Abu Dhabi: EMSTEEL today announced the launch of its first Green Finance Framework, an initiative that marks a pivotal step in aligning the Group’s financial strategy with its long-term sustainability and decarbonisation goals, positioning EMSTEEL at the forefront of sustainable finance in the region.
According to Emirates News Agency, the Green Finance Framework allows EMSTEEL and its subsidiaries to issue a variety of green finance instruments, including green bonds, loans, commercial papers, and medium-term notes across multiple currencies. The proceeds will be exclusively allocated to finance or refinance eligible green projects that meet stringent environmental criteria, such as low-carbon steel and cement production, renewable energy installations, energy-efficient technologies, and innovations driving decarbonisation.
Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, highlighted the strategic importance of the framework, stating, “Our Green Finance Framework is more than a financial tool – it is a strategic lever to accelerate our transition towards a low-carbon future. It reflects our commitment to aligning our fundraising activities with internationally recognised market standards for green financing and channelling funds toward environmentally responsible projects. Through this initiative, we aim to support the decarbonisation of our operations, foster innovation in low-carbon steelmaking, and create long-term value for our shareholders, society, and the planet.”
Mark Tonkens, Group Chief Financial Officer, echoed this sentiment, noting that the framework reinforces EMSTEEL’s commitment to sustainability. He stated, “Aligning our financial strategy with global green finance standards enables us to secure funding for high-impact projects and positions us as a leader in the region’s transition to a low-carbon economy.”
Developed in accordance with internationally recognised best practices, the framework ensures a robust and transparent approach to the issuance, management, and reporting of green finance instruments. Moody’s Ratings has provided a Second Party Opinion, awarding the framework a Sustainability Quality Score of SQS2 (Very Good), which enhances investor confidence in EMSTEEL’s sustainability-focused capital strategy.
Key partners in the framework’s development included ING as Lead Sustainability Structuring Bank and First Abu Dhabi Bank (FAB) as Sustainability Structuring Bank, highlighting strong regional collaboration in advancing sustainable finance.
The Green Finance Framework is a cornerstone of EMSTEEL’s broader Environmental, Social, and Governance (ESG) strategy, supporting ambitious targets to reduce greenhouse gas emissions by 40% in steel production and 30% in cement production by 2030.
