Dubai Aerospace Enterprise scores big in ESG ratings
DUBAI, January 4, 2023
Dubai Aerospace Enterprise (DAE) said it has secured a ‘Low Risk’ ESG (Environmental, Social and Governance (ESG) rating from Morningstar Sustainalytics with a score of 14.4. The aviation services company also received a ‘C’ score for its Climate Change 2022 response.
Dubai Aerospace Enterprise (DAE) said it has secured a ‘Low Risk’ ESG (Environmental, Social and Governance (ESG) rating from Morningstar Sustainalytics, a leading Dutch ESG and corporate governance research, ratings and analytics firm, with a score of 14.4 following the completion of its annual review.
The global aviation services company also received a ‘C’ score from CDP - a global non-profit that runs the world’s leading environmental disclosure platform - for its Climate Change 2022 response, which is the best among its aircraft leasing industry peers.
This score is consistent with the company's roadmap to improving its overall ESG Risk Management, first through disclosure, and now, by building awareness, followed by increasing the overall impact, stated DAE in its statement.
The Amsterdam-headquartered Morningstar Sustainalytics’ ESG risk ratings measure a company’s exposure to industry-specific material ESG risks and how well a company is managing those risks.
This multi-dimensional way of measuring ESG risk combines the concepts of management and exposure to arrive at an assessment of ESG risk, i.e. a total unmanaged ESG risk score or the ESG Risk Rating, that is comparable across all industries.
Sustainalytics’ ESG Risk Ratings provide a quantitative measure of unmanaged ESG risk and distinguish between five levels of risk: Negligible, Low, Medium, High and Severe, it stated.
Last year, DAE furthered its commitment to environmental transparency by disclosing its environmental impact through CDP and S&P’s Corporate Sustainability Assessment, an annual evaluation of companies’ sustainability practices, covering over 10,000 companies from around the world.
Commenting on the publication of the ESG Risk Rating, CEO Firoz Tarapore said: "DAE has maintained an industry leading ESG Risk Rating, which remains the lowest of any company in the aircraft leasing industry, and demonstrates the ongoing focus that DAE place on ESG risk management and reducing the impact that our company has on the environment."
Sustainability, he stated, was a prerequisite for the continued long-term growth and success of the sector.
The charter is based upon aviation’s pathway to net zero in 2050, and covers the entire spectrum of ESG, including demonstrating leadership in carbon disclosures and accelerating progress in future aircraft and low carbon technologies, it stated.
"We continue to engage with our stakeholders on ESG issues and are committed to supporting the aviation industry in its decarbonization journey," he added.
Dexter Galvin, Global Director of Corporations and Supply Chains at CDP, said: "Another year of extreme weather, including floods, droughts, and record temperatures, has shown us that climate change is already posing a real and increasing risk to companies and their supply chains."
"Companies have a fundamental role to play in securing a sustainable net-zero, deforestation-free and water-secure world," remarked Galvin.
"It is only through measuring their environmental impact, risks, and opportunities that they can manage them and prepare for the future. By disclosing through CDP, DAE has taken a vital first step," he added.-TradeArabia News Service
