The Abu Dhabi Islamic Bank (ADIB) emerged as a frontrunner in the UAE’s sustainable finance sector in 2023, facilitating a notable Dhs5. 6 billion ($1. 52 billion) towards various sustainable projects. This revelation came in the bank’s 2023 ESG Report, which outlined ADIB’s commitment to achieving net-zero carbon emissions by 2030.
ADIB’s sustainable finance strategy encompasses a diverse range of activities, including financing renewable energy and clean technology projects alongside social initiatives. The bank established ambitious 2030 emissions reduction targets for six key sectors within its portfolio:home finance, auto finance, real estate development, air transport, utilities, and petroleum manufacturing. This highlights ADIB’s dedication to not only financing sustainable projects but also implementing sustainable practices within its own operations.
A significant accomplishment for ADIB in 2023 was the issuance of a $500 million green sukuk in November. This marked the world’s first dollar-denominated sustainability-linked Islamic bond issued by a financial institution. The issuance of the green sukuk reflects ADIB’s innovative approach to sustainable finance and its alignment with the growing demand for Shariah-compliant sustainable investment opportunities.
Mohamed Abdelbary, acting CEO of ADIB, emphasized the bank’s commitment to ESG principles. He stated that by integrating robust ESG frameworks into their operations, ADIB is not only enhancing its service offerings but also contributing significantly to global efforts towards a sustainable future. ADIB’s substantial contributions in 2023 position it as a leader in the UAE’s sustainable finance sector, paving the way for a greener future. The bank’s ambitious sustainability goals and innovative financial instruments are likely to inspire other financial institutions in the region to prioritize environmental and social responsibility.
