Bank ABC Group allocated 12 per cent ($2.3 billion) of its lending portfolio to sustainable finance in 2023 while also making strides in reducing its environmental footprint and achieving high rates of renewable energy usage and waste recycling, it has emerged.

The bank’s first dedicated Group Sustainability Disclosures Report released yesterday details achievements across its international operations last year, demonstrating its commitment to a more sustainable future.

The report outlines a comprehensive three-year sustainability strategy with a focus on five key pillars: Governance, Operations, Risk Management, Financing the Transition, and People and Communities. Initial efforts have concentrated on measuring the bank’s environmental and social impact, establishing frameworks for improvement, and defining Environmental, Social, and Governance (ESG) key performance indicators (KPIs) for ongoing monitoring.

“Our approach to sustainability extends from our core purpose,” said Bank ABC group chief executive Sael Al Waary.

“We believe the banking industry has a central role to play in funding a more inclusive and sustainable future. By making sustainability a strategic priority, Bank ABC is reinforcing its commitment to driving this positive change.”

The bank has also made significant strides in reducing its environmental footprint. Notably, Bank ABC Jordan achieved 100 per cent renewable energy usage at its offices, while its London subsidiary, ABCIB, reached 88pc. Additionally, the group recycled 40pc of all waste in 2023.

Looking ahead, Bank ABC sees sustainability as a source of value creation. The bank has already launched green retail finance products in Jordan and Egypt, while its subsidiary Banco ABC Brasil has begun developing new ESG-focused products, creating potential synergies across the group.

Bank ABC became one of five Mena banks to be a PCAF (The Partnership for Carbon Accounting Financials) signatory.

The bank’s commitment to sustainability extends beyond environmental considerations. The group provided $5.1 million in Corporate Social Responsibility (CSR) investments in 2023, representing 1.4pc of pre-tax profits.

The Group’s Sustainability Disclosures Report is a testament to its dedication to transparency and accountability. The report adheres to the Global Reporting Initiative (GRI) Standards 2021, Central Bank of Bahrain’s ESG Requirements, and Bahrain Bourse ESG Reporting Guide.

 

Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).