Abu Dhabi, 02 June 2021: MSCI* has recently upgraded First Abu Dhabi Bank’s (FAB) ESG rating from A to AA, placing it in the ‘leader’ category.
MSCI assesses the environmental, social responsibility and governance (ESG) risks of companies, and their ability to manage those risks relative to peers. MSCI ESG ratings range from leader (AAA, AA), average (A, BBB, BB) to laggard (B, CCC).
The rating upgrade to AA was partly based on a reassessment of FAB’s improved management practices related to mitigating environmental risks in its lending business. MSCI noted that in addition to being an Equator Principles signatory, FAB has a robust ESG risk assessment in its banking operations relative to industry peers, and that both the ESG due diligence in its corporate lending activities and involvement in green loans and bonds issuance help mitigate environmental risks. Another factor cited as contributing to the rating upgrade was FAB’s industry-leading practices for talent management, including an in-house training facility and succession planning for critical roles.
Hana Al Rostamani, Group Chief Executive Officer, FAB, said: “We are delighted to have received this rating upgrade, which recognises our continued efforts to address and mitigate ESG risks while driving a strong sustainability agenda. We are extremely proud of our leading position on ESG in the region and firmly believe that delivering on sustainability is an important contributing factor in our goal to generate long-term value for all our stakeholders. This will continue to be a key focus for us in 2021, and we are already underway in finalising our ESG risk management framework.”
FAB’s ESG credentials
- Constituent of the FTSE4Good and MSCI ESG Index
- Awarded the Middle East’s Best Bank for Corporate Responsibility by the Euromoney Awards for Excellence – 2020
- In 2020, CDP upgraded FAB from a B to A- score for the bank’s climate disclosure
- One of the leading banks for green finance and a leading green bond issuer regionally and globally with FAB Green Bonds outstanding exceeding USD 1 Billion
- Corporate partner with Aurora50, a UAE based social enterprise that aims to increase board-level gender diversity
* As of 20 April 2021, First Abu Dhabi Bank PJSC (FAB) MSCI ESG Rating was upgraded to AA.
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