Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, has announced its partnership as an Associate Pathway Partner of the 28th United Nations Climate Change Conference (COP28) that will take place from November 30 to December 12 at Dubai Expo City.

COP28 will be a pivotal event for global leaders, policymakers, scientists, and businesses to collaborate on climate action and work together to shape a more sustainable future, said a statement.

Throughout the conference, ADIB will showcase how financial institutions can enable business, society, and government to accelerate progress toward sustainability goals.

ADIB will take part in a series of engagements and thought leadership initiatives about accelerating sustainable finance and advancing the UAE’s development as a green finance hub and the role played by the finance sector to support the transition to a low carbon economy.

Nasser Al Awadhi, Group CEO at ADIB, said: “As the region stands on the cusp of rapid acceleration of climate action, ADIB is proud to be at the forefront of these efforts as an Associate Pathway Partner of COP28.

“This showcases our dedication to playing a key role in sustainable action and supporting the UAE’s net-zero vision. As a leading Islamic financial institution, our bank is built on the pillars of governance, social justice, and environmental stewardship and in line with our ESG strategy, we will continue to pave the way for sustainable Islamic financing and creating the roadmap for a more sustainable future for the region.

“Our sponsorship with COP28 also showcases our steadfast commitment to the UAE government’s initiatives, which serve to mainstream climate change and environmental sustainability in financial decision-making.”

ADIB announced recently its Sustainable Finance Framework which establishes criteria and eligibility requirements that determine which projects are labelled “green”, “social”, or “sustainable”. The framework determines eligibility of projects for the bank to finance or refinance, including the issuance of Green, Social and Sustainability Sukuks.

ADIB received a Second Party Opinion from ISS Corporate Solutions (“ISS”) for the framework, which ensured alignment of the framework with the ICMA Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines, as well as the Loan Market Association Green Loan Principles and Social Loan Principles.

Within this framework, ADIB has successfully raised $500 million via a green Sukuk offering, marking the world’s first ever green USD sukuk issued by a financial institution.

ADIB intends to allocate an amount equal to the net proceeds of this issuance to fund eligible green projects to accelerate climate transition, which may include the financing or refinancing of green projects as well as financing customers for eligible green projects as described under the Eligibility Criteria in the ADIB sustainable finance Framework.

With finance playing an important role in addressing climate change issues, ADIB is engaging at multiple fronts to drive the climate change agenda including providing sustainable and green finance to customers, issuing green and sustainable finance products and minimizing its own carbon footprint. The bank has recently initiated an effort to calculate and establish a baseline for their operational and portfolio emissions. This step is essential in setting its decarbonisation targets that will guide future actions.

As part of this initiative, ADIB is actively engaging with industry experts, sustainability consultants, and environmental organizations to ensure that their net-zero strategy is strongly aligned with international best practices, reflecting their commitment to transparency and accountability while making a meaningful and lasting impact on the environment.

ADIB said it continues to aid the transition to a green economy. The bank has made commitments to mobilise financing towards sustainability and green projects and deliver the financial support needed to achieve a low carbon economy.

ADIB recently announced the launch of its Environmental, Social, and Governance (ESG) strategy that is designed to strengthen the bank’s sustainability agenda for the next three years. – TradeArabia News Service