Aldar gains ground within two global ESG benchmarks Gulf Business
Impact Investing Forum 2023
London. May 04-05, 2023.
Aldar Properties has increased its environmental, social and governance (ESG) ratings within two major global benchmarks, the Dow Jones Sustainability Index (DJSI) and Sustainalytics, driven by a broad base of progress and improvements across its core sustainability pillars.
The company demonstrated strong gains in environmental impact monitoring, embedding environmental impacts into management reporting and decision-making processes, and launching new social impact initiatives.
In 2021, Aldar scored 58 points on DJSI, representing a 53 per cent year on year improvement from the 38 points scored in 2020. The company is now among the top 13 per cent of the 237 global real estate companies invited to respond to the DJSI questionnaire.
In addition, Aldar received a score of 16.6 on Sustainalytics’ ESG risk assessment scale, indicating a low level of ESG risk. Results are measured on a scale of 0 to 100, with a rating between 10 and 20 classified as ‘low risk’. Aldar was ranked ninth in the global ranking of 107 diversified real estate companies analysed. It also maintained its BB rating in the 2021 Morgan Stanley Consumer Index, which tracks exposure to ESG risks and how well companies manage those risks relative to peers.
Aldar’s rating meets the average global rating for companies included in the list.
The Abu Dhabi-based company’s efforts to improve its environmental performance were recognised by the ESG rating agencies based on the development of several integral policies, a group-wide energy audit project, and its recent response to the Task Force for Climate Related Financial Disclosures, all of which contributed to the improved ratings.
Aldar was also recognised in the community pillar following initiatives to ensure equal employment opportunities in line with its diversity and inclusion strategy and protecting worker rights as part of its worker welfare strategy.
Improvements were also seen in the economic impact pillar, as the company reduced its ESG risk through effective risk management policies and increased transparency on corporate governance.
Greg Fewer, Aldar’s chief financial and sustainability officer, said: “We have taken concrete steps to monitor and tackle ESG issues and risks related to climate change, energy usage and social impact, and the latest rankings show that this approach is working. The improvement in our third party ESG scores reflects our consistent and broad integration of sustainability practices in all that we do.”
Read: Aldar Properties becomes MENA’s first real estate company to secure sustainability-linked loan