Emsteel secures key MSCI provisional ESG rating

18/06/2025 03:38 AST

Emsteel (formerly Emirates Steel Arkan) has announced that it has received a provisional ESG rating of "AA" from MSCI, one of the highest among steel players globally, recognising the group as one of the few global steel and building materials manufacturers that stand out for their strong performance on Environmental, Social, and Governance (ESG) issues.

MSCI ESG Ratings evaluates over 9,000 companies worldwide, assessing their exposure to industry-material ESG risks and how well they manage them relative to peers.

The ratings range from 'leader' (AAA, AA), average (A, BBB, BB) to 'laggard' (B, CCC). This score reaffirms the Group's ESG leadership among its peers globally.

Reinforcing Emsteel's position as one of the industry leaders in managing key ESG risks and opportunities, MSCI's evaluation particularly highlights the group's efforts in managing its environmental impact through innovative responsible practices to abate carbon emissions, and enhancing well-being, health and safety practices for its workforce - with almost all categories significantly above the global average.

Group CEO Eng. Saeed Ghumran Al Remeithi said: "Our inaugural 'AA' ESG rating by MSCI is a powerful testament to Emsteel's commitment to sustainable industrial leadership. It reflects the strength of our governance, the resilience of our people, and our deep-rooted responsibility to the environment and communities we serve."

"As we align with the UAE's Net Zero 2050 vision, this recognition strengthens our resolve to lead by example, delivering lasting value to our shareholders, society, and future generations," he stated.

The "AA" provisional ESG-rating follows the Groups announcement in May 2025 regarding its landmark Green Finance Framework, which is a cornerstone of Emsteel's broader Environmental, Social, and Governance (ESG) strategy.

The Framework's development was supported by key partners, including ING as Lead Sustainability Structuring Bank and First Abu Dhabi Bank (FAB) as Sustainability Structuring Bank. For the MSCI ESG rating, ING also acted as the ESG Rating Advisor.

Emsteel is driving industrial sustainability through an ambitious decarbonisation strategy. The Group aims to reduce emissions by 40% in its Steel Business Unit and 30% in its Cement Business Unit by 2030, using 2019 as the baseline year, and is firmly committed to achieving net-zero emissions by 2050.

Key initiatives include enhancing energy efficiency, integrating renewable energy, and advancing green hydrogen innovation - all in alignment with the UAE's Net Zero 2050 agenda.

Emsteel reported total Scope 1 and 2 emissions of 4.5 million tonnes of CO² as of 2023 - representing a 23% reduction from the 2019 baseline - a milestone that earned the Group global recognition for its sustainability leadership.

Emsteel was recognised as the 2024 Steel Sustainability Champion by the World Steel Association for its pioneering efforts in decarbonising steel production.

The World Economic Forum also recognised Emsteel for its outstanding efforts in decarbonising the iron and steel industry, placing it among the top five leading steel companies worldwide that have received this recognition.

In September 2024, Emsteel was appointed as Co-Chair of the Alliance for Industry Decarbonisation (AFID) led by the International Renewable Energy Agency (Irena).

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