Abu Dhabi Islamic Bank (ADIB) has reported the mobilisation of over AED 17 billion in sustainable finance by the end of 2024. This marks continued progress toward its AED 60 billion sustainable finance goal by 2030.

The announcement was made alongside the release of ADIB’s 2024 Sustainability Report. The report outlines key developments in climate alignment, ESG governance, and inclusive growth. These efforts align with the UAE Net Zero 2050 strategy and UAE 2031 vision.

ADIB revealed that it is the first Islamic bank in the region to set interim 2030 financed emissions targets. These sector-specific targets cover six high-emission sectors, including:

• Real estate
• Utilities
• Home finance

The targets are aligned with IEA Net Zero scenarios and the UAE’s national decarbonisation strategy.

To ensure alignment with international best practices, ADIB conducted a double materiality assessment. This was done in accordance with the European Sustainability Reporting Standards (ESRS). The assessment evaluated both financial and societal impacts of its activities.

The bank noted that the double materiality approach helped identify material impacts, risks, and opportunities across economic, environmental, and social domains. ADIB also confirmed the assessment addressed all ESRS topical standards.

In addition, ADIB published its first Green Sukuk allocation and impact report. This followed its USD 500 million Green Sukuk issuance. As of December 2024, 90% of proceeds have been allocated to projects in:

• Renewable energy
• Energy efficiency
• Sustainable water infrastructure

These projects are estimated to contribute to over 607,000 tonnes of avoided annual emissions.

Operationally, ADIB reported significant reductions in its own emissions. Scope 1 emissions dropped by 87% compared to 2022. Scope 2 emissions saw a 3.51% decrease. These improvements stem from investments in electrification, energy efficiency, and operational optimisation.

Commenting on the report, Mohamed Abdelbary, Group CEO at ADIB, said the bank is placing sustainability at the core of its 2035 vision. He stated that ADIB is supporting the economic transition through responsible financing.

He added that the bank’s disclosures highlight its commitment to ethical, inclusive, and climate-aligned banking. He emphasized ADIB’s leadership in Green Sukuk and sectoral decarbonisation.

Abdelbary also noted that the double materiality assessment supports decision-useful disclosure. It enables ADIB to understand both how sustainability affects its business and how its business affects the wider environment and society.

Social impact was another key area of progress. ADIB achieved a 44% Emiratisation rate. Women represented 72% of UAE national hires and 39% of the total workforce.

The bank reported an average of 62 training hours per employee. It also partnered with over 140 community organisations to support financial inclusion, education, and social welfare.

ADIB continues to receive strong ESG ratings. These include:

• ‘AA’ rating from MSCI
• Score of 74 from LSEG ESG
• Score of 41 from DJSI

These scores reflect the bank’s leadership in responsible finance. ADIB was also recognised as the Best Islamic Bank for ESG by Global Finance and MEED.

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