Financing Environmental Impact

Financing Environmental Impact

Stakeholders expect responsible businesses to manage environmental issues across their business activities. This includes having a risk management framework in place that supports responsible financing-decisions, with due consideration of environmental issues.

At ADCB, our lending processes reflect our commitment to doing business responsibly. At the due diligence and credit approval stages, we include consideration of any adverse factors in financing activities that may affect the environment, community and sustainability prior to making a commitment. This ensures that proposals we support do not end up harming the community.

In 2018, we will also be supporting this approach via staff training that will cover both Relationship Management and Credit Approval staff.

ADCB considers its current lending practices to be low risk as our exposure to controversial sectors is nominal:

  • deforestration exposure - none
  • mining - minimal, under 1%, and not related to coal or other natural resource extractions
  • oil & gas exploration activities - minimal, under 1%

Industry concentration details can be found in note 43.2 of our 2017 annual report.

ADCB is in the process of formalizing our policy principles around these issues, as well as developing screening tools to be used in assessing lending applications. We are currently considering adopting the requirements of the Equator Principles within 2018, even though our project finance activities are very limited.