ADX Signs MoU with Sustainability Excellence to Promote Sustainability Initiatives and ESG Principles Among Stakeholders

Wednesday, 17 October 2018

Abu Dhabi Securities Exchange (ADX), the region’s leading
financial market, signed a Memorandum of Understanding (MoU) with the management
consulting firm Sustainability Excellence. The MoU is aimed at deploying Environment,
Social and Governance (ESG) -related initiatives that would enable ADX to promote ESG
and sustainability values and practices among its listed issuers and investors as well as
Signing the MoU is part of ADX’s strategy to foster a sustainable economy and trading
environment and launch initiatives that stimulate the business community to embrace
ESG development practices. This will be accomplished by the activation and integration
of ESG standards into the strategy of the Exchange and the listed companies. The move
will enhance market competitiveness and attract responsible investments to the emirate.
Rashed Al Blooshi, Chief Executive of ADX, affirmed the Exchange’s commitment in
developing the local market by adopting sustainability practices that will attract new
segments of investors that are keen on sustainable development, and focus on
maintaining positive environmental performance, outstanding social responsibility and
adherence to corporate governance standards, consequently enhancing liquidity in the
markets. Al Blooshi said: “ADX will intensify its efforts in the next phase to promote
responsible investment and encourage constructive dialogue between investors and
listed companies.”
Al Blooshi added that the signing of the MoU would enhance the market’s ability to
achieve its strategy of becoming a sustainable market for securities. The agreement will
set a framework for joint action and coordination, identify areas of collaboration and
interaction with investors and contribute to the promotion of sustainability in various
market events and publications. Additionally, it will build internal capacity and stimulate
innovation in digital data.
He continued: “With the support of Sustainability Excellence, ADX will develop the first
ESG Reporting Guidance Document in alignment with the recommendations of the
United Nations Sustainable Stock Exchanges Initiative (SSE) and the World Federation of
Exchanges. Furthermore, we will formulate an investable Sustainability Index and
prepare a research report on ESG.”
Commenting on the signing of the MOU between ADX and Sustainability Excellence,
Mr. Darin Rovere, Founder and CEO of Sustainability Excellence, added: “Investors’
growing interest in ESG disclosure is fueled by strong evidence of links between ESG
and financial performance. We are pleased to support the ADX’s efforts in promoting
ESG disclosure among the listed companies and promoting ESG in financial markets.”
In addition, ADX, with assistance from Sustainability Excellence, will hold free quarterly
training sessions and interactive workshops with listed companies to apprise them of
sustainability issues and their applications, as well as assign them a classification in the
sustainability report prepared by the company. ADX will also develop a sustainability
strategy and issue a sustainability report based upon it. Furthermore, ‘State-ofSustainability’
training sessions will be conducted for ADX management and staff, while
an online sustainability performance platform will be offered to allow listed companies
to benchmark their ESG data.
ADX is committed to implementing Abu Dhabi’s plan to develop the financial services
sector, with a view to attracting investments and enhancing the Emirate’s
competitiveness in doing business. To achieve this ADX will provide a distinct
investment climate and a stable trading environment for investors and listed companies
in adherence with best practices and international standards.