CIB has joined the Task Force on Climate-Related Financial Disclosures, becoming the first bank in Egypt to sign up to the initiative, it said in a statement.
The task force, created by the Financial Stability Board in 2015, aims to develop standardized climate risk disclosures that can be used by companies, banks and investors.
More than 1.5k companies and organizations around the world have backed the project since its launch.
Joining TCFD came as part of its efforts to support local and international practices and take precautionary measures to avoid risks related to climate change in the short, medium and long term.
In addition to uncovering opportunities related to financing greenhouse gas reduction projects and adapting to its effects, the bank added.
The bank’s CEO Hussein Abaza said, “CIB is at the forefront of international financial institutions concerned with climate-related financial disclosures to avoid material risks resulting from global warming.”
He added, “It is our priority to protect the rights of shareholders and investors and safeguard our customers’ businesses while raising awareness about the risks and opportunities presented by climate change.”
In light of the bank’s joining the Climate Financial Disclosure Framework (TCFD), information related to financial risks and opportunities related to climate change will be disclosed to financial markets, investors, lenders and stakeholders in a way that enhances transparency and confidence in Commercial International Bank at the local and global levels.
“The bank recognises the relationship between climate change and financial stability, resulting in our support for the TCFD recommendations to improve CIB’s risk management system and increase social and environmental opportunities,” said Dr Dalia Abdel Kader, Chief Sustainability Officer at CIB.
She added, “Financial disclosure requires gaining expertise to assess climate change scenarios and determine their impact on the Bank’s investments and credit portfolio.”
Abdel Kader said that it was for this reason that a team from CIB’s Risk Department joined a working group under the supervision of the United Nations Environment Programme Finance Initiative (UNEP FI) to learn the mechanisms and requirements for disclosure.
CIB’s comprehensive Environmental and Social Risk Management System (ESRM) works according to the latest international standards.
These include: the International Finance Corporation (IFC) Performance Standards; European Bank for Reconstruction and Development (EBRD) Performance Requirements; and the Equator Principles, to protect the bank’s credit portfolio and support customers.
In addition, CIB is the first Egyptian bank to join this initiative, based on its keenness to push the transition towards a green economy in Egypt, in line with Egypt’s Vision 2030, the Paris Agreement on Climate Change and the United Nations Sustainable Development Goals (SDGs)
