Dubai: UAE’s biggest bank FAB is going all out on the ‘Net Zero’ mission – and it is making sure key industries are doing the same. FAB has become the first bank in the MENA markets to set ‘financed’ emission reduction targets for the oil and gas, power generation, and aviation industries.

These three sectors, incidentally, are the three highest emitting ones as well, and ‘account for 80 per cent of the bank’s global emissions’.

“By integrating specific targets across high-emitting industries, we are combining near-term action with a long-term view,” said Hana Al Rostamani, Group CEO. “We believe that the road towards net-zero is about much more than financing the transition - it’s also about collaborating with our clients and partners, helping them leverage the latest and fit-for-purpose solutions, in addition to realigning our portfolio to their new realities and growth objectives.

How it works

For aviation sector clients, FAB is targeting 15 per cent reductions in Scope 1 and Scope 2 carbon emission by 2030 compared to the sector’s 2019 baseline. To help meet the targets, FAB will fund their fleet renewals – and these will have to be used on next-generation aircraft and should also be running on Sustainable Aviation Fuel. Clients in aviation will also be encouraged to use ‘high-quality’ offsets for any residual emissions.

“While we acknowledge this journey will be an evolving process, we’re built for agility and able to adapt as new practices emerge in the future,” the CEO added.

More to follow...