Company to cut emissions, install solar panels at service stations and use biofuels to power its fleet of vehicles
New sustainability milestones unveiled during Abu Dhabi Sustainability Week will future proof ADNOC Distribution's business and deliver sustainable long-term shareholder value
ADNOC Distribution becomes first UAE fuel retailer to tap into sustainability linked financing with USD 1.5bn loan
Abu Dhabi, UAE – 20, January 2023: ADNOC Distribution (ISIN: AEA006101017) (Symbol: ADNOCDIST), announced plans, today, to reduce its carbon intensity by 25% by 2030, by putting sustainability at the core of its day-to-day operations to future-proof its business and deliver sustainable long-term shareholder value.
Central to ADNOC Distribution's enhanced sustainability drive is a commitment to decarbonize its operations by reducing its Scope 1 carbon emissions, which come directly from its operations, and its Scope 2 carbon emissions, which come from the energy it uses to run its operations.
The company said it will install solar panels to power service stations and use biofuels in its fleet of vehicles, in addition to expanding its network of EV charging stations. And it will utilise ‘green concrete', that is eco-friendly and has a smaller carbon footprint than traditional concrete, in the construction of new service stations.
ADNOC Distribution has also become the first UAE fuel and convenience retailer to tap into sustainable financing, by converting an existing USD1.5bn (AED5.5bn) term loan into a sustainability-linked one in partnership with First Abu Dhabi Bank PJSC (FAB) as ESG Coordinator. ADNOC Distribution has committed to a penalty/incentive Sustainability Linked Loan which ties the loan to sustainability indicators. In addition to FAB, Abu Dhabi Commercial Bank, Bank of China, Industrial and Commercial Bank of China, and Standard Chartered Bank are parties to the loan.
Eng. Bader Saeed Al Lamki, CEO, ADNOC Distribution, said: “By decarbonizing our business, through greater energy efficiencies and the use of cleaner fuels, and linking our financing objectives to sustainability indicators, we are placing sustainability at the core of our day-to-day operations, ensuring we continue to future-proof our business and deliver sustainable long-term shareholder value.
“The adoption of a sustainable energy mix for our fleet of vehicles and the use of solar energy in our service stations, in addition to rolling out lower carbon intensity products for our customers, underlines our commitment to driving sustainable growth through constant innovation in new energy solutions.”
Al Lamki confirmed ADNOC Distribution will apply its sustainability initiatives across its entire network in the UAE and Kingdom of Saudi Arabia.
In 2022, ADNOC Distribution introduced the Voyager Green Series range of lubricant products for both petrol and diesel engines, made from 100% plant-based base oil as part of its overall strategy to continue expanding sustainable and environmentally-friendly products.
As the UAE's largest fuel retailer, ADNOC Distribution has already been offering alternative fueling operations across its network, including compressed natural gas fuel which is available at 31 of its stations in the UAE, as well as a fully dedicated Abu Dhabi station.
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Posted on : Friday, January 20, 2023
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