Emirates Global Aluminium (EGA), the United Arab Emirates’ industrial titan beyond the oil and gas sector, has taken a significant stride towards environmental responsibility. The company unveiled its Green Finance Framework, a comprehensive strategy designed to support initiatives and projects that propel the transition to a low-carbon economy.
This announcement coincides with the revelation that EGA’s recent acquisition of Leichtmetall, a European specialty foundry, was financed entirely through the company’s first green loan facility. This highlights EGA’s commitment to integrating sustainability into its financial strategy.
The Green Finance Framework outlines the parameters for how EGA will allocate funds towards endeavors that demonstrably reduce the company’s environmental footprint. These endeavors encompass investments in renewable energy sources, the development of more efficient smelting technologies, and advancements in recycling processes. EGA emphasizes that the framework prioritizes initiatives with a measurable impact on lowering greenhouse gas emissions.
EGA’s dedication to sustainability extends beyond its internal operations. In 2023, the company established the UAE’s first ESG-linked supply chain finance program within the manufacturing sector. This program furnishes financial aid to EGA’s suppliers on the condition that they implement practices that enhance sustainability within their own operations. Since its inception, the program has provided $73 million to support these efforts.
Furthermore, in 2022, EGA became a regional forerunner by establishing dedicated sustainable corporate bank accounts. These accounts guarantee that a portion of the company’s cash reserves are directed towards funding or refinancing sustainability projects across various sectors of the economy. Over the past 20 months, EGA has deposited a total of $76 million into these accounts, maintaining an average balance of $25 million.
EGA’s multifaceted approach to sustainability positions the company as a leader in the region’s industrial sector. The Green Finance Framework, coupled with the successful green loan and the ongoing supply chain and sustainable banking initiatives, demonstrates a resolute commitment to environmental responsibility. This commitment is not only expected to benefit EGA’s operations but also contribute meaningfully to the UAE’s transition towards a more sustainable future.
