Al Rayan Bank makes significant ESG progress
London, UK: Al Rayan Bank, the UK’s leading and most successful Islamic bank, has published its first-ever sustainability report, marking a year of significant progress in its environmental, social, and governance (ESG) initiatives.
Over the past year, Al Rayan Bank has implemented a range of initiatives to minimise its environmental impact. These initiatives are detailed in its newly published annual sustainability report.
The Bank has achieved operational carbon neutrality for the second consecutive year through its partnership with Carbon Neutral Britain. In the last year alone, the Bank offset 357,786 tonnes of carbon dioxide equivalent (tCO2e). Since 2022, the Bank has offset more than 614,000 tCO2e, equivalent to removing nearly 133 petrol-powered cars from the road [1].
In addition to its carbon offsetting efforts, Al Rayan Bank has introduced an Electric Car Scheme. This initiative allows staff to lease a new electric vehicle through a salary sacrifice scheme. The scheme has been well received, with over 60% of employees exploring the scheme and nine vehicles ordered to date. This initiative has resulted in a saving of 5,510kg of CO2 equivalent [2].
The Bank has also made strides in reducing its paper consumption. Through initiatives such as paperless statements, it has reduced its paper usage by almost 30% in the last five years, including an 11% reduction over the last 12 months [3].
However, Al Rayan Bank’s ESG efforts extend beyond environmental initiatives; from a people perspective, enhancing its employee proposition sits at the centre of the Bank’s ESG ambitions, with material improvements made in pay, rewards and working culture, contributing to consistently high employee engagement scores.
This commitment is demonstrated by the success of the its wellbeing initiatives, which have focussed on various aspects such as mental health, men’s health, women’s network, and health through movement. In a recent independent survey, 93% of employees agreed that the Bank prioritises their health and safety, 90% felt that the Bank celebrates success, and 88% reported feeling able to be themselves at work and proud to work for Al Rayan Bank.
Al Rayan Bank is also driving meaningful change globally through its Educate a Child International Fixed Term Deposit. This 36-month Fixed Term Deposit with a profit rate sees the Bank donate an amount equal to 0.1% of the balances in every account to the charity.
Harpreet Dhillon, Chief People and Sustainability Officer, commented “As a Sharia-compliant bank, doing the right thing is in our DNA; sustainability isn’t just another business buzzword, it’s fundamental to our very purpose. We’re committed to ensuring everything we do has a significant and lasting positive impact on the world around us. The ESG milestones already achieved will be further enhanced as we look to roll out our net zero strategy in the future.”
To read the report in full, please visit alrayanbank.co.uk/ESG
