Responsible Investing

THE YEAR OF
SUSTAINABILITY AND COP28

A testament to the UAE’s focus on climate change, 2023 was named the Year of Sustainability.

The UAE was the first Gulf country to ratify the Paris Agreement, the first to commit to Net Zero by 2050 and is a leading global investor in clean energy.

The highlight of the Year of Sustainability came in December when the UAE hosted crucial climate negotiations at COP28. It resulted in the landmark UAE Consensus in which, for the first time, all countries of the world agreed to transition away from fossil fuels. Mubadala contributed to COP28 as a 'Showcase Participant' in line with its commitment to supporting urgent climate action.

Mubadala believes climate change is an existential risk for the planet with the potential for a significant impact on the communities in which we invest and the performance of our portfolio. Our strongly held conviction is that integrating climate considerations into our investment decisions makes business sense. One of Mubadala's core objectives is to find solutions to the world’s biggest challenges. We are investing in advancements across the world and deploying capital for the long term so that, collectively with our partners, we can deliver change.

We believe that the biggest impact we can have is to mobilize and align our capital to help progress a net zero future. These actions aim to empower our peers, people and communities to enable the transition to a low carbon economy.

RESPONSIBLE INVESTING
APPROACH

As a sovereign wealth fund, Mubadala's mandate is to deliver sustainable financial returns and create opportunities for future generations.

We believe that the integration of environmental, social and governance (ESG) factors are fundamentally linked to our ability to protect and create long-term value at both the asset and portfolio levels. As a result, Responsible Investing plays an important role in achieving our mandate of generating strong risk-adjusted returns over the long term, while building a sustainable future.

The Responsible Investing team’s objectives are to:

Continue developing a culture of awareness by building our organizational ESG fluency to better identify, understand and proactively manage ESG-related principles and considerations at the asset, portfolio and corporate levels.
Drive focus and resources towards the identification and management of material ESG-related principles and considerations.
Identify material ESG-related matters and processes across our portfolio that can be improved and drive such improvement through proactive engagement, monitoring and reporting, over time.
Leverage our scale and global presence to promote Mubadala as a steward and advocate of ESG principles and Responsible Investing.

ESG Integration in the Investment Lifecycle

Stewardship

Project Decarb

OPSWF & the One Planet Disclosure Guidance

NET ZERO

In line with the UAE Government’s commitment, Mubadala is committed to achieving net zero greenhouse gas emissions across all scopes of our global portfolio and corporate emissions by 2050.

Mubadala, along with many of our UAE-based portfolio companies, is a signatory of the UAE Climate-Responsible Companies Pledge, which outlines several core principles as part of the commitment to achieving net zero emissions by 2050.

Mubadala’s key strategic pillars for achieving net zero include:

Driving decarbonization across our corporate operations.
Integration of climate into the investment lifecycle.
Investing in global solutions.
Convening the investment community to advance best practice.

More about each of these pillars is outlined in the Responsible Investing section of the Mubadala website.

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Climate Integration into Investment Lifecycle

Inaugural Green Bond

COP28

For two weeks from 30 November to 12 December the United Arab Emirates hosted the world for the COP28 climate negotiations - critical for the future of our planet.

COP28 brought together government and business leaders from around the world to mobilize collective action to limit the global temperature increase to 1.5°C above pre-industrial levels, or lower.

COP28 served as a historic capstone to the UAE’s Year of Sustainability. For the first time, all countries of the world agreed to transition away from fossil fuels and keep 1.5°C within reach in the UAE Consensus.

Mubadala contributed to this effort by being a Showcase Participant at COP28 with a substantial presence through a pavilion in the Green Zone at Expo City, and participation in and facilitation of numerous events.

The Mubadala pavilion at COP28 featured over 45 engaging panels and sessions with more than 150 speakers from portfolio company executives, partners and Shabab Mubadala - Mubadala Youth Council - participants, as well as high profile external speakers. More than 3,000 people attended the panels, and an estimated 7,000 visitors came to the pavilion engaging with our ambassadors, digital content, and displays by portfolio companies.

The pavilion also hosted the signings of a number of Memorandums of Understanding including by Masdar City, the UAE Ministry of Energy, the Manchester University Graphene Centre, Tadweer, NYUAD, Mubadala Foundation, and Solutions+.

Our Senior Leadership actively participated in key events throughout the COP28 period such as Milken Middle East & Africa, Bloomberg Green, Goals House, SuperClimate, Abu Dhabi Finance Week, Fortune Global Forum and others - effectively representing our organization and showcasing our commitment to addressing global climate challenges and fostering meaningful collaborations.