Sustainable Finance: Gargash Group and Mashreq Alliance

Gargash Group, a leading business conglomerate in the UAE, has taken a significant step towards its sustainability objectives by partnering with Mashreq, one of the foremost financial institutions in the MENA region. The collaboration was formalized through a Memorandum of Understanding (MoU) signing ceremony held at the Mercedes-Benz Brand Center in Dubai Design District. This partnership was marked by the launch of Gargash Group's inaugural Green Loan, which was extended for various projects across the Group. Additionally, both organizations are exploring future initiatives to integrate Environmental, Social, and Governance (ESG) standards, including other sustainability-linked financial facilities.

Aligning with UAE's Sustainable Finance Initiatives

By securing its first Green Loan, Gargash Group has joined an elite circle of UAE businesses that have embraced impactful sustainable financing solutions. The core objective of this partnership is to drive forward the sustainability agendas of both Gargash Group and Mashreq by setting and meeting ambitious environmental goals. Through this strategic alignment, the companies aim to promote a greener and more sustainable future within their respective industries.

Solar and Energy Efficiency Projects

A key expression of these sustainability efforts is Gargash Group's plan to install solar energy systems across 25 locations over the next three years, with a combined energy potential exceeding 5 MW. Out of these, 5 sites are expected to be completed by 2025. In addition to solar installations, the Group also plans to implement energy efficiency projects across all 25 sites. The financial requirements for these projects will be met through the Green Loan facility provided by Mashreq, ensuring the initiatives are both environmentally and financially sustainable.

Commitment to a Sustainable Business Future

Walid Hizaoui, Group Chief Strategy Officer at Gargash Group shared his insights at the event, stating, “This partnership marks a critical milestone in our sustainability journey. With a reliable and trusted banking partner supporting us, we are wholeheartedly committed to integrating sustainability practices into every aspect of our operations for a greener future. We have meticulously scoped our businesses and implemented the necessary infrastructure to monitor our progress towards decarbonization—our ultimate long-term goal. This initiative not only underscores our unwavering commitment to reducing the nation's carbon footprint but also aligns with the UAE Green Agenda 2030 and UAE Net Zero Strategy 2050, promoting sustainable practices across the board.”

Thomas Schulz, General Manager Mercedes-Benz Passenger Cars at Gargash Enterprises, added, “This is an important milestone that will help drive the Mercedes-Benz brand forward, a brand long rooted in values of innovation and sustainability. This collaboration is a main catalyst fueling our commitment to achieve net zero carbon emissions by 2030 in the UAE. Our commitment to this objective reflects our dedication to the brand and our responsibility to the UAE, as we push forward in sustainable mobility. With a solid framework in place, we are confident our efforts will drive meaningful progress towards a greener future.”

Karim Amer, Head of Automotive Sector at Mashreq commented, “Mashreq is proud to support Gargash Group's transition towards a sustainable future through their inaugural Green Loan and other potential Sustainability-Linked facilities. This financing is designed to enable remarkable reductions in emissions and accelerate decarbonization initiatives which we have been actively driving across the Automotive sector, through proactive engagement with our clients on both formulization as well as execution of their Sustainability Strategies. By aligning financial incentives with sustainability objectives, we aim to enhance operational efficiencies for our partners and set a benchmark that encourages other organizations to integrate energy efficiency and sustainability into their core strategies.”

The partnership between Gargash Group and Mashreq represents a critical step forward in the global movement toward a sustainable future. This collaboration underscores their dedication to creating a more responsible and eco-friendly business environment, showcasing both companies' commitment to promoting environmental consciousness and sustainability within the corporate landscape.