Abu Dhabi Commercial Bank PJSC (ADCB) has joined the Net Zero Banking Alliance (NZBA), a group of over 130 leading global banks with US$74 trillion in total assets committed to financing climate action to transition to net-zero greenhouse gas (GHG) emissions by 2050 in line with limiting global warming to 1.5°C.
Convened by the UN Environment Programme Finance Initiative (UNEP FI), NZBA is an industry-led initiative to align the lending and investment portfolios of financial institutions with the imperative of limiting global warming to 1.5°C, in line with the Paris Agreement.
Ala’a Eraiqat, Group Chief Executive Officer, said, “The UAE has set a clear ambition to transition to a net-zero economy, supported by new regulations, and we recognise the vital role that bank shave to play in driving this transformation. We are proud to announce that ADCB has joined the Net Zero Banking Alliance, which represents over 40 percent of global banking assets. We will work alongside national and global partners to develop sector pathways for the region.
“The Bank will also deepen collaboration with customers to ensure they succeed on their path to net zero, by supporting the development of credible transition plans. Investment in decarbonisation represents significant economic opportunity, and by committing AED 125 billion in sustainable finance by 2030, ADCB will make a substantial contribution to realising the UAE’s climate agenda.”
ADCB’s approach to climate – Partners in the transition to net zero
In line with the UAE’s net zero by 2050 ambition, ADCB has enhanced its climate strategy to drive emission reductions across its financing, operations and supply chain. As part of this new climate framework, ADCB has more than tripled its sustainable finance commitment to AED 125 billion ($34 billion) by 2030, while setting a shorter-term target of AED 50 billion ($14 billion) by 2025.
Since 2021, the Bank has raised and facilitated over AED 23 billion ($6.4 billion) in sustainable finance through green bonds, sustainability-linked loans, renewable energy project financing and green loans.
ADCB is determined to make low-carbon lifestyles financially accessible to more people in the UAE.
The Bank is expanding its range of products to help individuals and families make more environmentally conscious decisions and already offers preferential loans for electric and hybrid cars and green mortgages to incentivise energy efficient homes.
Furthermore, ADCB has established full Board oversight of the sustainability strategy and governance framework.
source: wam.ae