Why Abu Dhabi is well placed to become a thriving global hub for specialist sustainability insurance
02 Jun 2021
Sustainability has become big business in recent years as companies across all industries have begun to fully embed the concept into their operating models. The insurance sector is no exception, with the principles of sustainability having important implications for the ways we mitigate risks, manage investments, operate our businesses, engage with stakeholders and deliver profitability over the long term.
As an Abu Dhabi-headquartered insurer, we have closely watched the emirate’s own sustainability journey over many decades. The creation of Masdar in 2006 was a pivotal moment, significantly accelerating Abu Dhabi’s sustainability goals, with further momentum coming from the first Abu Dhabi Sustainability Week in 2013, and Abu Dhabi’s Environment Vision 2030, which comprises of government-wide environment policy planning created to ensure the protection of Abu Dhabi natural resources.
Finance is a key enabler of sustainability goals and this has proved to be a key advantage in Abu Dhabi, which is home to some of the region’s largest and most well-established financial institutions. Abu Dhabi Global Market (ADGM) is now an established sustainable finance hub while First Abu Dhabi Bank (FAB) has pioneered instruments like green bonds.
Given the depth of Abu Dhabi’s sustainability expertise across so many different areas, from science to finance, it follows that the emirate is well placed to lead in the development and deployment of insurance products and business models designed to support sustainability goals. It is a hugely significant area for the industry that will only grow in importance over the coming years, with Abu Dhabi well placed to serve as a key global hub.