Abu Dhabi Islamic Bank (ADIB) has secured 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 to achieve this distinction for 2024.
Similarly, ADIB ranks among 27% of organisations listed on the MSCI ACWI index globally, recognised for their excellence in managing ESG risks.
“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,” said Mohamed Abdelbary, Group Acting Chief Executive Officer of ADIB.
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.
ADIB has set a net-zero emissions target by 2030 as part of its ESG commitment and achieved a 65% reduction in Scope 1 emissions compared to 2022. The Islamic bank announced emissions reduction targets for six key portfolio sectors by 2030 and financed AED 5.57 billion in sustainable finance activities in 2023.
