Regional governments are promoting sustainability through initiatives such as the UAE Energy 2050 plan, the Saudi Green Initiative (SGi), etc. Businesses are creating specific departments to address climate issues and implement sustainable practices across the board.
The financial sector is no different. With institutions like Mashreq, one of the oldest banks, environmental, social, social governance (ESG) has evolved well, becoming an important part of the Corporate DNA. Sustainability and responsibility are no longer add-ons – they are now embedded in the DNA of the organization.
Faisal Alshimmari, Head of ESG at Mashreq, Shared Insights on how the bank has aligned its operations, products and mission to drive sustainability in the UAE and beyond.
Mature area
As countries move away from hydrocarbons and invest in sustainability with a broader, human climate that includes climate change and overall well-being.
The UAE In CENENENNial Plan 2071 sets out a bold vision for the nation’s future, which is aligned with the UAE net zero plan by 2050 – Both of which reflect its undying commitment to sustainable development. Initiatives such as the UAE Banking Federation Federation On the side of Cop28 (a trillion ad sustainable financial security in the banking sector), are pushing for high-level climate action, the onus is on financial institutions to lead, not to follow. “Leading now allows them to update standards, access capital flows, and ensure long-term competitiveness in a quick financial perspective,” emphasized Alshimmari. At the heart of sustainability is a simple but powerful truth: It’s about people. Human Centricity reminds us to get back to the Basics-Sustainability is not just a checklist or a practice, it is a commitment to improving human well-being. By putting people first, businesses can create lasting value that supports communities, drives inclusive growth, and ensures a prosperous future for all.
Mashreq is talking about facilitating AED 110 billion (USDA knife30 billion) in stable currencies by 2030. “This commitment is already included in land sales such as the USD3.25 billion Sustageabilibility of Bafco Enerkchies,” said Alshimmari. The bank’s reach goes beyond traditional lending. By participating in programs such as the Zero Lugring Green world work program for Green Design and ensuring responsible banking, Mashreq is putting all the financial tools in place to maintain its position as an industry leader and champion of growth. “In April 2025, the Bank successfully made its debut sest500 million from the Ceemea region since announcing the new US rates.
Catalyzing Transformation
The UAE’s sustainability movement is not only driven by leadership but also focuses on reducing ESG principles through the United Nations Sustainable Development Goals (SDGS). Obviously, this effort is supported by strong regulatory frameworks, including Federal Now No. (11) of 2024 on the mitigation of the effects of climate change, creating a comprehensive legal framework for climate change. This law mandates that all agencies monitor, report, and control greenhouse gas emissions, and use sustainable methods, reinforcing the country’s commitment to achieving climate neutrality by 2050.
The law also encourages transparency by establishing national emissions and encourages participation in carbon credit markets, with significant penalties for non-compliance to ensure accountability. Alongside structural developments, such as those in power and finance, this law reflects the UAE’s leadership in governance dynamics and business practices. Supported by organizations such as the Financial Stability Working Group launched by the Ministry of Finance, these initiatives collectively position the UAE as a climate pioneer in climate management and sustainable development.
The UAE Net Zero 2050 strategy focuses on six sectors to drive climate action Climate: Energy, industry, transport, buildings, waste and agriculture. Projects like mohammed bin rashid al Maktoum alktoum Solar Park and Baraka nucler Ergy Plant Show where the capital flows. The country is also actively exploring green hydrogen through pilot projects, positioning itself as an exporter of low carbon fuels. In construction, sustainable construction standards have been taken, while in transport, efforts to find decarbonnesistis logistics networks are available.
Similar to each alshimmari, this change is possible because the opportunity to trade begins to align with national climate goals. Projects that fund net-zeros are intended to attract funding and policy support, making them more effective and attention-grabbing. “The mandatory ESG reporting frameworks in the UAE now provide more consistency that companies track and help businesses that are well aligned with national climate goals,” Alshimmari commented. “These changes show that the capital of the Gulf is being consolidated and real assets are being created. However, important gaps remain, especially in the risk of project phases, data transparency, and the initial defects of the project phase.”
He sees banks as a bridge between desire and execution. “In projects considered high risk, tools such as pooled money and loans linked to self-sustainability can help reduce the accuracy of information and data capture, and the ability of banks to involve advisers, not just lenders, will be difficult in moving the whole environment forward.”
As we have made significant strides in embedding a sustainable business plan, the mena region is not without its challenges. “One in three companies in the region still face internal skills gaps that limit their ability to effectively implement ESG. This puts the region ahead of some emerging markets but remains in the depth of integration and harmonization,” Alshimmari noted.
Mashreq is bridging this gap with advisory services, fitness-related products, and an outstanding community program. MashreQ is engaging the government, government, government and the private sector to launch the UAE ESG Ecosystem Government Accelerator. In conjunction with the UAE government, the accelerator calls private organizations and public institutions to the foundations, encouraging and compelling all relevant stakeholders to join these efforts, thus seeking to move the needle until 2050 and the UAE’s climate ambitions.
The bank is also facilitating emerging technologies to improve its ESG impact. Mashreq’s partnership with ecolytic transforms customer experience and carbon footprint. “We have embedded carbon tracking in our digital Banking platforms, so customers can see the carbon footprint of using real money in real time. However, a memorandum of understanding was officially signed with this objective; however, ALshimmari’s initiative.
It comes back with rewards
A long-term analysis of Morgan Stanley Capital Nationwide finds that firms with high ESG ratings demonstrate strong financial performance in both developed and emerging markets, even when accounted for by differences in size, region, and industry. In addition, companies with higher ESG ratings benefited from lower financing costs. Another review by the New Star Center for Sustainable Business looked at more than 1,000 studies and found that most show a positive connection between ESG actions and high financial returns. For Mashreq, the numbers tell a compelling story.
“Our transactions connected to the most stability have consistently reflected the strong interest of investors. For example, the USD3.25 billion connected area planned for Gems Education in 2024 was the largest thing in ESG-Instrument Finance. On the financial side of Leveron Headquarters, to reduce the long-term costs of energy,” commented Alshimmari. These results show that green investments can produce tangible financial benefits and improve efficiency.
Clink2change
Sustainability is not just about big deals; It’s about making a community. The MashreQ step up brings this philosophy to life. “Rising is a grind within Mashreq’s ESG strategy, designed to bring environmental and social responsibility to life through direct actions,” said Alshimmari. “While sustainable finance remains the most important pillar of Mashreq’s dynamic offering, the group’s rise reflects the bank’s belief that lasting influence exists through physical and environmental support that needs to be supported.”
From Nepal, Pakistan and Egypt, the initiative has moved more than 6,800 kilograms of global food and made a huge impact on hundreds of local businesses. According to Alshimmari, these results represent the power of cooperation in environmental management.
The mountain-up cleaning feature of climb2Change highlights the transformative power of community engagement and volunteering. By bringing together Mashreq staff, mountaineers, humbles, and local volunteers, they promote hands-on nature and shared responsibility. Through meaningful collaboration with local organizations, the program not only addresses environmental challenges but also strengthens social enterprises – involving local businesses and residents of active suppliers in a shared purpose.
Sustainability and Human Centricity
At its core, MashreQ’s sustainability strategy is placed on humanity. The bank’s connected Esgs are connected to metrics that include metrics, reflecting their broad deployment: “Our connected financing mandates include social indicators and our internal sustainability framework was created to reflect this broader vision,” emphasizes alshimmari. “At the same time, we embed robustness in our operations and governance. We have achieved international standards, contributed 110 billion towards the UAE’s stable financial risk, and significantly improved last year’s ratio.”
MashreQ’s ESG journey is an example of how financial institutions can combine purpose and profit in a rapidly evolving world. With bold commitments, real world impact, and a Hunti-Yi Huntir approach, the bank isn’t just adapting to the sustainability era, it’s helping to define it.
“For us, Human Centricity is the guiding principle of how we approach every part of our sustainability journey,” concludes Faisal Alshimmari.
