ADIB Sets Ambitious Carbon Reduction Target for 2030

Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution in the UAE, announced plans on Monday to reduce its operational carbon emissions by 49% by 2030, using 2022 as the baseline. The initiative positions ADIB as the first commercial Islamic bank in the region to establish sector-specific decarbonization targets.

The announcement coincided with the release of ADIB’s inaugural Net Zero Report, which outlines the bank’s comprehensive strategy for mitigating emissions both within its operations and its financing activities. The report includes a detailed assessment of ADIB’s 2022 emissions baseline and sets interim targets for 2030, underscoring the bank’s commitment to sustainability.

Key highlights of the report focus on six high-impact sectors within ADIB’s financing portfolio—home finance, auto finance, real estate, air transport, utilities, and petroleum manufacturing. These sectors collectively account for 40% of the bank’s financed emissions in the UAE. To address this, the report presents tailored decarbonization pathways for each sector, utilizing methodologies based on the Partnership for Carbon Accounting Financials (PCAF) for financed emissions and the Greenhouse Gas Protocol (GHG) for operational emissions.

Mohamed Abdelbary, Group CEO of ADIB, emphasized the critical role financial institutions play in combating climate change. “We recognize the urgent need for the financial industry to lead in addressing climate challenges. ADIB is committed to advancing sustainable Islamic banking practices and supporting the UAE’s transition to a low-carbon economy,” Abdelbary said. “Our Net Zero Report demonstrates our proactive efforts to assess and reduce emissions while reaffirming our dedication to transparency and accountability.”

The report not only showcases ADIB’s progress but also outlines its commitment to refining strategies and engaging stakeholders to ensure measurable results. Abdelbary added that the bank aims to inspire positive change across the sector and beyond, contributing to the UAE’s sustainability goals.

The move aligns with the UAE’s broader climate initiatives, including its pledge to achieve net-zero emissions by 2050. By setting clear decarbonization goals, ADIB seeks to lead by example within the Islamic banking sector, prioritizing environmental responsibility and sustainable growth.

Looking ahead, ADIB plans to regularly monitor its progress against these targets, adapt its methodologies, and collaborate with key partners to maintain its leadership in sustainable finance. The publication of the Net Zero Report marks a pivotal moment in ADIB’s sustainability journey, reflecting its dedication to long-term environmental stewardship.