Qatar Islamic Bank (QIB) has taken an important step in its sustainability approach, becoming the first bank headquartered in Qatar to join and adopt the Equator Principles, an internationally recognized frame of reference for identifying, assessing and managing environmental and social risks.
This important step confirms the bank’s commitment to sustainable banking practices, its continuous support for sustainable development efforts, and keeping pace with the international community in the Equator Principles Association.
The bank has a proven track record in business strategy and the promotion of sustainable development, by keeping in mind the Qatar National Vision 2030, and its commitment to the United Nations Sustainable Development Goals.
Through its membership in the Equator Principles financial institutions, the bank has updated its risk management framework to align with the principles of the association, demonstrating its commitment to sustainable banking practices and development. This will enable the bank to assess potential risks that may affect the environment and society when financing related projects and business proposals, while providing an opportunity to communicate with its customers to mitigate the impact of any potential risks, which in turn leads to increased awareness of risks among existing and potential customers.
Mr. Basil Jamal, Group Chief Executive Officer of QIB, said: “We recognize the important role the financial sector plays in promoting sustainability, and we believe that integrating environmental, social and governance risk analysis is essential to mitigate climate change risks and support responsible risk-taking. As the landscape continues to evolve towards new innovation-driven trends to adapt to and mitigate climate change risks, the Bank is committed to embracing these trends and enhancing long-term positive impacts in the communities it serves. We are committed to sustainability in all of our operations, and becoming a signatory to the Equator Principles is an important step forward in this regard.”
The Equator Principles is an international framework for environmental and social risk management in projects adopted by financial institutions to identify, assess and manage such risks, with the primary objective of establishing minimum standards of due diligence and oversight. The Equator Principles support sustainable development efforts around the world, through a risk management framework based on environmental, social responsibility and governance. These principles have gained wide acceptance, with Equator Principles financial institutions covering most of the international debt to finance projects in developed and emerging markets. The adoption of the Equator Principles has also garnered great interest among investors.
