33% reduction in greenhouse gas emissions supporting the UAE’s net zero ambition.
Abu Dhabi National Energy Company (Taqa), one of the largest listed integrated utilities companies in Europe, Middle East and Africa (EMEA) region by market capitalisation, announced today a comprehensive 2030 Environmental, Social and Governance (ESG) strategy.
The ESG strategy includes the national low-carbon power and water champion’s interim greenhouse gas (GHG) emissions reduction goals and is a credible step towards achieving its net-zero ambitions by 2050. Under the strategy, Taqa has committed to a 25 per cent reduction of scope 1 and 2 emissions by 2030 across the group, including a 33 per cent reduction of UAE portfolio emissions compared to the 2019 baseline.
Jasim Husain Thabet, Taqa’s Group Chief Executive Officer and Managing Director, commented: “We see sustainability as an opportunity and are evolving to become a champion of low carbon power and water. That means meeting the energy and water needs of today as efficiently as possible, whilst also investing in the lower carbon alternatives we need. ESG was put at the heart of our corporate strategy last year, and this ESG strategy and the targets are a proof of us delivering on this commitment. We have a key role to play in helping the UAE achieve its net zero by 2050 target which is reflected in our GHG emissions reduction targets.
These are not just targets for the future, they represent actions that we are already taking to deliver meaningful emission reductions and put us on a path towards achievement of net zero by 2050. As we approach COP27 and COP28 here in the UAE, the focus will be increasingly on actions and not just pledges. As a major regional utility, we are determined to play our part without compromising on security of supply. We will also be unwavering in our pursuit of the opportunities associated with tackling climate action and in our commitment to the wider principles of ESG.”
Taqa will focus on the decarbonisation of power and water supply, further electrification across sectors, and demand side management to support more efficient use of power and water.
The broader ESG strategy was built around six core material topics: climate change, water and effluents, occupational health and safety, diversity and equal opportunity, local community engagement and corporate governance. Taqa aims to achieve both quantitative and qualitative ambitions across these focus areas through several new and existing initiatives. Taqa’s new ESG strategy builds upon its 2030 strategy for sustainable growth and returns. This business strategy demonstrated the company’s commitment to decarbonization, growth and optimisation. As part of its strategy Taqa committed to expand renewable energy to comprise more than 30 per cent of its power generation portfolio by 2030 and to expand efficient reverse osmosis (RO) technology to make up two-thirds of its desalination capacity by 2030.
To date Taqa has several efforts ongoing in line with its focus on becoming an ESG leader and sustainability partner. It strengthened its leadership in low carbon power and water through the Masdar transaction. Once the deal is completed this will add significant renewable energy capacity, already exceeding Taqa’s original target of 30 per cent renewable energy by 2030.
Currently under construction, a first-of-its-kind in the region high-voltage sub-sea transmission network will reduce Adnoc’s offshore carbon footprint by more than 30 per cent.
Taqa is working with Emirates Global aluminium to enable access to grid-connected, clean electricity, supporting UAE industry decarbonization.
Taqa has signed two MoUs for green hydrogen. In Abu Dhabi, Taqa is working with Abu Dhabi Ports to develop a 2GW green hydrogen to ammonia export project in Abu Dhabi. It is also working with Emirates Steel to use green hydrogen to enable the region’s first green steel manufacturing. Taqa’s subsidiary Abu Dhabi Energy Services (ADES) is working with 30 government buildings in Abu Dhabi to retrofit with efficiency measures that are expected to deliver approximately Dhs99m ($27 million) in water and power savings across the lifecycle of the projects.
Leading ESG rating provider Sustainalytics recently upgraded Taqa’s ESG Rating from “Severe” to “Medium Risk” reflecting a 34 per cent decrease in Risk. This rating positions Taqa as one of the leading ESG players in the Emea region and now places the company within the top 30th percentile of utility companies globally.
Taqa is a proud member of UN Global Compact, of the IRENA Alliance for Industry Decarbonisation and has signed the UAE Ministry of Climate Change and Environment’s private sector climate pledge. Established in 2005, Taqa is a diversified utilities and energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange. Taqa has significant investments in power and water generation, transmission and distribution assets, as well as upstream and midstream oil and gas operations.