Abu Dhabi: Abu Dhabi Securities Exchange (ADX) on Sunday launched its first sustainability report, which aims to increase the adoption of sustainable financing in the emirate.
The report comes a few months after ADX issued its set of ESG (environmental, social and governance) disclosure guidelines to encourage its listed companies to incorporate ESG considerations into their business activities, decision-making and reporting.
“This report places ESG at the heart of our emirate’s financial system and reinforces the leadership position we are taking to drive sustainability in financial markets,” said Khalifa Salem Al Mansouri, chief executive of ADX.
“We are determined to integrate sustainable practices into our business as ESG’s impact on access to capital, revenue growth, brand value and reputation is increasingly important around the world,” he added.
The report also establishes a financial framework to facilitate sustainable investments, with the framework consisting of four key areas – market education, technology and education, responsive marketplace and resilience infrastructure.
“At ADX, we anticipate further growth of sustainable investments across the region to meet evolving expectations of retail and institutional investors alike,” Al Mansouri said. “With the launch of our ESG report, we are making a significant contribution towards realising our leadership’s vision in boosting the UAE’s financial exchanges’ competitiveness, attracting more sustainable investments to Abu Dhabi and helping to diversify the economy,” he added.
Al Mansouri also said the report aims to encourage listed companies to follow ADX’s lead by issuing their own sustainability reports and boosting their own good governance practices.
“ESG, corporate ethics, disclosure and transparency are essential elements for today’s investors, and the implementation of best practice in sustainable investing is of importance to boost our exchange’s international competitiveness,” he added.
ADX is one of the signatories of the “Abu Dhabi Sustainable Finance Declaration”, and a member of the UAE Working Group on Sustainable Finance and the United Nations Partnership Programme’s Sustainable Stock Exchange (SSE) Initiative.