Exchange in Focus: ADX introduces its first sustainability report
30 June 2020
Abu Dhabi Securities Exchange (ADX) has launched its first annual Sustainability Report. ADX joined the SSE in 2019 and this Sustainable Report reinforces its pledge to the UN to promote sustainability and transparency in capital markets. The report is aligned with ADX’s growth strategy, which aims to increase the adoption of sustainable financing in the Emirate and drive capital towards investments that have positive environmental, social and governance (ESG) impacts. The report illustrates ADX’s commitment to helping align the UAE’s financial system with global best practice and advance the implementation locally of the United Nations’ Sustainable Development Goals (SDGs).
H.E. Khalifa Salem Al Mansouri, Chief Executive of ADX, said: “Following our commitment announced at the Abu Dhabi Sustainable Finance Forum during the most recent Abu Dhabi Sustainability Week in January, we are proud that our first Sustainability Report advances the sustainability agenda we announced at the time. 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. 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”.
The report comes a few months after ADX issued a set of ESG disclosure guidelines to encourage its listed companies to incorporate ESG considerations into their business activities, decision-making and reporting. To better address the interest of local and international investors in sustainable investing, the report aims to motivate listed companies to follow ADX’s lead by issuing their own sustainability reports. These companies are encouraged to adhere to ADX's index indicators, which are aligned with the Global Reporting Initiative (GRI), including 31 KPIs that form the ESG Disclosure Guidance rules. These rules are in line with recommendations issued by the Sustainable Stock Exchanges initiative (SSE) and the World Federation of Exchanges (WFE), of which ADX is a member.
H.E. Khalifa Salem Al Mansouri continued “We hope that ADX’s Sustainability Report will boost good governance for ADX-listed companies and push them to explore new investment opportunities opened up by sustainable finance. 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”.
ADX’s Sustainability Report establishes a dedicated financial framework to facilitate sustainable investments. It consists of four main sections:
1) Market Education enabling ESG/Sustainability reporting and sustainable investment practices.
2) Technology and Education through e-service portals designed to provide investors with the information and tools they need.
3) Responsive Marketplace with the intent to align ADX’s business with its customer-centric strategy.
4) Resilience Infrastructure to ensure orderly trading and reliability of the Exchange’s Infrastructure.
H.E. Khalifa Salem Al Mansouri concluded: “At ADX, we anticipate further growth of sustainable investments across the region to meet evolving expectations of retail and institutional investors alike. With the launch of our ESG report, we are making a significant contribution towards realizing 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.”
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 Sustainable Stock Exchanges (SSE) initiative.
50 Exchanges with sustainability reports
To learn more, visit the SSE’s database of stock exchange sustainability activities. Currently, the database has data on 102 stock exchanges and tracks progress on key activities where exchanges are promoting sustainable business and investment practices. It is the largest data set of its kind and the data is freely accessible.
About the SSE
The SSE initiative is a UN Partnership Programme organised by UNCTAD, the UN Global Compact, UNEP FI and the PRI. The SSE’s mission is to provide a global platform for exploring how exchanges, in collaboration with investors, companies (issuers), regulators, policymakers and relevant international organizations, can enhance performance on ESG (environmental, social and corporate governance) issues and encourage sustainable investment, including the financing of the UN Sustainable Development Goals. The SSE seeks to achieve this mission through an integrated programme of conducting evidence-based policy analysis, facilitating a network and forum for multi-stakeholder consensus-building, and providing technical assistance and advisory services.
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