The airline has committed to net zero carbon emissions by 2050 and a 50 per cent reduction in net emissions by 2035. It is also aiming to achieve a 20 per cent reduction in emissions intensity in its passenger fleet by 2025. The carrier says that it is the world’s first Transition Sukuk and the first Sustainability-Linked financing in global aviation, under a Transition Finance Framework.
By issuing a Sustainability-Linked Sukuk, Etihad is voluntarily adding to its existing commitments under CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), and also committing to reduce carbon emissions intensity by over 20 per cent from the 2017 baseline. HSBC and Standard Chartered Bank acted as joint global coordinators and joint sustainability structuring agents. Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered Bank acted as joint lead managers and bookrunners. Abu Dhabi Commercial Bank meanwhile acted as joint lead manager, and Mashreq Bank was the financial advisor for this sukuk. Sustainability and responsible climate action are the most significant challenges facing the aviation industry. As the UAE’s flag carrier, Etihad is committed to sustainable development in aviation in line with Abu Dhabi’s vision.