First Abu Dhabi Bank net-zero plan updated on Earth Day with AED114.4bn mobilised and 4m tonnes CO2 avoided
First Abu Dhabi Bank updates its net-zero plan on Earth Day 2026, citing 4 million tonnes CO2 avoided in 2025 and AED114.4bn mobilised for green finance.
First Abu Dhabi Bank (FAB) published a 2026 update to its net-zero plan on Earth Day, outlining measurable progress across emissions, financing and client engagement. The update reports that FAB’s sustainable and transition lending helped avoid roughly 4 million tonnes of CO2 in 2025 and sets a clear pathway toward the bank’s 2030 net-zero objectives. The report frames sustainability as central to the bank’s business model, risk management and capital allocation decisions.
FAB reports 4 million tonnes of CO2 avoided in 2025
First Abu Dhabi Bank’s update quantifies the climate impact of its financing activities, attributing approximately 4 million tonnes of avoided CO2 emissions to projects supported in 2025. These avoided emissions stem primarily from renewable energy, energy-efficiency upgrades, green buildings and sustainable transport initiatives. The bank says the figure reflects both direct project outcomes and the broader shift its financing is enabling across client operations.
Operational emissions intensity cut and 2030 net-zero timeline
FAB reports a 35% reduction in Scope 1 and 2 emissions intensity per employee since 2019, driven by energy efficiency measures and greater use of clean electricity. The bank has set a target to reach net-zero operational emissions by 2030 and has outlined interim steps to reduce its footprint further. Management describes the 2030 goal as part of a dual approach that tackles bank-run emissions while steering financed emissions through client engagement.
Sustainable and transition finance totals AED114.4bn in 2025
The bank says it mobilised AED114.4 billion in sustainable and transition finance during 2025, with funds directed to renewables, energy efficiency, green construction and climate adaptation projects. Since 2022, FAB reports providing AED381 billion for sustainable and transition efforts, representing 76% of its AED500 billion 2030 financing ambition. The update positions the bank as a major financier of the UAE’s and region’s low-carbon transition.
New financial instruments and market firsts introduced
FAB highlighted a series of innovative instruments launched under its transition finance category, including what it describes as the first global low‑carbon energy bond and the first blue bond issued by a financial institution in the Gulf Cooperation Council. These issuances are intended to support targeted infrastructure for water and low‑carbon energy systems. Executives framed the products as tools to broaden market access for transition projects and to attract diverse investor demand.
Client engagement framework and escalation mechanism expanded
To accelerate the transition of high‑emitting clients, FAB introduced a maturity assessment framework and an escalation mechanism to tailor engagement and corrective actions. The update notes preparations to double the number of clients covered by this framework between 2024 and 2025, allowing the bank to prioritise support and oversight where emissions reduction potential is greatest. The bank also reset financed‑emissions baselines to 2023, replacing earlier 2021 baselines to better align targets with its current portfolio composition.
Nature risk, disclosures and global conservation partnerships
FAB broadened its environmental, social and governance assessments to explicitly include nature‑related risks and said it has adopted disclosure practices aligned with international frameworks. The bank flagged partnerships and financing streams directed at biodiversity, water security and ecosystem restoration, and cited participation as a banking partner at the 2025 World Conservation Congress. Executives emphasised that integrating nature risks is necessary to safeguard long‑term asset values and to support sustainable development goals.
FAB’s Head of Sustainability, Sherjeel Bashir, said the 2026 pathways update reflects deeper integration of sustainability across operations, lending and capital allocation, and underlined the bank’s commitment to a low‑carbon economy. He framed the measures as practical and measurable actions designed to reduce emissions and support clients in their transitions.
The report also sets out governance and risk‑management changes that tie sustainability outcomes to decision‑making across the institution. FAB says it is embedding climate considerations into credit assessment, portfolio steering and product design to ensure that capital flows align with the bank’s net‑zero ambitions.
The bank’s repositioning of transition baselines and its emphasis on innovative financing signal an intent to both increase ambition and improve the credibility of its pathways. By combining internal emissions reductions with sizeable external financing and client engagement, FAB aims to keep pace with national climate priorities and to influence the broader financial sector’s shift to lower emissions.
Looking ahead, FAB will monitor the implementation of its escalation and client support mechanisms, continue expanding sustainable finance volumes, and report progress against the 2030 net‑zero timetable. The 2026 update frames the bank’s activities as part of a sustained effort to mobilise capital, manage climate and nature risks, and support the UAE’s transition to a lower‑carbon, climate‑resilient economy.