EMSTEEL (ADX: EMSTEEL) (“the Group”), one of the largest publicly traded steel and building materials manufacturers in the region, today announced the launch of its first Green Finance Framework. This initiative marks a pivotal step in aligning the Group’s financial strategy with its long-term sustainability and decarbonisation goals, positioning EMSTEEL at the forefront of sustainable finance in the region.
The Framework enables EMSTEEL and its subsidiaries to issue a variety of green finance instruments-including green bonds, loans, commercial papers, and medium-term notes (MTNs)-across multiple currencies. Proceeds will be exclusively allocated to finance or refinance eligible green projects that meet stringent environmental criteria. These projects include low-carbon steel and cement production, renewable energy installations such as solar photovoltaic systems, energy-efficient technologies, and innovations driving decarbonisation.
Commenting on the launch, Engineer Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, stated, “Our Green Finance Framework is more than a financial tool – it is a strategic lever to accelerate our transition towards a low-carbon future. 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. Through this initiative, we aim to support the decarbonisation of our operations, foster innovation in low-carbon steelmaking and create long-term value for our shareholders, society, and the planet.”
Mark Tonkens, Group Chief Financial Officer, said: “The launch of our Green Finance Framework marks a pivotal step in reinforcing EMSTEEL’s commitment to sustainability. Aligning our financial strategy with global green finance standards enables us to secure funding for high-impact projects and positions us as a leader in the region’s transition to a low-carbon economy.”
Developed in accordance with internationally recognised best practices, the Framework ensures a robust and transparent approach to the issuance, management, and reporting of green finance instruments. Moody’s Ratings has provided a Second Party Opinion (SPO), awarding the Framework a Sustainability Quality Score of SQS2 (Very Good), enhancing investor confidence in EMSTEEL’s sustainability-focused capital strategy.
The Framework’s development was supported by key partners, including ING as Lead Sustainability Structuring Bank and First Abu Dhabi Bank (FAB) as Sustainability Structuring Bank, highlighting strong regional collaboration in advancing sustainable finance, highlighting strong regional collaboration in advancing sustainable finance.
The Green Finance Framework is a cornerstone of EMSTEEL’s broader Environmental, Social, and Governance (ESG) strategy. It supports ambitious targets to reduce greenhouse gas emissions by 40% in steel production and 30% in cement production by 2030.
