ADIB 9M 2023 Earnings Report slide image

ADIB 9M 2023 Earnings Report

= ADIB Sustainable Finance Framework Use of Process مصرف أبوظبي الإسلامي ADIB ISS CORPORATE SOLUTIONS • Net proceeds will be used to finance or refinance eligible green assets, businesses, projects and investments aligned with the eligibility criteria. The eligible projects portfolio may include new or existing projects with a maximum 3 years look back period ADIB has obtained a Second Party Opinion from ISS Corporate Solutions Process for Project Evaluation and Selection • ADIB has developed an ESG due diligence toolkit to identify and assess deals with clear environmental or social benefits ⚫ The ESG assessment provides a powerful ex-ante and ex-post means to oversee and monitor ESG risks in financing and investing activities while supporting positive engagements with clients on key ESG topics • ADIB'S ESG department and a sustainable finance working group established within the ESG department, will review the use of proceeds and approve or reject deals to ensure compliance with the Sustainable Finance Framework Management of Proceeds • Net proceeds of Sustainable Finance Transactions will be fully allocated within 24 months from issuance, and maintained in a separate Sustainable Finance Register • ADIB will ensure an adequate balance of green/social assets is maintained to match issuance amounts at all times. Unallocated net proceeds will be placed in short-term Shari'a compliant instruments • ADIB's ESG Board Committee, with the support of the ESG department, will review the Sustainable Finance Register on a semi-annual basis to ensure all eligible assets meet the eligibility criteria in the framework Reporting • ADIB will report on the allocation and impact of net proceeds on an annual basis until full allocation in an annual Sustainable Finance Report • The Sustainable Finance Report will be produced and reviewed by the ESG department • ADIB will appoint an external party to verify the allocation of net proceeds towards eligible projects in line with the criteria in the Framework Alignment with ICMA GBP, SBP and SBG, LMA GLP and SLP Sustainability Quality of Eligibility Criteria Linking the transaction(s) to ADIB's ESG profile Aligned. ADIB has defined a formal concept for its Sustainable Financing Instruments regarding the use of proceeds, process for project evaluation and selection, management of proceeds and reporting. ✓ Positive. The environmental and social risks associated with the Use of Proceeds categories are managed. ✓ The key sustainability objectives and the rationale for issuing Sustainable Financing Instruments are clearly described by the issuer. The majority of the project categories considered are in line with the sustainability objectives of the issuer. 22
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