Climate Change Data

Environmental Metrics

ESG Focus Areas

• Digital Transformation
• Financial Inclusion
• Green Banking
• Renewable Energy
• Sharia Governance
• Sustainability
• Social Responsibility

Environmental Achievements

• Jordan Islamic Bank (JIB) installed photovoltaic systems in 21 branches by early 2018, generating about 2 million KWH and saving JD 817,000 on electricity bills. JIB also opened a 2.7MWP solar power plant in 2018, covering 75% of its electricity consumption.
• JIB replaced traditional lighting with energy-saving LED units in 71 branches and offices, saving 35% on electricity consumption.
• JIB installed water-saving tools in 39 branches and offices.
• JIB launched a financing product, “Our Sun”, to support renewable energy systems for individuals and businesses.

Social Achievements

• Al Baraka Banking Group organized a workshop on digital strategy, attended by delegates from all its units, to enhance digital maturity.
• Al Baraka Türk launched Albaraka Garaj, an acceleration center to collaborate with fintech startups.
• Al Baraka Türk launched Insha, a Sharia-compliant digital banking account in Europe.
• JIB supported the installation of solar power units for several mosques and a school in southern Jordan.

Governance Achievements

• Al Baraka Banking Group implemented the Central Bank of Bahrain’s instructions on Islamic governance, effective June 30, 2018.

Climate Goals & Targets

Environmental Challenges

• The risk of losing 30% of sector revenues due to fintech competition.
• The need to adapt to changing customer demands and expectations.
• The need to bridge the gap between traditional business capabilities and a new digital value proposition.

Mitigation Strategies

• Adoption of agile development processes to improve speed to market.
• Effective change management across the organization for sustainable innovation.
• Collaboration with fintech startups through Albaraka Garaj.
• Development of a Sharia-compliant digital banking platform (Insha).

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 13 (Climate Action)

Initiatives in renewable energy and digital transformation contribute to these goals.

Sustainable Products & Innovation

• Insha (Sharia-compliant digital banking account)
• Our Sun (renewable energy financing product)

Environmental Metrics

ESG Focus Areas

• Job Creation
• Education
• Healthcare
• Sustainable Energy
• Philanthropy
• Community Development
• Economic Opportunities
• Social Investments

Environmental Achievements

• Planted 300 indigenous trees at 10 schools in South Africa.
• Financed US$195.762 million towards renewable energy projects (exceeded yearly target by 231%).
• Supported environmental and sustainable energy initiatives in Lebanon and South Africa.

Social Achievements

• Created 10,570 new job opportunities.
• Financed and funded US$27.782 million for education (73% of 2019 target).
• Financed and funded US$125.079 million for healthcare (144% of 2019 target).
• Launched "Tamkeen" Women Empowerment Program in Lebanon, providing financial and academic support to women starting their own businesses.
• Implemented various social investment projects in Turkey through the Bereket Foundation, including scholarships and the "Add Value for the Future Project".

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Logistical hurdles and insufficient knowledge of the curriculum hindered the full implementation of the "Add Value for the Future Project" in Turkey.

Mitigation Strategies

• Al Baraka Türk provided digital guidance to students and teachers through its YouTube channel to address the challenges in the "Add Value for the Future Project".

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact's Ten Principles, UN's Global Goals for Sustainable Development

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)

Al Baraka Goals (2016-2020) pledged US$822 million in financing towards seven of the UN’s Global Goals for Sustainable Development.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Platinum Award at the 11th Corporate Social Responsibility Summit in Turkey (Add Value for the Future Project)