Abu Dhabi Islamic Bank (ADIB) has recently received an upgrade in its environmental, social, and governance (ESG) rating from MSCI, a prominent global provider of ESG indexes. This upgrade has seen ADIB’s rating transition from A to AA, positioning the bank in the Leadership category, making it the only bank in the region to achieve this distinction for 2024. Moreover, ADIB now ranks among 27 per cent of organizations listed on the MSCI ACWI index globally, recognized for their excellence in managing ESG risks.
The upgrade signifies ADIB’s progress in various areas, including the disclosure of sector-specific credit policies, the establishment of an escalation procedure for ESG risks, and the implementation of ESG due diligence processes. Additionally, the bank has obtained ISO 27001 certification for cybersecurity, demonstrating its commitment to robust data security practices. The MSCI report highlights ADIB’s leadership in business ethics, anti-corruption policies, staff engagement surveys, educational partnerships, and consumer protection initiatives.
In response to the upgrade, Mohamed Abdelbary, ADIB’s group acting chief executive officer, expressed satisfaction with the recognition, emphasizing the bank’s dedication to enhancing ESG practices and governance. He attributed the achievement to ADIB’s efforts to enhance transparency, implement rigorous risk management processes, and set ambitious environmental targets, such as the net-zero emissions goal. Abdelbary reiterated the bank’s commitment to further advancing its ESG strategies and making positive impacts across its operations and the communities it serves.
As part of its ESG commitments, ADIB has set a net-zero emissions target for FY2030 and has already achieved a 65 per cent reduction in Scope 1 emissions compared to 2022. The bank has also announced emissions reduction targets for six key portfolio sectors by 2030 and financed Dh5.567 billion in sustainable finance activities in 2023. Moreover, ADIB has enhanced its ESG governance with new committees and updated policies, strengthened diversity and inclusion efforts, and supported local communities through grants.
The upgrade of ADIB’s ESG rating by MSCI reflects the bank’s commitment to sustainable practices and responsible governance. This recognition solidifies ADIB’s position as a leader in managing ESG risks and sets a benchmark for other financial institutions in the region to follow suit. With a focus on transparency, risk management, and environmental stewardship, ADIB continues to make a positive impact on society and the environment through its ESG initiatives.
