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Our approach to Sustainable Finance
Our Sustainable Financing Framework defines our classification approach and methodology for allocating FAB’s financial products and services (including but not limited to debt and equity capital markets, corporate lending and consumer lending or Islamic Finance) as sustainable or transition finance to support activities and products aimed at addressing environmental and socially responsible issues.
FAB’s Sustainable Finance Framework sets out a clear approach for classifying and allocating financial products and services that support the transition to a low-carbon, inclusive and sustainable economy.
With strong governance and transparent standards, our framework ensures that all sustainable and transition finance activities contribute meaningfully to national climate goals and broader sustainability priorities.
Oversight of all sustainable finance activities is led by FAB’s ESG & Sustainable Finance Committee, which oversees sustainable and transition finance and investment instruments’ eligibility under the Sustainable Finance Framework to ensure compliance with international standards and best practices.
To maintain transparency, FAB publishes annual disclosures on its sustainable and transition finance performance. These include total financing volumes, progress toward long-term commitments, allocation of sustainable bond proceeds, and the impact of financed projects. Comprehensive details are provided in the Sustainable Finance Impact Report and ESG Report.
FAB supported Red Sea Global with a USD 1.5 billion green financing package to develop critical multi-utility infrastructure for Amaala Utilities, one of Saudi Arabia’s flagship regenerative tourism destinations. The funding will enable 248 MW of renewable energy capacity, sustainable desalination systems, and advanced waste management, contributing to an expected 350,000 tCO₂e reduction annually once operational.
FAB issues social bonds under its Sustainable Finance Framework to support projects that expand access to essential services and employment generation. Proceeds from these issuances are fully allocated to eligible social projects in line with the ICMA Social Bond Principles.
