The World Savings Banks Institute (WSBI) is the global voice of savings and retail banking, representing savings and retail banking institutions in 92 countries in Asia-Pacific, the Americas, Africa and Europe via ESBG, the European Savings Banks Group. At the start of 2006, assets of member banks amounted to more than € 8 billion, with operations through more than 191,000 branches and outlets.

WSBI members are typically proximity banks with large distribution networks and broad domestic and regional outreach. They have been reinvesting responsibly in their regions for many decades. Today, on all continents, they serve as a key social actor, seeking to bring value and returns to the citizens and communities surrounding them through contributing to the improvement of living conditions, supporting local economic development and building greater social cohesion.

Additionally, in an increasing number of markets, savings banks have been progressively introducing corporate social responsibility (CSR) concerns in their banking activities, involving all stakeholders for the development of inclusive and innovative CSR programmes. Thus, they have entered various new CSR fields such as socially responsible investment, environment-friendly services and products, corporate governance, and CSR awareness by small- and medium-sized (SME) clients.

WSBI’s decision to join the UN Global Compact in August 2006 reflected the collective and strong commitment of our members in favour of sustainable development and CSR. It also reinforced the engagement of our members – many of whom were already signatories of the Global Compact on an individual basis: BancoEstado (Chile), Caixa Economica Federal (Brazil), Swedbank (Sweden), Groupe Caisse d’Epargne (France), and a number of the Spanish Confederación Española de Cajas de Ahorros (CECA) members. WSBI’s overall ambition is to improve the uptake, implementation and strategic integration of GC Principles into all of our members’ business activities.

The following case examples – from “Savings Bank’s Socially Responsible Activities, A Wealth of Experience”  – illustrate the diversity of CSR activities that are being developed by WSBI member banks around the world and their convergence with the Global Compact’s objectives.

Banco Estado, Chile - The biggest microfinance programme in the country

Banco Estado is the largest bank present in most of the provinces in Chile. It runs a microenterprise programme that is a national leader with over 40 percent of the market. In 2006, it served 219,069 microentrepreneurs. One-third of them achieved access to a financial institution for the first time. This programme is serviced through 124 specialized platforms throughout the country and has a recovery rate of 99 percent of loans. Half of customers are women and more than 90 percent of credits are processed without guarantees.

Caixa Economica Federal, Brazil - The Adolescent Apprentice Programme

In partnership with social and educational support entities specialized for children and teenagers, Caixa has developed the Adolescent Apprentice Programme to train adolescents in banking and administrative work.

The teenagers who participate in the programme come from families in which the per capita income is 50 percent or less of the current minimum wage. The content of the syllabus is defined jointly with the specialized youth entity and includes: basic and financial mathematics, communication, Portuguese language, computer skills, citizenship, and cultural and sporting activities. Caixa’s staff monitor the adolescents’ progress. At the end of 2006, the program created 3,600 jobs. It also began including young “quilombolas” girls, who are descendants of slaves that lived in Quilombos (Brazilian hinterland settlements).

Savings banks, Spain – Financial inclusion

Obra Social mobile units

A main reason for the creation of savings banks was the fight against social and financial exclusion. Spanish savings banks work toward this goal in several ways. They have the largest network in the country with 23,414 branches, covering 97 percent of total Spanish population. Approximately half are located in areas with less than 50,000 inhabitants and 26 percent in localities with less than 10,000 inhabitants. Their network of branches represents 54 percent of the total network in Spain and is the most “dense” in the European Union. A 2005 study showed that 96 percent of the Spanish population benefited from the savings banks´ Obra Social programme. Obra Social represents an active cohesion element for the population because less inhabited areas, the elderly population and low-income social groups are primary beneficiaries.

Groupe Caisse d’Epargne, France – Sustainable development in the supply chain

In 2006, Group Caisse d’Epargne launched the Fréquence Fournisseurs programme, which aims to improve the relationship with its more than 47,000 suppliers. It is based on an assessment of current performance across four criteria: economic competitiveness, operational performance, development opportunities, and image. These reflect the reality that the supplier relationship is not only driven by cost considerations, but also the quality of service and the opportunity to further develop the relationship. The Group focuses particularly on shared values and common approaches regarding sustainable development.

Within the sustainable development assessment, six domains are evaluated: human rights and human relations, environment, relations with clients and suppliers, societal commitment, and governance. The evaluations carried out in 2006 have defined expected measurable progress for the future.

Swedbank, Sweden – Encouraging “green” investments through energy loans

Swedbank’s environmental policy has been in effect since 2000. It aims to have both direct and indirect positive impacts on global environmental issues through measures taken within the bank’s core business. In this context, Swedbank offers special interest rates for credits, which seek to promote increased investment by clients in energy-saving solutions. The environmentally oriented solutions which can be made more possible by the favourable credit conditions may consist of various investment activities, such as improving the isolation of a building, changing the windows, replacing the refrigerator or freezer, or installing an environmentally friendly heating system (e.g. biofuel-fired heating, heating with pellets or solar collectors). The credits start at €6,000 and no collateral is required. Through these attractive lending conditions, Swedbank encourages its customers to move towards “greener” investments.

Greater detail on these and other savings bank projects can be found in “Savings Bank’s Socially Responsible Activities, A Wealth of Experience” or at www.savings-banks.com. Contact: anne-francoise.lefevre@savings-banks.com.