Dubai: Emirates Global Aluminium (EGA and Emirates NBD have introduced an ESG-linked Supply Chain Finance (SCF) program aimed at enhancing sustainability in EGA’s supply chain.
This initiative, a first for both EGA and the UAE’s manufacturing sector, encourages suppliers to adopt sustainable practices, technologies, and materials aligned with EGA’s sustainability objectives.
Supply chain financing allows suppliers to access payments early, and EGA suppliers have already accessed approximately $1.5 billion through similar programs since the beginning of 2022.
“The aluminium EGA produces plays a key role in the development of a more sustainable society worldwide,” said Abdulnasser Bin Kalban, CEO of Emirates Global Aluminium. “We recognise that it also matters how sustainably aluminium is made. This includes the production of the goods and services we need.”
“Innovative financing mechanisms, such as the ESG-linked supply chain programme with Emirates NBD, are an important way for us to accelerate sustainability progress by our suppliers,” he added.
EGA has around 3,300 active global suppliers, all required to comply with EGA’s Responsible Sourcing Standard. EGA spends approximately $1.7 billion annually on goods and services from local UAE suppliers, accounting for 45 per cent of the company’s total global procurement expenditure.
“We are pleased to partner with EGA to unveil a pioneering ESG-linked Supply Chain Finance programme in the manufacturing sector,” said Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD. “As we embrace the Year of Sustainability in the UAE, these efforts reaffirm our dedication to drive positive environmental change aligning with the nation’s ambitious Net Zero By 2050 Strategic Initiative.”
“As the UAE prepares to host COP28, initiatives such as these will allow us to actively shape a more sustainable tomorrow for the MENAT region and beyond.”