23rd
September 2020, Manama, Kingdom of Bahrain | The General Council for Islamic
Banks and Financial Institutions (CIBAFI), the global umbrella of Islamic
financial institutions convened today, the first meeting of its Sustainability Working Group (SWG). The meeting was attended remotely by 20 members from 14 countries.
Last
year, CIBAFI has announced its commitment to supporting sustainability
practices within the Islamic financial services industry (IFSI) through its Strategic
Plan 2019 – 2022. The plan focuses on reinforcing the value proposition of
Islamic finance, promoting sustainability and responsible business practices
within the IFSI, and addressing the real concerns and challenges facing the
industry. In furthering this goal, CIBAFI SWG which comprises representatives
from CIBAFI’s members and other international stakeholder organisations from
the globe has been established.
In
this context, CIBAFI Secretariat organised today, the kick-off meeting of the
SWG with the main purpose of initiating the groundwork required to achieve the
objectives of its establishment. The SWG will currently focus on two projects,
(1) Sustainability Guide for the Islamic banking industry and (2) Carbon
Footprint Measurement Methodology for Islamic financial institutions as a
starting point.
The
prime objective of the Sustainability Guide is to augment the social and
environmental responsibilities and governance principles of Islamic financial
institutions (IFIs). While the Carbon Footprint Measurement Methodology aims to
help IFIs in identifying to what extent their financing is responsible for GHG
emissions, which is considered the primary reason behind the climate change issue.
Finally,
CIBAFI SWG kick-off meeting also witnessed, an experience sharing session from
experts in the area of sustainability and the launch of CIBAFI 13th Briefing
on “Climate Change and its Implications for the Financial Industry”. CIBAFI 13th
Briefing highlights the initiatives being taken globally and the role of the
financial institutions in managing climate change risks. It also presents how
far climate change risks represent an important business concern for the
Islamic banking industry, through the findings of a recent survey conducted by
CIBAFI.
The
above initiatives of CIBAFI are also in line with the Global Week to Act for
SDGs. CIBAFI will continue to support the Islamic financial industry through
specific activities and initiatives which promote growth, uphold ethical
practices and Islamic finance values in all financial dealings and
transactions, and facilitate cooperation between members and institutions of
common interest.