UAE bank unveils Dh500bn sustainability plan on Earth Day 2026
Operational decarbonisation and client engagement frameworks expanded
ABU DHABI – On Earth Day 2026, First Abu Dhabi Bank unveiled its latest Transition Pathways Update, setting out measurable progress in its Net Zero Transition Plan and underscoring its expanding role in climate finance.
The report revealed that the bank’s sustainable and transition finance activities contributed to nearly 4 million tonnes of avoided carbon dioxide emissions in 2025. It also detailed how sustainability is being embedded across operations, risk frameworks and client engagement, aligning closely with the UAE’s national climate priorities.
The update outlined a structured roadmap anchored in four core pillars: client engagement and sectoral pathways, climate risk management and portfolio steering, operational decarbonisation, and sustainable finance mobilisation. Together, these pillars are designed to guide the bank’s transition towards a low-carbon and nature-positive economy, while maintaining alignment with evolving global standards and disclosures.
Climate push
A key highlight of the report is the scale of financing directed towards climate solutions. In 2025 alone, the bank mobilised Dh114.4 billion in sustainable and transition finance, supporting renewable energy, energy efficiency, green buildings and clean transport, alongside climate adaptation initiatives. This brought its cumulative total since 2022 to Dh381 billion, representing 76 per cent of its Dh500 billion target set for 2030.
The bank’s financing strategy has also included landmark issuances in sustainable capital markets. Among them are the world’s first low-carbon energy bond and the first blue bond issued by a GCC financial institution, both aimed at accelerating the energy transition and strengthening water and wastewater infrastructure. These instruments reflect a growing diversification in climate finance tools within the region.
Emissions cuts
On the operational side, the bank reported a 35 per cent reduction in Scope 1 and Scope 2 emissions intensity per full-time employee since 2019. This progress has been driven by energy efficiency measures, greater reliance on cleaner grid electricity and the adoption of clean energy certificates across key locations.
A formal net-zero action plan is now in place to deliver the Group’s 2030 operational decarbonisation targets. At the same time, the bank has refined its financed emissions approach, re-baselining its pathways to 2023 from 2021. This adjustment is intended to improve alignment with its current portfolio while reinforcing medium-term decarbonisation goals.
The report also detailed advancements in managing climate-related risks. A bespoke transition maturity assessment and escalation framework has been introduced, allowing for more targeted engagement with high-emitting clients. Coverage under this framework is expanding rapidly, with the number of assessed clients expected to double between 2024 and 2025.
Focus on nature
Beyond emissions, the update places increasing emphasis on nature and biodiversity. The bank published the region’s first disclosure aligned with the Taskforce on Nature-related Financial Disclosures, integrating nature-related risks into its ESG assessments and sectoral policies.
In practical terms, this focus is reflected in projects on the ground. In Abu Dhabi, the bank partnered with Archireef and Environment Agency – Abu Dhabi to support coral reef restoration, deploying 400 reef tiles and transplanting 800 coral fragments to aid marine ecosystem recovery.
The bank also played a prominent role in global conservation dialogue as a principal partner of the IUCN World Conservation Congress 2025, contributing to discussions on biodiversity, water systems and the climate-nature nexus alongside governments and investors.