Abu Dhabi Commercial Bank (ADCB) (ADCB.AD), UAE's third-biggest lender, announced on Sunday it had received an upgrade in its MSCI ESG rating to 'AA' from 'A'. The upgrade was driven by "leading digital transformation initiatives" to support small businesses as well as its robust customer data protection and information security practices. Following the upgrade, ADCB is now ranked by MSCI as a global leader and in the top 29 percent of companies included in the MSCI ACWI global equity index for managing environmental, social, and governance (ESG) risks and opportunities. ADCB's strong performance in the "social" aspect played an important role in the rating upgrade, the statement read. In addition, MSCI highlighted the bank's digital services, particularly those supporting small businesses during the global pandemic. ADCB stated that it remains committed to serving under-banked segments of the economy and operates a dedicated division catering to the needs of new start-ups and micro businesses. In the area of human capital development, the bank said it received "top" rankings relative to peers for talent pipeline development and its graduate trainee programme in recognition of ADCB's actions on career and skills advancement, particularly for UAE nationals. The MSCI upgrade highlighted ADCB's achievement of industry-leading scores for consumer financial protection, robust data security and compliance, while highlighting the frequency of system audits and employee training. ADCB also added that its governance score had increased, with the bank ranking above average globally for business ethics, while MSCI noted favourably the low environmental intensity of the bank's loan portfolio. "The ESG rating upgrade by MSCI places ADCB amongst corporate leaders globally. By effectively managing ESG risks and opportunities, ADCB is contributing to socio-economic development in the UAE and ensuring long-term sustainability of our business." Ala'a Eraiqat, ADCB's group chief executive, said. "This institutional strength allows us to provide consistently high-quality service to our customers and play a progressive and supportive role in our wider community. "ADCB has embarked on a comprehensive ESG journey that will be embedded into our five-year business strategy. We are continuously building on our ESG framework, which incorporates robust policies and processes, materiality assessments and target setting."
