Representatives of various ADX departments and representatives of listed companies attended the two workshops. Both workshops reviewed practical applications that explain the strategic importance of including sustainable practices in business operations, especially as investments are increasing into companies that apply environmental, social, and corporate governance standards. The workshops highlighted the environmental, social and governance criteria (ESG) of listed companies and how investors can benefit from disclosure and reporting standards of these criteria.
These workshops are part of the Exchange’s initiatives in 2019 to continue its efforts to encourage listed companies to adhere to sustainability standards. During the coming period, ADX will organize more events, interactive workshops, and lectures on the same subject. The Exchange is currently working on developing optional environmental, social, governance, and sustainability ESG guidelines to be applied by listed companies.
The two workshops highlighted the growing number of signatory members of The United Nations-supported Principles for Responsible Investment (PRI) that was launched in 2006.
The PRI reflects the growing link between compliance with environmental and social standards, corporate governance and investment practices. The number of institutional investors signed on the initiative rose from 63 investors in 2006 to 1961 investors in mid-2018.
It is estimated that the Assets Under Management (AUM) by funds directed to companies that apply environmental, social standards, and corporate governance amounts to about USD 80 trillion, as these funds seek opportunities for sustainable investment in financial markets and listed companies that comply with these standards. By encouraging listed companies to adhere to these standards, ADX seeks to attract more of these investments to the Exchange, supporting its position as the preferred destination for foreign investments in the region.
H.E. Khalifa Salem Al Mansouri, Acting Chief Executive of ADX, said:” ADX is constantly working with listed companies to enhance the Exchange’s competitiveness and attract more sustainable foreign investments to the Emirate of Abu Dhabi. ADX has recently joined the United Nations Sustainable Stock Exchange (SSE) Initiative, the initiative to ensure that financial markets are more sustainable and transparent. The Exchange has also been elected to the World Federation of Exchanges (WFE) Sustainability Working Group. In addition, ADX is one of the signatories of the Abu Dhabi Sustainable Finance Declaration. The measures we have taken solidify our commitment to responsible investment principles”.
Al Mansouri pointed out that the inclusion of sustainability practices in various aspects in the Exchange is a key approach for ADX that affirms its strategy aimed at supporting the national economy and providing a transparent, fair, and sustainable trading environment. Organizing governance workshops for listed companies is a continuation of our efforts to consolidate the principles of governance in the Exchange’s operations”.
It is worth mentioning that in cooperation with the same global expertise house, ADX will be holding individual workshops within the listed companies to the concerned individuals in these companies. Theses individual workshops will be on the subject of sustainability in preparation for the companies’ compliance with the general guidelines that will be developed by the Exchange in the near future on sustainability, Environmental, Social, and Governance (ESG) reporting.