UAE fuel retailer Adnoc Distribution looks to decarbonise operations 25% by 2030
Plans to go big on solar panels at fuel stations and use biofuels in fleet of vehicles
Adnoc Distribution was the first UAE fuel and convenience retailer to tap into ‘sustainable financing’, by converting an existing $1.5 billion term loan into a sustainability-linked one.
The UAE fuel station operator Adnoc Distribution has set a target — reduce its carbon intensity 25 per cent by 2030. The first step will be decarbonise operations by reducing Scope 1 carbon emissions, which are generated directly from its operations.
Then comes the Scope 2 emissions, which come as a result of energy it uses across its operations.
Solar panels will be used to power service stations and biofuels used in its fleet of vehicles, in addition to expanding the network of EV charging stations. And Adnoc Distribution will also utilise ‘green concrete’, which is eco-friendly and has a smaller carbon footprint than traditional concrete, in the construction of new service stations.
Adnoc Distribution was the first UAE fuel and convenience retailer to tap into ‘sustainable financing’, by converting an existing $1.5 billion (Dh5.5 billion) term loan into a sustainability-linked one with First Abu Dhabi Bank PJSC (FAB) as ESG Coordinator.
Sustainability indicators
The company has also 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.)
“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,” said Bader Saeed Al Lamki, CEO, Adnoc Distribution.