ADIB mobilises $4bn for sustainability, sets 2030 targets

14/01/1447 04:56 AST

Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, has reported the mobilisation of over AED 17 billion ($4 billion) in sustainable finance as of year-end 2024, marking continued progress toward its AED 60 billion sustainable finance commitment by 2030.

This update coincides with the release of ADIB's 2024 Sustainability Report, which details material advancements in climate alignment, ESG governance, and inclusive growth in line with UAE Net Zero 2050 strategy and UAE 2031 vision.

This year's report highlights key achievements including the publication of ADIB's first sector-specific financed emissions targets, making it the first Islamic bank in the region to set such interim 2030 targets. These cover six high-emission sectors such as real estate, utilities, and home finance, aligned with IEA Net Zero scenarios and the UAE's national decarbonisation strategy.

As part of its commitment to international best practices, ADIB also conducted a double materiality assessment in accordance with the European Sustainability Reporting Standards (ESRS) to evaluate both the financial and societal impacts of its activities, a critical step to understand the material impacts, risks and opportunities (IROs) on the economy, environment, and people. ADIB's Double Materiality Assessment was performed within the context of each of the ESRS topical standards, covering environmental, social, and governance issues.

ADIB also published its inaugural Green Sukuk allocation and impact report for its $500 million Green Sukuk issuance. As of December 2024, 90 per cent of proceeds have been allocated toward renewable energy, energy efficiency, and sustainable water infrastructure, contributing to over 607,000 tonnes of estimated annual avoided emissions.

Operationally, ADIB reported an 87 per cent drop in Scope 1 emissions compared to 2022 and a 3.51 percent reduction in Scope 2. These improvements reflect continued investments in energy efficiency, electrification, and operational optimisation across the Group.

Commenting on this, Mohamed Abdelbary, Group Chief Executive Officer at ADIB, said: "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. Our latest sustainability disclosures reflect our steadfast commitment to ethical, inclusive, and climate-aligned banking. From leading the region in green sukuk to setting the benchmark on sectoral decarbonisation, we are taking decisive steps toward a low-carbon future.

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. This is central to how we plan, report and act.

ADIB continued to strengthen its social impact agenda in, achieving a 44 percent Emiratisation rate, with women comprising 72 per cent of UAE national hires and 39 per cent of the total workforce. This progress was supported by an average of 62 training hours delivered per employee and partnerships with over 140 community organisations focused on financial inclusion, education, and social welfare.

The bank continues to receive strong ESG ratings, including an 'AA' from MSCI, 74 from LSEG ESG, and 41 from DJSI. These assessments affirm the bank's leadership in responsible finance. ADIB was recognised as the Best Islamic Bank for ESG by Global Finance and MEED.

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