Abu Dhabi Islamic Bank publishes its first ESG report

Abu Dhabi, UAE: Abu Dhabi Islamic Bank, a leading Islamic financial institution, today announced the release of its first ESG report highlighting progress made on the company’s environmental, social and governance (ESG) objectives and commitments. bank for the year 2021. The report is based on the ADIB’s sustainable development report, which the 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 outlines the bank’s goal of integrating Islamic values ​​and sustainability into the core of its business and focuses on a wide range of topics including governance and integrity, customer focus, commitment to environment and society, community empowerment, diversity, equity and inclusion. .

Nasser Al Awadhi, Group Chief Executive, said: “We are proud to present our first ESG report for the year 2021. It has been an eventful year for us as we have achieved many milestones and strengthened our business model while putting greater emphasis on sustainable development by including it as a pillar in our new 5-year strategic plan. ESG and sustainability have always been key to ADIB’s success. Our new strategy is aligned with the long-term economic interests of our stakeholders and the communities in which we operate.

“At ADIB, we are aware that sustainability is a journey that requires every individual to play an active role. We are committed to advancing our ESG agenda each year and inspiring our stakeholders to join us in this journey,” he added.

In 2021, ADIB launched “Sustainable Future”, a new pillar of its 2025 strategy reinforcing its sustainability agenda and accelerating growth in areas most relevant to emerging sustainability opportunities and challenges. The new strategic approach is guided by four pillars which include continuous innovation, segment focus, digital excellence and a sustainable future.

This report has been prepared in accordance with the standards of the Global Reporting Initiative (GRI). It is aligned with the UAE Vision 2021 as well as the United Nations Sustainable Development Goals (SDGs). Among the many ESG initiatives, this report covers 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 Sustainability Goals, the UAE Green Agenda 2015-2030 and the Economic Vision of Abu Dhabi 2030. ADIB is a signatory to the Abu Dhabi Declaration on Sustainable Finance which supports sustainable finance for economic development.

Furthermore, ADIB has a strong track record in supporting its clients to achieve their own ESG objectives, including the provision of ethical and socially responsible financing based on Sharia principles. ADIB is currently working on developing a detailed ESG strategy as well as a transformed ESG governance structure designed to accelerate engagement.

Improved governance model

At ADIB, the corporate governance model ensures transparency, accountability and resilience. The existing governance structure is aligned with the new strategy, framework and policy recently launched by the bank. Under this pillar, ADIB ensures that all transactions are Sharia compliant and focused on providing responsible banking while ensuring compliance with all laws and regulations. Enabling innovation is another area of ​​focus, continuing the digitalization journey and ensuring strong governance and controls for managing fraud.

Driving the transition to a low-carbon economy

ADIB received 4 LEED certificates for green buildings in 2021. The bank recognizes that ESG issues will be a crucial driver of risk and opportunity for the bank. ADIB has incorporated a sustainable future as a key pillar of its five-year strategic plan and announced its commitment to focus on launching an ESG strategy that helps banks transition to a low-carbon operation and leverage of ADIB’s commitment to social responsibility.

The Bank is working closely with the government and its clients to accelerate its efforts to transition to a low carbon economy. ADIB aims to integrate ESG factors into its investment policy, launch new products aligned with the ESG framework, review its portfolio from an ESG perspective, engage in sustainable financing and clearly define objectives reduction of carbon emissions.

Continuous Innovation in Sharia-Compliant Banking Products

ADIB’s nationwide presence, innovation, relevance and Shariah-compliant business model deliver the right banking solutions to its clients, with a deep understanding of their needs and ambitions, lives and plans. Over the past two years, ADIB has introduced innovative features and services that provide customers with simple and convenient banking services. ADIB has become 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 finance and investment

ADIB has been rated A by the MSCI ESG index and has participated in 11 green financing transactions.

ADIB is dedicated to funding and supporting environmental and sustainable initiatives while strengthening its partnerships with stakeholders and market players. All project finance transactions follow the Equator Principles (EP), which are a risk management framework, adopted by financial institutions, to identify, assess and manage environmental and social risks in project finance and other eligible funding.

Some of the key projects the bank enabled and contributed to in 2020 and 2021 are:

  • ADIB has funded $103.5 million for the DEWA solar project: according to ACWA POWER, the project is expected to power 270,000 homes and offset carbon emissions amounting to 1.18 million tonnes per year in Dubai.
  • Supported the Al Dharfa project, the largest single-site solar power plant in the world, by providing a bridge loan for financing the project. It will use around 4 million solar panels to generate enough electricity for around 160,000 homes and help achieve a reduction of 2.4 metric tons of CO2 emissions per year.
  • Funding for the Jubail water treatment project in Saudi Arabia which will significantly contribute to the kingdom’s efforts to ensure water security.
  • In line with its environmental mission, the bank launched the Al Ghaf Paperless initiative in 2021. This initiative has contributed to tangibly reducing the bank’s carbon footprint and has saved more than 2 million sheets of paper in the country. during its first year of implementation. Additionally, the Bank had a positive impact on communities through employee volunteer programs and participated in various environmental initiatives.

Maximize positive social impact

In an effort to build more sustainable, diverse, and equitable communities, the ADIB makes sure to support and contribute to initiatives that strengthen and promote Islamic values ​​and principles in our communities. Last year, ADIB was one of the banks that partnered with the Ministry of Interior’s Faraj Fund to implement a humanitarian campaign and initiatives that contributed to the release of insolvent inmates convicted of financial affairs. The bank also supports Emiratis by organizing mass weddings as we understand that marriage can be financially draining for young people. In 2021, 100 couples got married thanks to the support of the ADIB.

Diversity and Inclusion

To ensure financial inclusion, ADIB has launched a number of initiatives, such as the first digital Islamic bank for young people, “Amwali”, to provide better access to banking services to young people and empower them to make better financial decisions, and “Business Connect”, a new account package targeting SMBs who prefer to bank digitally.

ADIB also recognizes the importance of a diverse workforce to achieve its goals. The bank understands the positive impact of women, who make up approximately 35% of its workforce, can have and their imperative role in the overall socio-economic development of this nation. Therefore, we strive to design products and services that enable us to be inclusive of female customers, enabling them to participate equally in the economic development and long-term, sustainable growth of our society.

Whether developing new financing solutions related to sustainable development, meeting the needs of its clients or financially empowering the younger generation, ADIB is constantly innovating and expanding its capabilities to accelerate its ESG program.

-Ends-

About ADIB

ADIB is a leading Islamic bank with over AED 133 billion in assets that was established in 1997 and whose shares are traded on the Abu Dhabi Stock Exchange (ADX). More than one 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 telephone banking services, providing customers with seamless digital access to their accounts around the clock. ADIB offers retail banking, corporate, enterprise, private banking and wealth management. ADIB remains one of the leading banks in the recruitment, development and promotion of local talent. The bank has one of the highest Emiratization ratios with over 40% of the bank’s workforce being UAE nationals. ADIB is present in six strategic markets: Egypt, where it has 70 branches, the Kingdom of Saudi Arabia, the United Kingdom, Sudan, Iraq and Qatar. Named “World’s Best Islamic Bank” by the Financial Times publication The Banker and Best Bank in the United Arab Emirates by Forbes, ADIB has a rich track record of innovation, including introducing the world’s first digital Islamic bank to young people and by being the first bank in the world. The United Arab Emirates will allow account opening by facial recognition.

For media information, please visit www.adib.ae or contact:
ADIB Edelman
Lamia Khaled Hariz Simon Hailes
Head of Public Affairs Director of Financial Communication

About Mallory Brown

Check Also

Opinion: Judge blocking student loan relief for millions gets the law wrong

Editor’s note: Steve Vladeck is a CNN legal analyst and professor at the University of …