ADIB Secures AA ESG Rating Upgrade From MSCI, Tops Regional Banks

Abu Dhabi Islamic Bank (ADIB) has seen its Environmental, Social, and Governance (ESG) rating upgraded by MSCI, a prominent global provider of ESG indexes. The bank's rating has improved to AA from A on the AAA-CCC scale in MSCI's annual update.

This upgrade places ADIB in the "Leadership" category on the index, making it the only bank in the region to achieve this distinction for 2024. Globally, ADIB is now among 27 percent of organisations listed on the MSCI ACWI index recognised for their excellence in managing ESG risks.

The upgrade acknowledges ADIB’s advancements in several areas, including sector-specific credit policy disclosures and an escalation procedure for ESG risks. The bank has also implemented ESG due diligence processes and achieved ISO 27001 certification for cybersecurity.

The MSCI report highlights ADIB’s leadership in business ethics, citing its anti-corruption policies, staff engagement surveys, and educational partnerships. Additionally, ADIB is noted for its consumer protection initiatives.

Mohamed Abdelbary, Group Acting Chief Executive Officer of ADIB, stated, "We are pleased to receive this upgrade to an AA rating from MSCI, which reflects our continued commitment to enhancing our ESG practices and governance. This achievement is a direct result of our focused efforts to enhance transparency, implement rigorous risk management processes, and set ambitious environmental targets, including our net-zero emissions goal. We remain dedicated to further advancing our ESG strategies and delivering positive impacts across our operations and the communities we serve."

Environmental Targets and Sustainable Finance

As part of its ESG commitments, ADIB has set a net-zero emissions target for FY2030 and achieved a 65 percent reduction in Scope 1 emissions compared to 2022. The bank has also announced 2030 emissions reduction targets for six key portfolio sectors and financed AED 5.567 billion in sustainable finance activities in 2023.

Additionally, ADIB has strengthened its ESG governance with new committees and updated policies. The bank has enhanced its diversity and inclusion efforts and supported local communities through grants.

Global Initiatives Participation

ADIB further solidified its commitment by becoming a signatory to the UNEP FI Principles of Responsible Banking. The bank also participated as an Associate Pathway Sponsor at COP28.

This recognition underscores ADIB's dedication to improving its ESG practices while positively impacting both operations and communities served.

With inputs from WAM