Abu Dhabi Islamic Bank (ADIB) has published its first comprehensive Net Zero report, outlining the bank’s journey towards reducing carbon emissions across its operations and financed emissions. The report makes ADIB the first commercial Islamic bank in the region to set sector-specific decarbonisation targets for 2030.
In line with both the UAE’s Net Zero by 2050 strategic initiative and global standards, ADIB’s report outlines the bank’s strategies, progress and plans to achieve carbon reduction of 49 per cent in its operational emissions by 2030 compared to the bank’s 2022 baseline emissions.
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 sectors account for 40 per cent of the bank’s UAE financed emissions.
“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”, said Mohammed Abdelbary, ADIB’s Group CEO.
“Our first Net Zero report demonstrates ADIB’s proactive efforts to asses and reduce emissions, underscoring our commitment to transparency, accountability and ongoing progress. This report does not only highlight 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 report includes a breakdown of ADIB’s decarbonisation methodology, including baseline data based on the Partnership for Carbon Accounting Financials (PCAF) for financed emissions and the GHG Protocol for operational emissions.
“While we acknowledge that the journey to Net Zero will be an evolving process,” Mohammed Abdelbary added, “we are engaging with our customers and partners in their transition plans to address the need for decarbonisation by tackling financial barriers to the transition, including mobilising more green and transition finance.”