- Aldar’s ESG score has increased to well above the industry average for both Dow Jones Sustainability Index and Morgan Stanley Capital International (MSCI)
- Aldar further highlights its ESG credentials through its newly launched 2020 Sustainability Report, developed for the first time in line with the Task Force on Climate-Related Financial Disclosures (TCFD) climate risk disclosure framework
- Highlights include the reduction of energy consumption by 17%, carbon footprint by 13%, and water consumption by 9.7% in 2020
Abu Dhabi, UAE – 3 August 2021: Aldar Properties PJSC (‘Aldar’) today published its third sustainability report showcasing the resilience of its business and sustainable growth strategy in 2020. The report highlights the significant progress and steps forward that Aldar has made with regards to its sustainability goals.
Aldar has markedly increased its ESG results, despite the COVID-19 pandemic, scoring higher than all listed real estate companies in the UAE, after implementing a refreshed sustainability strategy last year. Furthermore, Aldar was ranked third among all listed companies on Abu Dhabi Securities Exchange and improved its ESG score well above the industry average for both Dow Jones Sustainability Index and MSCI.
Commenting on Aldar’s commitment to sustainability, Talal Al Dhiyebi, Group Chief Executive Officer at Aldar stated: “Aldar’s new sustainability strategy arrived last year at a time when the relevance of the ESG agenda was beginning to strengthen locally, regionally and globally. Sustainability is deeply rooted in our foundations with a historic commitment to preserving local flora and fauna, developing diverse talent and localizing the supply chain. We are proud that we took that commitment to the next level in 2020, further enhancing our regional ESG leadership position. As we embark on the next phase of our journey, aligning our strategic priorities with international standards and frameworks will enable us to pursue sustainable and inclusive growth opportunities for the benefit of our stakeholders, and to shape communities for the better.”
As one of the first companies in the Middle East to adopt the TCFD framework as part of its sustainability reporting, Aldar is aligning with global best practices to enhance its climate-related disclosures and manage climate change risks across the entire real estate life-cycle. It also reflects Aldar’s ongoing commitment to facilitate the advancement of sustainability in the region by adhering to green building standards, investing in sustainable innovation, and developing localized procurement policies.
Greg Fewer, Group Chief Financial and Sustainability Officer at Aldar, said: “Climate change is one of the defining challenges of our time. The business community’s response to the climate crisis will have lasting implications for future generations. Aldar’s adoption of the TCFD framework, the fact we are now a signatory of the United Nations Global Compact, and our focus on developing a robust Carbon Neutral Action Plan by the end of 2021, clearly indicates the direction of travel for us as a company. It is our firm intention to lead by example in the region and to effectively manage climate-related risks and opportunities both today and in the years to come.”
Aldar’s progress is highlighted in the report across the four strategic pillars which the company uses to benchmark developments: Economy, Community, People and Environment.
- Economy highlights include a strategic partnership with the Abu Dhabi government to oversee the development of national housing, public infrastructure, as well as projects in education, healthcare, infrastructure, social services, and facilities management, the launch of the Scale Up incubator programme, and the introduction of a new sustainable procurement strategy.
- Community highlights include AED 30 million pledged to Sandooq Al Watan bringing total investment to AED 150 million since the inception of the fund, AED 1 million contributed by Aldar employees to the “Together We Are Good” programme, and AED 2 million invested in the ATMAH programme for people of determination.
- People highlights include mandatory sustainability training modules delivered to 300 employees, launching a Diversity and Inclusion Strategy to encourage the recruitment of women and people of determination across all levels, while 90% of employees recognised Aldar as a Great Place to Work (12% increase year on year).
- Environment highlights include a 17% reduction in energy consumption compared to 2019 on a like-for-like basis, a 13% like-for-like carbon footprint reduction and a 9.7% like-for-like reduction in water consumption across Aldar’s shopping malls, hospitality, leisure assets and schools.
The report also mentions important upcoming milestones and long-term sustainability ambitions for Aldar that extend beyond 2020. For example, Aldar is developing a Carbon Neutral Action Plan which will be launched by the end of 2021. Specific targets will be set within the Carbon Neutral Action Plan to catalyze a reduction in carbon emissions and to drive the carbon neutral agenda across the business, in alignment with regional and global best practice. Aldar is also focused on delivering against its 2025 energy and emissions reduction targets and improving waste management across the entirety of its business.
The period covered in the report is from January to December 2020. It spans across Aldar’s business and was prepared in accordance with the Core option of the Global Reporting Initiative (GRI) Standards, the world’s most widely used standards on sustainability reporting and disclosure.
Aldar Properties PJSC is the leading real estate developer and manager in the UAE with a diversified and sustainable operating model centered around two core businesses: Aldar Development and Aldar Investment.
Aldar Development is a master developer of integrated, liveable, and thriving communities across Abu Dhabi’s most desirable destinations, including Yas Island, Saadiyat Island, Al Raha, and Reem Island. It is responsible for developing Aldar’s c. 65 million sqm land bank and includes three businesses: Aldar Projects, which manages Aldar’s fee-based development management business, including AED 45 billion of government housing and infrastructure projects; Aldar Ventures, which incubates and nurtures new business opportunities and innovation areas; and Aldar Egypt, the platform focused on developing mixed-use communities in Egypt.
Aldar Investment houses Aldar’s core asset management business comprising an AED 16 billion portfolio of investment grade and income-generating real estate assets diversified across retail, residential and commercial segments. It also manages three core platforms: Aldar Education, Aldar Estates and Aldar Hospitality and Leisure. Aldar Education includes Aldar’s entire educational portfolio, including Aldar Academies, the leading education group in Abu Dhabi, with 20 schools, over 24,000 students and a growing network of 3,000 educators from over 100 nationalities, offering a wide range of curriculum and ancillary services such as a Teacher Training Academy.
Aldar Estates consolidates Aldar’s Retail Operations alongside existing Residential and Commercial real estate operations within Provis and will further include Community Management under one integrated property management platform. Aldar Hospitality and Leisure looks after Aldar’s portfolio of hotel and leisure assets, which are anchored around Yas Island and Saadiyat. It includes Aldar’s portfolio of 10 hotels, comprising over 2,900 hotel keys and managing operations across golf courses, beach clubs and marinas.
Aldar’s shares are traded on the Abu Dhabi Securities Exchange (Stock quote: ALDAR:UH), and is a profitable, cash generative business that provides recurring revenues, and benefits from a diverse and supportive shareholder base. Aldar operates according to high standards of corporate governance and is committed to operating a long term and sustainable business in order to provide ongoing value for its shareholders.
Aldar is driven by a vision to be a leading real estate developer and manager in the region by playing a key role in the development of quality, comfortable, desirable destinations that people can live in, work at and visit.