EMSTEEL Launches Green Finance Framework To Support Sustainable Growth Initiatives

EMSTEEL has introduced its inaugural Green Finance Framework, marking a significant move in aligning its financial strategy with sustainability and decarbonisation objectives. This initiative positions EMSTEEL as a leader in sustainable finance within the region. The framework allows EMSTEEL and its subsidiaries to issue various green finance instruments, including bonds and loans, across different currencies.

The funds raised will be dedicated to financing or refinancing projects that meet strict environmental standards. These include low-carbon steel and cement production, renewable energy installations like solar photovoltaic systems, and energy-efficient technologies. Innovations aimed at reducing carbon emissions are also part of this initiative.

Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, emphasised the strategic importance of the Green Finance Framework. He stated, "Our Green Finance Framework is more than a financial tool – it is a strategic lever to accelerate our transition towards a low-carbon future. It reflects our commitment to aligning our fund raising activities with internationally recognised market standards for green financing and channelling funds toward environmentally responsible projects."

Mark Tonkens, Group Chief Financial Officer, highlighted the significance of this launch in reinforcing EMSTEEL’s dedication to sustainability. He noted that aligning their financial strategy with global green finance standards enables them to secure funding for impactful projects. This positions EMSTEEL as a leader in transitioning to a low-carbon economy in the region.

The framework was developed following internationally recognised best practices, ensuring transparency in issuing and managing green finance instruments. Moody’s Ratings provided a Second Party Opinion (SPO), awarding it a Sustainability Quality Score of SQS2 (Very Good). This enhances investor confidence in EMSTEEL’s sustainability-focused capital strategy.

Key partners supported the framework's development, including ING as Lead Sustainability Structuring Bank and First Abu Dhabi Bank (FAB) as Sustainability Structuring Bank. This collaboration underscores strong regional efforts in advancing sustainable finance.

Environmental Goals

The Green Finance Framework is integral to EMSTEEL’s broader Environmental, Social, and Governance (ESG) strategy. It supports ambitious targets to cut greenhouse gas emissions by 40% in steel production and 30% in cement production by 2030. These goals reflect EMSTEEL's commitment to creating long-term value for shareholders, society, and the planet.

With inputs from WAM