According to Shargiil Bashir, Chief Sustainability Officer at First Abu Dhabi Bank (FAB), the bank facilitated over AED 25.7B ($7B) for sustainable projects in 2022, noting that the bank has made significant progress by financing many projects in the energy supply, buildings, transportation, waste, water, and food sectors.
Bashir told the Emirates News Agency (WAM) that the value of the bank’s facilities for sustainable projects topped AED 128.5B ($35B) between 2017 and 2021, underscoring FAB’s objective of providing AED 275.4B ($75B) in green financing between 2022 and 2030. In keeping with the bank’s dedication to environmental concerns, he stated that FAB has set a target of becoming carbon neutral by 2050.
Bashir noted that the FAB has collaborated with Etihad Airways as an environmental, social, and governance (ESG) structuring bank for the aviation industry’s first worldwide sustainability-connected loan. “We have created positive sustainable impact from many of the other projects that we have financed, including: 3 the solar projects where 1,989,000 tonnes of CO2 are being avoided every year; 7 green buildings we financed have 2 pearl design ratings; and a wastewater plant we financed treats of 430,000 m3 of wastewater a day,” he noted, according to the Zawya. Bashir also emphasised the bank’s significant contribution to Abu Dhabi Sustainability Week as the largest bank in the UAE and one of Abu Dhabi’s most well-known institutional entities, noting that the bank is regarded as a pioneer of sustainability in the banking sector, having been the first bank in the UAE to commit to net-zero by 2050 and the first GCC bank to join the Net Zero Banking Alliance (NZBA).
According to him, FAB delegates participated in several high-profile panels exploring major themes in sustainable solutions throughout the week, as the bank is regarded as a catalyst in the UAE’s climate objectives due to the breadth of its engagement with the national economy across diverse industries. FAB’s Chief Sustainability Officer emphasised that the bank has worked hard in recent years to solidify its position as a regional leader in the sustainable finance sector, culminating in the issue of the first green bonds in the MENA area in 2017.
He continued, “FAB has been making significant progress in green bonds issuance. This year, we executed around half of our bond issuance in a green format ($1.5B), including three public benchmark transactions: €500M five-year, the first-ever green issuance in euros from MENA region; CHF (Swiss Franc) 200 million four-year, where FAB remains the only issuer from MENA with green CHF outstanding, and $700M five-year, the largest-ever green issuance from a MENA bank.”
Bashir stated that the First Abu Dhabi Bank is dedicated to adhering to the international framework of the United Nations-convened Net Zero Banking Alliance (NZBA) by concentrating on decarbonization via research. “When we joined NZBA we committed to aligning our lending and investment portfolios with net-zero emissions by 2050.” According to FAB’s Chief Sustainability Officer, the UAE is the ideal staging ground for the COP28 Climate Summit in 2023 due to the country’s exceptional partnerships linking East and West, as well as its expertise as a global convener of choice for crucial international conversations.
Shargiil Bashir stated that the UAE’s solar energy programmes have continuously established new milestones for renewable energy affordability, while Abu Dhabi Sustainability Week and the World Future Energy Summit are pushing worldwide dialogues on vital climate and other environmental concerns. “As the first country in the region to commit to a net-zero pathway, the UAE is developing a comprehensive roadmap to enable its businesses and government entities to transition to a carbon-neutral economy,” he concluded.
