EGA and Emirates NBD Launch ESG-Linked Supply Chain Finance Programme
Aiming to Enhance Sustainability in the Aluminium Supply Chain
United Arab Emirates: Emirates Global Aluminium and Emirates NBD have introduced an ESG-linked Supply Chain Finance (SCF) programme. The initiative is intended to boost sustainability within the aluminium supply chain in the UAE.
The programme's objective is to foster sustainability in the UAE aluminium sector. It encourages both existing and potential suppliers to invest in sustainable technologies, practices, and materials in line with EGA's sustainability aims. The goal is to help these suppliers enhance their sustainability performance.
Using supply chain financing, suppliers can receive payments early, a method growing in popularity to manage working capital. Since 2022, EGA suppliers have procured approximately USD 1.5 billion via EGA-initiated supply chain financing programmes.
Abdulnasser Bin Kalban, CEO of Emirates Global Aluminium, highlighted the role aluminium plays in fostering a sustainable global society. He mentioned the significance of producing aluminium sustainably and indicated that innovative financing methods, like the recently launched programme, can help accelerate this sustainability transition.
Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, spoke about the bank's dedication to innovative ESG-linked solutions. The bank views this partnership with EGA as a step towards a greener business approach, aligning with the UAE's broader environmental initiatives, especially the Net Zero By 2050 Strategic Initiative.
Currently, EGA works with approximately 3,300 active suppliers globally. They must adhere to EGA's Responsible Sourcing Standard, which outlines environmental, social, and governance performance expectations. These standards align with the OECD and the Aluminium Stewardship Initiative’s benchmarks. EGA implements due diligence and audit procedures to ensure sustainability performance and is engaged in aiding crucial suppliers in their continuous improvement efforts.
Annually, EGA sources goods and services worth around USD 1.7 billion from UAE-based suppliers. This accounts for about 45% of the company's total procurement spend. EGA aims to expand its local supply chain, keeping in line with the UAE's industrial growth strategy and the 'Make it in the Emirates' initiative.
