This page is part of the E3G Public Bank Climate Tracker Matrix, our tool to help you assess the Paris alignment of public banks, MDBs and DFIs
| Paris alignment | Reasoning |
|---|---|
| Paris aligned | The Bank has shown itself to be a leader in Islamic green finance and incorporating climate and sustainability into their approach to the Islamic finance industry. |
Explanation
The Bank is a global leader with regards to its integration of sustainability into the Islamic financial system. The Bank’s first Green Sukuk, valued at EUR 1 billion in 5-year Trust Certificates, is proof of their efforts to bring sustainability into the financial system of its member countries. This working knowledge is an area where the Islamic Development Bank can provide knowledge and guidance to peer MDBs to encourage the effective use of Green Sukuks where relevant and bringing the ideas of socially responsible investment into mainstream western financial systems.
Recommendation: The IsDB should use it’s knowledge of Islamic financial systems to guide peer MDBs and encourage their activity in this sphere, where relevant.
It should also be noted that IsDB is fully engaged in the Joint MDB Paris Agreement Alignment Working Group.
Last Update: November 2020