Climate Change Data

United Finance Company SAOG

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Corporate Social Responsibility
  • Environmental matters
  • Social responsibility
  • Economic development
  • Technological innovation
  • Human capital

Social Achievements

  • 90% Omanisation during the year 2023.
  • Launched a ‘brand ambassadors programme’ (planned for 2024) to support individuals with compelling personal ambitions.
  • Upgraded CSR program to connect with people in need through charities (planned for 2024).

Governance Achievements

  • Full compliance with CBO/CMA guidelines on corporate governance.
  • Implementation of advanced core banking system (on track).

Climate Goals & Targets

Medium-term Goals:
  • Evolving into a forward-thinking Finance Powerhouse, harnessing technology to foster a dynamic value-exchange ecosystem.
Short-term Goals:
  • Optimization of collection processes to minimize delinquencies and impaired loans.
  • Elevating customer experience through innovation and personalization.

Environmental Challenges

  • Global economic uncertainties impacting the financial sector.
  • Volatile oil prices, geopolitical tensions, and the pace of global recovery from the pandemic.
  • Competition from other GCC countries.
  • Potential skills shortage in Oman’s workforce.
  • Threat of cyber-attacks.
  • Interest rate risk due to mismatches in the re-pricing dates of assets and liabilities.
Mitigation Strategies
  • Refined exposure to various sectors, reducing lending in high-risk areas (construction) and focusing on lower-risk sectors (hydrocarbon) in line with Vision 2040.
  • Meticulous evaluation of loan portfolio based on repayment histories, income spreads, and delinquency rates.
  • Refined credit criteria incorporating market feedback and risk review reports.
  • Stringent security coverage framework for loans (financed assets, receivables, collateral assets, mortgages, personal guarantees).
  • Conservative liability management policies to ensure meeting obligations even in adverse situations.
  • Increased focus on corporate fixed deposits to manage liquidity and NIMs.
  • Robust internal audit function and compliance function.
  • Regular review and update of policy and procedure manuals.
  • Implementation of advanced software solutions to improve efficiency, enhance customer service, and secure operations.
  • Robust Disaster Recovery (DR) infrastructure and Business Continuity Plan (BCP).
  • Minimizing the gap in the re-pricing profile of assets and liabilities and exploring alternate risk management strategies.
  • Matching the tenure of assets and liabilities by availing long-term funds from lenders at fixed interest rates.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Acute weather events (hurricanes, floods, wildfires)
  • Longer-term climate shifts (higher temperatures, heat waves, droughts, rising sea levels)
Transition Risks
  • Changes to laws and regulations
  • Litigation
  • Shifts in supply and demand

Reporting Standards

Frameworks Used: CBO circular no. BM/932, CMA regulations, CMA Code of Corporate Governance

Third-party Assurance: EY