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On 6 October 2022, First Abu Dhabi Bank (FAB) brought together some of the world’s brightest minds in climate action when it hosted Countdown to Economist Influence to the COP27 summit.
These include philanthropist Bill Gates and the US President’s special envoy for climate, John Kerry. They were also joined by leading business and environmental figures in the UAE, such as Sheikha Shamma bint Sultan, founder and CEO of the Global Alliance for Sustainability; Hana Al Rostamani, CEO of FAB Group; and Mohamed Al Ramahi, CEO of Masdar.
In a prominent moment at the summit, John Kerry outlined his vision and his pragmatism towards net zero, telling the audience: “It’s an incredibly exciting time…it’s also a huge economic transformation. opportunities will be as great as the Industrial Revolution.”
But when Kerry said “the transition to net zero and the estimated $4 trillion needed can only be achieved with the support of the private sector”, adding: “There is hardly a world where governments have the money to do this. I have no doubts about that. We cannot achieve this without the private sector.”
In my view, the banking industry will lead the way in what John Kerry said about private sector engagement. That’s because banks have unique windows into the economy as a whole, and they touch every sector and interact with nearly everyone in unique ways.
To date, banks have been promoting private sector participation in net-zero emissions, and this is sure to deepen and expand in the years to come as global financial institutions play a more profound role in helping companies communicate their climate ambitions.
More specifically, banks provide strategic advice and innovative sustainable financing, so they are well positioned to lead change across the private sector by financing the future direction of energy supply, buildings, transport, waste, water and food.
I also believe that this year’s COP27 will further highlight the power of finance on the road to net zero.
At FAB, as the leading bank in the UAE, we are stepping up our efforts to play a decisive role in driving climate action through active engagement and collaboration with clients, clients and the UAE government and regulators.
We operate across the private sector by partnering with large corporations and SMEs. We are helping them unlock new possibilities, enabling them to redefine the rules of their work with Net Zero and the possibilities it brings.
This involves understanding the diverse and specific needs of private sector entities and tailoring our solutions to best meet their requirements.
A large part of this is strategic investment directly related to sustainable solutions. FAB has been an industry leader in green financing since we issued the region’s first green bond in 2017. But our involvement goes well beyond “financing,” as it includes providing advice and education in the communities we serve, as well as measuring market emissions.
At FAB, we combine near-term actions with long-term views. We have made tangible progress in recent memory, and we now have clear goals related to climate action. About a year ago, we were the first UAE and regional bank to join the Net Zero Banking Alliance (NZBA) – and to that end, we committed to becoming a net zero bank by 2050. In addition to this, we have set a target of $75 billion in green financing for the period 2022-2030.
In addition, we believe that information and disclosure are critical to driving the climate action needed to translate ambition into action. Implementing these standards is critical to helping investors assess climate and sustainability risks and opportunities, which in turn directs funding to long-term sustainable projects.
To achieve the systemic change we need in the global economy, we need the best of each institution: we need concerted action across the public and private sectors so that every financial decision takes climate into account, especially now that more than 80 % According to Oxford University, global GDP is covered by net zero commitments.
All eyes are now on the MENA region as it hosts the next two COPs: COP27 in Sharm El Sheikh, Egypt and COP28 in the UAE. Perhaps now is the time to translate principles into lasting progress.
At FAB, we are ready to play our part in turning an environmental crisis into a tremendous opportunity for the benefit of people and the planet.
Shargiil Bashir is Chief Sustainability Officer at First Abu Dhabi Bank
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