ADIB Establishes Sector-Specific Targets To Reduce Financed Emissions By 2030

Abu Dhabi Islamic Bank (ADIB) has released its inaugural Net Zero report, detailing its efforts to cut carbon emissions in operations and financed projects. This makes ADIB the first commercial Islamic bank in the region to establish sector-specific decarbonisation targets for 2030. The report includes a baseline assessment of 2022 emissions and sets interim goals for 2030 as part of its sustainability strategy.

In line with the UAE's Net Zero by 2050 initiative and global standards, ADIB aims to reduce operational emissions by 49% by 2030 from its 2022 levels. The report also outlines emission-reduction pathways for six high-impact sectors within its financing portfolio: home finance, auto finance, real estate, air transport, utilities, and petroleum manufacturing. These sectors contribute to 40% of the bank's UAE financed emissions.

The report provides a detailed breakdown of ADIB's decarbonisation approach. It uses baseline data from the Partnership for Carbon Accounting Financials (PCAF) for financed emissions and the GHG Protocol for operational emissions. This publication marks a significant step in ADIB's sustainability journey as it continues to refine strategies and engage stakeholders.

Mohamed Abdelbary, ADIB’s Group CEO, stated, "We recognise the urgent need for the financial industry to play a pivotal role in tackling climate change and we are fully committed to leading the way in sustainable Islamic banking and supporting the UAE’s national goals for a sustainable future." He emphasised ADIB's commitment to transparency and accountability in reducing emissions.

Abdelbary further noted that while reaching Net Zero is an evolving process, ADIB is collaborating with customers and partners on transition plans. This involves addressing financial barriers through increased green and transition finance. The bank aims to inspire positive change across the banking sector by monitoring progress and refining strategies.

The comprehensive report underscores ADIB's proactive measures in assessing and reducing emissions. It highlights readiness to tackle future environmental challenges while reaffirming dedication to aiding the UAE’s shift towards a low-carbon economy.

This initiative aligns with both national objectives and international standards, showcasing ADIB’s leadership in sustainable banking practices. By setting clear targets and engaging with stakeholders, ADIB aims to drive meaningful change within the financial industry.

With inputs from WAM