Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Launched Go Green Initiative in 2015 to reduce paper usage; held two 'Green Weeks' in 2020 to reduce plastic waste; 43% decrease in total paper consumption in 2020.

Social Achievements

• Offered payment deferment options to customers during the COVID-19 pandemic; Annual Bake Sale in collaboration with Al Noor Training Centre; participation in Ramadan Campaign by the Zakat Fund & Abu Dhabi University; Overall customer satisfaction score improved to 71% in 2020 from 43% in 2019; organized three webinars on mental and emotional health for employees.

Governance Achievements

• Compliance with Emirates Securities and Commodities Authority (SCA), Dubai Financial Market (DFM), and the UAE Central Bank (CB) regulations; implemented Anti-Fraud and Anti-Money Laundering (AML) policies; no data security breaches identified in 2020.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted operations and some initiatives were postponed or adapted; financial performance was affected by the pandemic.

Mitigation Strategies

• Seamless transition to remote working; provided a COVID-19 Corporate Support Package; offered payment deferment options to customers; adapted community initiatives to the pandemic context.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct; vendor scorecard; Human Rights Policy; focus on local suppliers (13% increase in procurement spending on local suppliers in 2020).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs, UAE Vision 2021, Dubai Financial Markets (DFM) ESG Reporting Guide

Awards & Recognition

• Global Islamic Business Award (GIBA) 2018
• Dubai Chamber CSR Label 2015-2019
• Best Sharia Compliant Property Finance Company 2019
• Best Islamic Finance CSR Company in UAE 2019
• Innovation in Islamic Finance

Environmental Metrics

ESG Focus Areas

• Customer Wellbeing
• Gainful Employment
• Community Engagement
• Environmental Impact
• Economic Impact
• Governance

Environmental Achievements

• Successfully transitioned to a paperless office using DocuSign, resulting in environmental savings (quantified in terms of CO2, water, and waste reduction).

Social Achievements

• Launched a COVID-19 relief program for customers, rescheduling payments for 78 customers (281 accounts, AED 319 million).

Governance Achievements

• Appointed a female board member, achieving 14% female representation on the board.
• Successfully concluded an arbitration settlement, netting approximately AED 875 million.
• Reduced debt burden by AED 1,139 million (including AED 235 million from Mudaraba instrument).

Climate Goals & Targets

Environmental Challenges

• Continued headwinds from the COVID-19 pandemic.
• Shrinking financing assets portfolio leading to decline in financing income.
• Significant inventory of investment properties requiring disposal.
• Continued delinquencies in financing assets portfolio posing cashflow risks.

Mitigation Strategies

• Debt settlement auctions generating AED 389 million in profit.
• Planned offloading of real estate assets.
• Restructuring of deposits with Commercial financiers.

Supply Chain Management

Responsible Procurement

• Sourcing 100% of needs from local suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting property values.

Transition Risks

• Stricter regulations aimed at reducing building emissions.

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI Standards: Core option, Dubai Financial Market’s (DFM) ESG metrics

Third-party Assurance: Rigorous internal review; financial statements audited by independent firm

Environmental Metrics

ESG Focus Areas

• Climate Change
• Business Prosperity
• Emiratization
• Data Privacy
• Training & Development
• Ethical Marketing
• Diversity, Inclusion & Equal Opportunity
• Community Wellbeing
• Sustainability Practices
• Digitalization
• Robust Governance & Ethical Business Conduct
• Valuable Employment

Environmental Achievements

• Digitally signed 2,574 sets of documents in 2022, saving 18,130 pieces of paper and 1,216 metric tons of CO2 equivalent.
• Launched the "Green Call" initiative for responsible electronic waste disposal.

Social Achievements

• Achieved 75% customer satisfaction in 2022.
• 85% customer satisfaction with collections.
• 90% branch customer service satisfaction.
• 96% employee satisfaction rate with company’s CSR programs.
• Introduced Volunteer Time Off (VTO) for employees.
• Supported Al Noor Training Centre for Children with Special Needs.
• Made contributions to Al Jalila Foundation for cancer charity hospital.
• Provided support to Dubai Foundation for Women and Children.

Governance Achievements

• Implemented the Governance, Risk and Compliance (GRC) model.
• Established a whistleblowing policy.
• Implemented robust policies and procedures to ensure compliance with AML/CFT regulations.
• Developed Amlak Finance Principles of Fair Marketing.

Climate Goals & Targets

Environmental Challenges

• Shrinking financing assets portfolio leading to decline in financing income.
• Continued delinquencies in financing assets portfolio posing a risk to cash flow.
• Inventory of investment properties and other investments outside the UAE requiring disposal.
• Lack of competitiveness with other banks in financing portfolio pricing.
• Significant inventory of real estate assets posing a risk of non-compliance with Finance Companies Regulations.

Mitigation Strategies

• Debt settlement auctions generating net profit.
• Planned offloading of assets within the real estate portfolio generating net profit.
• Exploring different options to address investments to remain compliant with regulations.
• Implementing effective collections practices to recover debts and minimize losses.
• Revised business plan to address challenges and ensure future compliance.

Supply Chain Management

Supplier Audits: 100% of procurement from local suppliers

Responsible Procurement

• Prioritizing local suppliers to support the UAE economy.

Climate-Related Risks & Opportunities

Transition Risks

• Potential for stranded assets in real estate due to climate-related changes.

Reporting Standards

Frameworks Used: GRI Standards, DFM ESG metrics, Sustainable Development Goals (SDGs)

Third-party Assurance: Independently audited financial statements

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

CSR initiatives and sustainability practices align with the SDGs.