Al Maryah Community Bank (Mbank) is the first digital bank in the UAE to have signed a commitment letter with The Science Based Targets initiative (SBTi), an organization that helps companies set greenhouse gas emissions reduction targets, in order to bring meaningful climate action and contribute to global efforts to mitigate the impacts of climate change; improving its Environment, Social, and Governance (ESG) practices.
The Science Based Targets initiative (SBTi) is an organization that provides a framework for companies to set specific, measurable, and time-bound targets that are scientifically validated to ensure they are in line with the global effort to reduce their greenhouse gas (GHS) emissions. The initiative aims to enable companies to meet the goals of the Paris Agreement, which seeks to limit global warming to well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 degrees Celsius.
In line with its commitment to SBTi, Mbank has recently launched an in-house ESG department that will drive the bank’s overall ESG strategy. Some of the department’s functions include creating the ESG strategy and framework, promoting ESG practices within the bank, establishing and driving Sustainability Finance across its customer base, identifying ESG risks, and developing mitigants and monitoring them, to overcome or reduce the impact of ESG risks, among others.
To actively ensure that the overall carbon footprint is reduced, Mbank continues its ongoing and consistent pursuit to fully extend digital capabilities across the organization. This pursuit includes developing and offering sustainable corporate lending products and services to customers digitally, looking to transition to a low carbon economy, as well as equiping Mbank employees with comprehensive ESG training courses and material.
Through its fully digital nature, Mbank has been positively contributing to the ecosystem by offering customers digital paperless banking services and transactions with a reduced environmental impact. Fewer paper processes and a reduced need for in-person visits result in a lower carbon footprint for both individuals and businesses.
Moreover, Mbank has already started deploying internal world class practices and policies to improve employee welfare. Employees are given the opportunity to work flexible hours, including Fridays; where they are given the option to work from home – this in return allows for less cars on the road, less carbon emissions. Moreover, Mbank Management implements an “open door” policy for employees to ensure a transparent working culture, in addition to robust corporate governance, information security practises, and financial crime related policies and practices that have already been deployed.
Commenting on the signing of the commitment letter, Mohammed Wassim Khayata, Chief Executive Officer at Mbank, said: “We are happy to have signed with SBTi, the well-renown global organization, as we are the first digital bank in the UAE to do so, with a target for net zero emissions by year 2050! Through this commitment, we intend to take meaningful climate action and contribute to efforts to mitigate the impacts of climate change.”
He added: “Accordingly, we are very proud to be working on a portfolio of ESG-Compliant Corporate Lending Products that will further reinforce our mission and allow other companies to join us in this mission to save our community and our planet as a whole.”
