Mashreq taps Fils for Corporate Carbon Offset Offering

Mashreq, a prominent bank in the UAE, has entered into a Memorandum of Understanding (MoU) with Fils, a local fintech firm. This partnership aims to create a corporate carbon offsetting offering, allowing corporate and institutional clients to integrate carbon offsetting directly from their Mashreq corporate accounts. Fils, an enterprise-grade digital platform, provides the underlying infrastructure for financial institutions to launch sustainable-focused products, including carbon offsetting.

The collaboration addresses the growing need for businesses to adopt Environmental, Social, and Corporate Governance (ESG) practices. Fils leverages blockchain technology to track carbon credits, ensuring transparency and preventing double counting, thus addressing concerns related to greenwashing. The platform facilitates a seamless transition to ESG-compliant corporate landscapes, enabling companies to incorporate sustainability into their business models and customer journeys.

The partnership between Mashreq and Fils represents a significant development in the region’s financial sector, highlighting a shift towards environmental responsibility. Mashreq aims to launch specialised carbon-offsetting financial products in collaboration with selected UAE-based corporate clients, with the initial solution expected in the first half of 2024.

Joel D Van Dusen, Head of the Corporate and Investment Banking Group at Mashreq, emphasised the impact of this initiative on Mashreq’s corporate clients, contributing to environmental sustainability. The partnership aligns with the UAE’s commitment to integrating sustainability into its economic and financial sectors, coinciding with the nation’s hosting of COP28 and its global sustainability leadership ambitions.

The carbon offset solution addresses challenges in the UAE’s decarbonisation strategy, making trading markets more accessible for corporates. Fils will provide fractionalized credits, eliminating complexities and accessibility issues associated with dealing directly with carbon credit markets. This collaboration underscores Mashreq’s dedication to sustainable practices and reinforces the UAE’s position as a pioneer in sustainability efforts.