Chalhoub Group's ESG Journey Empowered by Mashreq
The groundbreaking sustainable finance product is intricately designed with a comprehensive set of Key Performance Indicators (KPIs) spanning the entire ESG spectrum for the next three years, going beyond the goal of achieving net-zero emissions.
The esteemed Chalhoub Group, renowned for its robust sustainability framework, has obtained validation for its 10-year Science Based Targets initiative (SBTi).
This initiative is geared towards a substantial reduction in carbon emissions, paving the way for a net-zero status by 2040. The initiative encompasses Social and Governance KPIs, emphasising women's representation in senior leadership and the response rate for the Group's sustainability supplier scorecard.
This innovative step not only underscores Chalhoub Group's unwavering commitment to ESG principles but also sets a precedent for other corporations in the region.
Ahmed Abdelaal, Group CEO of Mashreq, remarked, "This transaction underscores Mashreq's ongoing dedication to ESG and sustainable financing. We take pride in supporting Chalhoub Group on their sustainability journey, and we believe that tying pricing to ESG performance will incentivise more businesses to prioritise sustainable practices. Sustainability-linked finance facilities like this can act as a catalyst, helping businesses in the region align their operations with global sustainability benchmarks and drive meaningful change."
Joel Van Dusen, Group Head of Investment Banking at Mashreq, added, "Innovative sustainable finance products, exemplified by the one extended to Chalhoub Group, are not merely the future of financing; they are pivotal in today's economic landscape.
"These solutions champion environmental stewardship while offering corporates a strategic pathway to align with global sustainability benchmarks, creating a ripple effect of positive change across the region.
"We are proud to collaborate with Chalhoub Group on their inaugural sustainability-linked working capital facility, which underscores their commitment to sustainability and sets a commendable example for all businesses in the Middle East."
Patrick Chalhoub, Group President at Chalhoub Group, affirmed, "Our partnership with Mashreq marks our first sustainability-linked finance facility. We take pride in this collaboration, which aligns with our longstanding commitment to sustainability and our Net Zero targets.
"Our dedication to fostering responsible practices and driving positive environmental and social impact is at the core of our strategies. Through this sustainable finance facility, we are fostering additional accountability, grounded in our belief that concerted collective efforts are necessary to achieve ambitious targets."
As a prominent luxury retailer in the region, Chalhoub Group's dedication to sustainability is evident in strong partnerships with renowned brand suppliers, prime retail locations, efficient logistical infrastructure, and a forward-thinking omnichannel strategy. The Group strategically invests in brands, new business models, retail technology, and geographical expansion.
Mashreq's commitment to sustainable financing is evident in its ambitious target to finance and facilitate $30 billion in sustainable financing by 2030. The bank has already made significant strides, facilitating $1.3 billion in water-related projects.
Recognising the importance of sustainability-linked financing across various industries, the bank aims to drive broader awareness among manufacturers, retailers, and businesses. With a rich history spanning over half a century, Mashreq continues to innovate and challenge banking norms. With a presence in major financial centres worldwide, Mashreq remains dedicated to helping its customers rise every day.
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Source: Chalhoub Group
