Gargash Group, a leading business enterprise in the UAE, has partnered with Mashreq, a leading financial institution, to promote and advance robust sustainability agendas by setting and achieving ambitious green targets. 

 

This collaboration, officially inaugurated with an MoU signing ceremony at the Mercedes-Benz Brand Centre in Dubai Design District, was crystalised with their debut Green Loan that was extended earlier for a number of projects across Gargash Group. The two institutions are also in discussion on future ESG integration initiatives for the group, including but not limited to other Sustainability-Linked facilities. 

 

By obtaining its first Green Loan, Gargash Group aligns itself with a prestigious and select group of UAE enterprises that have leveraged impactful and sustainable financing solutions. The partnership aims to promote and advance robust sustainability agendas for both Gargash Group and Mashreq. 

 

Solar installations

As a tangible expression of these goals, Gargash Group is planning solar installations across 25 sites in the next three years, with an energy potential totaling over 5 MW. 

 

While 5 sites are expected to be completed as early as 2025, plans are also under way to execute energy efficiency projects spanning across 25 of its sites. Finance requirements for these plans are to be covered through the Green Loan facility from Mashreq. 

 

Walid Hizaoui, Group Chief Strategy Officer at Gargash Group, said: “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 decarbonisation—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.” 

 

Key milestone

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 decarbonisation initiatives which we have been actively driving across the Automotive sector, through proactive engagement with our clients on both formulisation 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 organisations to integrate energy efficiency and sustainability into their core strategies.”--TradeArabia News Service