Climate Change Data

Arab Banking Corporation BSC

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:9,521 tCO2e/year
Scope 1 Emissions:122 tCO2e/year
Scope 2 Emissions:8,443 tCO2e/year
Scope 3 Emissions:956 tCO2e/year

ESG Focus Areas

  • Governance
  • Operations
  • Financed emissions
  • Stakeholder engagement
  • Climate change
  • Diversity, Equity & Inclusion (DEI)
  • Environmental risk
  • Community Investment
  • Green and Sustainability-linked Finance

Environmental Achievements

  • Reduced Scope 1 emissions by 40% (from 203 tCO2 to 122 tCO2) due to air conditioning upgrades.
  • UK operation to source 100% renewable energy from April 2023.

Social Achievements

  • US$2mn donation for Turkey-Syria earthquake relief efforts.
  • Financial support to Shamsaha Women’s Center in Bahrain.
  • Various community initiatives across its network addressing poverty, hunger, education, inequalities and health & wellbeing.

Governance Achievements

  • Review underway to enhance governance structure regarding sustainability.
  • Executive team participated in sustainability training sessions.
  • Remuneration structures under review for alignment with sustainability objectives.

Climate Goals & Targets

Medium-term Goals:
  • Develop a net zero target covering financed emissions.
Short-term Goals:
  • Reduce environmental impact of operations and supply chain.

Environmental Challenges

  • Increase in Scope 2 emissions due to return to office post-Covid.
  • Need to measure and mitigate the environmental impact of its supply chain.
  • Need to deepen its approach to diversity, equity & inclusion (DEI) in some regions (e.g., Bahrain).
Mitigation Strategies
  • Defined baseline of greenhouse gas emissions, energy, water and waste use.
  • ESG risk assessment included in supplier tendering process.
  • Action plans to reduce environmental impact of operations and supply chain.
  • Reviewing data storage approach to reduce energy use and improve efficiency.
  • Developing projects to cut paper use (e.g., digital signatures).

Supply Chain Management

Responsible Procurement
  • ESG risk assessment included in supplier tendering process.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals, UK DEFRA, GHG Protocols

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:92,552 tCO2e/year
Scope 1 Emissions:1,435 tCO2e/year
Scope 2 Emissions:14,220 tCO2e/year
Scope 3 Emissions:76,897 tCO2e/year
Renewable Energy Share:9%
Total Energy Consumption:24,955,730 KWh/year
Water Consumption:65,272 m3/year
Waste Generated:163 tons/year
Carbon Intensity:72.3 tCO2e per US$m revenue

ESG Focus Areas

  • Climate Change
  • Diversity, Equity, and Inclusion
  • Governance
  • Sustainable Finance
  • Community Investment
  • Risk Management
  • Operations

Environmental Achievements

  • Reduced energy use per full-time employee by 3%
  • Recycled 40% of all waste
  • Improved capture of Scope 1, 2, and 3 GHG emissions data
  • Completed a Critical Infrastructure Review to assess environmental impact of global operations
  • London office reached 100% renewable energy in Q2 2023
  • Jordan operation sources 100% renewable energy

Social Achievements

  • Mobilized US$2.3 billion in sustainable finance, 88% to developing countries
  • Provided US$5.1 million in CSR investment (1.4% of pre-tax profits)
  • Achieved an 87% response rate to the Group employee survey
  • Launched a sustainability training program
  • Improved gender ratio to 34% female representation
  • Gender pay gap ratio of 8.9%

Governance Achievements

  • Established a Sustainability Steering Committee reporting to the Group Risk Committee
  • Developed a Sustainable Finance Framework aligned with UN SDGs and LMA/ICMA principles
  • Became a signatory to the Partnership for Carbon Accounting Financials (PCAF)
  • Strengthened sustainability governance across overseas subsidiaries
  • ESG KPIs linked to remuneration

Climate Goals & Targets

Medium-term Goals:
  • Expand renewable energy across global network
  • Accelerate sustainable and transition finance
  • Develop reduction targets for GHG emissions, energy, water, and waste
Short-term Goals:
  • Reduce GHG emissions, energy, and water usage across global operations

Environmental Challenges

  • Data limitations in measuring Scope 3 financed emissions, especially in the MENA region
  • High percentage of GHG emissions from suppliers (75%)
  • Need to reduce waste to landfill and increase recycling rates
  • Need to improve data availability for climate scenario analysis
Mitigation Strategies
  • Developing a collaborative approach with clients, industry experts, and regulators to manage Scope 3 emissions
  • Implementing a multi-year plan to reduce GHG emissions, energy, and water usage across global operations
  • Integrating an ESG questionnaire into the RFP process for new and existing suppliers
  • Launching waste-reduction initiatives (e.g., 'Bin the Bin')
  • Improving data capture and analysis for climate scenario analysis

Supply Chain Management

Supplier Audits: ESG questionnaire integrated into RFP process for new and existing suppliers

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products and services
  • Growth in sustainable and transition finance

Reporting Standards

Frameworks Used: GRI Standards 2021, Central Bank of Bahrain’s ESG Requirements, Bahrain Bourse ESG Reporting Guide, GHG Protocol, PCAF

Third-party Assurance: Future reports will be subject to external assurance

Sustainable Products & Innovation

  • Green retail finance products in Jordan and Egypt
  • EV auto finance programs in Jordan and Egypt