Abu Dhabi Commercial Bank has launched the Mastercard Sustainability Index, the first of its kind in the region. ADCB says that the collaboration with Mastercard will support companies in transitioning towards sustainability. Specifically, it will provide estimated data on the carbon footprint resulting from spend on cards.
ADCB joined the “Banking Alliance to Reduce Net Carbon Emissions to Zero” last month. This was launched by the United Nations in line with the goals of the Paris Agreement. The bank is also ramping up its efforts to enable customers to transition to a carbon-free economy. For example, it is continuing to expand its portfolio of green products and services.
Calculation of the carbon footprint resulting from card spend is based on a weighted calculation mechanism. This is supported by the independent Åland index, affiliated with Doconomy.
ADCB Mastercard sustainability index launched at COP28
The launch was officially announced on the sidelines of the COP28, hosted by the UAE.
Mohammed Al Jayash, Chief Banking Operations Officer at Abu Dhabi Commercial Bank Group, said: “In line with the aspirations of the United Arab Emirates to build a comprehensive economy free of carbon emissions, Abu Dhabi Commercial Bank has adopted an advanced climate strategy to reduce carbon emissions through its activities and businesses. The commitment to support our customers’ journey towards achieving this successful transformation is at the heart of our approach. This highlights the importance of partnerships and concerted efforts with other parties and entities, such as our strategic partnership with Mastercard. This constitutes a fundamental pillar within our initiatives aimed at establishing sustainable practices at the level of our business. We are proud to present the Sustainability Index in support of our customers, institutions and companies. This enables them to measure their environmental impact and pave the way for them to make decisions that support sustainability.
Mastercard: 2040 net zero target
Khaled El-Gebali, Regional President for the Middle East and North Africa at Mastercard, added: “Mastercard’s ongoing efforts in the field of sustainability have set new standards in the sector. We are committed to reaching net zero emissions by 2040. And accelerating the transition towards a low-carbon economy based on energy sources.”
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A number of card sustainability initiatives have been announced during COP28. For example, Qatar Islamic Bank rolled out a carbon emission tracker on card spends. The QIB collaboration with Visa and ecolytiq represents a first-of-its-kind sustainability feature in Qatar. In addition, Mashreq has partnered with Visa and ecolytiq to introduce the first climate banking platform in UAE and MENA.