Investment by ADIB Reaches $4.7 Billion in Sustainable Finance; Announces Carbon Emissions Goal for 2030
Abu Dhabi Islamic Bank (ADIB) has made impressive strides in its sustainable finance goals, emissions reduction targets, and Environmental, Social, and Governance (ESG) practices, as reported at the end of 2024. These advancements position ADIB as a regional leader in sustainable Islamic banking.
ADIB has mobilized AED 17.3 billion (approximately USD 4.7 billion) in financing for sustainable projects, moving significantly closer to its AED 60 billion target by 2030. This commitment to supporting projects aligned with sustainability principles is a testament to the bank's dedication to a greener future.
In a groundbreaking move, ADIB became the first Islamic bank in the region to set and publish interim 2030 financed emissions reduction targets across six high-emission sectors, including real estate, utilities, and housing finance. These targets align with the International Energy Agency’s (IEA) Net Zero scenarios and the UAE National Decarbonisation Plan, demonstrating sector-specific climate alignment.
Operationally, ADIB has reduced its Scope 1 emissions by 87% compared to 2022 and its Scope 2 emissions by 3.51%, showcasing concrete steps in lowering its direct and indirect carbon footprint.
ADIB's commitment to credible, decision-useful disclosure is evident in its comprehensive "double materiality assessment" according to European Sustainability Reporting Standards (ESRS). This evaluation examines both financial and societal impacts and risks across all ESG topics. The bank also published its inaugural Green Sukuk allocation and impact report for its USD 500 million issuance, with 90% of proceeds funding renewable energy, energy efficiency, and sustainable water infrastructure projects, offsetting an estimated 607,000 tonnes of CO2 annually.
The bank's progress aligns with the UAE’s Vision 2031 and Net Zero 2050 strategy, integrating sustainability into its core operations and governance frameworks. ADIB Egypt, a subsidiary, also released its second sustainability report for 2024, following Global Reporting Initiative (GRI) standards and receiving multiple international awards recognizing its leadership in sustainable finance.
ADIB's achievements have not gone unnoticed. The bank has received a 'AA' rating from MSCI, a '74' from LSEG ESG, a '41' from DJSI, and has been recognized as the Best Islamic Bank for ESG by both Global Finance and MEED.
In a statement, ADIB's Group Chief Executive Officer, Mohamed Abdelbary, reiterated the bank's commitment to these sustainability efforts, stating that putting sustainability at the heart of the bank's operations is one of the three key pillars of their 2035 vision. He emphasized the importance of understanding the impact of sustainability on the bank's business and how its business impacts the environment, society, and economy.
With these significant milestones achieved, ADIB continues to lead the way in sustainable Islamic finance, demonstrating a robust approach to sustainable finance mobilization, pioneering sectoral emissions targets, significant emissions reductions, credible ESG governance practices, and transparent sustainability reporting.
- ADIB's dedication to sustainable finance is notably reflected in its commitment to allocate AED 60 billion towards sustainable projects by 2030, with AED 17.3 billion already mobilized.
- Demonstrating its commitment to climate change mitigation, ADIB became the first Islamic bank in the region to set and publish interim emissions reduction targets for six high-emission sectors, aligning with the UAE National Decarbonisation Plan and the International Energy Agency’s Net Zero scenarios.
- In terms of operational greenery, ADIB has lowered its Scope 1 emissions by 87% compared to 2022 and reduced Scope 2 emissions by 3.51%, showing a clear intention to minimize its carbon footprint.
- ADIB's transparency and commitment to credible disclosure are evident in its comprehensive double materiality assessment according to European Sustainability Reporting Standards, covering both financial and societal impacts across all Environmental, Social, and Governance (ESG) topics.
