Financing green projects and innovative renewable energy products and services
Within its role as a Strategic Banking Partner for Expo 2023 Doha Qatar™, QNB Group, the largest financial institution in the Middle East and Africa, is committed to strengthen its sustainability agenda through various sustainable and green products and services it has been continuously launching.
QNB have put in place measures to enhance energy consumption efficiency in all its offices and branches. This includes optimizing energy and cooling installing automatic light control systems, switching to low-energy lighting and installing automatic light control system across parking spaces, buildings and other facilities.
Some of the sustainable operations that the Group was successful in executing includes: Cutting GHG emissions, the Group have successfully achieved its 2017 pledge to cut their Greenhouse Gas (GHG) Emissions by 16% in 2022. The initiative was underpinned by growing employee awareness and through detailed tracking of the Group’s GHG and energy consumption reduction initiatives.
QNB Group’s pioneering sustainable products and services include the first green bond issuance and green repurchase agreement in Qatar, as well as innovative green mortgage and electric vehicle loans for its retail customers.
When it comes to green financing, QNB have executed green mortgages and loans, as well as Corporate and Institutional Green Banking which plays a crucial role for QNB in terms of sustainable finance due to its significant impact on financing and the ability to drive positive environmental and societal change.
QNB’s sustainable retail products and service offerings include the Green Vehicle Loan offered to customers at highly attractive interest rates, to promote the adoption of environmentally friendly electric and hybrid vehicles and supporting infrastructure.
The recently opened branch in Place Vendome have obtained GSAS “Global Sustainability Assessment System” certification for its interior design and environmentally friendly construction. In its branches, the bank also discarded the use of ticketing system and opted for SMS notifications to limit the use of paper.
The Group developed SFPF which was externally assessed and validated through a SPO, confirming continued alignment with international sustainable financing principles. The SFPF is the latest iteration of its award-winning approach to ESG in financing, which supersedes and expands upon the pre-existing Green, Social and Sustainability Bond (GSSB) Framework. It elaborates on QNB’s classification approach and methodology for labelling any products, services or transactions as Sustainable or Transition finance, aimed at delivering positive impact to society and the environment.
QNB also implemented the Wage Protection System (WPS) with corporates to comply with QCB directives and ensure timely wage payment for workers. The WPS ensures the prompt payment of wages through means of digital inclusion and has been recognised by ILO for prompt salary payment.
In Egypt, QNB AlAhli’s support has played a crucial role in enhancing El Boghdadeya's competitiveness and positioning in the market. This partnership has led to significant positive impacts, such as the implementation of pivot irrigation systems that have resulted in a 21% reduction in water consumption and 9500 MW of energy saved. These measures have not only decreased costs but also increased production surplus, allowing El Boghdadeya to expand into larger agricultural areas. Additionally, the project is expected to reduce over 7000 tons of CO2 emissions in the short term.
QNB ALAHLI also signed an MoU with Intro Sustainable Resources Group for a study to finance projects in the field of Trigeneration or Combined Cooling, Heat and Power (CCHP), to reduce natural gas consumption and carbon emissions in various industrial and services sectors.
In addition, QNB ALAHLI also signed a facility agreement with Enara Group to finance its solar power plant project which is part of a broader financing facility targeting different sectors, including the industrial and agriculture sectors. Earlier this year, the Bank also financed another solar plant project carried out by Enara, which is considered the largest rooftop solar power plant ever in Egypt.
The Group’s subsidiary in Turkey, QNB Finansbank, purchases 100% electricity from renewable sources, which makes it fully operating on renewables. Turkey is heavily reliant on imported non-renewable energy resources, with 50% of its electricity generated from imported coal and gas in 2021. To reduce foreign dependence on power generation to less than 25% by 2030, Turkey aims to support the transition to renewable energy.
QNB’s excellence was marked through the recognition of its “Outstanding Leadership in Green Bonds across Middle East”, “Outstanding Leadership in Sustainable Project Finance across Middle East”, and being the “Best Bank for Sustainable Finance in Qatar”, received from Global Finance magazine
Through its subsidiaries and associate companies, QNB Group is present in more than 28 countries across three continents, providing a comprehensive range of advanced products and services to its customers. The total number of employees is more than 30,000 operating through 900 locations, with an ATM network of more than 4,800 machines.
