Adnoc Distribution, the UAE’s largest fuel and convenience retailer, plans to reduce its carbon intensity by 25 per cent by 2030.
The move is aimed at decarbonising its operations by reducing its Scope 1 carbon emissions, which come directly from its operations, and Scope 2 carbon emissions, from the energy it uses in its operations, the company said on Friday in a filing on the Abu Dhabi Securities Exchange, where its shares are traded.
Adnoc Distribution said it would install solar panels to power service stations, use biofuels in its fleet of vehicles and expand its network of electric vehicle charging stations, in addition to using eco-friendly “green concrete”, in the construction of service stations.
“The adoption of a sustainable energy mix for our fleet of vehicles and the use of solar energy in our service stations, in addition to rolling out lower carbon intensity products for our customers, underlines our commitment to sustainable growth,” said chief executive Bader Al Lamki said.
Recently, Adnoc Distribution converted an existing $1.5 billion term loan into a sustainability-linked funding, in partnership with First Abu Dhabi Bank as environmental, social, and governance co-ordinator.
The loan works along the lines of a penalty/incentive model based on sustainability indicators. In addition to FAB, Abu Dhabi Commercial Bank, Bank of China, Standard Chartered and Industrial and Commercial Bank of China are parties to the loan.
“By linking our financing objectives to sustainability indicators, we are placing sustainability at the core of our day-today operations,” said Mr Al Lamki.
The company said it will apply its sustainability initiatives across its entire network in the UAE and Saudi Arabia.
In 2022, Adnoc Distribution introduced the Voyager Green Series range of lubricant products for both petrol and diesel engines, made from 100 per cent plant-based base oil as part of its overall strategy to continue expanding sustainable and environmentally friendly products.
The company is already offering alternative fuels across its network, including compressed natural gas fuel at 31 stations in the UAE, as well as a fully dedicated Abu Dhabi station.
As part of supporting the UAE’s efforts to becoming net zero by 2050, the company recently formed a joint venture with Abu Dhabi National Energy Company, better known as Taqa, to build and operate EV infrastructure in Abu Dhabi.
The new company, E2GO, aims to become the principal provider of EV charging points and associated infrastructure across the UAE capital.
The partnership will include a network of fast chargers at key locations, with associated solutions such as parking and tolling services, in addition to related digital platforms to boost EV charging.
Adnoc Distribution, which reported a 45 per cent surge in its third-quarter profit, had 481 retail fuel stations and 366 convenience stores in the UAE as of September 30.