First Abu Dhabi Bank PJSC: June 2023 ESG Investor Update

transformation

our governance model

We are committed to the highest standards of ESG responsibility, transparency and risk management

Alignment with two Sustainable Development Goals

This pillar outlines FAB’s approach to a governance model based on ESG-related incentives and responsible data use

• Integrated ESG Risk Framework

• ESG driven governance structure

• ESG-Linked Compensation Incentives

• ESG KPIs and Performance Disclosures

• Embedded compliance policies and processes

transition

Towards a low-carbon future

become sustainable

Reference financial institution in MENA region

Acting in partnership with our stakeholders

Accelerating the transition to a net-zero society and economy

Alignment with two Sustainable Development Goals

This pillar outlines FAB’s approach to net zero transition, climate resilience and circular economy

• A regional leader in sustainable finance in the UAE

• Incorporate ESG as part of supplier sourcing

• Become a ‘net zero’ bank by 2050

• Reduced carbon intensity

• Energy mix of renewable energy

use

our social responsibility

Expanding access to financial services for all, especially the underserved

Fostering Diverse, Inclusive and Equitable Organizations

Alignment with the Seven Sustainable Development Goals

This pillar outlines FAB’s approach to social responsibility, including diversity, women’s empowerment, education and financial inclusion

• Diversity, Equity and Inclusion Bankwide

• Gender Diversity Embedded

• Emiratisation focus

• Strategic focus on financial inclusion

• Promote Social Responsibility Efforts

• First GCC bank to sign UN Principles for Responsible Banking in October 2021

• In 2023, we publish our first report on FAB priorities and impact analysis

• FAB co-chairs new working group to help banks align their portfolios with the Global Biodiversity Framework adopted in Montreal in December 2022

• First GCC bank to join net-zero banking alliance in October 2021

• Join the Partnership for Carbon Accounting Finance (PCAF) to support us in setting financing emissions targets

• Published our path to net zero in 2023, including a 2030 target to reduce emissions from financing high-emitting industries

Transform our governance model

• Committed to the highest standards of corporate governance, business integrity and professionalism in all our activities.

• ESG is integrated into our corporate governance framework and processes, ensuring proper oversight of the ESG agenda.

• The Board is central to FAB’s ESG objectives, managing its oversight ethically and transparently to ensure long-term sustainable performance.

• Formally integrate a new ESG committee and team into the existing governance structure in 2022 to accommodate
  The Group recently launched an ESG strategy, framework and policy.

• The Board’s ESG strategic direction is communicated to the wider Group through the Board Risk and ESG Committee (BRESGC) and the Group ESG Committee. The ESG risk governance structure is critical to promoting and overseeing the ESG strategy, net zero program and culture across the group.

• The governance structure ensures that ESG risks are effectively assessed and managed to achieve our ESG objectives.

Key Facts and Figures

Form a board of directors

Risk and ESG

committee

Has specific ESG directives and introduces ESG-related KPIs

put into action

ESG risk

framework with

investment banking group

10,000+ hours

ESG training conducted focused on awareness, strategy, risk and sustainable finance framework

1,800+ employees

Specific sanctions training for the Russia/Ukraine situation

250 Compliance

Monitoring/QA review completed in 2022

14 jurisdictions in FAB’s global footprint

conduct an independent board evaluation

Compliant with CBUAE

Key Facts and Figures

promote sustainable development

item value

33.4 billion dirhams

($9.1 billion) 2022

(12.1% of the 2030 USD 75 billion target)

The first bank in the MENA region to join

PCAF

Support for setting financing emissions baselines

A leader in the green bond market

The total amount of green bonds outstanding is

AED 8.1 billion

($2.2 billion)

As of December 22

Setting net zero targets for our own operations

(Scope 1 and 2) by 2030

developed a framework

Calculating financed emissions from high-emitting sectors

Scope 1, Scope 2 and Scope 3 (excluding financed emissions) emissions reductions

23% per employee from 2019