Mon, Nov 25, 2024 | Jumada al-Awwal 24, 1446 | DXB ktweather icon0°C

Abu Dhabi Islamic Bank plans to lower carbon emissions by 49% by 2030

ADIB becomes to set sector specific financed emission reduction targets

Published: Mon 25 Nov 2024, 5:33 PM

Updated: Mon 25 Nov 2024, 5:34 PM

Top Stories

The Abu Dhabi Islamic Bank (ADIB) headquarters. — Supplied photo

The Abu Dhabi Islamic Bank (ADIB) headquarters. — Supplied photo

Abu Dhabi Islamic Bank (ADIB), a leading financial institution in the UAE, announced on Monday that it intends to achieve carbon reduction of 49% in its operational emissions by 2030 compared to the bank’s 2022 baseline emissions.

With this announcement, ADIB becomes the first commercial Islamic bank in the region to set sector-specific decarbonisation targets for 2030.

On Monday, ADIB published its first comprehensive Net Zero report, outlining the bank’s journey towards reducing carbon emissions across its operations and financed emissions. 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.

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.

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 greenhouse gas (GHG) Protocol for operational emissions.

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.”

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.



Next Story