United Arab Emirates: Emirates Global Aluminium, the largest industrial company in the United Arab Emirates outside oil and gas, and Emirates NBD, a leading banking group in the MENAT (Middle East, North Africa and Türkiye) region, today announced the launch of an ESG-linked Supply Chain Finance (SCF) programme to advance sustainability in the aluminium giant’s supply chain.

The innovative programme is a first for EGA and in the broader manufacturing sector in the UAE.

The programme will contribute towards improving the sustainability of the UAE aluminium sector by incentivising existing and new suppliers to adopt and invest in sustainable practices, technologies and materials that are aligned with EGA’s sustainability goals and demonstrably improve their own sustainability performance.

Supply chain financing enables suppliers to access payment early and is an increasingly popular way to manage working capital. EGA suppliers have accessed some USD 1.5 billion of supply chain financing through other EGA-facilitated programmes since the start of 2022.

Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said: “The aluminium EGA produces plays a key role in the development of a more sustainable society worldwide. We recognise that it also matters how sustainably aluminium is made. This includes the production of the goods and services we need. Innovative financing mechanisms, such as the ESG-linked supply chain programme with Emirates NBD, are an important way for us to accelerate sustainability progress by our suppliers.”

Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD said: “We are pleased to partner with EGA to unveil a pioneering ESG-linked Supply Chain Finance programme in the manufacturing sector. At Emirates NBD, we are committed to introducing new and innovative ESG-linked solutions for our clients and look forward to expanding the use of our Sustainable SCF programme in the region to guide our clients in the transition towards a more environmental-friendly business framework. As we embrace the Year of Sustainability in the UAE, these efforts reaffirm our dedication to drive positive environmental change aligning with the nation's ambitious Net Zero By 2050 Strategic Initiative. As the UAE prepares to host COP28, initiatives such as these will allow us to actively shape a more sustainable tomorrow for the MENAT region and beyond.”

EGA has some 3,300 active suppliers in the UAE and around the world. All are required to demonstrate compliance with the EGA’s Responsible Sourcing Standard, which details expectations on environmental, social and governance performance in line with OECD principles and the Aluminium Stewardship Initiative’s Performance Standard. EGA conducts a programme of due diligence and audits to verify sustainability performance, and works closely with critical suppliers to support continuous improvement.

EGA spends around USD 1.7 billion on goods and services each year from local UAE suppliers, accounting for 45 per cent of the company’s total global procurement spend. EGA is actively working to grow its local supply chain further in line with the UAE’s Operation 300bn industrial growth strategy and ‘Make it in the Emirates’.

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Contacts at EGA:
Simon Buerk
sbuerk@ega.ae

For further information on Emirates NBD, please contact:
Ibrahim Sowaidan
Senior Vice President Head - Group Corporate Affairs
Emirates NBD
e-mail: ibrahims@emiratesnbd.com
Mahmoud Kassem
Director
Brunswick Group

About EGA

Since 1975, when it was founded as Dubai Aluminium by His Highness Sheikh Rashid bin Saeed Al Maktoum, Emirates Global Aluminium has been innovating aluminium to make modern life possible.

Today EGA is the world’s biggest ‘premium aluminium’ producer and the largest industrial company in the United Arab Emirates outside the oil and gas industry. EGA is equally-owned by Mubadala Investment Company of Abu Dhabi and the Investment Corporation of Dubai. It is the largest company jointly owned by the two Emirates. EGA is an integrated aluminium producer, with operations from bauxite mining to the production of cast primary aluminium. EGA operates aluminium smelters in Jebel Ali and Al Taweelah, an alumina refinery in Al Taweelah and a bauxite mine and associated export facilities in the Republic of Guinea. EGA’s aluminium is the second largest made-in-the UAE export after oil and gas. In 2022, EGA sold 2.72 million tonnes of cast metal. EGA is the only UAE producer and makes the UAE the fifth largest aluminium producing nation in the world. EGA has more than 400 customers in over 50 countries. In 2022, value-added products accounted for 78 per cent of EGA’s cast metal sales. EGA’s aluminium is primarily used in the construction, automotive, packaging, aerospace and electronics industries. Around 10 per cent of EGA’s aluminium production is sold in the UAE to around 26 downstream aluminium companies that make products with EGA’s aluminium. The growing broader aluminium sector in the UAE supports almost 48,000 jobs. EGA itself employs around 6,800 of these people including more than 1,200 UAE Nationals. EGA has focused on technology development for over 30 years. EGA has used its own technology for every smelter expansion since the 1990s and has retrofitted all its older production lines. In 2016 EGA became the first UAE industrial company to licence its core industrial process technology internationally. As a corporate citizen of the UAE, EGA aspires in all its operations to be measured amongst the world’s leading metals and mining companies in meeting its environmental and social responsibilities. In 2017, EGA became the first Middle East headquartered company to join the Aluminium Stewardship Initiative, a global programme to foster greater sustainability and transparency in the aluminium industry. In 2019, EGA’s Al Taweelah site became the first in the Middle East to receive certification from ASI for its sustainability practices and performance. EGA’s Jebel Ali site was certified in 2021. EGA’s bauxite mining subsidiary, Guinea Alumina Corporation, achieved the first ASI certification in Guinea in 2023. Al Taweelah alumina refinery was certified later in 2023, with the result that EGA now has all of its global operations certified to the aluminium industry’s internationally recognised standard for environmental and social performance and governance. In 2021, EGA began production of CelestiAL solar aluminium, produced with solar power from the Mohammed Bin Rashid Al Maktoum Solar Park on the outskirts of Dubai. EGA is the first company in the world to make aluminium commercially using the power of the sun. EGA was formed in 2014 through the merger of Dubai Aluminium and Emirates Aluminium. EGA’s Jebel Ali aluminium smelter began production as DUBAL in 1979. At almost five square kilometres, this site is five times bigger than Dubai Mall. EMAL started production in 2009 and its Al Taweelah aluminium smelter was the largest single-site aluminium smelter in the world when completed. EGA’s Al Taweelah site is five times bigger than Al Maryah Island at six square kilometres. EGA has its own power stations at both sites, producing electricity to meet its needs. EGA’s electricity generation capacity is 6,474 megawatts, making EGA the third largest electricity generator in the UAE after the Dubai and Abu Dhabi utilities. EGA also produces water through desalination units at its power plants. EGA began production at Al Taweelah alumina refinery in April 2019. EGA’s alumina refinery is the first in the UAE and only the second in the Middle East. The project reduces the UAE’s dependence on imported alumina and supplies over 45 per cent of EGA’s needs. Bauxite exports from Guinea Alumina Corporation, EGA’s wholly-owned subsidiary in Guinea, began in August 2019. The GAC project was one of the largest greenfield investments in Guinea in over 40 years.

For more information on EGA please visit www.ega.ae.

About Emirates NBD

Emirates NBD (DFM: Emirates NBD) is a leading banking group in the MENAT (Middle East, North Africa and Türkiye) region with a presence in 13 countries, serving over 20 million customers. As at 30th June 2023, total assets were AED 811 billion, (equivalent to approx. USD 221 billion). The Group has operations in the UAE, Egypt, India, Türkiye, the Kingdom of Saudi Arabia, Singapore, the United Kingdom, Austria, Germany, Russia and Bahrain and representative offices in China and Indonesia with a total of 854 branches and 4,173 ATMs / SDMs. Emirates NBD is the leading financial services brand in the UAE with a Brand value of USD 3.89 billion. Emirates NBD Group serves its customers (individuals, businesses, governments, and institutions) and helps them realise their financial objectives through a range of banking products and services including retail banking, corporate and institutional banking, Islamic banking, investment banking, private banking, asset management, global markets and treasury, and brokerage operations. The Group is a key participant in the global digital banking industry with 97% of all financial transactions and requests conducted outside of its branches. The Group also operates Liv, the lifestyle digital bank by Emirates NBD, with close to half a million users, it continues to be the fastest-growing bank in the region. Emirates NBD contributes to the construction of a sustainable future as an active participant and supporter of the UAE’s main development and sustainability initiatives, including financial wellness and the inclusion of people of determination. Emirates NBD is committed to supporting the UAE’s Year of Sustainability as an Associate Pathway Partner of COP28 and an early supporter to the Dubai Can sustainability initiative, a city-wide initiative aimed to reduce use of single-use plastic bottled water