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Emirates NBD launches Sustainable Finance Framework

HSBC and ING acted as sustainability structuring banks

Emirates NBD has launched its sustainable finance framework as part of its long-term commitment to sustainability.

The new framework allows for the issuance of green and sustainable debt instruments to finance projects, which enable the transition to a low-carbon and climate-resilient economy. The framework also provides the distribution of social debt instruments leading to a positive societal impact.

The framework will cover Emirates NBD group entities such as Emirates NBD, Emirates Islamic, DenizBank and Emirates NBD Asset Management and will accelerate the group’s efforts regarding innovative sustainable finance offerings.

HSBC and ING acted as sustainability structuring banks in developing the framework, which aligns with the group’s ambition to promote further lending and investments into assets with a positive environmental and social impact.

The framework will assist Emirates NBD in reaching the UAE’s ambitious sustainability development goals and targets set forth by the Paris Climate Agreement and the UN SDGs, while also ensuring the necessary due diligence and international best practices are in place to mitigate ESG risks.

The framework comprehensively outlines the fundamental constituents of the principles and guidelines set forth by the International Capital Market Association (ICMA) and Loan Market Association, Green Bond Principles 2021, Social Bond Principles 2023, Sustainability Bond Guidelines 2021, Green Loan Principles 2023 and Social Loan Principles 2023.

These core components encompass the use of proceeds, the process for project evaluation and selection, the management of proceeds, reporting, and the recommendations outlined for External Review, which collectively serve as the cornerstones of their established guidelines.

Commenting on the announcement, Shayne Nelson, Group CEO at Emirates NBD, said: “As a leading banking group in the region, Emirates NBD fully aligns with the UAE’s pro-climate, pro-growth philosophy. This Framework empowers Emirates NBD and our customers to help deliver the UAE’s journey to Net Zero emissions by 2050 and meet the ambitious interim reduction targets.”

Vijay Bains, group chief sustainability officer and group head of ESG at Emirates NBD, said: “Our framework will ease access to ESG labelled finance in alignment with COP28’s pledge to unleash finance for climate change. By issuing sustainable finance instruments, including bonds, sukuk and other debt instruments, we will provide enhanced transparency around funded projects and assets that carry environmental and social benefits.”

Emirates NBD’s sustainability strategy is aligned with prominent global and national frameworks, including the UN SDGs, the UAE’s Vision 2030, and the United Nations Environmental Programme Dubai Declaration for Sustainable Finance.