New tool to help Islamic banks fight climate change in Bahrain

Published on May 23, 2024
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A new tool designed to empower Islamic banks in the fight against climate change has been launched by the General Council for Islamic Banks and Financial Institutions (Cibafi).

The Bahrain-based global umbrella organisation for Islamic financial institutions presented the solution during a webinar yesterday titled ‘Unveiling the Cibafi Greenhouse Gas Measurement Tool to Strengthen the Contribution of Islamic Financial Institutions to Climate Action’.

The event brought together experts to discuss the crucial role Islamic banks can play in advancing climate initiatives.

This move aligns with Cibafi’s growing commitment to sustainability, following the declaration made by the Islamic Finance Infrastructure Organisations during COP28.

The newly unveiled Greenhouse Gas (GHG) Measurement Tool represents a significant step forward for Islamic banks, allowing them to assess the environmental impact of their investment portfolios.

“Cibafi is dedicated to supporting Islamic banks in addressing climate change and promoting sustainability within the industry,” said Cibafi secretary general Dr Abdelilah Belatik in his opening remarks. He highlighted the potential benefits of the tool, expressing hope that Islamic banks will leverage it to enhance their operations and achieve greater sustainability outcomes.

The webinar featured a panel discussion with experts from the UK, UAE, Canada, and Malaysia. The panel explored how Islamic banks can integrate sustainability practices, emphasising collaboration and adherence to global standards for managing climate risks. They also shared strategies for seamless implementation of the GHG tool.

Cibafi’s initiative demonstrates the Islamic financial services industry’s growing focus on sustainability and climate action. The organisation remains committed to supporting its members by facilitating dialogues on emerging issues and representing them at global financial events.

Source: Gulf Daily News

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