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Abu Dhabi, 22 November 2023: First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and strongest financial institutions, has expanded its financed emissions reduction targets to include five additional sectors: agriculture, aluminium, cement, commercial real estate (CRE), and steel.
The updated targets relate to FAB’s ‘Wave 2’ sectors and serves as both a continuation and acceleration of FAB’s announcement in March 2023 when it became the first Middle East North Africa (MENA) bank to set financed emissions reduction targets relating to its three ‘Wave 1’ sectors: oil & gas, aviation, and power generation.
The combined targets for the eight sectors will cover 90% of FAB’s financed emissions for corporates and forms part of the Group’s sustainable growth strategy; its ambition to become net zero by 2050; and its commitment as a member of the Net Zero Banking Alliance (NZBA) which the bank joined in October 2021.
Each sector has been analysed individually alongside considerations unique to that industry, including regional variations. FAB's financed emissions targets are not expected to have a material financial impact. The 2030 reduction targets by sector are outlined below:
| FAB’s pathway to net zero | Sector | 2030 reduction target |
|---|---|---|
|
Wave 1 sectors (announced in March 2023) |
Oil & Gas |
-7% to -15% |
|
|
Power |
64% |
|
|
Aviation |
15% |
|
Wave 2 sectors |
Agriculture |
-35% to -45% |
|
|
Aluminium |
-32% |
|
|
Cement |
-25% |
|
|
CRE |
-45% to -55% |
|
|
Steel |
-26% to -32% |
FAB has continued to use a science-based and sector-specific methodological approach in target setting with this method fulfilling the requirements of leading standards, such as the Partnership for Carbon Accounting Financials (PCAF), and the United Nations convened Net Zero Banking Alliance (NZBA).
As part of its broader efforts related to emissions reduction, FAB continues to work alongside global peer banks and is playing a key role in the NZBA, where signatory banks must transition all operational and attributable greenhouse gas (GHG) emissions (Scope 1, 2, and 3) from their lending and investment portfolios to align with pathways to net zero by 2050.
Shargiil Bashir, Chief Sustainability Officer at FAB said: “Earlier this year FAB became the first bank in the MENA region to set financed emissions targets, and in doing so, we defined a clear pathway towards a net-zero future. By expanding our targets, we are now able to push forward with greater momentum towards the realisation of that future. Crucially, we understand that emissions reductions is a collaborative process involving diverse stakeholder groups – and we are fully committed to playing our part to deliver meaningful impact from every climate action taken. We believe this important update will inform and enable better investment decisions as well as advance the growth objectives of our clients, as they pursue their own transition and decarbonisation ambitions.”
As its journey to net zero advances, FAB understands that target-setting will be an evolving process and is committed to improving its approach as scenarios are updated by international organisations, as new standards emerge, where available data quality improves, and as its clients disclose new transition plans.
For more information, please refer to “FAB’s Pathway to Net Zero, Wave 2” report available in the sustainability section of FAB’s corporate website: Reports, Policy, and Frameworks | FAB - UAE (bankfab.com).