ADIB Mobilises Over AED 17.3 Billion In Sustainable Finance Towards AED 60 Billion Commitment

Abu Dhabi Islamic Bank (ADIB) has achieved a significant milestone by mobilising over AED17 billion in sustainable finance by the end of 2024. This progress is part of its broader goal to reach AED60 billion in sustainable finance by 2030. The announcement aligns with the release of ADIB's 2024 Sustainability Report, which outlines advancements in climate alignment and ESG governance, supporting the UAE's Net Zero 2050 strategy and UAE 2031 vision.

The report highlights ADIB's pioneering move as the first Islamic bank in the region to set interim 2030 financed emissions targets for six high-emission sectors. These sectors include real estate, utilities, and home finance, aligning with IEA Net Zero scenarios and the UAE’s national decarbonisation strategy. This initiative underscores ADIB's commitment to reducing carbon footprints across key industries.

ADIB has also published its first Green Sukuk allocation and impact report for its US$500 million issuance. By December 2024, 90 percent of the proceeds were directed towards renewable energy, energy efficiency, and sustainable water infrastructure projects. These efforts have contributed to an estimated annual reduction of over 607,000 tonnes of emissions.

In operational terms, ADIB reported a significant decrease in emissions. Scope 1 emissions dropped by 87 percent compared to 2022, while Scope 2 saw a reduction of 3.51 percent. These improvements are attributed to ongoing investments in energy efficiency, electrification, and operational optimisation throughout the Group.

Mohamed Abdelbary, Group Chief Executive Officer at ADIB, stated: "Putting sustainability at the heart of what we do is one of the three key pillars of our 2035 vision. We’re proud of the progress we’re making, and how we're using our financing to contribute to the transition of our customers and the economy."

Double Materiality Assessment

ADIB conducted a double materiality assessment following European Sustainability Reporting Standards (ESRS). This evaluation assessed both financial and societal impacts of its activities on the economy, environment, and people. The assessment covered environmental, social, and governance issues within ESRS topical standards.

Abdelbary added: "Our double materiality assessment reinforces ADIB’s commitment to credible, decision-useful disclosure. It ensures we understand not only how sustainability impacts our business but how our business impacts the environment, society and economy."

ADIB has also made strides in its social impact agenda by achieving a 44 percent Emiratisation rate. Women represent 72 percent of UAE national hires and make up 39 percent of the total workforce. These figures highlight ADIB's dedication to fostering an inclusive workplace that supports local talent development.

The bank's latest sustainability disclosures reflect its unwavering commitment to ethical banking practices that align with climate goals. By leading initiatives like green sukuk issuance and setting benchmarks for sectoral decarbonisation, ADIB is actively contributing towards a low-carbon future while supporting economic transitions for its clients.

With inputs from WAM