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ADIB's sustainable finance amounts to Dh5.567 billion in 2023

ADIB's sustainable finance amounts to Dh5.567 billion in 2023
2 July 2024 21:38

ABU DHABI (WAM)

Abu Dhabi Islamic Bank (ADIB) has released its annual Environmental, Social, and Governance (ESG) report, highlighting progress across ADIB Group toward building more sustainable, diverse and equitable communities.

The report details ADIB’s ongoing efforts in governance excellence and sustainability and more information on the performance and management of ADIB ’s commitments to address environmental and social priorities, while aligning with the UAE’s Vision 2050 and the Abu Dhabi Economic Vision 2030.

ADIB has also announced that it has set a net-zero Scope 1 and Scope 2 and financed emissions targets for 2030 targets, demonstrating its commitment to reducing its carbon footprint.

The ESG Report 2023 is available on the ADIB website at this link: https://www.adib.ae/en/siteassets/investor-relations/esg-reports/adib-esg-report-2023.pdf 

In 2023, ADIB continued to lead in sustainable finance, with its portfolio reaching Dh5.567 billion. The bank's issuance of the world's largest green sukuk by a bank, raising $ 500 million, highlights ADIB's commitment to supporting green initiatives and sustainable Islamic issuances and products.

Mohamed Abdelbary, Acting Chief Executive Officer at ADIB, commented, “ADIB’s strategic journey is marked by a steadfast commitment to innovation and sustainability. By integrating robust ESG frameworks into our operations, we are not only enhancing our service offerings but also contributing to the global efforts towards a sustainable future. We are proud of our achievements, ranging from issuing the largest green sukuk by a bank to advancing our Net Zero targets.”

Abdelbary added, “These milestones reflect our strategic vision and dedication to creating a positive impact on our communities and the environment. We are committed to upholding Islamic finance principles, which reflect our dedication to sustainability, ethical and responsible financial practices, transparency, accountability, and risk management. This year’s report highlights our dedication to improving our social and environmental influence and ensuring ongoing success as a responsible and ethical financial institution.”

The report highlighted several categories, including:

- Environment: In addition to establishing a net-zero emissions target of FY2030, ADIB was able to reduce its Scope 1 emissions by 65 per cent compared to 2022. 

- Net Zero plan: As part of its net zero plan, ADIB recently announced 2030 emissions reduction targets for six portfolio sectors: Home finance, Auto Finance, real estate developers, Air Transport, utilities and petroleum manufacturing.

- Sustainable Finance: Through its Sustainable Finance Goal, ADIB is facilitating a wide range of activities from financing renewable energy and clean technology projects to financing some social projects. In 2023, ADIB has financed and facilitated a total of Dh5.567 billion in sustainable finance activities which puts ADIB well on track to meet its goal by 2030.

- ESG governance: The bank has strengthened its governance and oversight of sustainability efforts through the formation of an ESG Board Committee and an ESG Management Committee. In addition, over 12 ESG-related policies and statements have been updated and standardized including a new ESG risk policy, an ESG policy framework and a sustainable finance framework. 

- People: ADIB has expanded its diversity and inclusion efforts; and harmonized practices and policies that reduced gender gap with women now accounting for 39 per cent of the entire workforce. Demonstrating its commitment to employee growth and awareness, it has successfully completed 1,902 hours of ESG training for its employees.

- Continuing with its commitment to community: ADIB continued with supporting the local communities by providing grants and support to more than 30 organisations working across financial inclusion, youth opportunity, health and culture. 

- Alliances: ADIB’s commitment to responsible banking was further solidified by becoming a signatory to the UNEP FI Principles of Responsible Banking (PRB). As an Associate Pathway Sponsor at COP28, ADIB played a pivotal role in global sustainability discussions, showcasing its innovative green initiatives including the VOLT EV financing product.

Source: WAM
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