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© First Abu Dhabi Bank PJSC, 2023. 
FAB ESG WEEKLY UPDATE 
 
26 May 2023 – 64th edition 
 
 
 
 
 
 
 
 
This week, we identified the following events of significance within sustainability and their respective 
business implications. 
 
For previous editions please refer to our website repository. 
 
REGULATORY 
 
1. The Science Based Targets Network (SBTN) launched the world’s first science-based targets for nature. An 
initiative aimed at guiding companies in assessing and prioritizing their environmental impacts and setting a standard 
for targets to address these issues. The move represents a significant milestone towards helping companies take 
integrated action across freshwater, land, ocean, biodiversity, and climate. 
•  The new science-based targets for nature provide guidance for 
companies to holistically assess and prioritize their environmental 
impacts, and to prepare to set targets, beginning with freshwater and 
land, alongside climate through the Science Based Targets initiative 
(SBTi). It builds on a global momentum on climate, with over 2,600 
companies already setting science-based targets for climate through 
the SBTi. The targets on nature complement existing climate targets, 
by allowing companies to take holistic action to address their impact in 
the face of mounting environmental and social crises. 
•     An initial group of seventeen global companies are preparing to submit 
targets for validation, including AB InBev, Danone’s Alpro, Bel, 
Carrefour, Corbion, GSK, H&M Group, Hindustan Zinc Limited, Holcim 
Group, Kering, L’OCCITANE Group, LVMH, Nestlé, Neste Corporation, 
Suntory Holdings Limited, Tesco and UPM. 
the U.S., called on all Parties, especially major economies, whose 2030 
NDC targets or long-term low greenhouse emission development 
strategies (LTS) are not yet aligned with a 1.5°C pathway and net zero 
by 2050 at the latest. A call to revisit and strengthen the 2030 NDC 
targets and publish or update their LTSs as soon as possible and well 
before COP28, and to commit to net zero by 2050 at the latest. The G7 
also asked Parties to commit at COP28 to peak global emissions 
immediately and by no later than 2025. 
•     The G7 looks forward to the ISSB’s future disclosure on biodiversity and 
human capital, remaining committed to support the implementation and 
monitoring of the G20 Sustainable Finance Roadmap. The G7 also 
aims to accelerate the phase-out of unabated fossil fuels to achieve net 
zero in energy systems by 2050 at the latest in line with the trajectories 
required to limit global average temperatures to 1.5 °C above 
preindustrial levels. The Group reaffirmed its commitment to the 
elimination of inefficient fossil fuel subsidies by 2025 or sooner, and 
reaffirmed previous calls for all countries to do so. 
n. The change will 
mostly rule out air trips between Paris and regional hubs such as Nantes, Lyon and Bordeaux, with connecting flights 
unaffected. Critics have noted that the cut-off point is shy of the roughly three hours it takes to travel from Paris to the 
Mediterranean port city Marseille by high-speed rail. 
                                    •      The law specifies that train services on the same route must be frequent, 
timely and well-connected enough to meet the needs of passengers who 
would otherwise travel by air, and also able to absorb the increase in 
passenger numbers. People making such trips should be able to make 
outbound and return train journeys on the same day, having spent eight 
hours at their destination. 
 
RESEARCH 
 
1. Deloitte published a report pointing out that 55% of Gen Z and 54% of Millennials research a company’s 
environmental impact and policies before accepting a job. Deloitte surveyed 14,483 Gen Zs and 8,373 Millennials 
in 44 countries to explore their attitudes about work and the world around them. According to the survey’s results, 
employers have made progress, but high expectations for businesses among Gen Zs and Millennials go largely unmet. 
•   Climate change is a major stressor, 60% of Gen Zs and 57% of 
millennials have felt anxious about the environment in the past month. 
Roughly the same percentage cite extreme weather events and 
wildfires as a stress driver. The majority are taking action, with 69% 
of Gen Zs and 73% of Millennials actively trying to minimize their 
impact on the environment. While 59% of Gen Zs and 60% of 
Millennials are willing to pay more for sustainable products and 
services, 53% of Gen Zs and 55% of Millennials think it will become 
harder or impossible to do so if the economic situation does not 
improve. 
•   While respondents acknowledge that their employers have made 
some progress, the majority remain unimpressed with businesses’ 
societal impact overall. Less than half believe businesses are having 
a positive impact on society. Gen Zs are slightly more likely to believe 
businesses are having a positive impact, with 48% versus 44% of 
Millennials. 
•   Regarding reporting capacity, 37% of respondents were over capacity. A 
figure that rises to 46% across the Nordics, 57% in Benelux and 60% 
within the U.K. and Ireland. This didn’t make a mark on respondents’ 
overall satisfaction, as 84% were still satisfied with their data collation. 
Furthermore on satisfaction, 81% are satisfied with the integration of ESG 
within the financial reporting process; 83% with the integration of finance 
with risk and controls; and 84% with the integration of finance, ESG, risk 
and controls. 
•   Although 85% of respondents said they currently have either a fairly 
collaborative or highly collaborative relationship with sustainability 
professionals within their organisation, 44% still have plans to optimize 
collaboration between finance and sustainability. The same is true for 
established relationships with risk colleagues. While 62% of finance 
leaders communicate regularly with risk teams, 47% are planning to 
optimize collaboration between the two functions. A further 44% are 
planning to optimize collaboration between finance, sustainability and 
risk. 
3. The International Emissions Trading Association (IETA) authored a report highlighting that international 
cooperation under Article 6 can more than double emission reductions by 2030. In the near-term, cooperative 
implementation of Nationally Determined Contributions (NDCs) using Article 6 could substantially reduce resources 
needed to achieve emissions reductions compared to achieving the same global outcome with all parties implementing 
their NDCs independently. If the savings from cooperative implementation of NDCs using Article 6 were reinvested in 
increased ambition, emissions mitigation could be more than doubled. 
• 
Article 6 is a key feature of the Paris Agreement, setting a goal to 
hold the increase in global average temperature to well below 2C 
above pre-industrial levels and to limit the temperature increase to 
1.5C above pre-industrial levels. These limits imply that the Earth’s 
carbon dioxide emissions must decline to net zero or below by mid-
century or shortly thereafter. The primary mechanism adopted to 
control emissions is each country’s NDC. The NDCs articulate near-
term national goals to limit and reduce emissions. These goals are 
intended to become increasingly ambitious over time. Article 6 was 
included in the Paris Agreement to assist nations to achieve their 
NDCs more efficiently and to enable increased ambition. 
• 
Toward 2050, the role of Article 6 shifts to allowing parties to 
cooperatively achieve net zero emissions with removals. Countries 
with the ability to deliver negative emissions or removals can sell to 
parties with greatest difficulty in achieving zero emissions. Physical 
transactions in the market over this period shrink, but each 
internationally transferred mitigation outcomes (ITMO) is worth more. 
The overall value of transactions remains comparable to near-term 
levels. 
 
 
 
COMPANIES 
 
1. The United Arab Emirates recorded a 35% increase of Emirati workers in the private sector. The Ministry of 
Human Resources and Emiratization said that 67,988 Emiratis were working in the private sector as of May 17, up 
from 50,228 by the end of 2022. Speaking during a session of the Federal National Council, the minister added that 
over 10,500 Emiratis have joined the private sector during 2023. The number of new companies employing UAE 
citizens during the current year has increased by more than 2000, representing a growth of 13%. 
•    In terms of the distribution of Emiratis across various private economic 
sectors, as of the end of the first quarter of 2023, construction employed 
14%, trade and repair services recorded 13%, and the business services 
sector and manufacturing industries achieved 10% each. 
•    Since the end of 2021, the number of citizens in the private sector has 
more than doubled. The UAE aims to ensure that 10% of private sector 
employees are Emirati by 2027. Businesses with at least 50 staff 
members must increase the number of Emiratis they employ by 1% every 
6 months under the plan, or face fines of Dh42,000 for each unfilled 
position. Companies were given a target of having Emiratis make up 2% 
of their staff by January 1, and must increase this figure to 3% by June 
30. 
financing structured for the project has been certified by S&P Global, 
as the second party opinion provider. The project adhered to green 
loan principles and is one of the largest project financings put in place 
under a green loan framework. The company also secured an 
exclusive 30-year off-take agreement with Air Products for all the 
green ammonia produced at the facility, which will unlock the 
economic potential of renewable energy across the entire value chain. 
•    As an equal joint venture between ACWA Power, Air Products and 
NEOM, the Oxagon mega-plant will integrate up to 4 gigawatts of 
solar and wind energy to produce 600 tonnes per day of carbon-free 
hydrogen by the end of 2026, in the form of green-ammonia as a cost-
effective solution for the transportation and industrial sectors globally. 
3. JP Morgan Chase announced one of the largest carbon removal purchases ever made. The bank seeks to 
scale investment in emerging carbon removal technologies and signed long-term agreements to purchase over $200 
million in high quality, durable carbon dioxide removal (CDR). These agreements, intended to remove and store 
800,000 metric tons of carbon dioxide equivalent from the atmosphere. The move will support scaling up carbon 
removal and is expected to enable JP Morgan Chase to match every ton of its unabated direct operational emissions 
with durable carbon removal by 2030. 
 •    The market for carbon removal is expected to grow dramatically between 
now and 2050. The Intergovernmental Panel on Climate Change (IPCC) 
estimates cumulative removal needs of 100 to 1,000 gigatons of carbon 
dioxide globally by 2100, with interim annual removal rates that approach 
10 gigatons of carbon dioxide globally by mid-century. Emergent carbon 
markets can help speed the development and commercialization of high-
integrity carbon reduction and removal solutions. 
•    Regarding the agreements, JP Morgan Chase signed a 9-year 
agreement with Climeworks to deliver 25,000 metric tons of carbon 
dioxide equivalent of carbon removal services; agreed to purchase 
Charm CDR removing and storing approximately 28,500 metric tons of 
carbon dioxide equivalent over 5 years; signed a memorandum of 
understanding’ with CO280 Solutions to purchase up to 30,000 metric 
tons of carbon dioxide equivalent of CDR per year for delivery over up to 
15 years, for an expected total removal of as much as 450,000 metric 
tons of carbon dioxide equivalent; and made a $75 million commitment 
to Frontier to help accelerate CDR technologies by guaranteeing 
demand. 
 
2. The Group of Seven (G7) leaders underlined their commitment to consistent, comparable and reliable 
disclosure of information on sustainability including climate. During the G7 summit in Hiroshima, Japan, its 
leaders announced a series 
3. France signed a legal ban on short haul flights where rail offers a faster alternative. A world’s first, the French 
Government banned domestic flights for journeys possible in less than two-and-a-half hours by trai
     •    Although the initiative was included in a 2021 climate law and already 
applied in practice, some airlines had asked the European Commission 
to investigate whether it was legal. The French Government secured Air 
France's compliance with the plan in exchange for a 2020 coronavirus 
financial support package and competitors were banned from simply 
filling the gap. 
2. Workiva issued a report concluding that 94% of the companies surveyed are working to become compliant 
with the Corporate Sustainability Reporting Directive (CSRD) by 2024. For companies who don’t need to comply 
with the CSRD, including those in non-EU countries like the U.K., the impact of the mandate is still being felt. As a 
matter of fact, 59% of non-EU respondents are still planning to align their integrated reporting strategies with the 
mandate. 
2. NEOM Green Hydrogen Company closed a $8.4 billion investment in the world’s largest carbon-free green 
hydrogen plant. The project at Oxagon, Saudi Arabia’s region of NEOM, aims to produce green ammonia at scale 
by 2026. It is being financed with a $6.1 billion green loan from 23 local, regional and international banks and financial 
institutions. 
•  NEOM Green Hydrogen Company added that the non-recourse 
s ESG weekly update is obtained from external sour
of announcements in support of the Paris Agreement, climate-corporate related standards, 
climate transition finance, biodiversity, termination of the construction of new coal-fired power plants, among other 
ESG issues.   
•    The leaders of Canada, France, Germany, Italy, Japan, the U.K., and