Case study: How ADIB works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

ADIB consistently maintains transparent and ongoing communication with its key stakeholders, fostering constructive dialogue to identify areas of significant impact and material topics relevant to the bank.

ADIB’s Double Materiality Assessment serves as the primary method for stakeholder engagement concerning impact and materiality. Through this process, stakeholders such as staff, senior management, the Board of Directors, customers, suppliers, and community members were identified.

Beyond this assessment, ADIB’s stakeholder management approach involves continuous engagement with key parties, recognizing their vital role in shaping the bank’s strategic direction. ADIB identifies key stakeholders as those most affected by its operations and those with the greatest influence, including management, investors, customers, employees, partners, communities, and regulators. To facilitate effective engagement, ADIB employs multiple channels to proactively communicate, enabling the bank to understand, address, and respond to their concerns and interests. Insights gained from these interactions are crucial in understanding the ESG factors material to ADIB’s operations, guiding the development and implementation of initiatives aligned with stakeholder expectations and promoting sustainable growth.

Additionally, ADIB’s sustainability performance has been recognized by external ESG rating agencies, notably with an AA MSCI ESG rating that highlights its strong ESG risk management and performance. This external assessment also affirms the quality and transparency of ADIB’s public disclosures.

Details of ADIB’s overall stakeholder management approach, which enables ADIB to maintain a principled approach to banking and improve its impacts, are outlined below.

How did ADIB work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2024 Responsible Banking Progress Statement ADIB reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

1. Strategic Commitment to Climate and Social Impact
   ADIB is dedicated to directing capital toward projects that generate tangible positive effects on climate mitigation, climate adaptation, and social well-being. ADIB’s portfolio encompasses both green initiatives and socially beneficial projects, emphasizing its role as a catalyst for sustainable economic growth within the UAE and beyond.
2. Sustainable Finance Framework and Governance
   ADIB’s Sustainable Finance Framework, publicly disclosed, defines the eligible green and social activities supported under its sustainable financing initiatives. This framework, independently validated through a Second Party Opinion, serves as a key platform for communicating ADIB’s sustainable finance priorities to clients. Through active engagement, ADIB promotes the decarbonization of assets and portfolios by financing green projects. Detailed outcomes are presented in ADIB’s Green Sukuk Impact and Allocation Report.
3. Green Sukuk Issuance and Allocation
   In November 2023, ADIB successfully issued a USD 500 million Green Sukuk under its Sustainable Finance Framework. As of the 2024 reporting period, USD 451 million has been allocated to eligible green projects, reflecting ADIB’s commitment to aligning proceeds with its sustainability goals and demonstrating effective deployment of funds.
4. ESG Risk Management and Client Engagement
   ADIB’s proprietary ADIB ESG Risk Due Diligence Toolkit is utilized at the initial transaction stage and throughout ongoing client reviews. This process assesses environmental, social, and governance risks, with engagement strategies tailored to each risk profile. Special focus is given to engaging with unlisted entities or clients without publicly available sustainability disclosures, ensuring responsible and informed credit decisions.
5. Retail Sustainability and Financial Inclusion Initiatives
   ADIB promotes low-carbon mobility through its VOLT Electric Vehicle Financing product, which offers preferential profit rates to encourage the adoption of zero-emission vehicles. Additionally, ADIB’s participates in national housing programs, such as the Sheikh Zayed Housing Project, to improve access to housing for economically disadvantaged communities in the UAE.
6. Expanding Access to Islamic Finance
   ADIB’s initiatives to promote financial inclusion include the launch of Amwali, the first Islamic digital youth banking platform, designed to enhance financial literacy and responsible money management for customers aged 8–18. ADIB also offers tailored banking services for women through ADIB Dana. Women customers using ADIB Dana can benefit from the expertise of a dedicated team of female professionals who provide specialized advice on financial matters and services. ADIB ensures access to premium banking privileges aligned with Islamic and cultural values, complemented by comfortable lounges at all Dana women’s banking branches and sections. Furthermore, ADI Microfinance, established as a specialized arm of ADIB-Egypt under the brand Arzaq, focuses on financing small and micro projects and businesses. Its goal is to expand financial inclusion, empower individuals, address unemployment, formalize the informal economy, and support broader economic and social development in Egyptian society. These projects represent a broad segment of the economic sector and need to provide sources to obtain financing that will help them expand and continue and achieve an increase in the rates of the gross domestic product and the national economy.
7. Community Financial Education
   ADIB offers comprehensive, complimentary financial literacy programs throughout the UAE, accessible to all community members regardless of whether they are existing customers. These workshops, conducted in both Arabic and English, cater to a wide age range—from children aged 7 and above to pre-retirees—with content customized to different life stages and financial needs.
   • For younger audiences, topics include budgeting, early financial planning, and entrepreneurship.
   • For small and medium-sized enterprises (SMEs), free webinars deliver practical insights on finance, marketing, operations, and accounting, aimed at fostering sustainable business growth.
8. Sustainable Finance Strategy
   ADIB’s 2030 Sustainable Finance Strategy aims to mobilize AED 60 billion in sustainable financing by 2030. As part of this initiative, ADIB actively engages with its customers to promote and increase the uptake of sustainable financing solutions.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

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    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by ADIB, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://adib.ae/en/esg-and-sustainability/policies-statements-and-disclosures

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