Abu Dhabi Islamic Bank (ADIB) has released its annual Environmental, Social, and Governance (ESG) report, highlighting the bank’s progress toward building more sustainable, diverse and equitable communities.
Governance excellence and sustainability
The report details ADIB’s ongoing efforts in governance excellence and sustainability, as well as the performance and management of the bank’s commitments to address environmental and social priorities. These efforts are further aligned with the UAE’s Vision 2050 and the Abu Dhabi Economic Vision 2030.
أصدر مصرف أبوظبي الإسلامي تقريره السنوي للحوكمة البيئية والاجتماعية والمؤسسية الذي يسلّط الضوء على التقدم المحرز على مستوى مجموعة المصرف نحو بناء مجتمعات أكثر استدامة وتنوعاً وإنصافاً. ويفصّل التقرير الجهود المستمرة التي يبذلها المصرف في مجال الحوكمة والتميز والاستدامة بما في ذلك… pic.twitter.com/9ERSFSbuZi
— ADIB Tweets (@ADIBTweets) July 2, 2024
Commitment to net-zero emissions
ADIB has set net-zero Scope 1 and Scope 2 emissions targets for 2030, demonstrating its commitment to reducing its carbon footprint. In 2023, the bank continued to lead in sustainable finance, with its portfolio reaching AED5.567 billion ($1.51 billion). Also, ADIB’s issuance of the world’s largest green sukuk by a bank, raising $500 million, underscores its dedication to supporting green initiatives and sustainable Islamic financial products.
Robust ESG frameworks
Mohamed Abdelbary, acting chief executive officer at ADIB, stated, “ADIB’s strategic journey is marked by a steadfast commitment to innovation and sustainability. By integrating robust ESG frameworks into our operations, we are enhancing our service offerings and contributing to the global efforts towards a sustainable future.”
In addition, he said, “We are proud of our achievements, ranging from issuing the largest green sukuk by a bank to advancing our Net Zero targets.”
Commitment to Islamic finance principles
Abdelbary added, “These milestones reflect our strategic vision and dedication to creating a positive impact on our communities and the environment. We are committed to upholding Islamic finance principles, which reflect our dedication to sustainability, ethical and responsible financial practices, transparency, accountability, and risk management.”
Moreover, he added, “This year’s report highlights our commitment to improving our social and environmental influence and ensuring ongoing success as a responsible and ethical financial institution.”
Key achievements
The report highlighted several key achievements, including:
Environment
ADIB was able to reduce its Scope 1 emissions by 65 percent compared to 2022, and has set 2030 emissions reduction targets for six portfolio sectors.
Sustainable finance
ADIB has also financed and facilitated a total of AED5.567 billion in sustainable finance activities in 2023, putting the bank on track to meet its 2030 goal.
ESG governance
The bank has strengthened its governance and oversight of sustainability efforts through the formation of an ESG Board Committee and an ESG Management Committee.
People
Additionally, ADIB has expanded its diversity and inclusion efforts, with women now accounting for 39 percent of the entire workforce. The bank has also completed 1,902 hours of ESG training for its employees.
Community engagement
Furthermore, ADIB continued to support local communities by providing grants and support to more than 30 organizations working across financial inclusion, youth opportunity, health and culture.
Alliances
ADIB further became a signatory to the UNEP FI Principles of Responsible Banking and played a pivotal role as an Associate Pathway Sponsor at COP28, showcasing its innovative green initiatives.
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