Abu Dhabi, UAE, 19 July 2023: Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, has achieved an upgrade to its environmental, social, and governance (ESG) risk score by Sustainalytics, one of the world's leading ESG rating agencies.
ADIB's overall Sustainalytics ESG risk score has improved from 34.25 in 2022 to 29.6 in 2023, reflecting a significant leap that transitioned ADIB from the 'high risk' category to the 'medium risk' category. This achievement underscores the bank's strong commitment to ESG principles and its ongoing efforts to effectively manage risks. The ratings are measured on a scale from 0 to 100, with lower scores indicating a reduction in risk.
Lamia Khaled Hariz, Head of Corporate Communications, Marketing & Investor Relations, ADIB, said: “ADIB's transition to the 'medium risk' category underscores our unwavering dedication to sustainable practices. We take a great pride in the progress we made in environmental, social, and institutional governance, and the measures implemented, whether in reducing the carbon footprint, promoting diversity and inclusiveness, or integrating sustainability into our business model. Our priority lies in focusing on ESG aspects that create the greatest value by implementing product innovation with a clear focus on positive sustainability impacts. Over the past year, we have witnessed remarkable progress in terms of our "plan for a sustainable future". However, there is still much work ahead of us, beginning with the implementation of our three-year standalone ESG Strategy.
ADIB's proactive and comprehensive approach to ESG risk management demonstrates its commitment to sustainable practices and responsible banking. By integrating ESG risk assessments, introducing green and social products, and leveraging the convergence of ESG and Shari'a principles, the bank further strengthens its efforts to lead the market towards sustainable financing. With a strong focus on creating wider positive impacts, ADIB upholds ethical Shari'a principles and offers innovative products and services that promote affordability and sustainability for customers across the UAE and beyond.
During 2022, the bank took actions to reduce its carbon footprint, recording a 26% reduction in energy intensity and allocating $1.7 billion to finance sustainable projects under green financing. In addition, Abu Dhabi Islamic Bank obtained six green building certifications, and succeeded in reducing its paper consumption by the equivalent of five million sheets through the “Al Ghaf Program" to reduce paper consumption in the year 2022.
These notable advancements signify an early milestone in ADIB's ESG journey, exemplifying the institution's ongoing commitment to continuously enhancing its ESG risk management year after year. These remarkable progressions are a direct outcome of ADIB's unwavering dedication to governance excellence, which forms the cornerstone of its operations. ADIB remains dedicated to driving positive change within the financial sector and will continue its sustainability efforts to create a better future for all.