Doha Bank’s Approach to Responsible Investment

Doha Bank is committed to responsible investing because we believe it’s in the best long-term interests of our Stakeholders. Our approach to responsible investment is based on integrating both financial and non-financial criteria into the way we research, select and manage investments.

Traditional investment approaches focus mainly on financial criteria such as balance sheet strength and future earnings forecasts. We take a wider perspective which also takes environmental, social and governance (ESG) factors into account.

As these factors are some of the drivers of long-term investment risks and returns, we believe our approach is in the best long-term interests of both our investors and wider society.

  • Sustainable Performance: Our goal is to deliver sustainable performance in a sustainable way. When we assess investments we look at a range of both financial and non-financial criteria. We believe that environmental, social and governance factors are some of the drivers of long-term investment risks and returns.
  • Active Ownership: We take an active, rather than passive, approach to managing your investments. This means we retain control of the investments we manage. We can act when necessary to ensure our investments meet, and continue to meet, our financial and non-financial criteria.
  • Monitoring: We continually review our investments and prospective investments against our financial and ESG criteria. Companies or industries that have any ESG issues are subject to further review. Depending on the results of our review we might continue to hold, review on a periodic basis, divest, or exclude the company or industry as an investment.

We currently exclude investments in companies that are involved in:

  • Manufacturing controversial weapons, including cluster munitions and anti-personnel mines
  • Manufacturing or testing nuclear explosive devices, and
  • Manufacturing tobacco products.
  • Companies that have breached global norms or standards to a severe degree.

Doha Bank’s Risk Management Framework, Credit Risk Policy and environmental policies are subject to regular review.

Doha Bank’s Approach to Sustainable Finance

Doha Bank is committed to sustainable finance, that is managing the environmental, social and governance (‘ESG’) dimensions of our finance and lending activities. In line with the Doha Bank Risk Management Strategy and set out in Doha Bank’s Risk Management Framework, this includes incorporating ESG risk analysis into the credit assessment and approval process for our corporate customers. The requirements for ESG risk analysis are outlined in Doha Bank’s Credit Risk Policy. The policy requires that ESG risk is considered in each stage of our credit cycle, as outlined below.

  • Origination: Potential ESG risks (including direct, indirect and reputational) are identified via our review process. For environmentally and socially sensitive sectors, we draw on internal and external expertise for insights on best practice, setting of risk appetite, risk management and performance measures. Where required, specific environmental and sector policies are established within our credit procedure manuals to address identified risks and incorporate performance measures, undertakings and reporting obligations.
  • Evaluation: The credit risk evaluation process assesses risks at a sector, country, customer and transaction level. This ensures that all risks, including ESG risks, are identified and addressed.
  • Approval: Credit proposals are only approved on the basis that (in addition to our usual credit criteria) ESG risks have been analysed and evaluated.
  • Documentation: Credit approval may be subject to documented undertakings from our customer in relation to the management, monitoring and performance by the customer against agreed ESG performance measures and compliance with specific ESG, legal or regulatory obligations.
  • Monitoring: The quality of credit facilities is monitored by undertaking regular customer and transaction reviews. Reviews include assessing the customer’s compliance with any relevant ESG performance measures, undertakings and statutory reporting obligations reflected in the facility.

Doha Bank’s Risk Management Framework, Credit Risk Policy and environmental policies are subject to regular review.