Global Compact International Yearbook 2015

Good Practice
Financial Markets
within the banking sector that serve
current and future economic challenges
such as microfinance, banking for small
and medium-sized enterprises, and clean
energy finance.
THIRD: Regulatory engagement – In
order to empower the banking sector
to create this change, systems and processes
need to be developed that create a
platform of incentives and a framework
operation. Hence, MOSTADAM aims
at establishing the first blueprint for
sustainable finance, which will serve
as a guide to the banking sectors in
Egypt and the Middle East for embracing
the concept within their operational
systems.
MOSTADAM’s first focus – capacitybuilding
through training – was enacted
with the launch of the first certified
training program on sustainable finance
on November 16, 2014, in Cairo. The
program started with the first round of
training that introduced the concept to
the banking sector in Egypt.
AAIB invited 30 participants representing
11 banks from countries such as
Lebanon (Blom Bank and Audi Bank),
Greece (BNP), the United Arab Emirates
(Abu Dhabi Islamic Bank and Emirates
NBD), Kuwait (National Bank of Kuwait),
Libya (Arab International Bank), Qatar
(Qatar National Bank), Egypt-Kuwait
(AAIB), Egypt (Suez Canal, Alex Bank),
and more than one Arab country (SAIB).
The event aimed at introducing the attendees
to sustainability ideas and related
concepts. The sessions covered CSR and
sustainability-relevant topics such as:
introduction to sustainable finance; Fair
MOStaDAM
Vision and Mission
Vision: Empower the banking
sector in Egypt to become forerunners
in sustainable finance
on a global level.
Mission: Develop a national model
for sustainable finance in Egypt.
Platform, the Sustainability Unit at AAIB
conducted a survey to discover the feasibility
and expediency of the program
for the banking sector in Egypt. The
majority agreed on the practicality of
acting on the information. The feedback
represents AAIB’s attempt to ensure that
banks are inclusive, develop the necessary
policies and procedures, and adopt
sustainable finance.
Why sustainable finance?
Sustainable finance is finance that considers
more than just immediate financial
performance or the “bottom line.”
Whereas previously financial institutions
had a narrow focus on operations and results
(profitability), sustainable financial
institutions recognize that extra-financial
ESG issues have multiple impacts on
operations and financial results, the
societies in which the organization operates,
and its stakeholders.
Eleven certified banks in Egypt
Preparing potential leaders to change
an influential industry is a challenge.
Creating an industry movement requires
believers, potential leaders, and ambassadors
of change. Engaging banks to
incorporate ESG issues into their management
decision-making as well as daily
business operations ensures that new opportunities
and growth will be available.
Trade; financial inclusion; sustainability
KPIs; socially responsible business; CSR
vs. philanthropy; microfinance; social
and environment risk assessment for
project lending operations; ESG indicators;
and sustainability reporting.
Indicators of success
As AAIB is keen on achieving the maximum
impact and output of the MOSTADAM
Sustainable finance recognizes the complex
structure of the internalities and
externalities of financial institutions.
Ignoring these factors results in an inefficient,
outdated, and simplistic business
model. Conversely, the careful analysis
and effective management of these internalities
and externalities bring both
internal and external benefits to the
financial institution.
To learn more about MOSTADAM, please send all
inquiries to: mostadam@aaib.com
Global Compact International Yearbook 2015
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