Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Inclusive Economic Development
• Inclusive Social Development

Environmental Achievements

• Reduced CO2 emissions by 373 MT per year through solar panel installation.
• Achieved 525 MWh/yr renewable energy production.
• Reduced paper consumption by over 20% through duplex printing.
• Implemented a 'No New Coal' policy.
• Incorporated LEED/IFC standards in most of its building projects.
• Won the Environment Excellence Award 2021 from the National Forum for Environment & Health.

Social Achievements

• Disbursed Rs. 175 billion to over 14 million families through the Ehsaas Emergency Cash program.
• Supported over 400 e-commerce businesses through an internet payment gateway.
• Disbursed Rs. 1.5 billion to more than 400 women entrepreneurs.
• Served 7.1 million customers through Konnect by HBL.
• Implemented various women-oriented initiatives through Konnect by HBL.
• Provided healthcare support of Rs. 240 million to employees, their families, and the community.

Governance Achievements

• Implemented a robust Social and Environmental Management System (SEMS) aligned with IFC’s Performance Standards and SBP’s Green Banking Guidelines.
• Established a Diversity Council with 44% female representation.
• Implemented women-friendly policies including special leaves and flexible work arrangements.
• Implemented a zero-tolerance policy for Gender-Based Violence and Harassment (GBVH).
• Developed and implemented a Gender Sensitization Training program.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts in Pakistan.
• Environmental degradation.
• Limited access to financial services for underserved populations.
• Gender inequality.
• Need for increased ESG awareness and capacity building.

Mitigation Strategies

• Partnership with WWF to explore solutions for environmental degradation and climate change.
• Engagement with IFC to strengthen E&S risk management and practices.
• Implementation of Green Banking Guidelines.
• Investment in digitalization and financial inclusion initiatives.
• Implementation of DEI policies and programs.
• Capacity building programs on ESG and renewable energy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Exclusion list for harmful industries (coal, tobacco, etc.).

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacts

Transition Risks

• Regulatory changes

Opportunities

• Renewable energy investments

Reporting Standards

Frameworks Used: IFC Performance Standards, SBP Green Banking Guidelines, UN SDGs, Paris Climate Agreement

Certifications: LEED, IFC Excellence in Green Building

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Environment Excellence Award 2021
• Best Bank for Small and Medium Businesses (3 consecutive years)

Environmental Metrics

ESG Focus Areas

• Gender Equality
• Clean Water and Sanitation
• Affordable and Clean Energy
• Decent Work and Economic Growth
• Industry, Innovation and Infrastructure
• Climate Action
• Financial Inclusion

Environmental Achievements

• Installed solar panels in 232 premises, leading to a 288 MT reduction in carbon footprint
• Adopted Green Building Principles for the construction of major buildings
• Launched an annual nationwide Tree Plantation Drive, planting 35,700 trees in 2022

Social Achievements

• Declared as Pakistan’s Most Inclusive Company of the Year 2022, winning 15 awards based on the Global Diversity, Equity and Inclusion Benchmark (GDEIB) Assessment 2022
• Increased gender ratio to over 22%
• Raised staff service age to 65
• Offered employees a cost-of-living adjustment
• Delivered over 500,000 person-hours of training during the year
• Provided financial support for childcare for working mothers
• Launched the Waapsi returnship program for experienced women re-entering the workforce
• Created positions for persons with disabilities
• Improved lending policies with 20% increase in lending, introduction of cash flow based lending, 50% increase in supply-chain financing and collaboration with fintech to offer digital lending to SMEs

Governance Achievements

• Established a taxonomy-based Green Loan Management Framework to track HBL’s performance in supporting green transition
• Implemented a comprehensive risk management framework with close Board oversight
• Created a Bank-wide Integrated Risk and Control Repository (IRCR) to identify, manage, monitor and mitigate all risks and issues
• Enhanced the Bank’s Customer Centricity Guidelines to include parameters for fair treatment of customers

Climate Goals & Targets

Environmental Challenges

• Pakistan's worst-ever floods causing an estimated damage of ~$32 billion
• Rising commodity prices and debt repayments
• Delays in the IMF program
• Severe pressure on the domestic economy due to lack of political clarity
• Global economic slowdown
• Depletion of foreign exchange reserves to nine-year lows
• Unprecedented inflation affecting costs

Mitigation Strategies

• Helped clients navigate challenging times
• Mobilized low-cost deposits and contained cost of funds
• Prudently boosted previously created reserves to insulate the Bank from economic fallout
• Implemented time-tested credit management practices, including regular Early Alert Committee meetings and stress testing
• Enhanced portfolio monitoring and implemented tools for early identification of risks
• Developed new credit scorecards for Consumer and Agriculture
• Provided refresher training to credit teams
• Issued Rs 6.5 billion of perpetual term finance certificates to boost Tier 1 CAR

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001:2015 (Contact Centre)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 5 (Gender equality)
• Goal 6 (Clean water and sanitation)
• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 13 (Climate action)

HBL has devised a pathway to set sustainability targets that align with the UN SDGs.

Sustainable Products & Innovation

• Haryali Account
• Islamic Konnect account
• Mahana Amdan savings product
• Classic Freedom Account with insurance offering
• Nisa Asaan
• Prestige proposition
• Vitality insurance product
• Digital Car Finance

Awards & Recognition

• Best Bank in Pakistan (Institute of Bankers Pakistan)
• Best Microfinance Bank in Pakistan (Institute of Bankers Pakistan)
• Most Inclusive Organization in Pakistan (GDEIB Awards)
• Top Agri Lending Bank Award
• Environmental Excellence Award
• Best Green Bond (The Asset Triple A Sustainable Capital Markets Country & Regional Awards 2021)
• Project Finance House of the Year (The Asset Triple A Sustainable Infrastructure Awards 2022)
• Renewable Energy Deal of the Year (The Asset Triple A Sustainable Infrastructure Awards 2022)
• Best Emerging Technology Award (Pakistan Digital Awards)
• Pakistan Domestic Cash Management Bank of the Year (Asian Banking & Finance - Wholesale Banking Awards 2022)
• Pakistan Domestic Trade Finance Bank of the Year (Asian Banking & Finance - Wholesale Banking Awards 2022)
• Pakistan Domestic Project Finance Bank of the Year (Asian Banking & Finance - Wholesale Banking Awards 2022)
• Point of Sale Initiative for the year (ABF Retail Banking Awards 2022)
• Corporate & Investment Bank of the Year - Pakistan (ABF Corporate & Investment Banking Awards 2022)
• Equity Deal of the Year Pakistan (ABF Corporate & Investment Banking Awards 2022)
• Green Deal of the Year Pakistan (ABF Corporate & Investment Banking Awards 2022)
• Best Payments Initiative (Pakistan Digital Awards)
• Point of Sale Initiative for the Year (Asian Retail Finance Awards)
• Effie Award (Influencer Marketing category)