Stepping up the efforts to catalyze climate actions and facilitate organizations to build low carbon and sustainable economies, the Gulf Organisation for Research and Development (GORD) signed a memorandum of understanding (MoU) with Dukhan Bank at the 27th session of the Conference of the Parties (COP27) to the UNFCCC taking place from 6 to 18 November 2022 in Sharm El Sheikh, Egypt.  The annual climate event is a coming together of countries and organizations to address the climate challenges facing the world today.  Signing the agreement on behalf of Dukhan Bank was Sheikh Mohammed Bin Abdulaziz Al-Thani, AGM – Head of Government & Environmental Social Governance (ESG), who was joined by GORD’s Founding Chairman, Dr. Yousef Alhorr.

Dukhan Bank is collaborating with GORD to promote sustainable building practices through the implementation of the Global Sustainability Assessment System (GSAS). For the first time in Qatar, Dukhan Bank with support from GORD is launching an exclusive Shari’ah-compliant Green and Sustainable Real Estate Finance program for all Dukhan Bank customers engaged in commercial, residential and other real estate development projects.

As part of the partnership, Dukhan Bank will provide green finance promotions to project owners and developers working on real estate projects seeking green building certifications under the GSAS framework. Eligible applicants who will benefit from Green and Sustainable Real Estate Finance Program include all Dukhan Bank customers in Qatar targeting at least 3 Stars rating under the GSAS Design & Build and Class B in Construction Management certifications.

With an aim to create sustainable cities and communities, the green finance program directly targets SDG 11 while leveraging its interconnectedness with the other Sustainable Development Goals (SDGs). In line with Qatar National Climate Change Action Plan, the green finance program will contribute towards sustainable environment by “balancing economic growth and climate protection”; in addition to reducing the environmental footprint of building and construction.

Speaking on behalf of Dukhan Bank, Sheikh Mohammed Bin Abdulaziz Al-Thani, AGM – Head of Government & Environmental Social Governance (ESG), said: “We're pleased to sign MoU with the Gulf Organisation for Research and Development, which comes in line with Dukhan Bank’s ESG strategy, to guarantee sustainable management of its banking operations, and enhance its capacity to lead banking institutions supporting transformation into a sustainable community, and actively strive for advancing Dukhan Bank’s sustainability rates to go in line with the pillars of Qatar National Vision 2030 and the UN's SDGs.”

Offering a rationale behind Dukhan Bank’s latest green initiative, Dr. Yousef Alhorr, Founding Chairman of GORD said, “Following the introduction of United Nations’ Global Goals in 2015, we have now entered the decade of action. The idea behind ‘Green and Sustainable Real Estate Finance Program’ is to not only facilitate key players in developing future-proof urban environments but also encourage them to continuously measure their sustainability impacts through transparent reporting. By setting a foundational framework for borrowers to report on the environmental impacts of their projects through GSAS certification, Dukhan Bank and GORD are pushing the market to adopt ESG reporting practices that go beyond the financial outcomes of businesses.”

GSAS is MENA’s first performance-based green building system aimed at improving the design, construction and operations of buildings while also identifying sustainability challenges specific to the regional built environment.

Qatar’s upcoming projects benefiting from Dukhan Bank’s latest initiative are expected to reduce their carbon footprint by following sustainability best practices guided by the GSAS Framework that covers aspects related to urban connectivity, site, energy, water, materials and indoor environment, management and operation and heritage and culture.  Apart from facilitating climate-conscious real estate projects through green building certification, Green and Sustainable Real Estate Finance Program will also assist clients in reporting non-financial impacts that include aspects related to environment, society and governance.