Sustainability financing is the support and facilitation by a financial institution for sustainable development. It creates value in economic, environmental and social terms. It also ensures and improves economic efficiency, prosperity, and economic competitiveness for today and tomorrow. It also means to protect and restore natural ecological systems, and enhance cultural diversity and social well-being. In sustainability financing, business or investment decisions are taken for the lasting benefit of both clients and society at large.
The UAE government is fully committed to make the country.
The main focus of all the objectives isfor environmentally sustainable activities. NBAD is also the first bank in the region to sign up to the Equator Principles, a voluntary set of guidelines based on International Finance Corporation standards on social and environmental sustainability and the World Bank Group’s environmental, health and safety guidelines.
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Other ways banks can contribute to sustainability are responsible lending, risk management, sector policies, energy related credit portfolio and green bonds. Green bonds in particular increase investors’ demands for engagement in environment related opportunities. Many green startups and companies seek investment and investors can integrate sustainability into their portfolio allocation for greater long term profitability. It’s a win-win situation for all – banks, people, investors and government.
Although UAE’s sustainable future faces many challenges, the country’s mission of sustainability can only be achieved through mutual interest, collaboration and interest of all stakeholders. The country is committed to accelerate towards national and regional green growth pathway and towards the much needed new world of clean energy. Through clear policies and bright vision, UAE is on the right path of becoming a positive force in sustainability through strong support by banking sector of the region.