Etihad Rail supports clean transport, green building practices and the UAE’s Net Zero 2050 strategy, and has launched a sustainable finance framework to align future financing with ESG objectives.
Credit: Etihad Rail
Etihad Rail, the developer and operator of the UAE’s national rail network, has announced the introduction of a Sustainable Finance Framework, a strategic initiative aimed at aligning the company’s future financing with its Environmental, Social and Governance (ESG) strategy. The framework is centered around clean transportation, green building practices and pollution prevention, reflecting the company’s commitment to sustainability.
The framework has been developed with input from industry experts, with financial guidance provided by joint ESG advisors First Abu Dhabi Bank and Standard Chartered Bank, and the framework’s compliance with international standards has been further verified by Det Norske Veritas (DNV) through a Second Party Opinion (SPO).
The Etihad Rail framework outlines four key elements.
Green Loan and Green Bond Principles: Ensure compliance with global sustainability standards. Use of Proceeds: Define criteria for allocating funds to sustainable projects. Project Evaluation and Selection: Implement a process to identify projects that are impactful and environmentally beneficial. Revenue Management and Reporting: Ensure transparency and accountability in the use of funds.
Ali Tabar, Chief Financial Officer, Etihad Rail, said: “The introduction of the Sustainable Finance Framework is testament to Etihad Rail’s commitment to embed and uphold sustainable practices in all its operations. Through responsible finance practices, we further underline this commitment by driving positive impact on the local environment and society across the transport, logistics and infrastructure sectors. The framework is a vital element of our broader ESG strategy and is directly aligned with the UN Sustainable Development Goals. It provides a clear roadmap for integrating ESG considerations into investment decisions, enabling companies to create sustainable value over the long term. In doing so, we are not only facilitating the transition to a low-carbon and resilient economy, but also supporting the UAE’s Net Zero 2050 strategy and contributing to the country’s vision for a sustainable future.”
The framework is designed to incorporate environmental risk assessments and promote transparency to guide investment decisions, foster cross-industry collaboration, and contribute to a more sustainable financial system in the region.