Emsteel Group has announced the launch of its first Green Finance Framework, a strategic step aimed at aligning its financial policies with long-term environmental goals and reinforcing its position as a key contributor to the region’s sustainable finance landscape.
The framework enables Emsteel and its subsidiaries to issue a variety of green financial instruments, including green bonds, loans, commercial papers, and medium-term notes in various currencies. Proceeds from these instruments will be exclusively allocated to finance or refinance eligible green projects that meet strict environmental criteria.
These projects include the production of low-carbon steel and cement, the development of renewable energy facilities such as photovoltaic solar systems, the implementation of energy-efficient technologies, and the adoption of industrial innovations that support decarbonization efforts.
Saeed Ghamran Al Remeithi, CEO of Emsteel Group, stated that the framework marks a transformative step in the company’s journey toward a low-carbon future. It reflects Emsteel’s commitment to investing in projects that deliver tangible environmental benefits and contribute to long-term value creation for shareholders, society, and the global environment.
Mark Tompkins, the Group’s CFO, emphasized that the framework represents a significant milestone in embedding sustainability into the company’s financial strategy and enhances its ability to attract funding for environmentally impactful projects that support regional green transitions.
Developed in line with international best practices, the framework received a “Very Good” SQS2 sustainability rating from Moody’s, highlighting the strength of Emsteel’s sustainable capital strategy. The framework was developed with the support of key partners, including ING Bank and First Abu Dhabi Bank, reflecting strong regional and global collaboration in advancing green finance.
This framework forms a cornerstone of Emsteel’s broader ESG strategy, supporting its targets to reduce greenhouse gas emissions by 40% in steel production and 30% in cement production by 2030.