Etihad Rail launches its ESG strategy

Etihad Rail, the developer and operator of the UAE National Rail Network, has introduced its Sustainable Finance Framework.

This comprehensive guide is designed to align the company's future financing efforts with its Environmental, Social, and Governance (ESG) Strategy, particularly focusing on Clean Transportation, Green Buildings, and Pollution Prevention and Control.

The framework was developed in collaboration with industry experts and co-ESG advisors, First Abu Dhabi Bank and Standard Chartered Bank, to ensure its alignment with the Green Loan and Bond Principles. The robustness of the framework was further validated by Det Norske Veritas (DNV) through a Second Party Opinion (SPO).

Key characteristics

The framework outlines a structured approach for Etihad Rail to assess and finance sustainable projects, detailing four key components: adherence to Green Loan and Bond Principles to meet international sustainability standards, clear criteria for the allocation of funds towards sustainable initiatives, a rigorous process for project evaluation and selection, and transparent management and reporting of funds.

Aligned with Etihad Rail's ESG strategy, the framework includes mechanisms for assessing environmental risks and promoting transparency in ESG initiatives. It not only supports informed investment decisions that mitigate environmental risks and leverage sustainable market opportunities but also encourages collaboration and knowledge-sharing among industry stakeholders, regulators, and investors, thereby fostering a transition towards a more sustainable financial system.

 Ali Tabbal, chief financial officer at Etihad Rail said, “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. This framework is a pivotal element of our broader ESG strategy, directly aligning with the United Nations’ Sustainable Development Goals. It provides a clear roadmap for integrating ESG considerations into investment decisions, empowering companies to generate long-term sustainable value. By doing so, we are not only fostering a transition to a low-carbon, resilient economy but also supporting the UAE’s Net Zero 2050 Strategy and contributing to the nation’s vision for a sustainable future.”