Abu Dhabi Islamic Bank, a leading Islamic financial institution, has received an upgrade in its Environmental, Social, and Governance (ESG) rating from MSCI, a leading global provider of ESG indexes. ADIB’s rating has been elevated to AA (on a scale of AAA-CCC) from A in the annual MSCI update.

 

With the upgraded rating, the bank’s classification on the index advances to the “Leadership” category, making it the only bank in the region as of date to achieve this distinction for 2024. Additionally, ADIB ranks among 27 per cent of organisations listed on the MSCI ACWI index globally, recognised for their excellence in managing ESG risks, said a statement.  

 

The upgrade acknowledges ADIB’s advancements in several 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. The bank has also achieved ISO 27001 certification for cybersecurity. The MSCI report highlights ADIB’s leadership in business ethics, including 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.”

 

As part of its ESG commitments, ADIB has set a net-zero emissions target for FY2030 and achieved a 65 per cent reduction in Scope 1 emissions compared to 2022. The bank has also announced 2030 emissions reduction targets for six key portfolio sectors and financed AED5.567 billion in sustainable finance activities in 2023. Additionally, ADIB has strengthened its ESG governance with new committees and updated policies, enhanced its diversity and inclusion efforts, and supported local communities through grants. ADIB further solidified its commitment by becoming a signatory to the UNEP FI Principles of Responsible Banking and participating as an Associate Pathway Sponsor at COP28. -Trade