ADX eyes growth, floats region’s first sustainability report

Abu Dhabi Securities Exchange (ADX), part of ADQ, on Sunday announce the launch of its first Sustainability Report, the first across the region to be presented in such a comprehensive format and is expected to be updated annually.

The report, ADX said, is aligned with its growth strategy, and 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 help align the UAE’s financial system with global best practice and advance the implementation locally of the United Nations’ Sustainable Development Goals, SDGs.

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 comply with recommendations issued by the Sustainable Stock Exchange Initiative, SSE, and the World Federation of Exchanges, WFE, of which ADX is a member.

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; Market Education, Technology and Education, Responsive Marketplace, and Resilience Infrastructure.

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 Initiative.

ADX’s Sustainability Report establishes a dedicated financial framework to facilitate sustainable investments. It consists of four main sections, which are market education enabling ESG/Sustainability reporting and sustainable investment practices; technology and education through e-service portals designed to provide investors with the information and tools they need.

It also consists responsive marketplace with the intent to align ADX’s business with its customer-centric strategy and resilience infrastructure to ensure orderly trading and reliability of the exchange’s infrastructure.

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.”

Abu Dhabi Securities Exchange (ADX) was established on November 15 of the year 2000 by Local Law No. (3) of 2000, the provisions of which vest the market with a legal entity of autonomous status, independent finance and management. The Law also provides ADX with the necessary supervisory and executive powers to exercise its functions.

On 17th March 2020, ADX was converted from a “Public Entity” to a “Public Joint Stock Company” pursuant to law No. (8) of 2020. ADX is part of ADQ, one of the region’s largest holding companies with a diverse portfolio of major enterprises spanning key sectors of Abu Dhabi’s non-oil economy.

ADX is a market for trading securities; including shares issued by public joint stock companies, bonds issued by governments or corporations, exchange traded funds, and any other financial instruments approved by the UAE Securities and Commodities Authority (SCA).

ADX is the second largest market in the Arab region and its strategy of providing stable financial performance with diversified sources of incomes is aligned with the guiding principles of the UAE “Towards the next 50” agenda.

WAM/Agencies