ESG & CSR
Environmental, Social and Governance Framework
As a corporation with a mission to preserve wealth and create long-term value, with a focus on sustainability, our impact is driven by promoting the development of better businesses through responsible ownership considering a broad range of stakeholder objectives.
Focusing on Environmental, Social and Governance (ESG) issues is crucial for a sustainable future and aligns with our vision of enhancing Dubai’s position as a globally competitive economy by investing in opportunities that secure a prosperous future for its people. The adoption of an effective ESG framework is critical to ensuring alignment between our vision and our actions.
Walking the Talk
As a Corporation, we are committed to leading by example and will proactively manage our own ESG responsibilities, which are subject to oversight and monitoring by our ESG Management Committee.
We continue to seek opportunities within our own operations to reduce our impact on the environment and to ensure that we consume responsibly and minimise waste. In 2022, following the first carbon footprint calculation of our operations, we adopted a number of measures to minimise energy consumption, ensure responsible waste management, and help employees become more environmentally-friendly by actively promoting sustainability awareness through various communication channels.
Over the last year we have:
- Provided training to our employees on our ESG Policy and Framework and refresher training on our Code of Conduct, Anti-Corruption and Bribery Policy, Economic Sanctions Policy, and Anti-Money Laundering Policy;
- Offset the 2021 emissions from our own operations through the purchase of carbon credits verified and issued by the Climate Action Reserve; and
- Attended the annual meeting of the One Planet Sovereign Wealth Funds’ network in Abu Dhabi to discuss a number of climate-related workstreams including the need to harmonise climate data for private markets.
Our progress on ESG issues have only been possible through the efforts of our supportive stakeholders and the achievements of our diverse workforce. We are committed to maintaining a multi-cultural, diverse, and inclusive working environment. As at 31 December 2022, ICD employs more than 25 nationalities; with a ratio of 67:33 male to female employees. We also actively engage in supporting the development and retention of talent, and encouraging staff to regularly engage in physical and mental well-being activities.
We continue to support our communities through initiatives that reflect our organisational values; these are aimed at ensuring we are, and remain, a good corporate citizen.
We focus our community initiatives on education, innovation, and health. In doing so, we are making valuable contributions to the continuing development of an accomplished, healthy, and empowered society for the benefit of our stakeholders.
We encourage our staff to engage individually with our communities and have committed to providing every employee with additional paid leave for community volunteering activities. Details of ICD’s corporate social responsibility (CSR) activities in 2022 can be found in the CSR section below.
We are a strong advocate for good corporate governance practices that promote transparency, protect against risks, and maintain compliance with applicable regulations, including those relating to ESG matters (please see ICD’s Governance section).
Our ESG Policy and Framework, as it relates to our investment activities, is based on the following key principles:
- by incorporating ESG into our processes, we can make better investment decisions, associate ourselves with like-minded partners, and enhance the quality and sustainability of our portfolio;
- ESG factors can have a material impact on the intrinsic value of investments. Companies with strong ESG practices offer prospects for better risk-adjusted returns over the long term as well as increased organisational resilience and effective contribution to wider society as a good corporate citizen; and
- we subscribe to the view that it is important to adopt a fundamental, bottom-up perspective, rather than a top-down rules-based approach. We believe in engaging constructively with management teams to promote positive change and supporting companies in their transition towards long-term sustainability.
Further details on our investment approach with respect to ESG are also provided in ICD’s Investment Strategy section.
Group Focus on ESG
Members of the ICD Group continue to embrace and develop their ongoing ESG focus through multiple initiatives across industry sectors. A few examples are outlined below:
Emirates Airline completed its latest IATA Operational Safety Audit (IOSA) with zero findings – the equivalent of a perfect score, and a rare occurrence in the industry given the complexity of airline operations. Over 1,000 standards and recommended practices were assessed by an International Air Transport Association (IATA) accredited audit organisation over five days, to determine how well the Emirates operational management system complies with the IOSA Standard and Recommended Practices (ISARP). The audit report demonstrates the rigour of its systems and processes to ensure safe operational practices and the airworthiness of its modern fleet of Boeing 777s and Airbus A380s.
dnata announced in 2022 that it would invest USD 100 Million in green operations in the next two years to further enhance environmental efficiency across its global network. The company’s ongoing investment in infrastructure, equipment and process improvement will support it to achieve its strategic objectives and reduce its carbon footprint by 20% by 2024 and by 50% by 2030.
Dubai Aerospace Enterprise (DAE)
DAE completed the acquisition of the portfolio of SKY Fund I Irish, Ltd. and its subsidiaries in 2022. Next generation technology aircraft represents more than 90% of the acquired portfolio. The acquisition furthers DAE’s commitment to invest in new technology aircraft and reducing the emissions intensity of the overall fleet. DAE ended the year with an owned fleet composition of 50% of fuel-efficient, next generation aircraft. DAE also became a signatory to the Aircraft Leasing Ireland Sustainability Charter.
Emirates Global Aluminium (EGA)
EGA announced a strategic initiative in 2022 with TAQA, Dubal Holding and Emirates Water and Electricity Company (EWEC) through which EGA would divest its natural gas-fired power assets and instead source all its electricity from the grid, including an increasing proportion of clean energy. EGA also signed an agreement with the Ministry of Energy and Infrastructure in 2022 to join the UAE Hydrogen Leadership Initiative to explore collaboration opportunities across industries and further research and development into the future uses of hydrogen in decarbonisation.
Dubai Islamic Bank (DIB)
DIB announced the publication of its Sustainable Finance Framework (Framework) which was created to facilitate the financing of green and social initiatives and projects. In doing so, DIB becomes the first Islamic bank in the UAE to publish such a Framework. DIB also successfully issued its inaugural Sustainable Sukuk – a landmark USD 750 Million was issued in line with DIB’s Framework. This deal achieved several landmarks including being the first-ever Sustainable Sukuk from a UAE Financial Institution.
Emirates NBD (ENBD)
ENBD continued its role as a regional Sustainable Finance leader through its involvement in various ESG issuances, acting as a gateway to connect ESG issuers with the growing ESG liquidity within the Middle East region and beyond, supporting conventional and Sukuk issuances of over USD 4 Billion in 2022. ENBD also acted as coordinator and/or arranger for over USD 8 Billion of sustainable loan solutions in 2022 to support its clients’ own ESG objectives.
In 2022, ENOC Group was awarded the coveted Golden Peacock Award for Sustainability for the fifth consecutive year. Among over 1,000 global applicants, the Group was recognised for its commitment towards improving sustainability standards. ENOC Group has reduced its GHG emissions by 9.3% and water intensity by 12.4% in its manufacturing and retail facilities since 2014. As part of Dubai’s strategy to become a sustainable global hub for clean energy and the green economy, ENOC Group and Japanese manufacturer IHI Corporation also signed a MoU to explore establishing a low-carbon hydrogen and low-carbon ammonia supply chain in the UAE. The move is aligned with the UAE’s overall efforts to diversify its energy sources to transition into a clean energy model.
ALEC Engineering & Contracting (ALEC)
ALEC Energy successfully delivered a unique energy solution for the Visitor Centre of the Noor Energy 1 – the world’s largest Concentrated Solar Power installation located in the Mohammed bin Rashid Al Maktoum Solar Park in Dubai. The energy system – the first of its kind in the world – is an off-grid micro-grid using Azelio’s long-duration energy storage system that reduces the need for conventional power generation during night-time and overcast conditions to help deliver around-the-clock clean power.
ICD Brookfield Place (ICDBP)
ICD Brookfield Place (ICDBP) became a member of the World Green Building Council in 2022 as a commitment to raise the bar in sustainability. ICDBP’s pursuit of an industry-leading sustainability agenda has seen the building announce this year an ambitious Net Zero by 2030 target. ICDBP also achieved a number of certifications and awards in 2022 for its sustainability, wellbeing and technology principles including being the first building in MENA to achieve WiredScore and SmartScore Platinum certifications and the first office building in MENA to achieve the WELL Health and Safety Rating.
We look forward to embracing and meeting the challenges and opportunities involved in integrating evolving ESG requirements into our business activities. As ESG standards evolve so will our ESG Policy and Framework; these will be subject to periodic review and enhancement to ensure that it remains true to our core values, fit for purpose and aligned with best practices.
Corporate Social Responsibility
Al Jalila Foundation
The Hamdan Bin Rashid Cancer Charity Hospital We are a proud donor of The Al Jalila Foundation, a member of the Mohammed Bin Rashid Al Maktoum Global Initiatives. The foundation’s efforts have led to raising over AED 400 Million to date, more than half the target amount of AED 750 Million. The funds will go …Read more
Emirates Airline Festival of Literature
The Emirates Airline Festival of Literature is one of the world’s leading international literary festivals and the Arab World’s largest celebration of the written and spoken word.Read more
Master of Laws in International Business Law
In line with its commitment to education and the enhancement of human capital in the Emirate of Dubai, ICD is a key scholarship sponsor of the Master of Laws (LLM) in International Business Law offered in Dubai by the University of Paris II Pantheon-Assas (the leading law school in France) at the ‘Academy’ of the Dubai International Financial Centre (DIFC).Read more
Dubai Center for Special Needs
In 2022, we initiated a relationship with DSCN that includes our employees supporting DSCN through ICD’s community volunteering program. DSCN seeks to enhance the quality of life of individuals with special needs and their families by: Promoting their independence, productivity, empowerment and social participation within the community Offering high quality, effective community-based programs and social …Read more
The ICD-led initiative known as the Happiness Club was founded in 2014 with the aim of promoting employee engagement, well-being, and overall happiness within ICD and its affiliated entities. Over the years the club has grown to become a thriving community of over 61,000 members and 31 member companies. Throughout the course of 2022, the …Read more
We recognise the importance of supporting continual innovation in technology and are the main government sponsor of the CIOMajlis – an organisation of business, government and education leaders providing their expertise on technology innovation and its impact on society. The CIOMajlis provides a forum to help shape the digital landscape and participate in strategic technology …Read more