Aldar enters top quartile of MSCI ranked global real estate companies with ESG rating upgraded to ‘A'

Zawya

4 hours ago

Improved MSCI rating from 'BBB' to 'A' adds to Aldar's number one regional real estate ranking in S&P Dow Jones Sustainability Index, and 'low risk' ESG Risk Score of 15.75 from Sustainalytics
Abu Dhabi, UAE – Aldar has been upgraded to an 'A' rating in the latest MSCI ESG Rating assessment, placing the company in the top quartile of real estate companies tracked by MSCI globally. The rating upgrade reflects the company's continued progress in strengthening its environmental, social, and governance practices across its operations in alignment with global sustainability standards.
MSCI is a leading global rating agency that evaluates companies' exposure to industry-specific ESG risks and their ability to manage those risks relative to peers. The ratings are widely used by investors to evaluate how companies manage long-term risk and an 'A' rating signals that the integration of ESG principles into the company's long-term strategy is having a tangible impact.
Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said: 'This upgrade reflects the significant strides we've made in embedding ESG as a core principle of how we do business across the group. As we continue delivering on our strategic growth roadmap, we remain committed to responsible value creation and transparency, ensuring we contribute positively to our stakeholders, the local economy, and the environment. Achieving an 'A' rating from MSCI is a strong endorsement of our actions and a motivating step to advance our position within the top quartile of our sector globally.'
Aldar's strongest increase in performance came from an improvement in governance practices, with the company's corporate behaviour score, measuring both business ethics and transparency, increasing by 2.1 points, reaching 8.3 out of 10. This is at the top end for the sector in EMEA emerging markets. The best-in-class corporate behaviour, in tandem with gains across environmental assessment category, drove the overall upgrade from MSCI.
The MSCI upgrade adds to Aldar's strong performance across a wide range of indices and ratings. In 2024, Aldar ranked first on the S&P Dow Jones Sustainability Index in the regional real estate sector and achieved a 'low risk' ESG Risk Score of 15.75 from Sustainalytics, outperforming the peer average.
Aldar continues to be recognised for sustainable building practices, and in 2024, 80% of new developments achieved a 3 pearl Estidama rating, or higher, out of a possible 5, awarded by Abu Dhabi Urban Planning Council. Additionally, 23% of all retrofitted assets achieved either Leadership in Energy and Environmental Design (LEED) Gold or Platinum – the two highest classifications that can be awarded by the US Green Building Council.
Aldar continues to be an industry leader in ESG, exemplified by its ambitious net zero by 2050 plan, commitment to social impact and responsible governance. In 2024, Aldar's low carbon design led to a 34% reduction in average energy use intensity, while separately achieving a 24% reduction in scope 1 and a 19% reduction in scope 2 emissions. Additionally, Aldar contributed AED 18 million in community investment in the same year and its employees delivered more than 3,300 volunteering hours. Supporting the local economy, Aldar reinvested AED 10 billion as part of the national In-County Value programme. These improvements are built on Aldar's robust governance and commitment to responsible, ethical business practices.
For more information on sustainability at Aldar, please see the Sustainability Report 2024, listed on the company's website.
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For media enquiries please contact:
Obaid Alyammahi
Aldar Properties
Rosanna Hall
Brunswick Group
[e-mail]
About Aldar
Aldar is the leading real estate developer, manager, and investor in Abu Dhabi, with a growing presence across the United Arab Emirates, the Middle East North Africa, and Europe.
The company has two core business segments, Aldar Development and Aldar Investment.
Aldar Development is a master developer of a 62 million sqm strategic landbank, creating integrated and thriving communities across Abu Dhabi, Dubai, and Ras Al Khaimah's most desirable destinations. The delivery of Aldar's developments is managed by Aldar Projects, which is also a key partner of the Abu Dhabi government in delivering housing and infrastructure projects across the UAE's capital. Internationally, Aldar Development wholly owns UK real estate developer London Square, as well as a majority stake in leading Egyptian real estate development company, SODIC.
Aldar Investment houses a core asset management business comprising a portfolio of more than AED 46 billion worth of investment grade and income-generating real estate assets diversified across retail, residential, commercial, logistics, and hospitality segments. It manages four core platforms: Aldar Investment Properties, Aldar Hospitality, Aldar Education, and Aldar Estates.
For more information on Aldar please visit www.aldar.com