Emirates Global Aluminium (EGA), the UAE's largest non-oil and gas industrial company, announced its Green Finance Framework.

This framework aims to support projects that reduce carbon emissions and contribute to a low-carbon future. The company also revealed its first green loan facility funded the recent acquisition of Leichtmetall, a European specialty foundry.

Green finance frameworks establish guidelines for securing funding from institutions prioritising sustainability. This allows EGA to explore a wider range of financing options for loans and bonds, potentially lowering borrowing costs and increasing transparency. Citi, ING, and First Abu Dhabi Bank (FAB) played large roles in developing the framework.

EGA is committed to achieving net-zero greenhouse gas emissions by 2050, aligning with the UAE's ambitious Net Zero by 2050 strategy. The demand for aluminum is expected to surge globally, with recycled and low-carbon production methods playing a major role in meeting this demand.

EGA's acquisition of Leichtmetall, a German company that uses renewable energy and recycled aluminum for billet production, exemplifies this commitment. This acquisition strengthens EGA's position in the sustainable aluminum market.

"The aluminium EGA produces plays an essential role in the development of a more sustainable society. It is also important how sustainably it is produced. This is both an enormous opportunity and a significant challenge for EGA and our wider industry," said Abdulnasser Bin Kalban, EGA's CEO. "Our Green Finance Framework enables us to access a deeper pool of liquidity to finance projects and initiatives that advance our decarbonisation goals. Our use of green financing for our recent acquisition of Leichtmetall is another first for EGA in our sustainability journey."

EGA has also implemented other sustainability initiatives. In 2023, they launched the UAE's first ESG-linked supply chain finance programme, providing $73 million in financing to suppliers with sustainability practices. Also, in 2022, EGA established sustainable corporate bank accounts, ensuring a portion of their cash reserves is used for sustainable projects.

For more sustainable finance news

Discover an extensive network of ESG providers here

Source: EGA