Experts from 23 countries gather at
CIBAFI to discuss climate change action and the development of GHG measurement
for Islamic finance
24th
January 2023, Manama, Kingdom of Bahrain |
The General Council for Islamic Banks
and Financial Institutions, the global umbrella of Islamic financial
institutions, has successfully conducted a roundtable meeting on the
Development of Greenhouse Gas (GHG) Measurement
Tool for Islamic Financial
Institutions (IFIs). This high-level meeting of sustainability and climate
change experts from various Islamic banks and financial institutions,
regulators and other international organisations was held virtually today.
The Paris Climate Agreement represents a significant step
in the international community's efforts to combat climate change. As key
players in the global economy, the Islamic financial services industry (IFSI)
is on the move to meet the goal of net-zero carbon emissions by 2050.
As part of its commitment to reinforce the value
proposition of Islamic finance, and to promote sustainability and responsible
business practices within the IFSI, CIBAFI is leading an initiative aiming at developing
a global greenhouse gas (GHG) measurement and reporting tool that considers the
characteristics of Islamic financial institutions (IFIs) portfolios and the
environments in which these institutions operate.
The roundtable meeting brought together experts from leading
international organizations to discuss global best practices for measuring and
reporting GHG emissions from IFIs' activities.
CIBAFI Secretary General, Dr. Abdelilah Belatik
inaugurated the meeting. In his speech, Dr. Belatik said: "In
light of the global challenges and as the leading voice of IFSI, CIBAFI has
taken this initiative to support the IFIs by developing a methodology for
accurately measuring and reporting GHG emissions. This will help in the
transition to net-zero carbon emissions by 2050. We hope that this meeting will
provide valuable insights in progressing the GHG measurement project. We extend
our thanks and appreciation to the Islamic Development Bank (IsDB) and the
CIBAFI Sustainability Working Group for their support and contribution in this
project."
The meeting resulted in a set of recommendations for
further action. These include technical consideration on developing a GHG measurement
tool for IFIs, and how to engage the role of stakeholders in encouraging its
adoption.
Among the industry experts who shared their
insights during the discussions were Dr. Vito Intini, Regional Lead
Economist and Inclusive Growth and Sustainable Finance Team Leader, United
Nations Development Programme, Jordan; Mr. Bradley Todd Hiller, Lead
Climate Change Specialist, Islamic Development Bank (IsDB), Saudi Arabia; Mr.
Saravanan Dhalavoi, Director, Climate Change and Sustainability Services
(CCaSS), Ernst and Young (EY), Bahrain; Dr. Dalal Aassouli, Assistant
Professor of Islamic and Sustainable Finance, Hamad Bin Khalifa University,
Qatar; Ms. Angélica Afanador-Ardila, Executive Director, Partnership for
Carbon Accounting Financials (PCAF), Netherlands; and Dr. Adriana
Kocornik-Mina, Senior Manager of Metrics and Research, Global Alliance for
Banking on Values (GABV), Netherlands. The meeting discussions were moderated
by Dr. Wael Mohamed AAMINOU and Dr. Ahmed TAHIRI JOUTI, Managing
Partners, Green for South; and Mr. Rachid Ettaai, Business Development
Manager, CIBAFI.
CIBAFI continues to support the Islamic financial
services industry through various activities and initiatives. These initiatives
include providing industry stakeholders with a platform to discuss emerging
issues, representing the industry at major global events, and sharing knowledge
through specialized publications and comprehensive training programmes.