Fri 22-04-2022 22:16 PM
ABU DHABI, 22nd April, 2022 (WAM) -- Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said that, since its founding in 2006, Masdar's mission has been to put the UAE on a path to a sustainable, diversified economy.
In a statement marking Earth Day 2022, Al Ramahi stated, "At Masdar, we are proud pioneers in communicating our sustainability goals and achievements to our stakeholders."
He highlighted Masdar’s positive impact on carbon-reduction goals, with the company’s operating clean energy portfolio displacing almost 7.5 million tonnes of carbon dioxide last year, up 38 percent on 2020’s adjust figure of 5.4 million tonnes, according to Masdar's 2021 Sustainability Report. In total, the combined capacity of Masdar’s portfolio – either installed or under development – rose 40 percent last year to over 15 gigawatts (GW).
Al Ramahi reaffirmed Masdar's ambition to reach a portfolio capacity of 100 GW – and ultimately to achieve double that, besides being positioned to play a key role in the UAE achieving its Net Zero by 2050 Strategic Initiative, and in supporting the journey to the COP28 climate change conference being hosted in the UAE next year.
As its 2021 Annual Sustainability Report demonstrates, environmental, social, and corporate governance (ESG) remains at the core of Masdar’s mission and purpose. Supporting this effort is the Masdar Sustainability Committee (MSC), an employee-led body focused on identifying and implementing sustainable practices, integrating sustainability into its day-to-day operation, and increasing sustainability awareness across the company.
The recent IPCC report also highlights the importance of increasing investment, with financial flows still falling below the levels needed to limit global warming to below 2 C. Again, Masdar has long led by example, demonstrating how the business community can deliver on the global sustainability agenda.
Last year alone, Masdar committed to more than US$3 billion in renewable energy investments, bringing the combined value of its renewable energy portfolio to more than US$20 billion, with the company’s footprint spanning over 40 countries worldwide.
Masdar has also demonstrated its commitment to ESG through its ongoing development of Masdar City, its flagship sustainable urban development and Abu Dhabi’s only planned and approved R&D cluster and a leading hub for innovation, home today to over 1,000 businesses. Major research projects initiated within the City include the world’s first solar/thermal energy storage-powered project to extract water from air, and an electrical thermal energy-storage system solution that enables 24/7 clean energy utilisation.
A range of development initiatives across the company provided a total of over 4,700 learning hours for employees across the company, with staff being offered more than 1,800 hours of wellness training.
The decision by both Moody’s Investor Services and Fitch Ratings to assign Masdar first-time credit ratings that place the company firmly in the investment grade category can be seen as an endorsement of the company’s approach to governance as well as the strength of its business. Moody’s and Fitch issued Masdar with long-term ratings of A2 and A+ respectively, both with a stable outlook.
"These ratings corroborate the importance that Masdar gives governance in its business," said Jonathan Evans, General Counsel for Masdar, in the Sustainability Report. "Whilst ESG standards are continuing to evolve, the assessment by the ratings agencies reflects the robust base that Masdar has created for itself."
Moreover, 2022 will see three of the UAE’s energy giants – ADNOC, TAQA and Mubadala – join forces to transform Masdar into a truly global clean energy powerhouse.