CIBAFI convenes the first meeting of SWG

TDT | Manama

The General Council for Islamic Banks and Financial Institutions (CIBAFI), the global umbrella of Islamic financial institutions convened yesterday, the first meeting of its Sustainability Working Group (SWG). The meeting was attended remotely by 20 members from 14 countries. Last year, CIBAFI 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 stakeholders, has been established.

The SWG currently focuses on two projects, Sustainability Guide for the Islamic banking industry and 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. CIBAFI 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 highlighted the initiatives taken globally and the role of the financial institutions in managing climate change risks. It also presents how far climate change risks represent a business concern for the Islamic banking industry, through the findings of a recent survey conducted by CIBAFI.