Abu dhabi: Abu Dhabi Islamic Bank (ADIB) has reported a significant milestone with the mobilisation of over AED17 billion in sustainable finance by the end of 2024, marking substantial progress towards its ambitious AED60 billion sustainable finance commitment set for 2030.
According to Emirates News Agency, this achievement is detailed in ADIB's 2024 Sustainability Report, which outlines notable advancements in climate alignment, ESG governance, and inclusive growth aligned with the UAE Net Zero 2050 strategy and UAE 2031 vision. The report introduces ADIB's inaugural sector-specific financed emissions targets, positioning it as the first Islamic bank in the region to establish interim 2030 targets for six high-emission sectors, including real estate, utilities, and home finance. These targets are in alignment with the IEA Net Zero scenarios and the UAE's national decarbonisation strategy.
In its commitment to international standards, ADIB conducted a double materiality assessment as per the European Sustainability Reporting Standards (ESRS) to evaluate the financial and societal impacts of its activities, assessing the material impacts, risks, and opportunities (IROs) on the economy, environment, and people. This assessment covered environmental, social, and governance issues within the context of each ESRS topical standard.
The bank also published its first Green Sukuk allocation and impact report for its US$500 million Green Sukuk issuance. As of December 2024, 90 percent of the proceeds have been directed towards renewable energy, energy efficiency, and sustainable water infrastructure, contributing to an estimated annual avoidance of over 607,000 tonnes of emissions.
Operationally, ADIB achieved an 87 percent reduction in Scope 1 emissions compared to 2022 and a 3.51 percent reduction in Scope 2 emissions, reflecting strategic investments in energy efficiency, electrification, and operational optimisation.
Mohamed Abdelbary, Group Chief Executive Officer of ADIB, emphasised the importance of sustainability as a key pillar of their 2035 vision, stating, "We're proud of the progress we're making and how we're using our financing to contribute to the transition of our customers and the economy. Our latest sustainability disclosures reflect our steadfast commitment to ethical, inclusive, and climate-aligned banking."
Abdelbary further highlighted the significance of the double materiality assessment in reinforcing ADIB's commitment to credible disclosure, allowing the bank to understand the impact of sustainability on its business and vice versa.
ADIB also advanced its social impact agenda by achieving a 44 percent Emiratisation rate, with women representing 72 percent of UAE national hires and 39 percent of the total workforce.