Sustainalytics upgrades ADCB’s ESG risk score, making it the highest-ranked diversified bank in the GCC
Abu Dhabi Commercial Bank PJSC (ADCB) has received an upgrade to its environmental, social and governance (ESG) risk score by Sustainalytics, one of the world’s leading ESG rating agencies. ADCB’s overall Sustainalytics ESG risk score improved from 30.1 in March 2021 to 21.0 in September 2022, making ADCB the highest-ranked diversified bank in the GCC and a top quartile bank globally.
The Sustainalytics ESG rating methodology scores an organization on its management of ESG risks from 0 to 40+, with a lower score signifying a better management approach. ADCB saw an improvement across all the ESG material issues that Sustainalytics assesses, with the Bank seeing the biggest gains in its scores for data privacy and security, and business ethics. Sustainalytics now ranks ADCB among the top ten banks globally for managing risks related to data privacy and security.
Ala’a Eraiqat, Group Chief Executive Officer said: “As a major financial institution, our aim is to maximise our contribution to the socio-economic development of the UAE, while managing risks and opportunities effectively to ensure the long-term sustainability of our business. Accordingly, we recently refreshed our ESG framework and embedded ESG into our corporate strategy, while also adopting a Group-wide Sustainability Governance Framework with Board oversight. The Bank is now fully aligned with the UAE’s ambitions for an inclusive, net-zero economy, and we remain committed to supporting our customers and our communities on their journey towards a low-carbon future.”
Deepak Khullar, Group Chief Financial Officer said: “ADCB’s ESG risk score upgrade from Sustainalytics reflects the strong progress the Bank has made on sustainability over the last 18 months. ESG is now a key pillar of our corporate strategy, and we are building a more resilient bank for the future – one that has clear areas of focus around climate, customers & communities, employees and governance. As part of our new ESG strategy, we are actively introducing new products to help our clients transition to a low carbon economy. This adds to ADCB’s growing expertise in sustainable financing solutions, which includes green bonds, renewable energy project finance and sustainability-linked loans.”
In September, ADCB issued its first ever green bond, raising USD 500 million to support the financing of low-carbon initiatives. As a result of ADCB’s robust ESG approach, the Bank’s inaugural green bond was selected to feature within the Bloomberg MSCI Green Bond Index.
Abu Dhabi Commercial Bank
ADCB was formed in 1985 and today after integration employs over 3,350 people from over 45 nationalities, serving approximately 590,000 retail customers and over 20,000 wholesale clients. It is the third largest bank in the UAE and second largest in Abu Dhabi by assets, at AED 163.7 billion as at March 31st, 2010.
ADCB is a full-service commercial bank which offers a wide range of products and services such as retail banking, wealth management, private banking, corporate banking, commercial banking, cash management, investment banking, corporate finance, foreign exchange, interest rate, currency, derivative, Islamic products, project finance and property management services.
ADCB is owned 64.8% by the Abu Dhabi Government through the Abu Dhabi Investment Council. Its shares are traded on the Abu Dhabi Securities Market.
ADCB has won the Silver class category of The Sheikh Khalifa Excellence Award (SKEA) for the finance sector in November, 2009. In February 2010, ADCB won The World Finance Corporate Governance Award for “Best Corporate Governance in the UAE” and was recently named “Best Retail Bank in the UAE and GCC 2010” by The Asian Banker magazine in March 2010.