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Monday, June 17, 2024

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Abu Dhabi Islamic Bank issues inaugural ESG report

Abu Dhabi Islamic Bank (ADIB) has issued its inaugural ESG report highlighting its ESG progress for the year 2021 and detailing the bank’s efforts to embed more sustainable, diverse and equitable communities. It builds on ADIB’s sustainability report, which it has been publishing since 2016. The ESG report underlines ADIB’s goal to embed Islamic values and sustainability at the core of its business.

“It was an eventful year for us as we have achieved many milestones and strengthened our business model while putting a greater focus on sustainability by integrating it as a pillar in our new five-year strategy plan. ESG and sustainability have always been a key element of ADIB’s success. Our new strategy is aligned with the long-term economic interests of our stakeholders and the communities we operate in,” Nasser Al Awadhi, group CEO of ADIB, said.

The report covers highlights of the bank’s efforts in accelerating sustainable finance, enhancing its governance model, driving the transition to a low-carbon economy, its focus on innovation in Shariah compliant banking products, accelerating green financing and investing, maximizing positive social impact as well as diversity and inclusion.

The bank’s notable ESG efforts in 2021 include funding US$103.5 million for the DEWA solar project (as per ACWA Power). The project is expected to power 270,000 homes and offset carbon emissions by 1.18 million tons a year in Dubai. It also provided an equity bridge loan for the Al Dharfa Project, the world’s largest single-site solar plant. The project will use approximately four million solar panels to generate enough electricity for approximately 160,000 homes and will help achieve a reduction of 2.4 metric tons of CO2 emissions per year. ADIB also funded the Jubail water treatment project in Saudi Arabia contributing to the Kingdom’s efforts to ensure water security.

Its ESG reporting complies with the GRI standards and the Abu Dhabi Exchange ESG guidelines. The bank is a signatory to the Abu Dhabi Sustainable Finance Declaration to support sustainable financing for economic development. It aligns its business practices with the UAE’s sustainability objectives including the UAE Vision 2021, the UAE Green Agenda 2015–2020, the Abu Dhabi Economic Vision 2030 as well as the UN SDGs.

The bank’s ESG focus in 2022 includes enhancing its governance model, leveraging its social work and transitioning to a low-carbon operation.

“Although ESG and sustainability have long been a key element of ADIB’s success, our new strategy is designed to accelerate our growth in areas that are most related to sustainability in line with current market conditions and stakeholder expectations,” Nasser shared.

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