(MENAFN- The Peninsula)
Deepak John
|
The Peninsula
Doha, Qatar: The banking industry in Qatar is at the forefront of embracing Environmental, Social, and Governance (ESG) principles. Qatari banks are key players in driving sustainable development and social responsibility.
By issuing green bonds and loans, they are not only prioritising financial gains but also focusing on benefiting the environment.
With a sharp focus on sustainability, financial institutions are launching green bonds, eco friendly loans, and social responsibility initiatives, reflecting their dedication to sustainable investment and environmental conservation, according to PwC banking sector report.
Deeply rooted in Qatar National Vision 2030, the country has commenced a proactive drive to strengthen the domestic debt market in light of the 'encouraging' potential for local bonds and Sukuks, announcing $75bn in investments in sustainable finance in FY23 and aiming for a significant presence in the global market by 2031.
This progressive path underscores Qatar's commitment to sustainable growth and investor protection, highlighting a major stride toward economic and environmental stewardship.
Collaborations in sustainable finance and support for projects such as clean technology, recycling plants, and renewable energy sources show the banking sector's dedication to environmental responsibility.
These initiatives, often with reduced rates tied to sustainability goals, reflect Qatar's broader commitment to green growth, the report noted.
Qatar National Bank (QNB) led the market by issuing the country's first-ever green bond in 2020, valued at $600m, marking a pivotal step in promoting sustainable finance.
This bond issuance highlights QNB's leadership in driving sustainable finance in Qatar and sets a benchmark for other financial institutions in the region.
Also, Qatar International Islamic Bank (QIIB) followed suit with the issuance of a $500m sustainable 'Oryx' sukuk and launched a green financing offer for electric and hybrid vehicles, showcasing its commitment to promoting sustainable finance and a carbon-neutral future.
With the issuance of the ESG and Sustainability Strategy for the Financial Sector, and the supervisory principles on ESG, the Qatar Central Bank (QCB) is advancing national standards in climate risk management and sustainable finance.
This aligns with the Third Financial Sector Strategic Plan, which highlights ESG and sustainability as one of the five cross-cutting themes essential for building a resilient, stable, and progressive financial system.
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