Abu Dhabi Islamic Bank (ADIB) has announced it has mobilised over AED 17.3 billion in sustainable finance by the end of 2024, reaffirming its commitment toward achieving AED 60 billion in sustainable finance by 2030. The update is part of the bank’s newly released 2024 Sustainability Report, which outlines key developments in its ESG framework, in alignment with the UAE’s Net Zero 2050 strategy and Vision 2031.
The report showcases a series of significant achievements, including ADIB becoming the first Islamic bank in the region to publish sector-specific financed emissions targets. These interim 2030 targets apply to six high-emission sectors, such as real estate, utilities, and home finance. The targets are aligned with the International Energy Agency (IEA) Net Zero scenarios and the UAE’s national decarbonisation plans.
To further align with global sustainability frameworks, ADIB carried out a double materiality assessment based on the European Sustainability Reporting Standards (ESRS). This approach enabled the bank to assess both financial and societal impacts of its business activities. The assessment, conducted across all ESRS topical standards, covered a broad spectrum of environmental, social, and governance factors to determine key risks, impacts, and opportunities.
ADIB also released its first Green Sukuk allocation and impact report related to its USD 500 million issuance. As of December 2024, 90 percent of the proceeds were directed toward renewable energy, energy efficiency, and sustainable water infrastructure. These allocations have led to an estimated 607,000 tonnes of annual avoided emissions.
In terms of internal operations, the bank reported an 87 percent decrease in Scope 1 emissions compared to 2022 levels and a 3.51 percent reduction in Scope 2 emissions. These reductions stem from continuous investments in energy-efficient systems, electrification, and process optimisation throughout the organisation.
Commenting on the bank’s progress, Mohamed Abdelbary, Group Chief Executive Officer at ADIB, said: “Putting sustainability at the heart of what we do is one of the three key pillars of our 2035 vision. We’re proud of the progress we’re making, and how we’re using our financing to contribute to the transition of our customers and the economy. 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.”
He further added: “Our double materiality assessment reinforces ADIB’s commitment to credible, decision-useful disclosure. It ensures we understand not only how sustainability impacts our business but how our business impacts the environment, society and economy. This is central to how we plan, report and act.”
ADIB’s 2024 report also highlights ongoing progress in its social impact strategy. The bank achieved a 44 percent Emiratisation rate, with women making up 72 percent of all UAE national hires and 39 percent of the total workforce. This effort was underpinned by an average of 62 training hours per employee and collaboration with over 140 community organisations focused on financial inclusion, education, and social well-being.
The bank’s continued leadership in sustainable finance has been recognised through strong ESG ratings: an ‘AA’ rating from MSCI, a score of 74 from LSEG ESG, and a 41 from DJSI. ADIB has also been named the Best Islamic Bank for ESG by both Global Finance and MEED.
