Etihad Rail, the developer and operator of the UAE National Rail Network, has launched its Sustainable Finance Framework, a comprehensive guide designed to link the company’s future financing to its ESG Strategy in relation to Clean Transportation, Green Buildings and Pollution Prevention and Control.
The framework, which was developed in collaboration with various industry experts, as well as First Abu Dhabi Bank and Standard Chartered Bank, who served as co-ESG advisors, providing expertise and insights to ensure the framework’s robustness and alignment to the Green Loan and Bond Principles. Furthermore, the framework was validated through a Second Party Opinion (SPO) from Det Norske Veritas (DNV).
The framework establishes a structured approach for Etihad Rail to evaluate parameters in the financing of sustainable projects, detailing four main components: Green Loan and Bond Principles that ensure alignment with international sustainability standards and use of proceeds to define clear criteria for the allocation of funds towards sustainable projects.
Sustainable practices
“The introduction of our Sustainable Finance Framework is a testament to Etihad Rail’s commitment to integrate and uphold sustainable practices in all our operations. Through responsible financial practices, we are further underscoring this dedication by driving positive environmental and social impact in the region across the transportation, logistics, and infrastructure sectors,” stressed Ali Tabbal, Chief Financial Officer, Etihad Rail.
As part of Etihad Rail’s ESG strategy, the framework encompasses mechanisms for environmental risk assessment and promotion of transparency in implementing ESG initiatives.
The framework not only guides investment decisions but also fosters collaboration and knowledge-sharing among industry peers, regulators, and investors, thereby accelerating the transition to a more sustainable financial system.
