BankDhofar publishes inaugural sustainability report for 2023 Leading the way in ESG and corporate governance

BankDhofar, a premier financial banking institution in Oman, has proudly released its first-ever Sustainability Report for 2023, demonstrating its robust commitment to embedding Environmental, Social, and Governance (ESG) principles into its core business operations.

The report showcases BankDhofar’s forward-thinking strategy aimed at addressing sustainability risks and opportunities while creating long-term value for stakeholders and fostering a positive impact across the Omani community. Aligned with international standards and best practices, the report underscores the Bank’s significant role in advancing national initiatives, particularly Oman Vision 2040, which harmonizes with global frameworks such as the United Nations Sustainable Development Goals (SDGs).

In the opening remarks of the report, Mr. Karumathil Gopakumar Acting CEO of BankDhofar, highlights the report’s central theme: “Our ESG strategy is anchored in a robust corporate governance framework, enabling us to support key national initiatives tied to Oman Vision 2040, which integrates global   sustainability priorities such as the SDGs. This strategy serves as a roadmap for all departments, guiding their efforts to enhance performance and achieve set goals, supported by targeted initiatives and mechanisms for tracking progress.”

At the core of BankDhofar’s ESG vision is its dedication to promoting sustainable growth through responsible banking practices that contribute to economic diversification and societal well-being. The Bank's ESG efforts are built around four main pillars: Enabling Climate Action, Uplifting Customers and Communities, Focusing on Our People, and Reinforcing Governance.

Each of those pillars plays a crucial role in fostering sustainability and social responsibility.

• Enabling Climate Action This pillar focuses on key environmental initiatives, such as developing a greenhouse gas (GHG) emissions inventory, setting science-based GHG reduction targets, and integrating climate strategy within the risk management framework. The aim is to support decarbonization efforts, develop water and waste management plans, and create net-zero transition strategies for businesses
• Uplifting Customers and Communities Under this pillar, there is a focus on offering advisory services to support clients in their sustainability journey, particularly in their efforts toward decarbonization. The bank aims to develop frameworks that facilitate greater access to financing for small and medium enterprises while ensuring financial inclusion and corporate social responsibility. Additionally, there is a goal to enhance digital access for all customers
• Focusing on Our People The goal here is to prioritize employee engagement, diversity, and inclusion, as well as gender equity. The bank plans to implement regular engagement programs, assess gender pay equity, and ensure comprehensive employee well-being by integrating occupational health and safety systems. Furthermore, enhancing the skills and leadership capabilities of board members will be a focus
• Reinforcing Governance This pillar emphasizes enhancing governance structures through the adoption of sustainability frameworks and transparent policies. There is a focus on improving board independence, diversity, and ethical governance, ensuring compliance with industry standards. The bank also aims to improve performance evaluations by incorporating sustainability key performance indicators (KPIs) into employee and executive remuneration programs.

Corporate governance remains a cornerstone of BankDhofar’s sustainability efforts, reflecting its determination to maintain the trust of its stakeholders. The report emphasizes the critical importance of transparency, accountability, and strict adherence to ethical standards—principles upheld across the Bank’s shareholders, Board of Directors, and senior management.

Delivering unmatched customer service is another central goal within BankDhofar’s ESG framework—a commitment that distinguishes the Bank from its competitors. The relationship with its customers is governed by eight core Customer Service Values: Relationship, Ownership, Voice of the Customer, Continuous Improvement, Fair Treatment and Respect, Right to Choose, Right to Know, and Availability and Reliability. These values are formalized in the Bank’s Charter of Consumer Rights and Responsibilities, outlining the mutual responsibilities of both the Bank and its customers.

As a community-driven institution, BankDhofar continues to innovate its products and services to meet the diverse needs of all community members, including underserved and underbanked populations. The Bank’s commitment to financial inclusion is evident in its extensive network of branches, digital channels, and self-service machines—an integral component of its broader ESG strategy.

The Bank’s corporate governance approach also mandates a firm commitment to protecting customer data and privacy. BankDhofar continues to invest in cutting-edge digital and cybersecurity solutions to safeguard data through a comprehensive framework of policies, procedures, and IT systems. The Bank’s data security infrastructure is backed by industry-leading certifications, ensuring stringent protection of customer information at all times.

In line with global best practices, BankDhofar has implemented robust Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) measures, ensuring compliance with applicable laws and international standards. The Bank remains dedicated to tax transparency and adheres to regulations in all jurisdictions where it operates, guided by directives from the Central Bank of Oman (CBO), the Capital Market Authority (CMA), and other statutory bodies.

Committed to driving Oman’s sustainable development journey, BankDhofar is actively exploring opportunities to support energy transition and climate mitigation initiatives. These efforts include providing project finance for environmental ventures that align with 'green' or 'sustainable finance' categories, such as renewable energy and other clean technologies.

The Sustainability Report also highlights BankDhofar’s success in supporting Omanisation of its workforce, with a strong emphasis on employee health, safety, and well-being. The Bank’s Code of Conduct outlines its commitment to maintaining a safe, healthy, and efficient environment for its employees, customers, and visitors, with numerous initiatives in place to promote career development and employee satisfaction.

Looking ahead, BankDhofar is fully committed to enhancing its ESG reporting in compliance with mandatory disclosure requirements, set to take effect in 2025. This commitment positions the Bank for continued growth, supported by a nationwide network of 130 branches and an expanding suite of 387 ATMs, CDMs, and multifunctional kiosks as of September 2023.

As the world navigates pressing sustainability challenges, BankDhofar reaffirms its role as a responsible corporate citizen, balancing growth with a steadfast dedication to ESG principles.