Abu Dhabi-based steel and building materials manufacturer EMSTEEL has announced the launch of its first Green Finance Framework. This initiative represents a crucial step in aligning the Group’s financial strategy with its long-term sustainability and decarbonization goals, positioning EMSTEEL as a leader in sustainable finance within the region, according to a recent statement.
The Green Finance Framework empowers EMSTEEL and its subsidiaries to issue a variety of green finance instruments—including green bonds, loans, commercial papers, and medium-term notes (MTNs)—across multiple currencies. Proceeds will be exclusively allocated to financing or refinancing eligible green projects that meet stringent environmental criteria. These projects include low-carbon steel and cement production, renewable energy installations such as solar photovoltaic systems, energy-efficient technologies, and innovations driving decarbonization.
Vision for a low-carbon future
Commenting on the launch, Engineer Saeed Ghumran Al Remeithi, group CEO of EMSTEEL, stated, “Our Green Finance Framework is more than a financial tool – it is a strategic lever to accelerate our transition towards a low-carbon future. It reflects our commitment to aligning our fundraising activities with internationally recognized market standards for green financing and channeling funds toward environmentally responsible projects. Through this initiative, we aim to support the decarbonization of our operations, foster innovation in low-carbon steelmaking and create long-term value for our shareholders, society, and the planet.” This vision highlights the transformative potential of the Green Finance Framework.
Mark Tonkens, group chief financial officer, said: “The launch of our Green Finance Framework marks a pivotal step in reinforcing EMSTEEL’s commitment to sustainability. Aligning our financial strategy with global green finance standards enables us to secure funding for high-impact projects and positions us as a leader in the region’s transition to a low-carbon economy.”
Moody’s ratings acknowledge
Developed in accordance with internationally recognized best practices, the Green Finance Framework ensures a robust and transparent approach to the issuance, management, and reporting of green finance instruments. Moody’s Ratings has provided a Second Party Opinion (SPO), awarding the Framework a Sustainability Quality Score of SQS2 (Very Good), enhancing investor confidence in EMSTEEL’s sustainability-focused capital strategy.
The Green Finance Framework’s development was supported by key partners, including ING as Lead Sustainability Structuring Bank and First Abu Dhabi Bank (FAB) as Sustainability Structuring Bank, highlighting strong regional collaboration in advancing sustainable finance.
The Green Finance Framework is a cornerstone of EMSTEEL’s broader Environmental, Social, and Governance (ESG) strategy. It supports ambitious targets to reduce greenhouse gas emissions by 40 percent in steel production and 30 percent in cement production by 2030.
