Sustainability Performance
Governance

​​​​

Our Sustainability Performance Across Five Strategic Pillars

quote author

Governance

“We recognise that our commitment to ESG is not just about regulatory compliance but about leading with integrity and responsibility. Bank ABC’s robust ESG governance framework ensures that we hold ourselves accountable and continuously strive for excellence in our pursuit of enabling a more sustainable future.”

Maadian Botha
Group Chief Compliance Officer

Our Approach

Our Approach

At Bank ABC we are committed to the highest standards of accountability and transparency as we continue to advance our sustainability agenda. Working alongside our regulators, we strive to uphold the safety and integrity of the financial system whilst recognising our contribution to healthy and sustainable societies. Our approach to ESG governance continues to develop in alignment with evolving stakeholder expectations and best practices.  

To enable effective oversight and timely decision-making we have incorporated sustainability into our governance structure. Indeed, the ultimate responsibility for overseeing the Group Sustainability Strategy lies with the Group’s Board of Directors. A dedicated Sustainability Steering Committee, chaired by the Group Chief Executive, oversees the implementation and progress of the Group Sustainability Strategy and reports directly to the Group Risk Committee.

An important recent milestone has been the introduction of our Group ESG Risk Standard, which defines how ESG risk is incorporated across the Bank’s risk management framework and how our three lines of defence model is firmly applied, setting out clear roles and responsibilities This ensures robust oversight and control of material ESG risks across the Bank. 

Bank ABC is committed to maintaining the highest standards of ethical and professional conduct, including complying with all applicable rules and regulations. The Group Chief Compliance Officer (GCCO), together with the Heads of Compliance and Money Laundering Reporting Officers Group-wide, support the Board and Senior Management in effectively managing the compliance risks faced by the Bank. There is no known material non-compliance with the applicable regulatory requirements, whilst there are continuous improvement measures across the group.

Governance Structure

Board of Directors

The Board has the ultimate responsibility for overseeing the implementation of the sustainability strategy.

Board Risk Committee

Provides oversight of ESG risks and risk appetite on behalf of the Board.

Group Risk Committee

Highest management level overseeing the incorporation of ESG risk into the risk management system and overall risk appetite.

Sustainability Steering Committee

Review and monitor implementation of the sustainability strategy. Report to the Sustainability Finance Forum.

Sustainable Finance Forum*

Oversight of the Sustainable Finance Framework and how sustainable assets and liabilities are managed and verified.

* To be implemented in H2 2025.

Reporting Lines

Group CEO

Implements the sustainability strategy, framework and policies based on Board approvals.

Chief Sustainability Officer

The CSO leads the Group Sustainability team, the sustainability strategy and implementation of the related framework, policies and practices.

Group Sustainability Team

Develop, amend and implement the sustainability strategy, frameworks, policies and initiatives to embed sustainability across all Group Function and Units.

Functional Roles

Business Functions

Support Functions

1st Line of Defence

Comply with sustainability strategies, frameworks and policies; conduct ESG risk assessments and identify new risks.

Group Sustainability

Group Risk

2nd Line of Defence

Develop, amend and implement the sustainability strategy, frameworks and policies. Provide oversight that 1st LOD is compliant.

Internal Audit

3rd Line of Defence

Provide independent review to ensure compliance with sustainability frameworks, policies and procedures.

Our Progress

We have made significant strides in aligning our Sustainability Governance with global best practices. We have set out a comprehensive Group ESG Risk Standard to incorporate ESG risk into the Bank’s overall risk management framework. The Standard gives reference to the regulatory expectations across all jurisdictions within our network, including but not limited to expectations from the Central Bank of Bahrain (CBB), Prudential Regulatory Authority of the UK, Monetary Authority Singapore (MAS), Central Bank of Jordan (CBJ) and the European Central Bank (ECB). Monetary Authority Singapore (MAS). It also drew upon other crucial sources such as the Basel Committee on Banking Supervision. It sets out clear roles and responsibilities across functions and entities. This allows us to embed ESG Risk, as a “Level 1” principal risk, into the Bank’s risk pillars and taxonomy, and traditional risk categories such as credit risk, operational risk and liquidity risk.  A detailed gap analysis and targeted action plan accompany the Standard to close the identified gaps and ensure ESG risk is effectively measured, managed and reported across all subsidiaries and branches.

Following the incorporation of sustainability into our governance structure at Group level, we have expanded our focus to ensure it is embedded into the governance structures throughout the Group. A key element in this process is the timely reporting of our material ESG KPIs across the Group, which enables management to effectively monitor, manage and report on progress. We have also boosted our dedicated sustainability resources. Since launching the sustainability strategy in mid-2023, we have significantly expanded the Sustainability team to sixteen specialists across Bahrain, Brazil, Egypt, Tunisia, London and Paris to support local implementation and meet the growing regulatory requirements.

Next Steps

In 2025, a key priority will be executing the action plan to ensure full deployment of the Group ESG Risk Standard across all subsidiaries and branches. We will also formally establish the Sustainable Finance Forum in 2025 to support the scaling of sustainable and transition finance across the Group.

A significant future milestone will be the development of targets focused on reducing the Bank’s environmental footprint and increasing our sustainable finance activity. In parallel, we will explore linking these targets to management remuneration.

Initiatives

Group ESG Risk Standard
  • Defines how we incorporate ESG risk across our risk management system.
  • Sets out the roles and responsibilities across our Group Function and geographical entities for managing ESG risks.

Benefit:

  • Provides a robust Group-wide framework to ensure that ESG risks are effectively measured, managed and reported. 
  • Ensures sustainability is incorporated into the governance structure at Group and entity level. 
Show more
Set up our Sustainable Finance Forum
  • Established to provide quarterly oversight of our Sustainable Finance Framework (SFF) and ensure rigorous governance of sustainable finance and reporting.

Benefit:

  • Strengthen governance and supports the delivery of our sustainable and transition finance strategy.
  • Mitigates greenwashing.
Show more
Develop ESG targets and explore linking to remuneration
  • Develop action plans to improve material ESG KPIs and develop timebound targets.
  • Explore linking ESG targets to senior management variable remuneration.

Benefit:

  • Ensure alignment and drive accountability.
Show more