EMSTEEL, one of the largest publicly traded steel and building materials manufacturers in the region, has launched its inaugural Green Finance Framework, setting the stage for sustainable financing aligned with its net-zero ambitions. The framework enables the company and its subsidiaries to issue a variety of green financial instruments—including green bonds, loans, and medium-term notes (MTNs)—across multiple currencies, to fund projects focused on reducing emissions and advancing green technology.
“Our Green Finance Framework is more than a financial tool – it is a strategic lever to accelerate our transition towards a low-carbon future,” said Engineer Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL. “It reflects our commitment to aligning our fund-raising activities with internationally recognised market standards for green financing and channelling funds toward environmentally responsible projects.”
Strengthened Investor Confidence
The Green Finance Framework received a “Very Good” sustainability rating (SQS2) from Moody’s, a distinction that reinforces investor confidence and underscores the credibility of EMSTEEL’s sustainability efforts. This strong rating ensures transparency and supports the company’s efforts to secure funding for key environmental initiatives.
The proceeds from the green financial instruments will be used to finance eligible projects such as low-carbon steel and cement production, solar photovoltaic installations, energy efficiency upgrades, and decarbonization innovations—critical components of EMSTEEL’s journey toward reducing its carbon footprint.
Ambitious 2030 Emission Reduction Targets
As part of its broader Environmental, Social, and Governance (ESG) strategy, EMSTEEL is targeting a 40% reduction in greenhouse gas emissions from its steel production operations and a 30% reduction in emissions from its cement production by 2030. These initiatives are part of the company’s ongoing commitment to sustainable growth and its overarching goal of achieving net-zero emissions in the future.
“We are strategically aligning our financial strategy with global green finance standards, enabling us to secure funding for high-impact projects and reinforcing our role as a regional leader in the transition to a low-carbon economy,” added Mark Tonkens, Group CFO of EMSTEEL.
Regional Collaboration to Drive Sustainability
EMSTEEL’s Green Finance Framework was developed in collaboration with leading financial institutions. ING served as Lead Sustainability Structuring Bank, and First Abu Dhabi Bank (FAB) joined as a Sustainability Structuring Bank, demonstrating strong regional cooperation to drive the green finance agenda forward.
This milestone positions EMSTEEL as a key player in the region’s efforts to accelerate sustainable industrial practices, supporting its ambitious emission reduction targets and contributing to broader environmental goals.
