Emirates Global Aluminium (EGA), the UAE's largest industrial company outside of oil and gas, and Emirates NBD, a leading banking group in the MENAT (Middle East, North Africa, and Turkey) region, announced today the launch of an ESG-linked Supply Chain Finance (SCF) programme to advance sustainability in the aluminium giant's supply chain.
The unique curriculum is a pioneering initiative within EGA and the wider manufacturing industry in the United Arab Emirates. The programme aims to enhance the sustainability of the UAE's aluminium sector by encouraging existing and new suppliers to embrace and invest in sustainable practices, technologies, and materials that align with EGA's sustainability objectives. This will result in tangible improvements in their sustainability performance.
{alcircleadd}
Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said: "The aluminium EGA produces plays a key role in the development of a more sustainable society worldwide. 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."
Supply chain financing allows suppliers to receive pay sooner and is becoming a more widespread technique to manage working capital. Since the beginning of 2022, EGA suppliers have received around USD 1.5 billion in supply chain financing through other EGA-facilitated projects.
Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, said, "We are pleased to partner with EGA to unveil a pioneering ESG-linked Supply Chain Finance programme in the manufacturing sector. At Emirates NBD, we are committed to introducing new and innovative ESG-linked solutions for our clients and look forward to expanding the use of our Sustainable SCF programme in the region to guide our clients in the transition towards a more environmental-friendly business framework. 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."
EGA works with about 3,300 active suppliers in the UAE and worldwide. All must comply with the EGA's Responsible Sourcing Standard, which outlines environmental, social, and governance performance expectations by OECD principles and the Aluminium Stewardship Initiative's Performance Standard. EGA employs a due diligence and auditing process to evaluate sustainability performance, and it collaborates closely with essential suppliers to enable continual development.
_0_0.gif)
The Emirates Worldwide Aluminium (EGA) Corporation allocates approximately USD 1.7 billion annually towards acquiring goods and services from local vendors in the United Arab Emirates. This expenditure constitutes 45 per cent of EGA's overall worldwide procurement expenditure. EGA is proactively expanding its domestic supply chain through the United Arab Emirates' Operation 300bn industrial growth strategy and the 'Make it in the Emirates' initiative.
Responses
