Mbank becomes UAE’s first digital bank to commit to climate action with SBTi

Abu Dhabi: Al Maryah Community Bank (Mbank), a leading digital bank in the UAE, is the first digital bank in the UAE to sign a commitment letter with the Science Based Targets initiative (SBTi). SBTi helps companies set greenhouse gas emissions reduction targets to drive meaningful climate action and contribute to global efforts to mitigate the impacts of climate change. This partnership also enhances Mbank's Environmental, Social, and Governance (ESG) practices.

The SBTi provides a framework for companies to set specific, measurable, and time-bound targets that are scientifically validated, ensuring alignment with global efforts to reduce greenhouse gas (GHG) emissions. The initiative aims to help companies meet the Paris Agreement’s goals of limiting global warming to well below 2°C above pre-industrial levels, with efforts to restrict the increase to 1.5°C.

As part of its commitment to SBTi, Mbank has launched an in-house ESG department to lead its overall ESG strategy. The department's responsibilities include creating the bank’s ESG framework, promoting sustainable practices, driving sustainable finance across its customer base, identifying ESG risks, and developing mitigation strategies to minimize their impact.

To actively reduce its carbon footprint, Mbank is committed to expanding its digital capabilities across the organization. This includes developing sustainable corporate lending products and services offered through digital platforms, supporting a transition to a low-carbon economy. Additionally, the bank is equipping employees with comprehensive ESG training and materials to foster a culture of sustainability.

Through its fully digital operations, Mbank is contributing to environmental sustainability by offering customers paperless banking services and reducing the need for in-person visits. This shift lowers the carbon footprint for both customers and businesses.

Mbank has also implemented internal policies to improve employee welfare. These include offering flexible working hours and the option to work from home on Fridays, which reduces road traffic and emissions. The bank follows an “open-door” management policy to maintain transparency and has deployed robust corporate governance, information security practices, and financial crime policies.

Commenting on the partnership with SBTi, Mohammed Wassim Khayata, Chief Executive Officer at Mbank, said: “We are happy to sign with SBTi, a renowned global organization, becoming the first digital bank in the UAE to do so, with a target to achieve net-zero emissions by 2050. Through this commitment, we aim to take meaningful climate action and contribute to mitigating the impacts of climate change.”

He added: “We are proud to work on a portfolio of ESG-compliant corporate lending products, reinforcing our mission and enabling other companies to join us in saving our community and the planet.”