179 days. That is how long until Dubai opens the doors to COP28, the world’s largest annual climate gathering, and the first global stock take since the Paris Agreement was signed in 2015. That may seem like a lot of time, but it is an extremely tight window considering the magnitude of change needed to help get the world pointing in the right direction now to have a chance of achieving Net Zero by 2050. This year is already set to be the hottest on record – a stark reminder of what is at stake.

We know the opportunities and risks that lie ahead, which is why we plan to almost double the $15.5bn worth of sustainable finance we have facilitated till 2022 end, to reach $30bn by 2030 – a very short seven years away. Climate technology innovation and strong commitments to dedicating funds to support green and transition projects are integral to making COP28 a success, helping drive the UAE’s Year of Sustainability in 2023, and, most critically, moving the needle towards Net Zero.

Accordingly, we are expanding our efforts to support our clients in the UAE and across the world by spearheading sustainable finance instruments such as green, social, sustainable, and sustainability-linked bonds and loans. Succeeding in today’s global marketplace means making sustainability second nature across every facet of our business – in our culture, our operations, and our aspirations. This is not an overnight success; we have entered a marathon, along with the rest of the world’s financial community.

A Landmark year

Already, the UAE has set a zero-nonsense approach to COP28, prioritising real-world progress for when 70,000+ stakeholders gather this November.1 This is particularly vital, as COPs have historically faced pressure for achieving more dialogue than action. The tone of such critiques shifted during COP27 in Egypt last November, but the global spotlight is now focused on the UAE – and all its key stakeholders – to achieve a paradigm shift in what is arguably the modern-day world’s most complex journey yet.

That the UAE, the third largest oil producer within OPEC, is so focused on sustainability illustrates this ultra-juggling act: simultaneously to protect energy security, ensure climate stability, and bolster growth. All of us at Mashreq eagerly embrace this positive disruption, drawing on our near-six decades of experience as the oldest financial institution in the UAE, the second largest economy in the Middle East. We are determined to stay ahead of the increasingly competitive market.

Global green financing has grown more than 100-fold in the past decade, reaching $540.6bn in 2021, rising from 0.1% of the world’s financing activity in 2012 to 4% a decade later.2 This reveals two things: appetite for green financing has substantially grown over the last few years, and there is growing opportunities for those corporations committed to supporting the UAE’s sustainability journey. Looking ahead, green investments in six key industries in the Gulf Cooperation Council (GCC) could have a profound impact by 2030, unlocking up to $2trn in cumulative gross domestic product (GDP) contribution, creating more than 1 million jobs, and encouraging foreign direct investment3 – all very coveted in the UAE.

Supporting the country’s journey to Net Zero

Now, all eyes are rightly on how banks and their clients are integrating Environmental, Social and Governance (ESG) into every boardroom decision. Generating long-term value for our clients while supporting “people and planet” has long been at the core of our corporate culture, and we have been releasing comprehensive annual Sustainability Reports since 2020. As a result of these efforts, we are reinforcing ESG credentials throughout our business structure and operations as a crucial step in upholding the sustainability and climate aims of the UAE and supporting the country’s road to Net Zero.

Under this dynamic umbrella of ESG, and as part of our dedication to minimising the environmental impact of our infrastructure and operations, our initiatives have saved 1,229,000 kWh of energy in the past. This roughly equates to 41,000 gallons of gasoline as per GHG calculations – enough to nearly fly to the moon and back, twice. Our efforts have also enabled us to recycle more than 202,600 Kgs; similar to the weight of an empty A380 aircraft, the largest passenger airliner in the world.

Additionally, we continue to invest in uplifting local communities everywhere we operate and have a positive and tangible impact across the UAE, Bahrain, Kuwait, and Egypt via socially responsible initiatives, including supporting One Billion Meals – the biggest humanitarian initiative of its kind in the region.

As we get closer to COP28, the banking sector must align with the climate objectives of the UAE and welcome government efforts to advance us towards climate action and a cleaner, more prosperous future. The UAE is already renowned for its dedicated work towards substantial financial and environmental developments, and we are excited about endorsing this track record, supporting its Net Zero journey, and seeing this nation take on even greater leadership in climate action.