Reading Time: 2 minutes
ADNOC Distribution, announced plans, to reduce its carbon intensity by 25% by 2030, by putting sustainability at the core of its day-to-day operations to future-proof its business and deliver sustainable long-term shareholder value.
Central to ADNOC Distribution’s enhanced sustainability drive is a commitment to decarbonize its operations by reducing its Scope 1 carbon emissions, which come directly from its operations, and its Scope 2 carbon emissions, which come from the energy it uses to run its operations.
The company said it will install solar panels to power service stations and use biofuels in its fleet of vehicles, in addition to expanding its network of EV charging stations. And it will utilize ‘green concrete’, that is eco-friendly and has a smaller carbon footprint than traditional concrete, in the construction of new service stations.
ADNOC Distribution has also become the first UAE fuel and convenience retailer to tap into sustainable financing, by converting an existing USD1.5bn (AED5.5bn) term loan into a sustainability-linked one in partnership with First Abu Dhabi Bank PJSC (FAB) as ESG Coordinator. ADNOC Distribution has committed to a penalty/incentive Sustainability Linked Loan which ties the loan to sustainability indicators. In addition to FAB, Abu Dhabi Commercial Bank, Bank of China, Industrial and Commercial Bank of China, and Standard Chartered Bank are parties to the loan.
Eng. Bader Saeed Al Lamki, CEO, of ADNOC Distribution, said, “By decarbonizing our business, through greater energy efficiencies and the use of cleaner fuels, and linking our financing objectives to sustainability indicators, we are placing sustainability at the core of our day-to-day operations, ensuring we continue to future-proof our business and deliver sustainable long-term shareholder value.
“The adoption of a sustainable energy mix for our fleet of vehicles and the use of solar energy in our service stations, in addition to rolling out lower carbon intensity products for our customers, underlines our commitment to driving sustainable growth through constant innovation in new energy solutions.”
Al Lamki confirmed ADNOC Distribution will apply its sustainability initiatives across its entire network in the UAE and Kingdom of Saudi Arabia.