Why Sustainable Finance Matters: NBF’s Efforts to Tackle Financed Emissions

The conversation around sustainability has shifted in recent years, with more financial institutions taking responsibility for the impact of their financed emissions.

The National Bank of Fujairah (NBF)’s Approach to Financed Emissions

Financed emissions are the carbon emissions created by the projects and companies which a bank finances. For NBF, taking responsibility for these emissions is an essential part of their sustainable strategy. “The first step for us is baselining our financed emissions,” explains Ashish Gokhale, NBF’s ESG and Sustainable Finance Specialist. “Without understanding the current impact of our portfolio, it’s impossible to create a solid plan to reduce it.” By identifying which parts of their portfolio have the most environmental impact, NBF aims to address these areas more effectively.

Supporting Customers on Their ESG Journey

Beyond their own operations, NBF is committed to supporting their customers on their sustainability journeys. This is where the partnership with Living Business comes in. Through the Living Business Program, NBF is helping its small and mid-market clients across a range of industries take meaningful steps towards greater sustainability. The program provides hands-on support to develop emission reduction strategies, implement environmental management systems, and build ESG frameworks. This proactive collaboration has led to deeper engagements and impactful results with some key clients.

The Challenges of Measuring Financed Emissions

One of the biggest challenges for NBF and most financial institutions is accurately measuring financed emissions. “Getting accurate emissions data from our clients can be tough,” Ashish admits. “Most of our customers don’t have all the numbers we need.” Currently, NBF relies on estimates and proxies where precise data isn’t available. However, Ashish is clear that progress is more important than perfection. “We know the data isn’t perfect, but as long as we’re moving in the right direction, we’re on the right path.”

Olive Gaea’s Solution to Financed Emissions Management

To address the challenges in measuring financed emissions, technology like Olive Gaea’s platform, Zero, offers a promising solution. Zero is an AI-driven SaaS platform powered with a module specifically designed for the financial sector to enhance emissions measurement, improve data accuracy, and foster collaboration with investees. By integrating asset-level emissions, ESG metrics, and providing real-time actionable insights, Zero helps banks make informed decisions on their financed emissions.

Vivek, Co-Founder & CEO of Olive Gaea, highlights the importance of these solutions: “The financial sector is at a pivotal moment in the fight against climate change. With regulatory pressures intensifying and stakeholder expectations rising, financial institutions need advanced, reliable solutions to manage their financed emissions effectively.”

Collaborating for a Greener Future

For NBF, sustainable finance is about real, meaningful change. Through initiatives like the Living Business Program, NBF is helping its clients take their first steps toward sustainability. “We’ve been able to engage with clients on a deeper level. I’ve been pleasantly surprised to see how seriously many of them are taking this,” Ashish says.

By taking responsibility for their financed emissions and working closely with partners like Living Business, NBF is leading by example, not just for themselves, but for their clients and the wider financial community. As financial institutions continue to navigate the complexities of the Net Zero transition, collaborative efforts like these will be key to making a lasting impact.