Aldar Advances Its Position With Improved Ratings Across Three Global Benchmarks

Aldar Properties (Aldar) has witnessed a robust year-on-year improvement in its ratings across three major global environmental, social, and governance (ESG) benchmarks, as gains continued to be made as a result of the strategic integration of ESG into the firm’s operating model.

Aldar’s higher ESG ratings from Sustainalytics, MSCI, and the S&P Dow Jones Sustainability Index (DJSI) were driven by enhanced data disclosure, governance, and risk management processes as well as improved supply chain and environmental management.

Aldar received an improved score of 16.1 on Sustainalytics' ESG risk assessment scale in 2022, indicating a low level of ESG risk, compared to 16.6 in 2021. Results are measured on a scale of 0 to 100, with a rating between 10 and 20 classified as "Low Risk". Aldar was ranked 11th in the global ranking of 104 diversified real estate companies analysed.

Aldar also saw an upgrade to its MSCI ESG rating in 2022 to “BBB” from “BB” in 2021. MSCI tracks exposure to ESG risks and how well companies manage those risks relative to peers.

Meanwhile, Aldar achieved 60 points in 2022 on the Dow Jones Sustainability Index, up from 58 points in 2021.

The improved score moves the company into the top 7% of the 237 global real estate companies surveyed by DJSI.

Commenting on the improvement in ESG ratings, Salwa Al Maflahi, Director of Sustainability and CSR at Aldar, said, “The broad improvement in our ratings reflects the solid steps we have taken to enhance the quality of our data across the board and to enhance risk and governance processes.

The commitments we have made to reduce our energy usage, enhance the quality of life in our communities and promote greater diversity and inclusivity are also demonstrated in the improvement of our ESG and sustainability ratings in 2022.

While we have integrated sustainability into our operating model, we recognise that there is more work to be done, and we will continue to take the necessary measures that will further bolster our ratings and enrich shareholder value.”

During 2022, the steps Aldar took to reduce its carbon footprint included the signing of an agreement that will see 100 percent of Aldar’s owned and managed operating assets being powered by Emirates Water and Electricity Company’s clean energy sources for up to five years.

Aldar also launched a portfolio-wide energy management project to reduce its energy consumption by approximately 20 percent across 80 assets including hotels, schools, commercial, leisure, retail, and residential buildings.

In addition to reducing energy emissions, the project will enable Aldar to save approximately AED 40 million per year in energy consumption costs.

This was followed by a commitment in September to invest AED 25 million in energy retrofit projects in 13 of its managed residential communities, making them more energy efficient and environmentally friendly.

The investment will offset 19,000 tCO2 per year and reduce utility consumption by a total of AED 12 million per year across the 13 communities.

In August 2022, Aldar joined the Science Based Targets initiative (SBTi)’s Expert Advisory Group for the buildings sector, making it the first Middle Eastern company to advise SBTi on a science-based net-zero target-setting for real estate and construction companies around the world.

Meanwhile, in November, Aldar joined the Clean Energy Business Council, a non-profit member association that is working to accelerate the transition towards clean energy in the MENA region, by connecting the public and private sectors.