpersonal skills.
• Ability to establish priorities, plan, coordinate, and monitor own work plan
• Strong negotiation skills; and
• Good understanding of relevant regulatory requirements, CBK Prudential, and Risk Management guidelines
• Good understanding of Banking internal policies and procedures as well as external regulations.
• High Level of Integrity