e& announced the signing of its first green loan agreement worth AED366 million (nearly $100 million), as a strategic step in line with its commitment to climate action. This came during its participation at the ongoing COP28 at Dubai Expo City.
Additionally, the move strategically aligns with e&’s commitment to environmental and social responsibility. It is an important step towards financing sustainable projects that have a positive and direct impact on communities.
e& obtained the loan to finance or refinance eligible sustainable development projects covering specific areas of renewable energy and environment-friendly transportation. The green loan will also be used to facilitate the financing of future projects focused on sustainable development. This includes sustainable water supply, waste management, green buildings, and pollution reduction.
e& drives change
e&’s Sustainable Finance Framework supports its environmental, social, and governance (ESG) strategy. It aims to lead change by issuing a range of sustainable financing instruments, including green bonds, social bonds, and sustainability bonds. Moreover, it is consistent with global best practices and standards, such as the principles issued by the International Capital Market Association (ICMA). The framework allows financing projects responsible for supporting climate action in the technology sector.
e& to achieve net zero carbon
Hatem Dowidar, group CEO, e&, said: “Following e&’s ambitious climate commitments at COP28 to achieve net zero carbon emissions by 2040 in our own operations across all markets, the signing of our first green loan is a landmark moment for the group. It encapsulates our vision for integrating sustainability into our operations and financing strategies. With this financing, we are not only reinforcing our commitment to a zero-carbon future but also driving sustainable innovation in the technology landscape across all our markets.”
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Enhancing framework reliability
The e& Sustainable Finance Framework was evaluated by Morningstar Sustainalytics to enhance the reliability of the framework. The evaluation ensures its alignment with the following:
- Sustainability Bond Guidelines 2021
- Green Bond Principles 2021
- Social Bond Principles 2023
- Green Loan Principles 2023
- Social Loan Principles 2023.
The framework goes beyond its role as a financial instrument and extends to a strategic approach that supports the future of sustainable development. It reflects the group’s harmony with the UAE’s vision and global efforts to combat climate change. Moreover, it confirms E&’s leadership in the technology sector and its keenness to move towards a more sustainable and responsible path.
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