Etihad Rail Unveils Sustainable Finance Framework

Etihad Rail, the leading developer and operator of the UAE National Rail Network, has introduced its Sustainable Finance Framework. This comprehensive guide is designed to align the company’s future financing with its Environmental, Social, and Governance (ESG) Strategy, focusing on clean transportation, green buildings, and pollution prevention and control.

Developed in collaboration with industry experts and co-ESG advisors First Abu Dhabi Bank and Standard Chartered Bank, the framework adheres to the Green Loan and Bond Principles. The framework’s robustness and alignment with sustainability standards were validated through a Second Party Opinion (SPO) from Det Norske Veritas (DNV).

The Sustainable Finance Framework establishes a structured approach for Etihad Rail to evaluate parameters in financing sustainable projects. It includes components like Green Loan and Bond Principles, Use of Proceeds for fund allocation towards sustainable projects, Project Evaluation and Selection, and Management of Proceeds and Reporting to ensure transparency and accountability.

Ali Tabbal, Chief Financial Officer at Etihad Rail, commented on the launch: “The introduction of our Sustainable Finance Framework is a testament to Etihad Rail’s commitment to integrate and uphold sustainable practices in all our operations. Through responsible financial practices, we are further underscoring this dedication by driving positive environmental and social impact in the region across the transportation, logistics, and infrastructure sectors. This framework is a pivotal element of our broader ESG strategy, directly aligning with the United Nations’ Sustainable Development Goals. It provides a clear roadmap for integrating ESG considerations into investment decisions, empowering companies to generate long-term sustainable value. By doing so, we are not only fostering a transition to a low-carbon, resilient economy but also supporting the UAE’s Net Zero 2050 Strategy and contributing to the nation’s vision for a sustainable future.”

Etihad Rail’s framework encompasses mechanisms for environmental risk assessment and transparency in ESG initiatives. By integrating environmental considerations into investment decisions, companies can mitigate environmental risks, capitalize on emerging sustainable markets, and strengthen their commitment to environmental stewardship and social responsibility. The framework fosters collaboration and knowledge-sharing among industry peers, regulators, and investors, accelerating the transition to a more sustainable financial system.