Climate Change Data

Allied Bank Limited (ABL)

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced electricity consumption by 12% and generator fuel consumption by 27% since 2018 despite significant growth in operations.
  • Installed solar power systems at 67 locations, generating approximately 286,124 units of clean energy and avoiding approximately 135,909 kg of carbon dioxide emissions in FY2023.
  • Planted over 100,000 trees and saplings in 2023.
  • Achieved zero net paper consumption since 2018.

Social Achievements

  • Established a daycare center in Lahore.
  • Achieved a customer complaint resolution rate of 98% in 2023.
  • Allocated Rs. 140 million to support CSR initiatives in education, health, sports, science & technology, culture, and literary activities.
  • Overall female employee ratio of 22% and Senior and Executive-level positions ratio of 23%.

Governance Achievements

  • Established a Green Banking Office (GBO) in 2018.
  • Implemented a robust Risk Management and Compliance Framework.
  • Achieved a Corporate Governance Rating of 9++ (by VIS Credit Rating Company Limited).

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero Goals of the Paris Agreement.
Short-term Goals:
  • Increase the ratio of sustainably sourced paper to 60% by the end of FY2024.
  • Add 100 more solar locations in 2024.

Environmental Challenges

  • Climate change and environmental pollution.
  • Maintaining a healthy asset portfolio and minimizing problem loans.
  • Managing compliance risks, including Shariah non-compliance.
Mitigation Strategies
  • Implemented various energy conservation initiatives, including solar power installation and energy-efficient technologies.
  • Established a Technical Appraisal department to assess environmental and social risks of borrowers.
  • Implemented a comprehensive risk management framework and robust risk policies for all material risks.
  • Established a Shariah Board to oversee Shariah-related matters.

Supply Chain Management

Responsible Procurement
  • Procurement Policy focused on effectiveness, efficiency, and transparency.

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: Guidelines on ESG Disclosures for Listed Companies (SECP), Green Banking Guidelines and Environmental and Social Risk Management (ESRM) Implementation Manual (SBP), Performance Standards of the International Finance Corporation (IFC)

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 10 (Reduced Inequalities)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 13 (Climate Action)
  • Goal 14 (Life Below Water)
  • Goal 15 (Life On Land)
  • Goal 17 (Partnerships for the Goals)

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Allied Solar System Finance
  • Allied Aitebar Solar System Finance
  • Electric Vehicle (EV) Bike Financing
  • Pink Scooty Financing

Awards & Recognition

  • Bank of the Year – Pakistan Award by The Banker (3 years in a row)
  • Best Customer Relationship Management (CRM) Technology award at the Pakistan Digital Awards 2024
  • Best Domestic Bank in Pakistan for 2023 - FinanceAsia Country Awards
  • Best Bank for Diversity & Inclusion in Pakistan 2023 – Asiamoney
  • Best of the Best Place to Work Company in Pakistan
  • Best Place to work in Banking Sector
  • Best Place to Work in Top 10 Large Organizations
  • Runner-Up in Best ESG Bank Category – CFA Society Pakistan
  • Best Corporate Report Award