In 2024, Mubadala drove forward at pace with Project DeCarb, its partnership with Solutions+ focusing on long-term value creation through the integration of decarbonization planning across a selection of UAE-based portfolio companies.

For the project, Mubadala selected 16 of its assets from sectors including real estate, education, and industrials, and carried out detailed energy audits and GHG assessments with them. The data revealed that purchased electricity and water were the dominant sources of Scope 3 emissions, followed by employee commuting and business travel.

To help mitigate these emissions, over 160 carbon reduction opportunities were initially identified. Of these, 110 were analyzed in detail, 56 were deemed feasible, and 43 exceeded Mubadala’s hurdle rate.

Six initiatives were selected for phase one implementation based on strong business cases and payback periods of under four years. These included heating, ventilation and air conditioning (HVAC) upgrades, fan replacements, and pre-cooling systems, achieving 1.67 million kilowatt-hours in electricity savings and emissions reductions equivalent to removing around 1,750 cars from the road each year.

Although concessional capital had been earmarked from the Mubadala Foundation to support energy efficiency efforts, many of the proposed projects turned out to be self-financing. As a result, Foundation funding was not required in phase one, and are Furthermore, the phase one projects are expected to deliver AED 18 million in long-term value, calculated using net present value, and lifetime carbon dioxide reductions of 7,523 metric tons.

For phase two, a further 52 energy efficiency measures are being scoped. expected to require AED 39.4 million in investment and deliver annual savings of AED 6.44 million and lifetime emissions reductions of 101,000 metric tons of carbon dioxide. Thirteen lower-yield projects are also under consideration for future Foundation-backed support.

Beyond emissions reductions, the project significantly improved data maturity, embedded climate KPIs into business planning, and fostered cross-functional ownership of climate risk, marking a step change in companies’ approaches to sustainability.

Project DeCarb has become a platform for climate-smart value creation, reinforcing Mubadala’s role in responsible investment.