Abu Dhabi Islamic Bank Releases 2nd ESG Report
Abu Dhabi Islamic Bank (ADIB), a top Islamic finance institution, has launched its second ESG report, highlighting its advancements towards environmental, social, and governance (ESG) objectives and pledges for 2022.
Additionally, the report outlines a fresh three-year ESG strategy to embed ESG risk assessments into the bank's framework and contribute to the UAE's drive towards a greener economy.
The sustainability journey of ADIB is an essential component of its overall strategy, and the 2022 ESG report offers a comprehensive appraisal of advancements in different ESG metrics, emphasising notable enhancements achieved in the past year.
ADIB honoured its commitment to promoting economic growth and supporting local communities in the UAE by investing AED 23 million in community development initiatives and disbursing AED 1 billion in SME financing in 2022.
The bank maintained a secure financial position, with about 60% of its funding portfolio categorised as low- or medium-risk under ESG standards. Moreover, ADIB achieved significant strides in Emiratisation, with a 45% Emirati workforce ratio and a 39.4% female representation in executive positions.
To provide young people with access to critical financial services, ADIB launched the Amwali product, becoming the first Islamic digital bank targeting youth aged 8 to 18 years old, resulting in approximately 13.5 thousand new youth accounts opened in 2022.
According to Nasser Al Awadhi, the CEO of ADIB, sustainability is an integral aspect of the bank's strategy and plans as a leading Islamic financial institution. Islamic finance principles and sustainability share the same fundamental values of ethical and responsible financial practices, accountability, transparency, and risk management.
The bank is delighted to release its second ESG report, which highlights its three-year ESG strategy embedded within its banking framework and supports the UAE's shift towards a more sustainable economy. Al Awadhi emphasises the bank's commitment to improving its social and environmental impact and maintaining a responsible and ethical financial institution.
The three-year ESG strategy of ADIB emphasises expediting the bank's Green Financing and Investing programmes. ADIB has already accomplished significant progress in this realm, having disbursed $1.7 billion towards sustainable project financing under green financing.
Moreover, the bank has earned six LEED green building certificates and saved five million papers via its Al Ghaf paperless initiative in 2022. ADIB has made remarkable headway in curbing its carbon footprint, reporting a 26% decline in energy consumption intensity last year.
ADIB has received an A rating from the MSCI ESG index and was acknowledged as the top Islamic bank for ESG by Global Finance magazine.
The bank's dedication to sustainability is firmly grounded in its Islamic finance principles, which encourage ethical and responsible financial practices, risk management, transparency, and accountability.
By prioritising sustainability values, ADIB aims to reinforce its social and environmental impact, conform to worldwide sustainability norms, and maintain its position as a responsible and ethical financial institution.
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Source: ADIB
