Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Investment
• Customer Centricity
• Sharia Compliance

Environmental Achievements

• Fully completed the transition to electronic credit statements, helping protect the environment.

Social Achievements

• Provided financial support to the Bahrain Institute of Banking and Finance, the University of Bahrain, the Science India Forum Bahrain and the World Robotics Championship.
• Supported two RCO initiatives, one to develop widows’ cooking and management capabilities and another to help support orphans to join sports programmes.
• Sixteen Ithmaar Bank employees volunteered their time to help prepare Bahrain youth for the future by delivering various programmes in cooperation with InJaz Bahrain.
• Hosted a series of summer camps for children of Ithmaar Bank employees.
• Supported the “Head Start” Injaz programme.
• Continued support of the King Hamad Trophy Golf Championship.
• Provided financial support for various national events and charities.
• Continued its popular Summer Internship programme.

Governance Achievements

• Became one of the first banks in Bahrain to be certified to the Payment Card Industry Data Security Standard (PCI-DSS) v3.2.
• Implemented a new consolidation, budgeting and planning software called “Hyperion” from Oracle.
• Implemented an automated solution to calculate expected credit losses to meet new accounting and regulatory requirements.

Climate Goals & Targets

Environmental Challenges

• Economic headwinds from previous global crises.
• Pressure on government revenues in the MENA region due to low oil prices.
• Pressure on the current account deficit in Pakistan due to high imports.
• Exchange rate adjustment in Pakistan.

Mitigation Strategies

• Focus on core retail banking business.
• Upgrading core banking system and eBanking offering.
• Upgrading IT infrastructure and systems.
• Developing a three-year digital strategy.
• Customer-centric approach.

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: AAOIFI

Certifications: PCI-DSS v3.2

Third-party Assurance: PricewaterhouseCoopers ME Limited

Sustainable Products & Innovation

• Electronic credit statements
• EasyPay mobile payment solution

Awards & Recognition

• Arab Eagle Award for Corporate Social Responsibility
• Best CSR Award for an Islamic Bank 2017
• Best Islamic Retail Bank in Bahrain
• Best Innovation In Retail Banking Bahrain 2017
• Best Islamic Bank Bahrain 2017

Environmental Metrics

ESG Focus Areas

• Customer centricity
• Digital Transformation
• Community Investment
• Employee Development
• Sharia Compliance

Social Achievements

• Launched the region’s first biometric payment network.
• Commissioned new ATMs in East Riffa Souq and Hoora.
• Launched a year-long credit card utilization campaign.
• Added a new feature to its credit card loyalty program.
• Launched a dedicated 24/7 call center for credit cardholders.
• Renewed agreement with Gulf Air for discounts.
• Conducted a campaign to raise awareness about Islamic banking products.
• Hosted fifty undergraduate students in its annual summer internship program.
• Sponsors 13 orphaned students.
• Participated in Consumer Protection Expo 2018.
• Participated in key industry events.
• Supported the 11th King Hamad Trophy Golf Championship.
• Supported HH Nasser bin Hamad Al-Khalifa Ramadan Football Championship.
• Supported Bahrain’s Strongest Man Championship.
• Supported Ebtisamah (Smile of Bahrain).
• Supported the “Baitkum Baitna” project.
• Provided financial support to various charities.

Governance Achievements

• Implemented major enhancements to its Information Technology infrastructure, including upgrading the core banking system and implementing a new eBanking system.
• Implemented the latest systems for consolidation, budgeting and planning and FAS30.
• Renewed its PCI-DSS certification.
• Introduced the “Breakfast with the CEO and Deputy CEOs” program.
• Invested in employee training programs.
• Signed an agreement with the BIBF to enhance the Bank’s Career Progression Plan.
• Hosted an intensive training course for new employees.
• Conducted an annual AML Refresher Course.
• Hosted a Board Evaluation training session.

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions.
• Devaluation of the Pakistani Rupee.
• Implementation of FAS 30.
• Economic challenges in Pakistan.

Mitigation Strategies

• Renewed focus on core retail banking business.
• Implementation of new group structure.
• Further development of internal systems.
• Enhancement of customer offerings.
• Refining customer-centric approach.
• Major upgrade to core banking system.
• Launch of new eBanking service.
• Implementation of new systems for consolidation, budgeting, and planning.
• Plans to launch the region’s first biometric payment network.
• Expansion of Faysal Bank Limited’s branch network in Pakistan.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: AAOIFI

Certifications: PCI-DSS

Third-party Assurance: PricewaterhouseCoopers ME Limited

Sustainable Products & Innovation

• Biometric payment network (planned)

Environmental Metrics

ESG Focus Areas

• Sharia compliance
• Community investment
• Workforce diversity
• Digital transformation
• Sustainable financing

Social Achievements

• Supported various local charities and participated in key national events, including supporting the Bahrain Football Association and Bahrain Golf Association.
• Launched special financing offers for villas at the Deerat Al Oyoun Phase Two development in Diyar Al Muharraq for beneficiaries of the Mazaya social housing scheme.
• Collaborated with the Zakat and Sadaqat Fund to streamline Zakat and Sadaqat monthly payments.
• Strategic partnership with the Bahrain Institute for Banking and Financial Studies (BIBF) and sponsored a classroom in the Institute’s new building.
• Launched special financing offers for villas at the Danaat Al Baraka development in Jannusan, Budaiya for beneficiaries of the Mazaya programme.
• Maintained exceptionally high Bahrainisation level (approximately 98 percent).

Governance Achievements

• Followed the “Comply or Explain” Principle, adhering to the Central Bank of Bahrain (CBB) Rulebook and Corporate Governance Code.
• Established written policies such as the Code of Ethics, Business Conduct, Anti-Money Laundering, and Whistle-Blowing Policy.
• Established Board Committees: Audit, Governance and Risk Management Committee (AGRMC), Executive Committee (ExCom), and Remuneration and Nomination Committee (RNC).
• Implemented a comprehensive Enterprise Wide Risk Management Framework.

Climate Goals & Targets

Environmental Challenges

• Gradual economic recovery from the effects of the COVID-19 pandemic.
• Challenging and uncertain global economic landscape.
• Economic impact of the COVID-19 pandemic on investments.

Mitigation Strategies

• Focus on core Islamic banking business, particularly the SME sector.
• Investment in digital infrastructure, enhancing existing products and services, and improving retail banking network.
• Deferred instalments for SME and corporate clients to ease cash flow stress.
• Protecting the value of investments and strengthening their performance while looking for exit opportunities.
• Continuous training and development for staff.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: AAOIFI, CBB Rulebook

Certifications: IEC/ISO 27001, PCI-DSS

Third-party Assurance: PricewaterhouseCoopers ME Limited

Awards & Recognition

• Best Bank Loyalty Programme Award from Mastercard

Environmental Metrics

ESG Focus Areas

• Employees
• Community
• Environment
• Technology and innovation
• Governance

Environmental Achievements

• Increased recycling efforts to reduce waste
• Transferred most transaction forms to electronic forms to reduce paper usage
• Eliminated food waste in events by collaborating with Bahrain Food Bank

Social Achievements

• Bahrainisation level at approximately 95 percent
• Two women on the board of directors
• Support for Bahrain Football Association, King Hamad Cup, Nasser Bin Hamad Premier League, His Majesty The King’s Cup of Endurance Ride Championship, and Bahrain Bourse’s Trade Quest program
• Donations to hospitals, health centers, patients, and early intervention centers

Governance Achievements

• Integration of ESG principles into objectives and operations
• Establishment of ESG pillars and evaluation based on SDGs
• Compliance with CBB regulations and implementation of updates to processes and procedures
• Establishment of various written policies (Code of Ethics, Business Conduct, Anti-Money Laundering, and Whistle-Blowing Policy)

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions
• Consolidated equity below the minimum regulatory shareholder equity required by the CBB

Mitigation Strategies

• Focus on growing core Islamic banking business
• Enhancing products and services for SMEs and corporates
• Capitalizing on key opportunities
• Improving services for corporate customers
• Enhancing digital innovation
• Meeting compliance and regulatory standards
• Pursuing an active exit strategy for certain assets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: AAOIFI

Certifications: IEC/ISO 27001, PCI-DSS

Third-party Assurance: KPMG Fakhro

UN Sustainable Development Goals

• 1. No Poverty
• 2. Zero Hunger
• 3. Good Health and Well-being
• 4. Quality Education
• 7. Affordable and Clean Energy
• 8. Decent Work and Economic Growth
• 9. Industry, Innovation and Infrastructure
• 12. Responsible Consumption and Production
• 13. Climate Action
• 16. Peace, Justice and Strong Institutions

Objectives of each pillar include empowering employees, supporting the community, investing in the well-being of the environment, integrating technology, and ensuring governance compliance.