Achieving net zero requires all-out efforts of banks
yamotoyuki2 weeks ago
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On October 6, 2022, First Abu Dhabi Bank (FAB) will bring together the world’s brightest minds working on climate change to Economist impact countdown To the COP27 summit.
Among them were philanthropist Bill Gates and US special envoy for climate John Kerry. It was attended by leading UAE business and environmental figures, including her Sheikha Shamma bint Sultan, founder and CEO of the Alliances for Global Sustainability. Hana Al Rostamani, Group CEO of FAB. Mohammed Al Ramahi, CEO of Masdar.
In one of the summit’s standout moments, John Kerry addressed the audience, outlining his vision and realism for net zero. It will be as big as the industrial revolution. “
But Kelly’s vision struck a more realistic tone when he showed that “the transition to net-zero and the estimated $4 trillion needed can be achieved ‘only’ with private sector support,” Added: I have the money to do this. I believe this very deeply. We cannot get there without the private sector. “
In my view, the banking industry will spearhead the private sector participation that John Kerry spoke of. This is because banks have their own window into the entire economy, have unique involvement in every sector, and interact with nearly every individual.
To date, banks are already net-zero and facilitating private sector engagement, and as global financial institutions play a more significant role in helping businesses talk about their climate ambitions, this will continue to grow in the coming years. It will definitely deepen and expand over the years.
More specifically, the bank will fund the future direction of energy supply, buildings, transport, waste, water and food to provide strategic advice and innovative sustainable financing. This puts us in a good position to lead change across the private sector.
We also believe that this year’s COP27 will further underscore the power of money on the road to net zero.
At FAB, as the UAE’s leading bank, we play a decisive role in strengthening our efforts to advance climate action through active engagement and partnerships with our clients, customers, the UAE government and regulators.
We operate across the private sector, working with large and small companies. We are helping them unlock new possibilities and redefine the rules of engagement with net zero and the possibilities it brings.
This includes understanding the diverse and specific needs of private sector entities and tailoring solutions to best meet those requirements.
Most of them are strategic investments that lead directly to sustainable solutions. FAB has been an industry leader in green finance since issuing the region’s first green bond in 2017. But the FAB’s work goes far beyond ‘financing’ and includes advising and educating the communities it serves and measuring market emissions.
FAB combines short-term actions with a long-term view. In recent memory, we have made tangible progress and have now set clear targets on climate action. About a year ago, we became the first UAE and regional bank to join the Net-Zero Banking Alliance (NZBA). This promises to reach net zero by 2050. In addition to this, we have set a $75 billion environmental goal. Funding for the period 2022-2030.
Furthermore, we believe that information and disclosure are essential to driving the climate action needed to turn our ambition into action. Putting these criteria in place has proven critical in helping investors assess climate and sustainability risks and opportunities, thereby ensuring capital is sustainable over the long term. directed to the project.
Achieving the systemic changes needed across the global economy will require the best efforts of individual institutions. Coordinated action is needed across the public and private sectors to ensure that all financial decisions take climate into account. According to the University of Oxford, global GDP is covered by net-zero pledges.
All eyes are now firmly on MENA as it hosts the next two COPs. COP27 will be held in Sharm El Sheikh, Egypt, and COP28 will be held in the UAE. Perhaps now is the time to turn principles into lasting progress.
At FAB, we are ready to do our part to turn the environmental crisis into a huge opportunity that benefits both people and the planet.
Shargiil Bashir is Chief Sustainability Officer at First Abu Dhabi Bank.
https://gulfbusiness.com/achieving-net-zero-will-require-the-full-might-of-the-banking-sector/ Achieving net zero requires all-out efforts of banks
