Climate Change Data

Environmental Metrics

Social Achievements

• The Board of Directors pledged PKR 50 million for the relief and rehabilitation of flood victims. A Flood Relief Fund was set up by employees, where Faysal Bank matched all employee contributions. Employees visited SOS Children's Villages and the Children's Cancer Ward at Jinnah Hospital, Karachi, and donated electronic appliances.

Governance Achievements

• The Bank has implemented the requirements of the Code of Corporate Governance.

Climate Goals & Targets

Environmental Challenges

• Devastating floods in Pakistan damaged one-fourth of the country's agricultural heartland, impacting agro-based industries, power plants, and manufacturing. Economic outlook deteriorated sharply, with GDP growth unlikely to exceed 2-3 percent. CPI inflation surged to 13.85% due to supply shortages, rising international commodity prices, and electricity tariff adjustments.

Mitigation Strategies

• The bank successfully merged with RBS Pakistan within two and a half months of acquisition, expanding its asset base to over Rs. 260 billion and branch network to 226 branches. Cost rationalization and recovery of NPLs were identified as key focus areas for 2011.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Code of Corporate Governance issued by Securities and Exchange Commission of Pakistan (SECP)

Third-party Assurance: A.F. Ferguson & Co., Chartered Accountants

Awards & Recognition

• 'Runner-Up Position in the Best Corporate Report Awards 2009 in the Banking Sector',
• 'Second Runner Up Award' in South Asian Federation of Accountants (SAFA) Best Presented Accounts Awards 2009

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Business Ethics
• Community Investment
• Employee Engagement

Social Achievements

• Donated Rs. 6.3 million towards healthcare initiatives (including donations to hospitals and support for Special Olympics athletes).
• Donated Rs. 10 million to IBA Karachi for a teaching chair in EMBA Programme in Banking & Finance.
• Contributed Rs. 880,000 to support underprivileged students' tuition.
• Donated Rs. 3.36 million to The Hunar Foundation for vocational training.
• Partnered with The Citizens Foundation, donating Rs. 30 million to establish two schools in flood-affected areas.
• Distributed 5000 food ration packs worth over Rs. 9 million to flood victims.
• Collected and donated Rs. 389,500 for flood relief through a T20 cricket tournament.

Governance Achievements

• Implemented the requirements of the Code of Corporate Governance.
• Established an Audit Committee with three independent/non-executive directors.
• Held five Audit Committee meetings in 2011.
• The Directors Report was prepared in compliance with the Code of Corporate Governance requirements.

Climate Goals & Targets

Environmental Challenges

• Economic environment challenges.
• Issues related to the merger with RBS Pakistan.
• Integration of RBS operations.

Mitigation Strategies

• Successfully integrated RBS operations and turned losses into profits.
• Aligned policies and procedures, adopted best practices.
• Disengaged and replaced RBS Global back-end technology platform.
• Consolidated and upgraded Alternative Delivery Channel (ADC) platforms.
• Evaluated and aligned product suite.
• Conducted in-house training sessions for staff.
• Held various functions and sports events to increase staff engagement.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Code of Corporate Governance (issued by SECP, adopted by SBP and stock exchanges)

Third-party Assurance: A.F. Ferguson & Co., Chartered Accountants

Awards & Recognition

• 4th position in the Best Corporate Reports Award in the financial sector category.

Environmental Metrics

ESG Focus Areas

• Poverty Alleviation
• Education
• Environmental Sustainability
• Healthcare

Environmental Achievements

• Installation of heavy duty UPS to reduce diesel consumption.
• Initiatives to encourage energy saving measures like compulsory working hours schedule and discouraging avoidable late sitting.

Social Achievements

• Contributed to Hunar Foundation, Karigar Training Institute, Lahore Businessmen Association for Rehabilitation of the Disabled, Professional Education Foundation, SOS Technical Training Institute, Pakistan Association of the Blind, Sindh Institute of Urology & Transplantation, The Cardiovascular Foundation, Friends of Burns Centre, Shaukat Khanum Memorial Hospital, Nigahban Welfare Association, Civil Hospital.
• Contribution to Ida Rieu Welfare Association, The Helpcare Society, Family Educational Services Foundation, Community Advisory & Welfare Services.
• Relief goods amounting to PKR 2 million were dispatched to Tharparkar in collaboration with Pakistan Navy.
• Sponsorship for Family Educational Services Foundation’s Deaf Reach Schools in Karachi.
• Sponsorship of 300 students for vocational trainings in SOS Technical Training Institute.

Governance Achievements

• Compliance with the Code of Corporate Governance (CCG).
• Board met six times in 2014.
• Audit Committee held four meetings.
• Formation of an Audit Committee and a Recruitment, Nomination and Remuneration Committee (RNRC).

Climate Goals & Targets

Environmental Challenges

• Sluggish economic environment coupled with hard core relationships & long drawn legal procedures affecting Special Assets Management.
• Long standing structural issues facing Pakistan's economy, including fiscal constraints, poor performance of Public Sector Enterprises (PSEs), and untargeted subsidies.

Mitigation Strategies

• Vigorous efforts by SAM to recover classified loans.
• Mobilising low cost current and saving deposits, rationalising administrative costs, proactively managing credit costs / NPLs and reducing their impact by recovering classified loans.
• Focus on increasing revenue from core business activities.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Code of Corporate Governance (CCG)

Third-party Assurance: A.F. Ferguson & Co, Chartered Accountants

Environmental Metrics

Social Achievements

• Numerous customer engagement initiatives and launches of specialised alliances.
• Total spending in health sector was more than PKR 67 million, and about PKR 10 million was disbursed to organisations involved in quality education and vocational training.

Governance Achievements

• Reconstituted the Terms of Reference of the Board Audit Committee and renamed it as Board Audit and Corporate Governance Committee in September 2014.
• All the Board of Directors completed Directors Training Program from the Pakistan Institute of Corporate Governance.

Climate Goals & Targets

Environmental Challenges

• Declining interest rate scenario and various other external factors.
• Farmers faced unprecedented price crash of Agri commodities, especially Cotton and Rice.
• Federal Board of Revenue’s (FBR) decision to impose withholding tax on non-filers on banking transactions adversely affected customer-confidence.

Mitigation Strategies

• Enhanced focus on cross selling initiatives and institutionalised a multi-product sales approach.
• Increased proactive monitoring and enhanced efforts for recovery of the Agri portfolio.
• Re-profiled the savings book along with sharp focus on market competitive pricing.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Code of Corporate Governance

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• challenging economic conditions
• historically high inflation
• depreciating PKR relative to the USD
• expanding branch network

Mitigation Strategies

• strategically investing in branch network, thereby propelling the growth of deposits
• implementing strategies to optimize our customer service experience
• providing cutting edge digital solutions
• investing in modern technologies to improve digital offerings and customer experience
• integrating environmental stewardship into all aspects of our business
• making investments in our workforce and foster an environment that promotes our core values namely Faith, Integrity, Teamwork, Innovation and Care

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Social Achievements

• Investing in workforce and cultivating a culture that promotes core values (Faith, Integrity, Teamwork, Innovation, and Care).

Climate Goals & Targets

Environmental Challenges

• Economic uncertainties, high inflation, depreciating PKR relative to USD, expanding branch network leading to increased expenses.

Mitigation Strategies

• Investing in branch network to fuel deposit growth, improving customer service, providing innovative digital solutions, investing in modern technologies to improve digital offerings and customer experience.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Social Achievements

• Established the Board Sustainability & Development Committee (BSDC) to oversee ESG matters.

Governance Achievements

• Reaffirmed entity ratings of 'AA' (long-term) and 'A1+' (short-term) by PACRA and VIS. VIS upgraded outlook to 'Positive'.

Climate Goals & Targets

Environmental Challenges

• Prevailing economic conditions and persistent inflation impacting operations and customers.

Mitigation Strategies

• Expanding branch network to stimulate deposit growth, enhancing customer service, investing in digital solutions, and investing in workforce development.

Supply Chain Management

Climate-Related Risks & Opportunities