EGA, Emirates NBD Launch Green Supply Chain Programme
Emirates Global Aluminium (EGA), the largest non-oil and gas industrial entity in the United Arab Emirates, has joined forces with Emirates NBD, a prominent banking group in the MENAT (Middle East, North Africa, and Türkiye) region, to introduce an ESG-linked Supply Chain Finance (SCF) initiative aimed at bolstering sustainability within EGA's extensive supply chain.
This pioneering programme marks a significant milestone for EGA, as well as the broader manufacturing sector in the UAE.
Its primary objective is to foster sustainability within the UAE's aluminium industry by incentivising both existing and prospective suppliers to embrace and invest in sustainable practices, technologies, and materials that align with EGA's sustainability objectives and enhance their own sustainability performance.
Supply chain financing is gaining popularity as a means for suppliers to access early payments and efficiently manage their working capital. Since the beginning of 2022, EGA's suppliers have already utilised approximately $1.5 billion in supply chain financing through various EGA-facilitated programmes.
Abdulnasser Bin Kalban, the CEO of Emirates Global Aluminium, emphasised the critical role that EGA plays in advancing global sustainability by producing aluminium.
He stressed the importance of sustainable aluminium production in light of the products and services society relies on. Innovative financing mechanisms, like the ESG-linked supply chain programme developed in collaboration with Emirates NBD, serve as a vital driver for accelerating sustainability improvements among EGA's suppliers.
Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, expressed his satisfaction in partnering with EGA to unveil this groundbreaking ESG-linked Supply Chain Finance programme within the manufacturing sector.
He reaffirmed Emirates NBD's commitment to introducing novel and sustainable ESG-linked solutions for its clients. Furthermore, he underscored the bank's dedication to fostering positive environmental change and aligning with the UAE's ambitious Net Zero By 2050 Strategic Initiative as the country prepares to host COP28.
EGA maintains a network of around 3,300 active suppliers, both within the UAE and internationally. All these suppliers are required to adhere to EGA's Responsible Sourcing Standard, which delineates expectations regarding environmental, social, and governance (ESG) performance in accordance with OECD principles and the Aluminium Stewardship Initiative's Performance Standard. EGA diligently conducts due diligence and audits to assess sustainability performance and collaborates closely with critical suppliers to facilitate ongoing improvement.
EGA annually allocates approximately $1.7 billion for procuring goods and services from local UAE suppliers, representing 45% of the company's total global procurement expenditure. EGA is actively committed to expanding its local supply chain further in alignment with the UAE's Operation 300bn industrial growth strategy and 'Make it in the Emirates' initiative, reinforcing its dedication to enhancing domestic sustainability.
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