Abu Dhabi Islamic Bank (ADIB), one of the region’s leading Islamic financial institutions, has announced the mobilisation of over AED 17 billion in sustainable finance by the end of 2024. This milestone marks meaningful progress towards the bank’s broader goal of directing AED 60 billion into sustainable finance by 2030.
The announcement comes as part of ADIB’s 2024 Sustainability Report, which outlines the bank’s ongoing contributions to climate action, inclusive growth, and responsible banking practices. These efforts align with national frameworks such as the UAE Net Zero 2050 strategy and the UAE 2031 vision.
First Financed Emissions Targets for an Islamic Bank
Among the report’s standout achievements is ADIB’s status as the first Islamic bank in the region to publish sector-specific financed emissions targets. These interim 2030 targets cover six high-emitting sectors including real estate, utilities, and home finance, and are aligned with the IEA Net Zero by 2050 pathway and the UAE’s national decarbonisation roadmap.
In parallel, ADIB conducted its first Double Materiality Assessment, in line with the European Sustainability Reporting Standards (ESRS). This assessment enables the bank to evaluate both how sustainability impacts its business and how its activities impact society and the environment, thus shaping more informed and ethical decision-making.
Green Sukuk and Emissions Reduction Milestones
ADIB also published its first Green Sukuk allocation and impact report, tied to its USD 500 million Green Sukuk issuance. As of year-end 2024, 90% of proceeds have been allocated to projects in renewable energy, energy efficiency, and sustainable water infrastructure, leading to an estimated 607,000 tonnes of avoided annual emissions.
Operationally, the bank reported a substantial 87% reduction in Scope 1 emissions and a 3.5% drop in Scope 2 emissions compared to 2022, largely due to internal energy efficiency upgrades and electrification efforts.
Group CEO Mohamed Abdelbary emphasized the importance of embedding sustainability into ADIB’s long-term vision:
“Our latest sustainability disclosures reflect our steadfast commitment to ethical, inclusive, and climate-aligned banking. From leading the region in green sukuk to setting the benchmark on sectoral decarbonisation, we are taking decisive steps toward a low-carbon future.”
Social Impact and Governance Advancements
The report also highlights ADIB’s progress on social inclusion and workforce development. The bank achieved a 44% Emiratisation rate, with women accounting for 72% of UAE national hires and 39% of the total workforce. Each employee received an average of 62 hours of training, and the bank partnered with over 140 community organisations to support financial inclusion, education, and welfare.
ADIB maintained strong ESG ratings, including:
- ‘AA’ from MSCI
- 74 from LSEG ESG
- 41 from DJSI
These scores reflect the bank’s industry leadership and commitment to transparent ESG performance.
For full details, the 2024 Sustainability Report is available at www.adib.ae/en/esg-and-sustainability/esg-and-sustainability-reports.
