This is in line with ADX’s strategy to create a sustainable trading environment and launch initiatives that encourage the business community to embrace sustainable development practices. The move also reaffirms the exchange’s commitment to spur long-term sustainable investment, as well as improved environmental, social and corporate governance disclosure, while enhancing performance amongst listed companies. This will ultimately enhance competitiveness in the market and attract responsible investments to the emirate of Abu Dhabi.
The Sustainable Stock Exchanges (SSE) Initiative is a peer-to-peer learning platform that enables exchanges, in collaboration with investors, regulators and companies, to enhance corporate transparency, environmental, social and corporate governance processes, as well as encourage sustainable investment. The SSE aligns with sustainable development goals (SDG) to help focus its activities and coordinates efforts with stock exchanges in the following areas: gender equality, decent work and economic growth, sustainability information, climate change and global partnerships.
Commenting on the development H.E. Khalifa Salem Al Mansouri, Acting Chief Executive of ADX said: “To help solve global sustainable development challenges the UN is increasingly looking to the private sector, and stock exchanges are well positioned to play a crucial role in facilitating more sustainable markets. This is the reason we are delighted to join the United Nations Sustainable Stock Exchanges (SSE) Initiative to work alongside several leading exchanges to encourage long-term thinking, as well as integrate sustainable development into investment and financial products. Sustainability is no longer merely a government responsibility – it requires concerted effort from all stakeholders to achieve sustainable development and economic growth.”
H.E. affirmed the Exchange’s commitment to bolster the local market by adopting sustainability practices that will attract new segments of investors who are keen on sustainable development. Furthermore, this will help create positive environmental performance, enhanced social responsibility and adherence to corporate governance standards, which in turn will strengthen liquidity in the markets. H.E. added: “As part of the next phase, the Exchange will intensify its efforts to promote responsible investment and encourage constructive dialogue between investors and listed companies.”
ADX was elected to be a member of the Sustainability Working Group (SWG) in the World Federation of Exchanges (WFE), enabling the market to promote sustainability internally, as well as amongst its listed issuers and investors. This enables ADX to foster a sustainable economic and trading environment by deploying Environment, Social and Governance (ESG)
Furthermore, ADX recently signed the ‘Abu Dhabi Sustainable Finance Declaration’, which was initiated by Abu Dhabi Global Market (ADGM) as a united front to create positive economic, social and environmental impact and advocate sustainable finance and investments for the long-term growth of the UAE’s economy.