Sustainability Policy
Introduction
Sustainability has become one of the most pressing topics amidst the dynamic local and global changes that significantly impact various operations and activities. These include, in an integrated manner, banking operations, environmental aspects such as climate change and resource scarcity, and social aspects such as human rights, financial inclusion, community investment, and data privacy. The concept of social responsibility emerged in the early 20th century, shifting the focus from profit as the sole objective of any institution toward a broader understanding of an institution’s responsibility towards its community. It emphasizes accountability for the impact of decisions and activities on the environment and society, which is embodied in sustainable development, community welfare, respect for laws, and embedding these principles within the institution’s culture. Organizations are expected to carry out their activities in alignment with societal goals and principles while adopting global best practices in areas such as good governance and transparency, including board composition, risk management, anti-corruption measures, and ethical business practices.
When discussing sustainability in Islam, the religion has, since its emergence in the 7th century, promoted sustainability principles. Islamic teachings encourage the preservation of the environment, care for the earth, and the fair use of natural resources. These teachings also emphasize avoiding corruption, extravagance, waste, and overexploitation. In recent decades, environmental and sustainability issues have become some of the most prominent global concerns. These concepts are now integral to the business strategies of Islamic banks, reflecting their commitment to sustainable development and enhancing the quality of life for the communities they serve. As part of their communities, Islamic banks believe in their belonging to the societies in which they operate and recognize their responsibility towards them. They also value the importance of transparency and disclosure regarding their social responsibility and sustainability activities. This helps stakeholders assess the bank's commitment to the environment and its various beneficiaries, including shareholders, employees, depositors, and the local community.
In response to these aspirations and to support its vision of entrepreneurship and excellence both locally and internationally, the Arab Islamic Bank has adopted a sustainability strategy as part of its overall strategy, along with a banking sustainability and social responsibility policy across the bank. The bank is committed to continuously developing this strategy in alignment with Islamic Sharia principles, as well as local, regional, and international standards and principles. Special focus is given to the United Nations Sustainable Development Goals (UNSDGs), the Global Reporting Initiative (GRI) Standards, and the guidelines from the Palestinian Monetary Authority, Capital Market Authority, and the Palestinian Financial Market on sustainability, disclosure, and reporting issues.
The bank also respects the following international agreements and guidelines that underpin this policy:
- International Capital Markets Association (ICMA) – Green & Social Bond Principles
- International Finance Corporation (IFC) – Performance Standards
- International Labor Organization (ILO) – Declaration of Fundamental Principles of Rights at Work
- United Nations Global Compact
- United Nations Guiding Principles on Business and Human Rights
- World Bank Environment, Health, and Safety Guidelines