H.E Ban Ki-moon
Secretary-General
United Nations
New York, NY 10017
USA

Dear Mr. Secretary-General,
I am pleased to confirm that Bank of Paletine supports the ten principles of the Global Compact with respect to human rights, labour, environment and anti-corruption.
With this communication, we express our intent to advance those principles within our sphere of influence. We are committed to making the Global Compact and its principles part of the startegy, culture, and day-to-day operations of our bank, and to engaging in collaborative projects, which advance the broader development goals of the United Nations, particularly the Millennium Development Goals. Bank of Palestine will make a clear statement of this commitment to our stakeholders and the general public.
We recognize that a key requirement for participation in the Global Compact is the annual submission of a Communication on Progress (COP) that describes our bank’s efforts to implement the ten principles. We support public accountability and transparency, and therefore commit to report on progress within one year of joining the Global Compact, and annually thereafter according to the Global Compact COP policy.

Sincerely,

Hashim Shawa
Chairman & General Manager
Bank of Palestine

Bank of Palestine and its subsidiary companies have adopted the United Nations Global Compact policies on human rights. The code of conduct of Bank of Palestine and its subsidiary companies emphasizes a policy on respecting human rights and preventing potential abuses. A special mechanism to investigate and prosecute human rights violations at the work place has also been established.

All Bank of Palestine branches and offices have a suggestion box, which could be utilized to highlight ideas pertaining to human rights at the work place. Bank of Palestine has established an open-line policy between its employees and the Human Resources Department, thus allowing employees to report any human rights violations or abuses. Through its Human Resources Policy Handbook, Bank of Palestine has made it clear to all employees and stakeholders that it adopts and supports the United Nations Global Compact policies on human rights.

Bank of Palestine’s senior management receives regular reports from the Human Resources Department on issues relating to human rights. When cases of human rights abuses are discovered, investigations are held promptly and correction measures are then adopted.

Bank of Palestine and its subsidiaries uphold the Labor Principles of the United Nations Global Compact. These principles are referenced in Bank of Palestine’s Employee Handbook. In addition to these principles, Bank of Palestine emphasizes other labor principles including ones that focus on gender inclusion at the work place.

The Labor Principles of the United Nations Global Compact are adopted at Bank of Palestine in several ways. First, an employee-employer communication mechanism has been established through an employee suggestion box, and through the adoption of an open-line policy connecting the employees with the general management. Through the suggestion box and the open-line policy, the employees are freely able to communicate all their suggestions and concerns to their seniors. Second, Bank of Palestine has invested great effort on training all employees on labor rights and policies. For example, a new employee orientation has been set in place to support this initiative. Finally, Bank of Palestine recently enhanced its healthcare insurance to all employees and their families.

The senior management receives regular reports from the Human Resources department pertaining to the labor principles of the United Nations Global Compact. The reports focus on gender inclusion, including figures on employees’ benefits and salaries in order to ensure equality at the work place.

Social and environmental responsibility has been an integral part of the way Bank of Palestine operates since the bank was founded in 1960. BOP has been implementing an all-encompassing sustainability strategy, because we believe that out of strong, stable communities will grow sustainable businesses, and sustainable businesses will help strengthen the wider economy of Palestine, where we operate. As part of our sustainability strategy, we have dedicated staff to track the progress of the different parts of the strategy.
Demonstrating respect for the environment and human rights is an essential part of behaving responsibly as a company. We incorporate a social and environmental strategy that will have an impact on all our activities and business functions. In addition, all Bank of Palestine policies are designed and written to ensure that the bank’s operations do not damage the environment or cause social harm. In 2008, Bank of Palestine adopted the International Finance Corporation’s (IFC) social and environmental policies, which are applied when granting credit facilities at any of Bank of Palestine’s branches and sub-branches. These policies provide the bank with a framework for determining whether a client adheres to our sustainability strategy. All of the bank’s credit officers use a standard checklist to confirm that loan applicants and the projects that require financing meet the requirements of these policies.
We focus on offering relevant products and services to our clients. Similar to our commitment to social and economic development through support for micro and small businesses, Bank of Palestine is equally committed to bringing about social and environmental improvements through its green loans programme. As its name suggests, these are loans to individuals, families, and MSMEs for projects that lead to greater water or energy efficiency, waste water treatment, and the production of renewable energy, particularly in rural Palestine. The Middle East is one of the most water-stressed regions in the world. The World Health Organisation recommends that each person have 100 litres of water a day available. In Palestine, water availability is 60 litres per person, per day. Hence, our green loan programme is very important to the overall health of our region. Education is an integral part of this programme, so that people—particularly farmers—are aware of the programme and the benefits it can bring. To this end, Bank of Palestine conducts workshops throughout rural Palestine to explain the benefits of energy and water efficiency.
Finally, Bank of Palestine ensures that its own operations are as sustainable as possible through the way their buildings are constructed and operate and through the types of products and services offered.

Bank of Palestine ensures the advancement of its policies on environmental protection through the implementation of different measures. First, Bank of Palestine’s Employee Handbook and Annual Report have a special section on the environment, which is intended to raise awareness amongst the employees and stakeholders. Second, as mentioned previously, Bank of Palestine’s loan-system is set in a way to ensure protecting and improving the quality of the environment. The green loans program, for example, guarantees loans only to those interested in investing in projects that enhance the quality of Palestine’s environment.

BOP has a reporting checklist to track the progress of the bank. All reports are circulated to executive management. The Board of Directors and senior management committees are periodically provided with reports and analysis on risks associated with environmental and social issues. Loan losses for environmental issues are tracked and reported to board members and senior management.

Bank of Palestine and its subsidiaries adopts the Anti-Corruption Principles of the United Nations Global Compact. In its Employee Handbook, Bank of Palestine makes it clear that it adopts a zero-tolerance policy for bribery, corruption and extortion. Bank of Palestine has a setup mechanism to deal with violators who are found guilty of corruption-related acts.

Bank of Palestine and its subsidiaries adopts the Anti-Corruption Principles of the United Nations Global Compact. In its Employee Handbook, Bank of Palestine makes it clear that it adopts a zero-tolerance policy for bribery, corruption and extortion. Bank of Palestine has a setup mechanism to deal with violators who are found guilty of corruption-related acts.

Bank of Palestine’s senior management receives regular reports from the Risk Management Department on issues relating to corruption. When cases of human rights abuses are discovered, investigations are held promptly and correction measures are then adopted.