NBB launches Sustainable Finance framework for ESG commitments
Developed in collaboration with Standard Chartered Bank Bahrain as the Sustainability Structuring Advisor, the framework adheres to the International Capital Market Association's (ICMA) Green and Social Bond Principles and the Loan Market Association's (LMA) Green and Social Loan Principles. It has also been validated through a Second Party Opinion (SPO) issued by ISS Corporate Solutions.
The framework establishes a structured approach for the National Bank of Bahrain to evaluate parameters in the financing of sustainable projects, such as renewable energy, clean transportation, green buildings and employment generation management, amongst others. These projects are supported by the framework across four main components which are use of proceeds to define clear criteria for the allocation of funds towards sustainable projects, project evaluation and selection that implements a rigorous process to identify impactful projects, management of proceeds which documents NBB's approach to ensuring appropriate use of proceeds, and reporting to ensure transparency and accountability in fund utilisation.
Commenting on the occasion, Usman Ahmed, Group Chief Executive Officer of NBB said, 'The introduction of our Sustainability Finance Framework marks a significant milestone in NBB's sustainability journey. This initiative reflects our relentless pursuit of positive environmental and social impact in alignment with both national and global sustainability goals. By integrating sustainability into our financing practices, we aim to empower clients to achieve their ESG objectives and contribute to building a resilient and equitable future for generations to come.'
Dr. Boutros Klink, Chief Executive Officer of Standard Chartered Bank Bahrain added, 'We are delighted to have built on our strong relationship with the National Bank of Bahrain (NBB) and our support for the Kingdom's sustainability ambitions by assisting in creating NBB's Sustainable Finance Framework. We commend NBB for leading the way among financial institutions in setting ambitious emission reduction targets. Standard Chartered Bank is committed to supporting our clients across our dynamic footprint as they venture into the sustainable finance market and proud to have been part of Bahrain's economic growth for more than 100 years.'
As part of its broader ESG strategy, NBB's framework integrates mechanisms for environmental and social risk assessment to promote transparency and accountability in sustainability initiatives. By embedding ESG considerations into its financing activities, the Bank seeks to encourage stakeholders to mitigate risks, capitalise on opportunities in responsible finance, and allocate resources to impactful projects. With strong collaborations with industry peers, regulators, and investors, the Bank reinforces its position as a key catalyst furthering the Kingdom's enduring vision of a more inclusive and sustainable financial ecosystem.
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