What are the material issues the company has identified?

In its 2019 Sustainability Report Arab Bank identified a range of material issues, such as legal and regulatory compliance, governance, accountability and transparency, customer experience and satisfaction, ethical conduct, information security and data privacy, talent attraction and retention. Among these, promoting financial inclusion and literacy stands out as a key material issue for Arab Bank.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Arab Bank engages with:

To identify and prioritise material topics Arab Bank engaged with its stakeholders through the following channels:

Stakeholder Group	Method of engagement
Customers	·      Service & Communication Channels ·      Feedback Methods ·      Regular Annual Reports ·      Media
Shareholders	·      Annual General Assembly ·      Financial and Non-Financial Reports
Government	·      Regulatory Reporting and Audits ·      Regulatory Review ·      Regulations
Community	·      Social and Digital Media ·      Regular Annual Reports ·      Media ·      CSR Activities & Initiatives
Suppliers	·      Meetings ·      Contracts
The environment	·      Engaging with Clients & Borrowers on ESG Issues ·      Engaging with Environmental NGOs ·      Sustainability Reports
Employees	·      Internal Communication Channels ·      Volunteering Activities

What actions were taken by Arab Bank to promote financial inclusion and literacy?

In its 2019 Sustainability Report Arab Bank reports that it took the following actions for promoting financial inclusion and literacy:

• Implementing the “Shabab” programme
• Through its “Shabab” programme, Arab Bank provides the youth with financial services that are not usually offered to them and with an exceptional early banking experience, through the programme’s lifestyle and financial benefits. Additionally, Arab Bank offers to students working in part-time jobs first jobbers’ access to credit facilities at preferential terms.

• Using the “Jomopay” mobile payment system
• Arab Bank has included the Central Bank of Jordan’s mobile payment system “Jomopay” within its mobile banking service “Arabi Mobile”. By participating in this service, Arab Bank widened the reach of its customers’ remittances to all users with Jomopay wallets, reducing the dependency on physical cash and providing the unbanked with access to its wide base of customers.

• Investing in the sustainable development of local communities
• Arab Bank invested JOD 148,000, in cooperation with the Jordan River Foundation (JRF), in the sustainable development of local communities. This investment provided selected Community Based Organisations (CBOs) in the governorates of Ma’an and Zarqa with revolving loan funds to promote economic opportunities and entrepreneurship in poor communities, by facilitating access to finance. Implemented by JRF, the revolving loans programme grants loans to community members through CBOs that are carefully selected and undergo screening and extensive capacity building, to enable them to manage their own revolving loan portfolio in a sustainable way. Since 2011, approximately 320 individuals have benefitted from the revolving loans, with almost 63% of them being females.

• Supporting the national financial educational programme
• Arab Bank supports the national financial educational programme, initiated by the Central Bank of Jordan, to increase financial literacy among school students and teach them how to develop smart saving habits and make sound financial decisions. Arab Bank also supported this initiative through the Abdul Hameed Shoman Foundation (AHSF). The programme is intended to bridge the gap between financial knowledge and behaviour, acquainting students with basic economic and financial concepts.

• Sponsoring social financial literacy programmes
• Believing that financial literacy starts at a young age, Arab Bank has embarked upon several sponsorships targeting children in cooperation with various NGOs. In 2019, Arab Bank supported “The Arts of Saving” programme with Haya Cultural Centre. Through this programme, children were taught the art of saving money and managing budgets through creative and interactive activities. More than 1,800 children across the Kingdom were reached.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is:  Disclosure 203-1 Infrastructure investments and services supported

Disclosure 203-1 Infrastructure investments and services supported corresponds to:

• Sustainable Development Goal (SDG) 5: Gender Equality
• Targets: 5.4
• Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
• Targets: 9.1, 9.4
• Sustainable Development Goal (SDG) 11: Sustainable Cities and Communities
• Targets: 11.2

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

1) This case study is based on published information by Arab Bank, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Arab Bank: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

What are the material issues the company has identified?

In its 2018 Sustainability Report Arab Bank identified a range of material issues, such as Legal and regulatory compliance, governance, accountability, and transparency, customer experience and satisfaction, information security and data privacy, talent attraction and

retention. Among these, promoting sustainable procurement stands out as a key material issue for Arab Bank.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Arab Bank engages with:

Stakeholder Group	Method of engagement
Customers	·      Service & Communication Channels ·      Feedback Methods ·      Regular Annual Reports
Shareholders	·      Annual General Assembly ·      Financial and non-financial Reports
Government	·      Regulatory Reporting and Audits ·      Regulatory Review ·      Regulations
Community	·      Social and Digital Media ·      Regular Annual Reports ·      Media ·      CSR Activities & Initiatives
Suppliers	·      Meetings ·      Contracts
The environment	·      Engaging with Clients & Borrowers on ESG Issues ·      Engaging with Environmental NGOs ·      Sustainability Reports
Employees	·      Internal Communication Channels ·      Volunteering Activities

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics, Arab Bank engaged with its stakeholders through a targeted survey.

What actions were taken by Arab Bank to promote sustainable procurement?

In its 2018 Sustainability Report Arab Bank reports that it took the following actions for promoting sustainable procurement:

• Screening suppliers
• The engagement and assessment of a substantial number of suppliers require considerable resources. However, Arab Bank has introduced checkpoints through its procurement process so as to ensure low impact on the environment, in addition to cost reductions. The Procurement Division often engages with suppliers to achieve these objectives by raising awareness about sustainable procurement and by supporting suppliers in their social and environmental contributions.

• Implementing a Supplier Code of Conduct
• Arab Bank’s Supplier Code of Conduct sets out the expectations of suppliers to make sure their behaviour aligns with Arab Bank’s It formalises and standardises Arab Bank’s approach to sustainable procurement. As part of the code, suppliers must, among other things, adhere to labour and employment standards, environmental and social legislations. The end goal is to make sure all suppliers meet Arab Bank’s expectations and those of its stakeholders to act as good responsible citizens.

• Setting contractual provisions
• To increase suppliers’ awareness and compliance to social values, specifically those related to human rights, Arab Bank’s Global Procurement Division sets contractual provisions in the Bank’s agreements with suppliers highlighting the fundamental principles of the Universal Declaration of Human Rights (UDHR) and the International Labor Organization (ILO).

• Spreading an efficient culture
• To enhance efficiency, reduce human errors and achieve a high level of security and accuracy, Arab Bank’s Global Procurement Division is working to automate the procurement processes, covering the entire Procure-to-Pay process through the implementation of an electronic procurement system expected to go live in the second quarter of 2019. This process automation will also yield paper reduction gains, which will reduce Arab Bank’s total environmental footprint and associated costs.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken

3) Disclosure 414-1 New suppliers that were screened using social criteria

4) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

 

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

• Sustainable Development Goal (SDG) 5: Achieve gender equality and empower all women and girls
• Business theme: Workplace violence and harassment
• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Labor practices in the supply chain
• Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
• Business theme: Workplace violence and harassment 

Disclosure 414-2 Negative social impacts in the supply chain and actions taken corresponds to:

• Sustainable Development Goal (SDG) 5: Achieve gender equality and empower all women and girls
• Business theme: Workplace violence and harassment
• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Labor practices in the supply chain
• Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
• Business theme: Workplace violence and harassment

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

References:

1) This case study is based on published information by Arab Bank, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Arab Bank: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.