**Abu Dhabi**: Emsteel launches its first Green Finance Framework to fund low-carbon steel and cement production, renewable energy, and energy-efficient projects, aiming to cut emissions by 30-40% by 2030 and secure investor confidence with strong regional bank support and a high Moody’s sustainability rating.
EMSTEEL Launches Green Finance Framework to Propel Sustainable Development
In a significant move towards environmental sustainability, Abu Dhabi-based EMSTEEL, a prominent manufacturer of steel and building materials, has unveiled its inaugural Green Finance Framework. This initiative aims to harmonise the company’s financial strategy with its long-term sustainability objectives, establishing EMSTEEL as a forerunner in sustainable finance within the Gulf region.
The Green Finance Framework empowers EMSTEEL and its subsidiaries to issue a diverse array of green finance instruments, including green bonds, loans, commercial papers, and medium-term notes (MTNs). The proceeds from these instruments will be exclusively earmarked for financing or refinancing eligible green projects that comply with rigorous environmental criteria. Projects eligible for funding encompass low-carbon steel and cement production, the implementation of renewable energy sources—such as solar photovoltaic systems—and investments in energy-efficient technologies. These efforts are designed to catalyse innovations that drive decarbonisation across the sector.
Engineer Saeed Ghumran Al Remeithi, group CEO of EMSTEEL, emphasised the framework’s transformative potential: “Our Green Finance Framework is more than a financial tool—it is a strategic lever to accelerate our transition towards a low-carbon future. It reflects our commitment to aligning our fundraising activities with internationally recognised market standards for green financing.” His remarks underline the company’s resolve to facilitate the decarbonisation of its operations while fostering innovation in low-carbon steelmaking. Through this initiative, EMSTEEL aims to create enduring value for its shareholders, society, and the planet.
The framework’s development aligns with a growing trend in the manufacturing sector towards accountability and sustainability. Analysts have noted that a robust commitment to environmental, social, and governance (ESG) principles is not just beneficial for corporate image but increasingly integral to operational legitimacy and investor appeal. In the past few years, companies worldwide have significantly ramped up their green financing efforts, signalling a broader recognition of the urgent need for sustainable practices in an era of rising climate concerns.
Mark Tonkens, the group chief financial officer, further articulated this strategic vision, stating that the launch of the Green Finance Framework marked a pivotal step in solidifying EMSTEEL’s dedication to sustainability. “Aligning our financial strategy with global green finance standards enables us to secure funding for high-impact projects,” he noted, reinforcing the company’s role in the regional transition to a low-carbon economy.
In a notable endorsement of the framework, Moody’s Ratings provided a Second Party Opinion (SPO), assigning it a Sustainability Quality Score of SQS2 (Very Good). This assessment not only bolsters investor confidence but also enhances EMSTEEL’s reputation within the sustainable finance ecosystem, which is critical as the company aims to attract investment for environmentally responsible initiatives.
The establishment of the Green Finance Framework has been supported by key partners, notably ING as Lead Sustainability Structuring Bank and First Abu Dhabi Bank (FAB) as Sustainability Structuring Bank. This collaboration underscores the strong regional support for advancing sustainable finance initiatives and reflects a concerted effort to drive meaningful change within the industry.
Crucially, the Green Finance Framework is a key element of EMSTEEL’s broader Environmental, Social, and Governance (ESG) strategy, which includes ambitious targets to cut greenhouse gas emissions by 40 percent within steel production and 30 percent in cement production by 2030. These goals demonstrate EMSTEEL’s commitment to not only improving its operational footprint but also leading the way in sustainable manufacturing practices across the sector.
As EMSTEEL moves forward with this innovative framework, it sets a precedent for industry peers, enacting a forward-thinking approach to sustainability that could very well redefine the operational landscape in the years to come.
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Source: Noah Wire Services
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Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
No signs of outdated references or recycled content detected; the narrative details a new initiative from EMSTEEL, with recent partner and rating details (Moody’s, ING, FAB). While the Google News link does not show a visible date, the content reads as a current announcement, typical of press releases warranting a high freshness rating.
Quotes check
Score:
8
Notes:
Direct quotes are attributed to key executives (Engineer Saeed Ghumran Al Remeithi, Mark Tonkens). No earlier online references to these exact quotes were found in a cursory search, suggesting the narrative may be a primary source for these statements. The absence of prior usage increases confidence in originality.
Source reliability
Score:
7
Notes:
The narrative originates from a news aggregation link (Google News), not a direct, well-known reputable publication. EMSTEEL is a recognized company, and the inclusion of Moody’s, ING, and FAB adds credibility. However, the ultimate source status is unclear, limiting certainty.
Plausability check
Score:
9
Notes:
The claims are in line with current trends in green finance and ESG initiatives. The framework’s description, the Moody’s rating, and the involvement of major financial partners strengthen plausibility. No obvious discrepancies or implausible elements were identified.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is plausible, fresh, and contains original quotes; EMSTEEL is a credible entity, and the framework’s details align with known industry developments. The main limitation is the lack of a directly named, reputable news publisher. Overall, the story is highly credible.
