Aldar Properties announced an annual improvement in its environmental, social and corporate governance ratings within 3 major global indicators, with continued gains as a result of the company's integration of environmental, social and corporate governance practices into its operating model.
Aldar Properties' success in moving up the ratings of the Staminalytics, Morgan Stanley Capital International and Dow Jones Sustainability Indexes was due to improvements in data disclosure practices, governance and risk management, as well as improved supply chain and environmental management.
According to a company statement, which Namazon received its copy today, Monday, Aldar Properties’ scores improved on the Environmental, Social and Corporate Governance Risk Assessment Scale from the Central Analytics Company, as it obtained a score of 16.1 in 2022, compared to 16.6 in 2021, which indicates a low level of risk. associated with environmental, social and corporate governance practices.
Results are measured on a scale from 0 to 100, with ratings between 10 and 20 being considered low risk. Aldar Properties also ranked 11th in the global ranking among a list of 104 diversified real estate companies included in the study.
In addition, Aldar Properties succeeded in rising to the BBB rating during the year 2022, compared to the BB rating in 2021, within the Morgan Stanley Capital International index, which monitors the level of exposure of companies to environmental, sustainability and governance risks and measures their success in facing these risks compared to their peers. .
Aldar Properties scored 60 points this year on the Dow Jones Sustainability Index, compared to 58 points scored by the company in 2021. The company is now among the top 7% of the 237 global real estate companies invited to participate in the Dow Jones Sustainability Index survey.
Commenting on the company's improvement in the company's environmental, social and corporate governance ratings, Salwa Al-Maflahi, Director of Sustainability and Corporate Social Responsibility at Aldar Properties, said: The broad improvement in the company's ratings within environmental, social and corporate governance practices reflects the great strides we have made in order to improve the quality of our data in all areas. and our success in enhancing risk and governance processes. This remarkable progress is also a testament to our commitment to reducing energy use, improving the quality of life in our communities, and promoting diversity and inclusion. While we have successfully integrated sustainability into the company's operating model, we know we need to do more. We will continue to take the necessary measures to further improve the company's valuation and enrich the value we provide to shareholders.
During 2022, Aldar Properties took steps to reduce its carbon footprint, which included an agreement with the Emirates Water and Electricity Company. Under this agreement, the Emirates Water and Electricity Company will supply all of Aldar's operating assets with clean energy sources over the next five years. In addition, Aldar invested 25 million dirhams last September in a package of projects to enhance energy efficiency within the 13 residential complexes of the group, which enhances their energy efficiency and converts them into environmentally friendly buildings. This project will contribute to reducing carbon dioxide equivalent emissions by 19,000 tons annually, and achieving savings in energy consumption and utility services worth 12 million dirhams annually across 13 residential complexes. current, which is expected to contribute to reducing energy consumption across 80 assets of its portfolio by 20%.
In August 2022, Aldar Properties joined the Expert Advisory Group of the Science Based Goals Initiative (SBTi), to be the first company in the Middle East to participate in the group, in order to provide its advisory services to real estate and construction companies around the world on setting climate neutrality goals based on Science. In November of this year, Aldar also joined the Clean Energy Industries Council, a non-profit organization that aims to accelerate efforts in the transition and smooth transition to the adoption of clean energy sources at the level of the Middle East and North Africa, by strengthening cooperation between the public sectors. and private.
