Challenge: Mashreq, a leading financial institution in the MENA region, faces the challenge of addressing the historically complex and inaccessible nature of carbon credit markets for its corporate clients. The traditional barriers include limited direct accessibility for corporates and minimum purchase amounts, hindering the seamless integration of carbon offsetting into corporate accounts. In response to these challenges, Mashreq seeks a strategic solution to simplify and democratize the process for its clients, fostering a more accessible and transparent approach to carbon offsetting within the financial sector.
Solution: Fils, known for its complete digital platform, serves as the underlying infrastructure for financial institutions, enabling the launch of sustainable-focused products such as carbon offsetting. To ensure transparency and eliminate greenwashing practices, Fils leverages blockchain technology to track all carbon credits, avoiding double counting. The partnership signifies a pioneering step by Mashreq in developing specialized carbon-offsetting financial products. The collaboration introduces a novel account solution that addresses historical
challenges, making carbon credits more accessible, fractionalized, and user-friendly for Mashreq corporate clients.
Outcome: The collaboration between Mashreq and Fils represents a significant milestone in the region’s financial sector, signalling a shift towards incorporating environmental responsibility. The development of the carbon mitigation corporate offering is poised to have
a broad impact, offering a solution designed to contribute to environmental sustainability and reinforcing the UAE’s position as a pioneer in this space. The initiative aligns with Mashreq’s dedication to sustainable practices and forms part of its wider global Environmental, Social,
and Governance (ESG) platform, Climb2Change.
Impact: Mashreq’s initiative with Fils reflects the growing importance of carbon credits, with a substantial percentage of global companies planning to use them to meet net-zero emissions targets. The partnership addresses challenges in trading markets accessibility and minimum purchase amounts, simplifying the purchasing, audibility, and reporting of Key Performance Indicators (KPIs) through Mashreq. The initiative not only enhances Mashreq’s ESG milestones but also contributes to shaping a sustainable future and combating climate
Future Vision: Mashreq and Fils are dedicated to advancing their influence in the region’s financial markets, serving as a catalyst for the evolution of ESG enforcement. The carbon offsetting product, created with transparent KPIs, aims to end greenwashing and pave the way for greater accountability and actionable outcomes. With a strategic alignment with the UAE’s hosting of COP28, the initiative showcases a forward-thinking approach in the banking sector towards environmental responsibility, contributing to both domestic and international sustainability efforts. The partnership is poised to play a vital role in achieving the UAE’s goal of net-zero emissions by 2050