Etihad Rail has launched its Sustainable Finance Framework, a guide to aligning the company's future financing with its ESG strategy in clean transport, green buildings and pollution prevention.
Developed in collaboration with various industry experts, First Abu Dhabi Bank and Standard Chartered Bank acted as co-ESG advisors, providing expertise and insight to ensure the framework's robustness and alignment with the Green Loan and Bond Principles. A Second Party Opinion (SPO) from Det Norske Veritas (DNV) also validated the framework.
There are four main components to the framework, which provides Etihad Rail with a structured approach to assessing the parameters of financing sustainable projects:
- Green Loan and Bond Principles, ensuring alignment with international sustainability standards
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Use of Proceeds, establishing clear criteria for allocating funds to sustainable projects
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Project Evaluation and Selection, implementing a rigorous process to identify impactful projects
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Management of Proceeds and Reporting, ensuring transparency and accountability in fund use
„Through responsible financial practices, we are further underscoring this dedication by driving positive environmental and social impact in the region across the transportation, logistics, and infrastructure sectors. This framework is a pivotal element of our broader ESG strategy, directly aligning with the United Nations’ Sustainable Development Goals. It provides a clear roadmap for integrating ESG considerations into investment decisions, empowering companies to generate long-term sustainable value,“ commented Ali Tabbal, Chief Financial Officer at Etihad Rail.
