In 2007, AAIB signed the London Benchmarking Group, which is a global network of over 100 companies. Developed in 1994 in London, England, it is the first measurement, and most comprehensive and widely used benchmarking means of valuing, managing, measuring, and reporting Corporate Community Investment (CCI).
The LBG focuses more on what companies achieve as opposed to how much they spend. Adopting the LBG approach, it helped enhance our ability to demonstrate the value of our work to key internal and external stakeholders and to communicate our achievements more effectively. Moreover, through the LBG model, we were better able to comprehend the full impact of our corporate community involvement programs.
What is London Benchmarking Group Model?
London Benchmarking Group is a global network of companies that apply LBG’s measurement framework to enable them to measure and report their contribution to the community. LBG provides a consistent methodology to assess each community activity in terms of what’s contributed (Input), what happened (Output) and what changes (Impacts).
In its global picture, the LBG gathers members who come from different spots in the world and contribute on a global scale too. The case studies presented on the LBG website (http://www.lbg-online.net/) give more details on projects that members support in diverse locations worldwide. LBG members come from Australia, North America, Africa, the Middle East, Europe, and Asia. Members represent various industries globally, such as Consumer Goods, Financial Services, Food & Drink, Legal, Media, Pharmaceutical, Retail, Travel & Hospitality, and Media.
The LBG Framework
The LBG model enables CCI (Corporate Community Investment) professionals to measure their company’s overall contribution to the community, taking account of cash, time and in-kind donations, as well as management costs. The model also records the outputs, longer-term community, and business impacts of CCI projects.
AAIB Measuring its Community Investment CCI
FACT: AAIB is the first bank & private entity in Egypt to join LBG in 2007
Each year in October, AAIB submits and publishes the LBG Report. The return/assessment reflects AAIB investment on Sustainability practices, annually. To date, AAIB has published Five LBG Returns; AAIB-CCI indicates growth in spending and value creation. The first two LBG Returns reflect the focus of AAIB Sustainability on health & education, emerging from the belief that investing in the two main pillars would contribute to enhancing the development of our nation.
Hereafter, the AAIB-CCI returns in the years 2011, 2012 and 2013 reflect a focus on improving public health service and public education. However, in the year 2012 the
Sustainability practice has broadened its scope to include environment conservation, culture awareness, social welfare and economic development, consecutively.
The table below shows the AAIB-CCI over the past three years. The table shows spending of 1.3 M GBP in 2011, which was decreased to 400,000 GBP in 2012 an as affect of political turmoil and economic instability; and finally increased to 600,000 GBP in 2013 while the economy is trying to recover.
Case Studies
FACT: AAIB has submitted two successful sustainability case studies in the LBG annual return
Annually, the published CCI assess the business and community impact of the sustainability practices. However, the report presents a successful AAIB- Sustainability case. Throughout the past LBG Returns, AAIB has presented the following successful cases:
- Case Study One: Health and Education: The We Owe It to Egypt’s Foundation (WOITE)
Is the first social development foundation to be established by a bank in Egypt. It started in 2003 as a stand-alone project “Abou El Reesh Special Pediatric Hospital”, while in 2007 the project was institutionalized into the “We Owe It To Egypt’s Foundation”. The Foundation’s vision is “To be the national drive behind a significant impact and sustainable development in health and education in Egypt”.
- Case Study Two: Equator Principles: Social and Environmental Risks in Project Lending Operations
Is a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risks in projects and is primarily intended to provide a minimum standard for due diligence to support responsible risk decision-making.