Etihad Rail, the developer and operator of the UAE National Rail Network, has launched its Sustainable Finance Framework, a comprehensive guide designed to link the company’s future financing to its ESG Strategy in relation to Clean Transportation, Green Buildings and Pollution Prevention and Control.
The framework, which was developed in collaboration with various industry experts, as well as First Abu Dhabi Bank and Standard Chartered Bank, who served as co-ESG advisors, providing expertise and insights to ensure the framework’s robustness and alignment to the Green Loan and Bond Principles. Furthermore, the framework was validated through a Second Party Opinion (SPO) from Det Norske Veritas (DNV).
The framework establishes a structured approach for Etihad Rail to evaluate parameters in the financing of sustainable projects, detailing four main components: Green Loan and Bond Principles that ensure alignment with international sustainability standards, Use of Proceeds to define clear criteria for the allocation of funds towards sustainable projects, Project Evaluation and Selection that implements a rigorous process to identify impactful projects, and Management of Proceeds and Reporting to ensure transparency and accountability in fund utilisation.
Commenting on the launch, Ali Tabbal, Chief Financial Officer at Etihad Rail, said: “The introduction of our Sustainable Finance Framework is a testament to Etihad Rail’s commitment to integrate and uphold sustainable practices in all our operations. Through responsible financial practices, we are further underscoring this dedication by driving positive environmental and social impact in the region across the transportation, logistics, and infrastructure sectors. This framework is a pivotal element of our broader ESG strategy, directly aligning with the United Nations’ Sustainable Development Goals. It provides a clear roadmap for integrating ESG considerations into investment decisions, empowering companies to generate long-term sustainable value. By doing so, we are not only fostering a transition to a low-carbon, resilient economy but also supporting the UAE’s Net Zero 2050 Strategy and contributing to the nation’s vision for a sustainable future.” As part of Etihad Rail’s ESG strategy, the framework encompasses mechanisms for environmental risk assessment and promotion of transparency in implementing ESG initiatives. By integrating environmental considerations into investment decisions, companies can mitigate environmental risks, capitalise on emerging sustainable markets, and solidify their commitment to environmental stewardship and social responsibility. The framework not only guides investment decisions but also fosters collaboration and knowledge-sharing among industry peers, regulators, and investors, thereby accelerating the transition to a more sustainable financial system.
Etihad Cargo growth: Etihad Cargo, the cargo and logistics arm of Etihad Airways, has reported significant growth in H1 2024. The carrier reported a 17% increase in tonnage from H1 2023 to H1 2024.
This robust performance underscores Etihad Cargo’s commitment to meeting the dynamic needs of its global customers through innovation and strategic expansion.Regionally, Etihad Cargo has achieved significant growth, particularly in the East, where tonnage increased by 19%.
The Western region also saw a substantial tonnage increase of 20%, while the UAE experienced a 15% growth in tonnage.Reflecting on this growth, Stanislas Brun, Vice President Cargo, commented: “Etihad Cargo has demonstrated agility, adapting to evolving customer needs and responding to increased demand across key markets. The carrier has strategically increased freighter and belly capacity to support regional growth and Etihad Cargo’s partners. Achieving double-digit tonnage growth is a testament to the team’s dedication and the effectiveness of Etihad Cargo’s expansion strategies. Building capabilities within regional teams and ensuring the highest standards of operational excellence across the carrier’s global network have been crucial to this success.”
Etihad Cargo has continued to enhance its special product range, contributing to the carrier’s growth. The carrier’s IATA CEIV Pharma-certified PharmaLife product witnessed a 9% increase in tonnage from H1 2023 to H1 2024, supported by the introduction of specialised cool dollies and breathable thermal blankets to minimise exposure to adverse environmental conditions.
WAM