ADIB sets sector specific financed emission reduction targets for 2030

Abu Dhabi Islamic Bank (ADIB) has published its first comprehensive Net Zero report, outlining the bank’s journey towards reducing carbon emissions across its operations and financed emissions. With this report, ADIB becomes the first commercial Islamic bank in the region to set sector-specific decarbonisation targets for 2030. The report highlights the bank’s baseline assessment for its 2022 emissions and sets clear interim goals for 2030 as part of its comprehensive sustainability strategy.

In alignment with both the UAE’s Net Zero by 2050 strategic initiative and global standards, ADIB’s report outlines the bank’s strategies, progress and plans to achieve carbon reduction of 49% in its operational emissions by 2030 compared to the bank’s 2022 baseline emissions. The report also outlines specific emission-reduction pathways for six high-impact sectors within its financing portfolio, including home finance, auto finance, real estate, air transport, utilities, and petroleum manufacturing. These six sectors account for 40% of the bank’s UAE financed emissions.

Commenting on this, Mohamed Abdelbary, ADIB’s Group Chief Executive Officer, said, “We recognise the urgent need for the financial industry to play a pivotal role in tackling climate change and we are fully committed to leading the way in sustainable Islamic banking and supporting the UAE’s national goals for a sustainable future. Our first Net Zero report demonstrates ADIB’s proactive efforts to assess and reduce emissions, underscoring our commitment to transparency, accountability, and ongoing progress. This report not only highlights the bank’s readiness to tackle future environmental challenges but also reaffirms our dedication to playing a key role in the UAE’s transition to a low-carbon economy.”

He added, “While we acknowledge that the journey to Net Zero will be an evolving process, we are engaging with our customers and partners in their transition plans to address the need for decarbonisation by tackling financial barriers to the transition, including mobilising more green and transition finance.

The report includes meticulous breakdown of ADIB’s decarbonisation methodology, including baseline data based on the Partnership for Carbon Accounting Financials (PCAF) for financed emissions and the GHG Protocol for operational emissions.

The publication of ADIB’s Net Zero Report marks a significant milestone in the bank’s sustainability journey. Going forward, ADIB will continue to monitor its progress, refine its strategies, and engage with key stakeholders, as it seeks to inspire positive change across the banking sector.

WAM