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Abu Dhabi, UAE: Abu Dhabi Islamic Bank, a leading Islamic financial institution, today announced the release of its first ESG report, highlighting the bank’s progress towards 2021’s Environmental, Social and Governance (ESG) goals and commitments. The report builds on the Sustainability Report that ADIB has been publishing since 2016.
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 of placing 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 sustainability as a pillar of our new 5-year strategic plan. ESG and sustainability have been key elements of ADIB’s success. Our new strategy is in the long-term economic interest of our stakeholders and the communities in which we operate.”
“At ADIB, we recognize that sustainability is a journey that requires everyone to play an active role. We are committed to advancing our ESG agenda every year and inspiring our stakeholders to join us on our journey,” he added.
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, including:
Accelerating Sustainable Finance
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 supporting sustainable financing for economic development.
In addition, ADIB has a proven track record in supporting its clients in achieving their ESG goals, including providing ethical and socially responsible financing in accordance with Shariah principles. ADIB is currently working on a detailed ESG strategy and a transformational ESG governance structure aimed at accelerating commitment.
Strengthen the governance model
At ADIB, the corporate governance model ensures transparency, accountability and resilience. The existing governance structure is aligned with the new strategies, frameworks and policies recently introduced by the bank. Under this pillar, ADIB ensures that all transactions are compliant with Shariah principles and focuses on providing responsible banking while ensuring compliance with all laws and regulations. Supporting innovation is another area of focus, continuing the digital journey and ensuring strong governance and controls for fraud management.
Driving the transition to a low-carbon economy
ADIB received 4 green building LEED certificates in 2021. The bank acknowledges that ESG issues will be a key driver of risk and opportunity for the bank. ADIB has made a sustainable future a key pillar of its 5-year strategic plan and announced its commitment to rolling out an ESG strategy to help banks transition to low-carbon operations and leverage ADIB’s commitment to social responsibility.
The Bank is working closely with governments and their clients to accelerate the transition to a low-carbon economy. ADIB aims to incorporate ESG factors into its investment policy, launch new products that are compliant with ESG frameworks, review its portfolio from an ESG perspective, commit to sustainable financing and clearly define carbon reduction targets.
Shariah-compliant banking products continue to innovate
ADIB’s nationwide reach, innovative, relevant and Shariah-compliant business model provides its clients with the right banking solutions, with a deep understanding of their needs and aspirations, their lives and plans. Over the past two years, ADIB has introduced innovative features and services to provide customers with easy and convenient banking services. ADIB becomes the first bank in the UAE to perform instant and highly secure facial recognition verification for account opening using the Ministry of Interior’s facial recognition verification system.
Accelerating green financing and investment
ADIB is rated A by the MSCI ESG Index and has participated in 11 green financing transactions.
ADIB is committed to funding and supporting environmental and sustainability initiatives while strengthening partnerships with stakeholders and market players. All project finance transactions follow the Equator Principles (EP), a risk management framework adopted by financial institutions to identify, assess and manage environmental and social risks in project finance and other eligible financing.
Some of the key projects the bank will enable and contribute in 2020 and 2021 are:
- ADIB provides $103.5 million in funding for DEWA solar project: According to ACWA POWER, the project is expected to power 270,000 homes in Dubai and offset 1.18 million tons of carbon emissions per year.
- Supported 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 power approximately 160,000 homes and will help achieve a reduction of 2.4 metric tons of carbon dioxide emissions per year.
- Funding Saudi Arabia’s Jubail Water Treatment Project, which will go a long way in the country’s efforts to ensure water security.
- In pursuit of its environmental mission, the bank launched the Al Ghaf paperless initiative in 2021. The initiative helped to reduce the bank’s carbon footprint in real terms and helped save more than 2 million sheets of paper in the first year of implementation. In addition, the Bank positively impacts the community through employee volunteer service projects and participates in various environmental protection activities.
Maximize positive social impact
To build more sustainable, diverse and equitable communities, ADIB ensures that it supports and promotes initiatives that strengthen and promote Islamic values and principles in our communities. 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.
Diversity and Inclusion
To ensure financial inclusion, ADIB has launched initiatives such as “Amwali”, the first digital Islamic bank for youth, which aims to provide youth with more access to banking services, enabling them to make better financial decisions, and “Business Connect”, a new account package for SMEs who prefer to conduct digital banking transactions.
ADIB also recognizes the importance of a diverse workforce in achieving its goals. Banks understand the positive impact of women, who make up about 35% of the workforce can play an important role in the overall social and economic development of this country. Therefore, we are focused on ensuring that we design products and services that are inclusive of women customers, enabling them to participate equally in economic development and the long-term and sustainable development of society.
Whether by developing new sustainability-related financing solutions, supporting clients’ needs, or providing financial support to younger generations, ADIB is continually innovating and expanding its capabilities to accelerate its ESG agenda.
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About ADIB
ADIB is a leading Islamic bank with assets in excess of AED 133 billion, established in 1997 and its shares are traded on the Abu Dhabi Stock Exchange (ADX). More than 1 million customers benefit from its extensive distribution network of 70 branches and more than 500 ATMs. The bank also offers world-class online, mobile and phone banking services, providing customers with seamless digital access to their accounts 24 hours a day. ADIB provides retail, corporate, commercial, private banking and wealth management solutions. ADIB remains one of the leading banks in recruiting, developing and promoting local talent. The bank has one of the highest percentages in the UAE, with more than 40% of the bank’s staff being UAE nationals. ADIB operates in six strategic markets: Egypt, where it has 70 branches, the Kingdom of Saudi Arabia, the United Kingdom, Sudan, Iraq and Qatar. ADIB has been named the ‘Best Islamic Bank in the World’ by the Financial Times’ The Banker magazine and the best bank in the UAE by Forbes, with a rich track record of innovation, including launching the world’s first youth-oriented bank digital Islamic bank and become the first bank in the world. UAE allows account opening via facial recognition.
For media information, please visit www.adib.ae or contact:
ADIB Edelman
Ramia Khaled Hariz Simon Hales
Head of Public Affairs Director of Financial Communications
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