NBAD becomes first UAE bank to join the Equator Principles Association

National Bank of Abu Dhabi (NBAD) has adopted the Equator Principles (EP), an internationally-recognised benchmark in the financial industry for identifying, assessing and managing environmental and social risk in bank financed projects.

NBAD is the first bank in the UAE to sign up to EP, a voluntary set of guidelines based on International Finance Corporation (IFC) standards on social and environmental sustainability, and on the World Bank Group's Environmental, Health and Safety general guidelines.

Equator Principles provide the finance industry’s most prominent benchmark for evaluating environmental and social risk in projects. Financial institutions signing up are committing to perform an environmental and social review on projects before agreeing to provide financing. Where issues are identified under EP, banks require clients to take concrete measures to mitigate potential negative impacts of projects on people or on the environment.

EP are applied to new project financings with capital costs exceeding USD 10 million across a range of industry sectors, as well as to corporate loans and advisory assignments related to projects.

Nathan Weatherstone, NBAD’s Head of Renewable Energy, said: “The adoption of the Equator Principles resonates with the bank’s core values and demonstrates the bank's leadership on environmentally and socially responsible lending practices. This is part of a wider initiative at NBAD to focus on the renewable energy sector with the objective of creating value for our core clients and in so doing, building a profitable venture which addresses their needs and interests.”

Belinda Scott, NBAD’s Head of Citizenship and Corporate Sustainability said: “Sustainability, environment and social responsibility are issues that we embrace following our commitment to be a responsible bank. NBAD has always had a robust approach to environmental risk management. Adopting the Equator Principles will crystallise our evaluation of environmental and social issues in a more systematic manner that is consistent with international best practice.”