Redefining Finance with Sustainability

ADIB, a leading Islamic financial institution, has made significant strides in sustainability, achieving a major milestone by issuing the world s largest green sukuk, raising $500 million. The bank s commitment to sustainability is evident in its Environmental, Social, and Governance (ESG) performance, which has been recognized as the best Islamic bank for ESG by the Euromoney Awards 2024. ADIB s strategic vision focuses on positive ESG impacts and capitalizing on sustainability opportunities, with sustainability being a core element of its bank-wide corporate strategy. The bank has implemented operational, governance, and policy changes to embed sustainability into its processes. In green finance, ADIB has set quantitative sectoral targets for high-impact sectors, such as home finance, auto finance, real estate, air transportation, utilities, and petroleum manufacturing. The bank has achieved a 65% reduction in Scope 1 emissions in 2023, marking progress towards its net-zero goals. ADIB s sustainable finance portfolio reached Dh5.567 billion in 2023, showcasing its dedication to integrating sustainability into financial products and services. The bank has also introduced green products, such as a green vehicle financing product (VOLT) and solar panel retrofitting solutions for customers. ADIB s governance framework emphasizes transparency, accountability, and regulatory compliance, building trust with stakeholders and setting a strong example for ethical business practices. On the social front, ADIB supports educational programs, healthcare projects, and social welfare initiatives, contributing to community upliftment and promoting diversity. The bank completed 1,902 hours of ESG training in 2023, highlighting its focus on employee development. ADIB s community engagement extends to over 30 organizations, focusing on financial inclusion, youth opportunities, health, and culture. As a signatory to the UNEP FI Principles of Responsible Banking and a participant in COP2

Source: khaleejtimes.com
Published on 2024-09-11