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Abu Dhabi Securities Exchange Launches ESG Benchmark Index

The Abu Dhabi Securities Exchange (ADX) has introduced its first Environmental, Social, and Governance (ESG) benchmark index.

The Abu Dhabi Securities Exchange (ADX) unveiled its inaugural Environmental, Social, and Governance (ESG) benchmark index, the FTSE ADX ESG Screened index. 

Developed in collaboration with FTSE Russell, this index aims to assess the ESG performance of listed companies, reflecting a commitment to sustainable and responsible business practices.

Inaugural Index Composition:

The newly launched ESG index will initially include 24 companies listed on the ADX market.

These companies are selected based on their presence in the FTSE ADX General Index, signifying their prominence in the exchange. 

The index’s composition reflects the growing importance of ESG considerations in investment decisions.

Key ESG Criteria and Measurement:

Companies in the FTSE ADX ESG Screened index will be evaluated on various ESG criteria, including emissions, environmental product innovation, human rights, and shareholder-related factors. 

The measurement process will be conducted annually, providing investors and stakeholders with insights into the ESG performance of these entities.

Aligning with Global Sustainability Goals:

The launch of the ESG benchmark index aligns with global sustainability goals and precedes the COP28 summit, where discussions on climate action and sustainable practices are expected to take center stage. 

The ADX’s initiative reflects the exchange’s commitment to fostering responsible business conduct and contributing to the broader sustainability agenda.

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