Abu Dhabi Securities Exchange (ADX) has partnered with FTSE Russell to introduce the FTSE ADX ESG Screened Index, a move aimed at enhancing sustainable investment practices. The announcement made Tuesday by ADX chief executive Abdulla Al Nuaimi underscores the exchange's commitment to sustainability ahead of the COP28 climate change summit.
The new index, which assesses companies based on their environmental, social, and governance (ESG) performance, utilizes data provided by LSEG Data and Analytics. This initiative is part of a broader strategy to position the UAE as a global hub for responsible investment.
The collaboration between ADX and FTSE Russell began in 2021, with the objective to attract global investors through transparent indices. The FTSE ADX ESG Screened Index comprises 24 companies selected from the existing FTSE ADX General Index. Fiona Bassett emphasized the importance of this benchmark in supporting the UAE's agenda for economic sustainability.
In recent years, ADX has made strides in advancing its ESG efforts. This includes the launch of its first Sustainability Report in 2020 and the collaboration on unified GCC ESG Disclosure Metrics. The exchange has also seen a notable increase in green finance listings, such as the Dh1.3 billion Green Sukuk from First Abu Dhabi Bank, as well as Green Bonds from Masdar and TAQA.
Established two decades ago and restructured into a Public Joint Stock Company (PJSC) in March 2020 under law No. (8), ADX operates under the umbrella of ADQ as part of Abu Dhabi's strategic vision for economic diversification. FTSE Russell, affiliated with the London Stock Exchange Group (LON:LSEG), is a global index leader that develops indices guiding both institutional and retail investors' decisions worldwide. The creation of the FTSE ADX ESG Screened Index marks a significant step in ADX's journey towards integrating sustainable practices into its core operations and offerings.
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