First Abu Dhabi Bank (FAB) has released its 2026 Transition Pathways Update on Earth Day 2026, highlighting significant progress in its sustainability agenda and Net Zero Transition Plan.
The report showed that the bank’s sustainable and transition finance activities helped avoid nearly 4 million tonnes of CO₂ emissions in 2025.
The update reinforces FAB’s commitment to supporting the global shift towards a low-carbon economy while aligning its strategy with national climate priorities in the UAE.
Sustainability continues to be embedded across the bank’s business model, risk framework, and client engagement approach.
Four-pillar sustainability framework
FAB’s transition strategy is structured around four key pillars: client engagement and sectoral pathways, climate risk management and portfolio steering, operational decarbonization, and sustainable finance mobilization.
The bank said that this framework supports a structured approach to measuring, managing, and reducing climate and nature-related risks across its operations and financing portfolio.
The report also highlighted progress in translating net zero and nature-positive commitments into measurable outcomes across core business activities.
FAB reported a 35 percent reduction in Scope 1 and 2 emissions intensity per full-time employee since 2019, driven by energy efficiency improvements, greater use of cleaner electricity sources, and adoption of clean energy certificates across key locations.
The bank has also implemented a formal net-zero action plan to achieve its 2030 operational decarbonization targets.
The bank confirmed it remains on track across its 2030 pathways in eight high-emitting sectors, supported by improved client disclosures and early-stage transition actions.
Strong momentum in sustainable finance
FAB mobilized $31.1 billion (AED 114.4 billion) in sustainable and transition finance in 2025, supporting investments in renewable energy, energy efficiency, green buildings, clean transport, and climate adaptation projects.
Since 2022, the bank has facilitated $103.7 billion (AED 381 billion) in sustainable finance, achieving 76 percent of its $136.1 billion (AED 500 billion) target for 2030.
The report also noted the issuance of landmark transition-labeled instruments, including the world’s first low-carbon energy bond and the GCC’s first blue bond, aimed at supporting energy transition and water infrastructure development.
Shargiil Bashir Group Chief Sustainability Officer FAB
“The 2026 Transition Pathways Update demonstrates how FAB is embedding transition across every facet of our business, from our own operations to our client relationships and capital allocation. In line with the UAE’s climate ambitions, we are committed to supporting a low-carbon, nature-positive future through disciplined decarbonization, structured client engagement, and scaled sustainable finance.”
Nature-focused initiatives and global engagement
FAB has expanded its sustainability leadership through nature-related disclosures and initiatives, including the region’s first TNFD-aligned reporting framework and blue bonds aligned with ICMA principles. The bank has also integrated nature-related risks into its ESG assessments and sector policies.
It played a key role as Principal and Official Banking Partner of the IUCN World Conservation Congress 2025, contributing to global discussions on biodiversity, water security, and climate finance.
At a local level, FAB supported coral reef restoration initiatives in Abu Dhabi in partnership with Archireef and the Environment Agency – Abu Dhabi, deploying reef structures and transplanting coral fragments to support marine ecosystem recovery.
