TAQA Announces 2030 Greenhouse Gas Emissions Reduction Targets as Part of New ESG Strategy

Abu Dhabi, UAE – October 13, 2022: Abu Dhabi National Energy Company (TAQA), one of the largest listed integrated utilities companies in Europe, Middle East and Africa (EMEA) region by market capitalization, 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% reduction of scope 1 and 2 emissions by 2030 across the Group, including a 33% 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 decarbonization 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.

 

Highlights from the 2030 ESG Strategy:

Climate Change

  • Reduce scope 1 and 2 emissions across the Group by 25% and in the UAE 33% by 2030, compared to the 2019 baseline
  • Achieve net zero scope 1 and 2 emissions by 2050
  • Enhance climate resilience through reducing risks and increasing adaptive capacity

Water and effluents

  • Reduce losses in water distribution by 25% in 2030 compared to 2021 baseline
  • Reduce energy consumption for desalination by expanding highly efficient reverse osmosis technologies to make up two-thirds of desalination by 2030

Occupational health and safety

  • Increasing the transparency of reporting when it comes to occupational health and safety
  • Already, TAQA has made being ‘safe’ one of its company values as it works to cultivate a culture of safety and has several ongoing health and safety initiatives across the business

Diversity and equal opportunity

  • TAQA is also looking at improving diversity and equal opportunity across gender, age, nationality and people of determination
  • TAQA is currently monitoring these areas and will look to deploy initiatives and investment to improve in these areas and has committed to having females represent 30% of its management positions by 2030 

Local community engagement

  • On the social side of ESG, TAQA will be putting its Corporate Social Responsibility (CSR) efforts into focus themes: Education equality and environment, aligning with several of the United Nation’s Sustainable Development Goals (SDGs)
  • TAQA is also committing to increasing CSR spend in an economically responsible way to increase its positive impact

Corporate governance

  • TAQA has made a commitment to adopt best-practices when it comes to governance and go beyond local regulations and requirements
  • The company has set key performance indicators (KPIs) to steer the strategy and to report periodically on the ESG performance in line with reporting standards and expectations set by leading agencies

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 optimization. As part of its strategy TAQA committed to expand renewable energy to comprise more than 30% 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% 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%. Once complete, it will connect ADNOC’s offshore operations to the Abu Dhabi grid to provide access to clean and efficient power sources, including from solar and nuclear power.
  • TAQA is working with Emirates Global Aluminum 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 AED 99m (USD27m) in water and power savings across the lifecycle of the projects.
  • Leading ESG rating provider recently upgraded TAQA’s ESG Rating from “Severe” to “Medium Risk” reflecting a 34% 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 Decarbonization  and has signed the UAE Ministry of Climate Change and Environment’s private sector climate pledge.

TAQA Group Successfully Completes US$1.5 Billion Dual Tranche 5-year and 10-year Bond Offering

Abu Dhabi, UAE – 18 April, 2023: Abu Dhabi National Energy Company PJSC (TAQA), one of the largest listed integrated utility companies in the Middle East and North Africa region, announced today the successful placement of an aggregate US$1.5 billion in 5-year and 10-year dual-tranche senior unsecured notes.

 

The 10-year notes, sized at US$1 billion and maturing on 24 April 2033, were issued at a coupon rate of 4.696%. These notes represent TAQA’s first green bond issuance and net proceeds of the issuance will be used to finance, refinance and invest in relevant eligible green projects, as outlined in the company’s Green Finance Framework.  The 5-year notes, sized at US$500 million and maturing on 24 January 2029, were issued as conventional bonds at a coupon rate of 4.375%. Proceeds from these bonds will be used for general corporate purposes.

With a final order book approaching US$ 15 billion, the transaction was almost 10 times oversubscribed with a very strong demand from domestic, regional and international investors. The Notes are expected to be rated Aa3 by Moody’s and AA- by Fitch, in line with the corporate credit ratings of the company.

The issuance was arranged and offered through a syndicate of joint lead managers and bookrunners comprising of BNP Paribas, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, IMI-Intesa Sanpaolo, Scotiabank, SMBC Nikko and Standard Chartered.

 

In establishing its Green Finance Framework, TAQA has received support from Citi, Standard Chartered Bank, MUFG and HSBC as Joint Sustainability Structuring Banks alongside First Abu Dhabi Bank (FAB) as Sustainability Finance Framework Advisor.

 

Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, commented: “TAQA has yet again achieved competitive funding in our latest bond offering which has attracted strong demand from investors across several capital markets. In addition to this, TAQA’s clear ESG Strategy and decarbonisation agenda has enabled us to complete our first ever green bond, following the launch of our new Green Finance Framework and allows us to cater to the growing demand for investors seeking credible green investment opportunities. In the ‘Year of Sustainability’, TAQA is demonstrating how utility companies can have ambitious growth targets and prioritise solid returns, whilst working towards a net zero future.”

 

Stephen Ridlington, TAQA’s Group Chief Financial Officer, commented: “The successful completion of this latest dual-tranche bond offering, which was several times oversubscribed, reinforces investors’ confidence in the financial fundamentals of TAQA. The Company has once again achieved very competitive funding rates and locked in interest rates largely in line with our existing corporate interest cost. We are pleased with these results, particularly considering the trend of rising interest rates since last year.  In addition to this, we have successfully completed our first green bond issuance. This follows the recent release of our Green Finance Framework, which was awarded a SQS2 (very good) sustainability score by Moody’s. We remain committed to maintaining our investment grade credit ratings to ensure we can continue to competitively fund future growth.”

 

TAQA has recently established the Green Finance Framework. Moody’s has issued a Second Party Opinion on the TAQA’s Green Finance Framework.

ADNOC and TAQA Announce Project for Sustainable Water Supply to Onshore Operations Worth up to $2.4 Billion

Abu Dhabi, UAE – May 24, 2023: ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) announced today the award of a strategic investment project estimated at up to $2.4 billion (AED 8.8 billion) to provide sustainable water supply for ADNOC’s onshore operations, reinforcing ADNOC and TAQA’s position as responsible energy leaders and underscoring their efforts to drive sustainable initiatives that deliver long-term value.

 

The project will develop a centralized world-class seawater treatment facility and transportation network for operations at the Bab and Bu Hasa fields in Abu Dhabi. This project will replace the current high-salinity, deep aquifer water systems at the fields, thereby reducing water injection related energy consumption by up to 30%. The project will be connected to the grid and will receive 100% of its power from clean energy sources.

 

ADNOC and TAQA will jointly hold a 51% majority stake (25.5% each) in the Project Company and the remaining 49% stake has been awarded to a consortium comprised of Orascom Construction and Metito (the “Consortium”). The Consortium will arrange the project financing for the construction phase and develop the project under a build, own, operate and transfer (BOOT) model, with the full project being returned to ADNOC after 30 years of operation.

 

Abdulmunim Al Kindy, ADNOC Upstream Executive Director, said: “We are delighted to partner with TAQA and other industry leaders in this strategic project that will reduce our environmental footprint and unlock significant value as we continue to decarbonize and future proof our operations. The project will enhance our onshore energy efficiency by replacing less-efficient high-salinity, deep aquifer water systems with a centralized seawater treament facility and transportation network. With a substantial portion of the project value flowing back into the UAE economy, this landmark initiaitive will further stimulate economic and industrial growth and create commercial opportunities for the private sector, in line with the UAE Leadership’s wise directives.”

 

More than 60% of the project value during the development and operation phases will flow back into the UAE’s economy under ADNOC’s highly successful In-Country Value (ICV) program.

 

Jasim Husain Thabet, TAQA’s Group CEO and Managing Director, said: “As a champion for low carbon power and water, TAQA is pleased to partner again with ADNOC, this time to advance the UAE’s sustainability goals by providing treated seawater for ADNOC’s onshore operations. As a major utility, TAQA is especially committed to partnerships like this that use our expertise to help drive environmental stewardship while maintaining water security and supporting economic growth.”

 

The project will deliver more than 110 million imperial gallons per day (MIGD) of nano filtered seawater through 75 kilometers of transportation and over 230 kilometers of distribution pipelines and two pumping stations, supplying sustainable water for ADNOC’s onshore operations.