I am pleased to confirm that Palestine Islamic bank (PIB) reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labor, Environment and Anti-Corruption.

In this annual Communication on Progress, We describe our actions to increase compliance with the Global Compact and its principles and incorporate them into our business strategy, culture and daily operations. We also commit to sharing this information with our stakeholders using our primary channels of communication.

Yours Sincerely
Maher Masri
Chairman of the Board of Directors

The Palestine Islamic Bank (PIB) has adopted the principles of the Universal Declaration of Human Rights. It implements all local laws and charters that guarantee the rights of individuals and prevent any form of discrimination when dealing with employees and clients.
In addition, PIB provides an internal work environment that guarantees the highest levels of comfort and stability for employees. All its buildings and facilities are accessible for people with disabilities.
PIB’s commitment to human rights is not limited to its dealings with clients or employees. Respect for human rights is a prerequisite for signing a contract with a new supplier. This is important to promote respect for human rights and encourage other parties to follow suit.

PIB believes that access to banking services is a basic human right. For this reason, it focused on promoting financial inclusion in Palestine through its banking network, which includes 43 branches and offices and more than 90 ATMs spread across the various governorates. It also developed digital banking channels to overcome the challenges facing financial inclusion. This allowed citizens to access banking services around the clock without having to visit a branch. Such channels include Islami Online, Islami Mobile, the Digital Contact Center and IslamiTalk.

On the other hand, PIB prohibits, in its code of conduct and internal systems, discrimination by its employees, whether internally or when providing services to the public, including discrimination based on color, race, gender, place of residence, age, views, political opinion, religious beliefs, or any other form of discrimination.
To ensure there is no form of discrimination or violation of rights, PIB has placed complaint boxes in its facilities. It also receives complaints online. It follows up and addresses any grievance or complaint as soon as possible.

The Bank is also committed to promoting gender equality in access to employment opportunities. In 2021, 180 out of 679 employees were women, many of whom in high decision-making positions supervising the most important projects at the Bank.

In line with Law No. 4 of 1999 on the Rights of People with Disabilities, PIB provides equal rights for this segment to compete for job opportunities and ensures they have all the necessary working conditions at their place of work. PIB was the first bank to provide banking services to customers with disabilities through sign and Braille languages to allow them to manage their accounts and enjoy equal rights. All PIB branches and headquarters are accessible, and all ATMs can provide services for the visually impaired.

On the other hand, PIB allocates a part of its net annual profits to its sustainable social responsibility program. It implements dozens of projects to support different groups of society and contributes to the implementation of sustainable development goals.

In 2021, PIB supported more than 112 entities in different sectors, especially the health and education sectors, as they are vital and essential to achieve sustainable development. For example, 52 projects were carried out to support various educational institutions, which included restoration and building of educational facilities, purchasing educational tools and equipment and supporting scientific research efforts, among others.

In partnership with the Palestinian Monetary Authority, PIB also introduced the “Sustainability” program to provide financing for medium, small and micro enterprises affected by the COVID pandemic, in order to support their recovery.

In the same context, PIB’s social responsibility projects include supporting associations that empower people with disabilities, women and children. PIB continued its work on the water desalination project in Gaza which has established 12 stations over the past years to provide drinking water to thousands of citizens.

PIB evaluates its commitment to the values and principles of human rights through a specialized department that reports periodically to the executive management. It also addresses any grievance and its root causes as quickly as possible to ensure it does not occur again.

PIB is committed to all labor rights stipulated in the United Nations Global Compact and relevant international and local laws. It fully complies with the Palestinian Labor Law and combats all forms of discrimination and child labor. It strongly believes that any violation does not only reflect on individuals, but also on the society and the economy as a whole. Violations affect productivity and thwart economic growth by preventing the proper development of human resources.

At the local level, the bank implements all the provisions of the Palestinian Labor Law on the rights of workers. It adheres to the minimum wage, treats employees fairly and equally, adopts an open policy for communication with management and allows them to file a complaint against any violation they are subjected to at work.
PIB also uses a simple and clear language in its contracts to ensure they are understood by employees and allows them to regularly review them.

PIB is committed to providing a safe and equal work environment. For that reason, its employment policy is based on efficiency and nothing else. It ensures women enjoy equal rights when competing over job opportunities. PIB also treats people with disabilities equally when they apply for job opportunities and creates the necessary conditions to integrate them. This is part of the bank’s efforts to implement all relevant laws, especially Law No. 4 of 1999 on the Rights of People with Disabilities.

To implement all instructions and laws, PIB raises awareness among its administrative employees to ensure that they have a complete and sufficient understanding.
PIB is also committed to improving the living conditions of employees by providing health insurance for them and their families and paying them salaries that are higher than the minimum wage. It conducts an annual evaluation to make sure they are treated fairly and without any discrimination.

PIB believes that employees are the key to success and business cannot thrive without their development. For this reason, it provides career development opportunities and sets clear criteria for promotions and compensation. This helps in preventing discrimination and bias. PIB also seeks to develop its employees’ skills by allowing them to participate in internal and external workshops and trainings. In 2021, it organized 46 training courses on different topics for employees in different positions.

PIB is also committed to providing a positive work environment for its employees, so they develop a sense of belonging and affiliation. This increases their satisfaction and level of comfort. To this end, it organizes entertainment activities and interactive meetings, as well as other recreational activities through the employee group on Facebook, to promote team building.

Through its competent departments, PIB studies and assesses its compliance with all local laws and regulations and international conventions on labor, including recruitment, equal opportunities, and prevention of any form of discrimination. It identifies and tackles shortcomings to prevent their recurrence.

The Bank is well aware of the unprecedented challenges facing the environment. It is therefore committed to all the provisions of the United Nations Global Compact on the protection of the environment and all relevant local laws. This is an essential part of its sustainable social responsibility program.

PIB’s procedures for environment protection include the following:
1- Establishing a solar energy system for its branches and offices. 15 branches and offices operate on solar energy. In 2020, it produced more than 1.6 megawatts of electricity. It also relies on an automatic cleaning system for panels which increases their production by 10%.
Greenhouse gas emissions avoided thanks to that solar energy system in 2020 are estimated at 2,912 tons of carbon dioxide, 7 tons of nitrogen dioxide and 62 kg of sulfur dioxide.
2- Reducing paper consumption in daily operations and relying more on electronic correspondence, in addition to recycling papers used.
3- Rationalizing energy consumption; replacing lights and other energy-consuming devices with energy-saving ones; installing smart lighting systems; and adopting modern methods and environmentally friendly means to isolate buildings and reduce energy consumption while heating or cooling a room.
4- Educating employees about the importance of preserving the environment and encouraging them to periodically volunteer and participate in environmental activities.
5- Carrying out regular voluntary activities, like planting trees.

As a result of PIB’s unique efforts in this regard, it was granted the Bank of the Year award for Environment Protection in Palestine.

PIB makes annual efforts to enhance its procedures and protect the environment, reduce risks, and increase reliance on clean energy. A specialized department prepares periodic reports to follow up on this matter and submits them to the executive management. It is also open to any oversight by competent local institutions, such as the Environmental Quality Authority, to evaluate its performance in this regard.

PIB is committed to all the principles of the United Nations Global Compact against Corruption. It has clear internal anti-corruption policies that govern all its activities and operations at all administrative levels. These policies focus on maintaining integrity and transparency, abstaining from any form of corruption in all internal and external transactions, and refraining from entering into a business relationship with entities that do not share the Bank's values in this field.

PIB abides by all applicable national and international laws and regulations on fighting corruption, including the instructions and laws issued by the Palestinian Monetary Authority and the Anti-Corruption Commission, especially the Anti-Corruption Law of 2005 and its amendments. It included these instructions and laws in its internal regulations and procedures to fight corruption, avoid conflict of interest, and ensure the highest level of integrity and transparency.

In the same context, PIB acknowledges the risks arising from various forms of corruption and works to combat them by adhering to the relevant laws, legislations and memoranda issued by the Palestinian Monetary Authority. It adheres to all laws that guarantee good governance. PIB’s Board of Directors approved a guide on rules and best practices for governance. It is based on the governance systems and rules in force in Palestine, most importantly the Code of Corporate Governance Rules in Palestine issued by the National Committee for Governance in 2009. PIB is also committed to the rules and best practices on bank governance in Palestine issued by the Monetary Authority, the latest of which is the guide issued in late 2017. It also adheres to international best practices and standards. This is reflected in the composition of the Bank’s 11-member Board of Directors which includes three independent members and one member representing small shareholders to ensure the participation of all shareholders in decision-making.

PIB complies with all UN Security Council resolutions, Basel Committee resolutions and the recommendations of the International Financial Action Task Force (FATF) on combating money laundering and terrorism financing. It adopts procedures approved by the Board of Directors in this field and monitors and amends them periodically to ensure they remain updated and consistent with the applicable local and international requirements.
PIB requires identifying the customer before and after establishing a relationship with them, in order to avoid dealing with any parties or persons that may be corrupt in any way or form. It refuses to deal with persons or entities prohibited by the laws in force or those with fictitious names. It informs all parties of the values it has adopted.

Internally, PIB implements a strict privacy policy that guarantees the confidentiality of personal information obtained from customers and clients. It protects them against loss, random access by unauthorized parties, misuse, modification or disclosure to a third party in line with Article (32) of the Palestinian Banking Law No. 9 of 2010.
Every year, the General Assembly at PIB elects an external auditor who reviews the financial operations and submits a report to the annual meeting. In addition, PIB is obligated to periodically disclose the outcomes of its work and financial statements.

PIB’s supervisory departments (internal audit, compliance, anti-money laundering and risk management) follow up on its compliance with the relevant laws and legislations in its daily operations. They submit their reports to the Board of Directors to ensure there are no shortcomings. If a report identifies a shortcoming, it is immediately addressed. Policies and procedures on combating corruption are reviewed regularly and the skills and capabilities of supervision employees are developed to implement them appropriately.