This initiative represents a significant milestone for both EGA and the manufacturing sector in the UAE, as it aims to promote the adoption of sustainable practices, technologies, and materials among suppliers in line with EGA’s sustainability objectives.
Through supply chain financing, suppliers are provided with the opportunity to access early payments. It is worth noting that EGA suppliers have already benefited from similar programs, with approximately $1.5 billion being accessed since the beginning of 2022.
Abdulnasser Bin Kalban, CEO of Emirates Global Aluminium, emphasized the crucial role that aluminium plays in the development of a more sustainable society worldwide. He acknowledged the importance of sustainable aluminium production, which encompasses the manufacturing of necessary goods and services.
Bin Kalban further highlighted the significance of innovative financing mechanisms, such as the ESG-linked supply chain program with Emirates NBD, in accelerating sustainability progress among suppliers.
EGA currently collaborates with around 3,300 active global suppliers, all of whom are required to adhere to EGA’s Responsible Sourcing Standard. The company’s annual expenditure on goods and services from local UAE suppliers amounts to approximately $1.7 billion, accounting for 45% of its total global procurement expenditure.
Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, expressed his satisfaction in partnering with EGA to introduce a pioneering ESG-linked Supply Chain Finance program in the manufacturing sector. He emphasized the commitment to driving positive environmental change in alignment with the UAE’s ambitious Net Zero By 2050 Strategic Initiative, particularly as the nation prepares to host COP28.
Al Qassim further emphasized that initiatives like these will actively contribute to shaping a more sustainable future for the MENAT region and beyond.