- Sponsorship underscores ADIB's key role as a leading Islamic financial institution in sustainable finance
- Showcases ADIB's commitment to support the UAE Net Zero 2050 strategic initiative
Abu Dhabi, XX November 2023: Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, has announced its partnership as an Associate Pathway Partner of the 28th United Nations Climate Change Conference (COP28). The event which will take place from November 30 to December 12 at Dubai Expo City will be a pivotal moment for global leaders, policymakers, scientists, and businesses to collaborate on climate action and work together to shape a more sustainable future.
Throughout the conference, ADIB will showcase how financial institutions can enable business, society, and government to accelerate progress toward sustainability goals. ADIB will be taking part in a series of
engagements and thought leadership initiatives about accelerating sustainable finance and advancing the UAE's development as a green finance hub and the role played by the finance sector to support the transition to a low carbon economy.
Commenting on the sponsorship, Nasser Al Awadhi, Group CEO at ADIB, said: “As the region stands on the cusp of rapid acceleration of climate action, ADIB is proud to be at the forefront of these efforts as an Associate Pathway Partner of COP28. This showcases our dedication to playing a key role in sustainable action and supporting the UAE's net-zero vision. As a leading Islamic financial institution, our bank is built on the pillars of governance, social justice, and environmental stewardship and in line with our ESG strategy, we will continue to pave the way for sustainable Islamic financing and creating the roadmap for a more sustainable future for the region. Our sponsorship with COP28 also showcases our steadfast commitment to the UAE government's initiatives, which serve to mainstream climate change and environmental sustainability in financial decision making."
ADIB announced recently its Sustainable Finance Framework which establishes criteria and eligibility requirements that determine which projects are labelled “green", “social", or “sustainable". The framework determines eligibility of projects for the bank to finance or refinance, including the issuance of Green, Social and Sustainability Sukuks. ADIB received a Second Party Opinion from ISS Corporate Solutions (“ISS") for the framework, which ensured alignment of the framework with the ICMA Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines, as well as the Loan Market Association Green Loan Principles and Social Loan Principles.
Within this framework, ADIB has successfully raised USD 500 million via a green Sukuk offering, marking the world's first ever green USD sukuk issued by a financial institution. ADIB intends to allocate an amount equal to the net proceeds of this issuance to fund eligible green projects to accelerate climate transition, which may include the financing or refinancing of green projects as well as financing customers for eligible green projects as described under the Eligibility Criteria in the ADIB sustainable finance Framework.
With finance playing an important role in addressing climate change issues, ADIB is engaging at multiple fronts to drive the climate change agenda including providing sustainable and green finance to customers, issuing green and sustainable finance products and minimizing its own carbon footprint. The bank has recently initiated an effort to calculate and establish a baseline for their operational and portfolio emissions. This step is essential in setting its decarbonization targets that will guide future actions. As part of this initiative, ADIB is actively engaging with industry experts, sustainability consultants, and environmental organizations to ensure that their net-zero strategy is strongly aligned with international best practices, reflecting their commitment to transparency and accountability while making a meaningful and lasting impact on the environment.
As a responsible bank, ADIB continues to aid the transition to a green economy. The bank has made commitments to mobilize financing towards sustainability and green projects and deliver the financial support needed to achieve a low carbon economy.
ADIB recently announced the launch of its Environmental, Social, and Governance (ESG) strategy that is designed to strengthen the bank's sustainability agenda for the next three years. This strategy underscores ADIB's commitment to enhancing its sustainable development journey, reaffirming its position as a responsible and forward-thinking financial institution. The strategy reinforces ADIB's efforts in capturing opportunities from the transition to a low-carbon economy as more companies are seeking to advance their corporate sustainability agenda through sustainable financing.
ADIB's ESG strategy is seamlessly integrated into its sustainability framework, encompassing key pillars such as maximizing positive impact, becoming a lifelong partner of customers, fostering a strong economic footprint, maintaining a people-centric organizational culture, upholding governance excellence, and remaining a steadfast lifelong partner for communities. This approach aims to embed sustainability and ESG principles into ADIB's core identity as an Islamic bank, showcasing its commitment to pioneering sustainable financial solutions and adeptly managing ESG and climate-related risks.
The strategy also includes a wide range of key target areas and ambitions, including integrating ESG considerations into investment and finance decisions, finalizing a sustainable finance framework for green and sustainable products, reporting on ESG as per market and legal requirements, implementing an Emiratization strategy, developing financial inclusion policies and programs, integrating ESG into governance structures and culture, and promoting gender diversity and employee well-being.