EMSTEEL launches inaugural Green Finance Framework
Sustainability EMSTEEL launches inaugural Green Finance Framework
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The Green Finance Framework marks a pivotal step in reinforcing EMSTEEL's commitment to sustainability, the firm explained
EMSTEEL has announced the launch of its inaugural Green Finance Framework, which aims to align the company's financial strategy with its long-term sustainability and decarbonisation objectives.
The framework enables EMSTEEL and its subsidiaries to issue a diverse range of green finance instruments, including green bonds, loans, commercial papers, and medium-term notes (MTNs), across multiple currencies. The proceeds generated from these instruments will be exclusively allocated to finance or refinance eligible green projects that follow stringent environmental criteria, said a statement.
These projects encompass different initiatives, such as, production of low carbon steel and cement, installation of renewable energy systems like solar photovoltaic systems, the adoption of energy efficient technologies, and innovative solutions that drive decarbonisation.
Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL said, '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 fund raising activities with internationally recognised market standards for green financing and channeling 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 added, 'The launch of our Green Finance Framework marks a pivotal step in reinforcing EMSTEEL's commitment to sustainability. 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 transparent approach to the issuance, management, and reporting of green finance instruments. Moody's Ratings has provided a Second Party Opinion (SPO), awarding the Framework a Sustainability Quality Score of SQS2 (Very Good), enhancing investor confidence in EMSTEEL's sustainability-focused capital strategy.
The framework's development was supported by key partners, including ING as the Lead Sustainability Structuring Bank and First Abu Dhabi Bank (FAB) as the Sustainability Structuring Bank. This collaboration underscores the regional commitment to advancing sustainable finance. The Green Finance Framework is an important component of EMSTEEL's Environmental, Social, and Governance (ESG) strategy. It supports ambitious targets aimed at reducing greenhouse gas emissions by 40% in steel production and 30% in cement production by 2030.
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