Abu Dhabi Islamic Bank releases its first ESG report

ABU DHABI – Abu Dhabi Islamic Bank, a leading Islamic financial institution, has released its first Environmental, Social and Governance (ESG) report, highlighting the bank’s progress towards its ESG targets and commitments for 2021. The report builds on ADIB, which has been publishing sustainability reports since 2016, according to a statement.

This report details ADIB’s ongoing efforts to address some of society’s greatest challenges and build more sustainable, diverse and equitable communities. It underscores the bank’s goal to place Islamic values ​​and sustainability at the core of its business, and focuses on a wide range of topics including governance and integrity, customer focus, environmental and social commitment, community empowerment, diversity, equity and tolerance.

Nasser Al Awadhi, Group Chief Executive Officer, said: “We are proud to submit our first ESG Report for 2021. This has been an eventful year for us as we have achieved many milestones and strengthened our business model, while at the same time Increased focus on making sustainability a pillar of our new 5-year strategic plan. ESG and sustainability have been key elements of ADIB’s success. Our new strategy is aligned with the long-term economic interests of our stakeholders and the communities in which we operate .”

In 2021, ADIB launched Sustainable Futures, a new pillar in its 2025 strategy to support its sustainability agenda and accelerate growth in areas most relevant to emerging sustainability opportunities and challenges. The new strategic approach is guided by four pillars, including continuous innovation, market segmentation, digital excellence and a sustainable future.

This report has been prepared in accordance with the Global Reporting Initiative (GRI) standards. It is in line with the UAE Vision 2021 as well as the United Nations Sustainable Development Goals (SDGs). Among the many ESG initiatives, this report covers the key highlights from the past year.

ADIB is committed to the growth and prosperity of Abu Dhabi and the UAE, supporting the UAE’s Sustainable Development Goals, the UAE Green Agenda 2015-2030 and the Abu Dhabi Economic Vision 2030. ADIB is a signatory to the Abu Dhabi Sustainable Finance Declaration, which supports sustainable financing for economic development.

At ADIB, the corporate governance model ensures transparency, accountability and resilience. The existing governance structure is in line with the new strategies, frameworks and policies recently introduced by the bank. Supporting innovation is another area of ​​focus, continuing the digital journey and ensuring strong governance and controls for fraud management.

The bank received 4 green building LEED certificates in 2021. ADIB made a sustainable future a key pillar of its 5-year strategic plan and announced its commitment to roll out an ESG strategy to help banks transition to low carbon and leverage ADIB’s commitment to social responsibility.

Its nationwide reach, innovativeness, relevance and Shariah-compliant business model provide clients with the right banking solutions.

The bank is rated A by the MSCI ESG Index and has participated in 11 green financing transactions.

Some of the key projects that the bank will enable and contribute in 2020 and 2021 include funding of $103.5 million for the Dubai Electricity and Water Authority (DEWA) solar project. According to ACWA POWER, the project is expected to power 270,000 homes and offset Dubai’s annual carbon emissions of 1.18 million tonnes.

ADIB supports the Al Dharfa project, the world’s largest single-site solar power plant, by providing an equity bridge loan for project financing. It will use approximately 4 million solar panels to provide enough electricity to power approximately 160,000 homes and will help achieve a reduction of 2.4 metric tons of carbon dioxide emissions per year.

The bank has also funded the Jubail water treatment project in Saudi Arabia, which will go a long way in the country’s efforts to ensure water security.

ADIB’s 2021 Al Ghaf paperless initiative helped to reduce the bank’s carbon footprint in real terms and helped save more than 2 million sheets of paper in its first year of implementation. In addition, the Bank positively impacts the community through employee volunteer service projects and participates in various environmental protection activities.

Last year, ADIB was one of the banks that partnered with the Home Office’s Faraj Fund to implement humanitarian campaigns and initiatives that help release insolvent prisoners convicted of financial cases. The bank is also supporting Emiratis by planning mass weddings as we know marriage can be financially exhausting for young people. In 2021, 100 couples will marry with ADIB support.

ADIB has launched initiatives such as “Amwali”, the first digital Islamic bank for youth, to provide youth with more access to banking services, enabling them to make better financial decisions, and “Business Connect”, a Small-scale new account packages and medium-sized enterprises (SMEs) who prefer to conduct digital banking transactions.

Recognizing the importance of a diverse workforce, the bank understands the positive impact of women, who make up approximately 35 percent of its workforce.