Qatar Islamic Bank (QIB) has taken a significant step towards sustainability by becoming the first bank headquartered in Qatar to adopt the Equator Principles by joining the Equator Principles Association (EP Association), a globally recognized benchmark framework for determining, assessing, and managing environmental and social risk in bank financed projects.
This important move asserts the bank’s commitment to sustainable banking practices, supporting sustainable development efforts, and aligning with the global community of the EP Association. Having the Qatar National Vision 2030 (QNV 2030) as the foundation of its business strategy, and in line with the United Nations (UN) Sustainable Development Goals (SDGs), QIB has a track record of promoting sustainable development.
By becoming an Equator Principles Financial Institution (EPFI), QIB has updated its risk management framework to comply with the Equator Principles, further demonstrating its commitment to sustainable banking practices and sustainable development. This effort will enable the bank to monitor the exposure of new project finance and related requests to Environment, Social and Governance (ESG) based risks, while providing an opportunity to engage with its customers on mitigating any potential risks, resulting in an enhanced risk-awareness among existing and prospective customers.
On this occasion, Mr. Bassel Gamal, QIB Group CEO, said: “We recognize the important role the financial sector plays in promoting sustainability, and believe that incorporating ESG risk analysis is essential to mitigate climate risks and support responsible risk decision making. As the landscape of business continues to evolve with new trends driven by innovation and the need to adapt and mitigate climate risks, QIB is committed to embrace these trends and support long-term positive impact in the communities it serves. We are committed to sustainability in all our business activities, and becoming a signatory to the Equator Principles is a significant step forward in this regard.”
The Equator Principles (EPs) serve as a widely recognized framework for managing environmental and social risks in projects. This framework is adopted by financial institutions to determine, assess, and manage such risks, with the primary goal of establishing a minimum standard for due diligence and monitoring. Through its ESG based risk management framework, the EPs support sustainable development efforts worldwide. These principles have gained widespread acceptance, with EPFIs covering a vast majority of international project finance debt in both developed and emerging markets. The adoption of the equator principles also finds profound interest among the investor community.
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