Etihad Rail, the developer and operator of the UAE National Rail Network, has launched its Sustainable Finance Framework, a guide designed to align the company’s future financing with its Environmental, Social, and Governance (ESG) strategy.
The framework focuses on clean transportation, green buildings, and pollution prevention and control, ensuring that future projects are both environmentally sustainable and socially responsible.
Developed in collaboration with industry experts, First Abu Dhabi Bank, and Standard Chartered Bank, the framework is aligned with international sustainability standards, including the Green Loan and Bond Principles. It has been validated by Det Norske Veritas (DNV) through a Second Party Opinion (SPO), further enhancing its credibility.
The framework details four key components: adherence to Green Loan and Bond Principles, clear criteria for the allocation of funds towards sustainable projects, a rigorous process for project evaluation and selection, and transparent management of proceeds and reporting. This structure is designed to ensure that Etihad Rail's financing decisions contribute positively to the environment and society.
Ali Tabbal, Chief Financial Officer at Etihad Rail, highlighted that the framework is part of the company's broader ESG strategy and aligns with the United Nations’ Sustainable Development Goals.
It aims to support the UAE’s Net Zero 2050 Strategy by integrating environmental considerations into investment decisions and fostering a transition to a low-carbon, resilient economy.
The framework also promotes collaboration among industry peers, regulators, and investors, accelerating the move towards a more sustainable financial system and reinforcing Etihad Rail’s commitment to environmental stewardship and social responsibility.
News Source: Emirates News Agency
