ADX’s new guidelines to support growth and sustainable trade

ABU DHABI / Emirates Business

Abu Dhabi Securities Exchange (ADX) announced on Saturday that it has issued an environmental social & governance (ESG) disclosure guidelines for listed companies. The launch of this set of 31 key performance indicators (KPIs) is aligned with ADX strategy which is designed to support economic growth, while providing a sustainable trading environment and encouraging the business community to adopt societal sustainability practices.
The model guidance on reporting ESG information to investors raises the standard of governance, by putting into operation sustainability standards and integrating them into both ADX strategy and listed companies alike. The newly-released standards, which are more comprehensive than many other exchanges has issued, will enhance ADX’s competitiveness and attract more responsible investments to the emirate in line with the recommendations of the United Nations Sustainable Stock Exchanges Initiative (SSE), the World Federation of Exchanges (WFE), the Global Reporting Initiative (GRI) and the International Integrated Reporting Framework.
ESG guided principles will ensure ADX continues to make essential contributions towards promoting sustainability in financial markets, in alignment with the UAE National Vision 2021 and Abu Dhabi Economic Vision 2030, which both outline approaches to develop appropriate infrastructure while preserving s a based on a sustainable and knowledge-based economy. Companies’ application to the standards of this guide opens the way for investments supported by $83 trillion in asset allocation from various Asset Management Funds (AMC) directed to companies that apply environmental, social and corporate governance standards.
HE Khlalifa Salem Al Mansouri, Acting Chief Executive of ADX said: “ADX has made a formal commitment to drive sustainability in financial markets by becoming a partner exchange of this United Nations led ‘The Sustainable Stock Exchanges’ initiative (SSE). We have carried out this programme to support our listed issuers in their sustainability reporting journey. The ESG Disclosure Guidance represents a natural evolution of our status as a regional-leading exchange, stemming from ADX’s status as a member of the Sustainability Group in the World Federation of Exchanges (WFE).”
The launch of the guide is a continuation of the exchange’s strategy aimed at supporting the national economy. This is achieved by providing a sustainable trading environment, launching initiatives that encourage the business community to adopt environmental and societal sustainability practices. The standards of governance will be raised by enforcing sustainability standards and integrating them into both ADX strategy and listed companies.