Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible Financing
• Employee Empowerment
• Transparent Reporting
• System Optimization
• Community Cooperation

Environmental Achievements

• From March 1st 2019, around 94% of the bank’s electricity consumption in Jordan is sourced from renewable projects, resulting in a 75% reduction in GHG emissions compared to 2018.
• Since 2012, green infrastructure investments contributed over 1,352 MW of total annual renewable energy added to the Jordanian grid, eliminating approximately 905,000 tons of CO2e.

Social Achievements

• Celebrated the tenth anniversary of its CSR program, "Together," impacting over 1,220,000 individuals and enabling employees to deliver over 24,600 volunteering hours.
• Community investment budget reached USD 24.9 million (3.2% of pre-tax profits), including direct donations, sponsorships, and Abdul Hameed Shoman Foundation initiatives.

Governance Achievements

• Continued to implement a robust corporate governance system in compliance with Central Bank of Jordan regulations and best practices.
• Revised its Code of Conduct to address evolving regulatory requirements (tax evasion, data protection, anti-slavery, etc.).
• Launched an updated version of the Anti-Corruption and Anti-Bribery e-learning course.

Climate Goals & Targets

Environmental Challenges

• Reducing paper consumption in a paper-intensive business.
• Minimizing the environmental footprint of operations while maintaining efficiency.

Mitigation Strategies

• Implementing paperless operations and recycling programs.
• Rationalizing fuel consumption using GPS tracking and preventive maintenance.
• Enhancing heating fuel consumption efficiency through VRV system installation.
• Sourcing 94% of electricity consumption from renewable energy projects.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (adherence to labor, environmental, and social legislation)
• Electronic Procurement system to automate processes and reduce paper consumption.
• Supporting local procurement (69% of total spending in 2019).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option

Certifications: ISO 9001:2015 (GIA)

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 16

The report details how various initiatives contribute to these goals throughout the document.

Sustainable Products & Innovation

• Arabi MobiCash mobile payment app
• Contactless debit card
• Digital customer onboarding platform
• ArabiConnect cash management and trade finance platform
• ArabiSync host-to-host solution
• Self-service branch plug-ins
• Together Platinum Credit Card

Awards & Recognition

• Middle East’s Best Corporate Social Responsibility Program 2019 (EMEA Finance Magazine)
• Other awards listed on page 6

Environmental Metrics

ESG Focus Areas

• Responsible financing
• Employee empowerment
• Transparent reporting
• System optimization
• Community cooperation

Environmental Achievements

• Reduced carbon emissions through renewable energy; approximately 91% of total electricity consumption was sourced from renewable energy projects in 2022.
• Recycled around 100 tons of paper in 2022.
• Launched Sustainable Finance Framework to support sustainability commitments and ESG priorities, aligned with Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines, Green Loan Principles, and Social Loan Principles.

Social Achievements

• Launched ArabiNext, a mobile application dedicated to SMEs in Jordan.
• Launched ArabiConnect, a corporate online platform for SMEs.
• Launched Reflect, the first neobank in Jordan, to advance financial inclusion.
• Launched Arabi Junior App to promote financial literacy among children.
• Launched Shabab Program for youth (18-25 years).
• Established Women Empowerment Strategic Framework (WESF).
• Invested over USD 20 million in community-based projects and initiatives in 2022.
• Provided 41,477 training hours to employees in 2022 (average 12 hours per employee).

Governance Achievements

• Established a reporting framework for ESG in 2022.
• Enhanced Environmental and Social Risk Policy (ESRP) in 2021.
• Implemented Climate Change Stress Test in 2022.
• Launched a refresher e-learning course on the Code of Conduct (CoC) in 2022.

Climate Goals & Targets

Environmental Challenges

• Reducing the environmental impact of our portfolio (ongoing work to measure Scope 3 GHG emissions).
• Reducing paper consumption (ongoing efforts to move to a paperless environment).

Mitigation Strategies

• Implementing sustainable practices and environmentally responsible operations.
• Measuring and managing direct environmental impact of operations (energy use, water use, material consumption).
• Working with environmentally responsible suppliers; including environmental requirements in Suppliers Code of Conduct.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Suppliers Code of Conduct
• Inclusion of pertinent clauses in contract terms and conditions regarding human rights.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Green infrastructure finance

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: Limited assurance by the bank’s Internal Audit function

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 13 (Climate Action)

Arab Bank's activities and initiatives contribute to these goals through various programs and investments.

Sustainable Products & Innovation

• Easy Payment Plan (EPP) for renewable energy equipment
• Loans for electric and hybrid cars

Awards & Recognition

• Best Bank in the Middle East from Global Finance Magazine (7 consecutive years)
• Best Corporate Social Responsibility (CSR) in the Middle East by EMEA Finance
• Refinitiv ESG score of "Good" (69/100)