Management of Environmental, Social and Governance Risks in Banking

The Association of Banks in Jordan and CRIF Information Technology Solutions – Jordan - organized a workshop on "The Management of Environmental, Social and Governance Risks in Banking and how banks are preparing to assess environmental risks”. The workshop took place at the headquarters of the Association of Banks on Thursday, March 24, 2022, with the participation of a number of representatives of risk, compliance and credit departments in banks.

Dr Maher Mahrouq, Director General of the Association of Banks, opened the workshop by welcoming the attendees, noting that the Covid-19 pandemic has highlighted the importance of environmental, social and corporate governance (ESG) issues, and that it has increased the expectations of directing investments in these areas around the world, prompting the further integration of ESG analysis into the work of companies in building investment portfolios.

Eng. Areej Obiedat, Business Development Manager - Digital Solutions at CRIF ITS, who leads business development activities in the field of digital solutions at CRIF with 16 years of experience in banking solutions in Jordan, said that Jordanian banks should be prepared to assess ESG risks and should consider it an integral part of the credit process, through technical solutions and partnerships with the competent authorities concerned with sustainability and the measurement of ESG risks.

Bank al Etihad played an active role in the workshop, where Dalal Dabbour (Director of Corporate Sector) highlighted the latest measures taken at Bank al Etihad in line with the management of ESG risks. She also announced the upcoming cooperation between Bank al Etihad and CRIF ITS regarding the automation of ESG risk measurement for the corporate and SME sectors.

Moreover, Marco Macellari and Claudio Doronzo from CRIF Global Transformation Services, presented a detailed and scientific explanation that addressed the impact of climate change on banks, current best practices in regulatory development and new regulatory obligations, the importance of ESG factors in risk management processes, and climate impact as an effective element in assessing business risks, as well as the importance of qualitative information in assessing compliance with ESG principles.