The Abu Dhabi Commercial Bank P.J.S.C (ADCB) has achieved an upgrade in its MSCI ESG rating to ‘AA’ from ‘A’, reflecting the Bank’s progress in sustainable finance initiatives, ESG due diligence, industry-leading data privacy management and security and ethical business practices. The upgrade places ADCB in the MSCI ‘industry leader’ category for managing ESG risks and opportunities.
ADCB’s strongest result came from the impact of its environmental financing, achieving a score of 9.1 out of 10. This emphasises the Bank’s commitment to sustainable finance, having financed AED 47.5 billion in sustainable activities since 2021, and successfully issuing AED 4.2 billion in green bonds.
ADCB has also launched its second Green Bond Report, which details the impact of the Bank’s Eligible Green Loan Portfolio, which has grown by 84 per cent year-on-year with an estimated 1.8 million tonnes of CO2 emissions avoided annually.
The report is independently assured in accordance with its Green Bond Framework, based on the International Capital Markets Association (ICMA) Green Bonds Principles.
“The notable ESG rating upgrade reflects ADCB’s commitment to industry leading practices in sustainability”, said Ala’a Eraiqat, Group CEO of ADCB. “As a major UAE financial institution, we recognise the importance of managing our impacts for the benefit of our stakeholders.”
“Sustainability is a cornerstone of our corporate strategy, and we continue to integrate environment and social considerations into our lending decisions, and to increase sustainable financing. Our 2024 Green Bond Report showcases how the Bank’s financing of environmental projects delivers a positive impact for society and supports the UAE Net Zero by 2050 strategic initiative.”
The Bank is a member of the UN-convened Net Zero Banking Alliance (NZBA), a group of over 140 leading global banks with more than USD 74 trillion in total assets committed to financing climate action and reducing their emissions in line with the goals of the Paris Agreement.