Abu Dhabi: EMSTEEL (the Group) has announced its receipt of a provisional ESG rating of 'AA' from MSCI, marking one of the highest ratings among steel players globally. This recognition positions EMSTEEL as a standout performer in the global steel and building materials sector for its strong performance on Environmental, Social, and Governance (ESG) issues.
According to Emirates News Agency, MSCI's evaluation highlights EMSTEEL's proactive management of environmental impact through innovative and responsible practices aimed at reducing carbon emissions. The company has also made significant strides in improving the well-being, health, and safety of its workforce, achievements that place it significantly above the global average in almost all categories.
MSCI ESG Ratings assess over 9,000 companies worldwide, evaluating their exposure to industry-material ESG risks and their management relative to peers. The ratings range from 'leader' (AAA, AA) to 'laggard' (B, CCC), with EMSTEEL's 'AA' rating reaffirming its leadership in ESG among global peers.
Eng. Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, expressed pride in the inaugural 'AA' ESG rating, viewing it as a testament to the Group's commitment to sustainable industrial leadership. He emphasized the strength of EMSTEEL's governance, the resilience of its personnel, and its responsibility to the environment and communities. This recognition aligns with the UAE's Net Zero 2050 vision and strengthens EMSTEEL's resolve to lead by example.
The 'AA' provisional ESG rating follows the Group's announcement of its Green Finance Framework in May 2025, a crucial component of its broader ESG strategy. Key partners, including ING and First Abu Dhabi Bank (FAB), supported the Framework's development. ING also served as the ESG Rating Advisor for the MSCI ESG rating.
EMSTEEL is committed to driving industrial sustainability through an ambitious decarbonisation strategy. By 2030, the Group aims to reduce emissions by 40% in its Steel Business Unit and 30% in its Cement Business Unit, setting 2019 as the baseline year. The Group is determined to achieve net-zero emissions by 2050, focusing on energy efficiency, renewable energy integration, and green hydrogen innovation, all in alignment with the UAE's Net Zero 2050 agenda.
In 2023, EMSTEEL reported total Scope 1 and 2 emissions of 4.5 million tonnes of CO2, marking a 23% reduction from the 2019 baseline. This milestone earned the Group global recognition for its sustainability leadership, including being named the 2024 Steel Sustainability Champion by the World Steel Association. The World Economic Forum also recognized EMSTEEL for its outstanding efforts in decarbonising the iron and steel industry, placing it among the top five leading steel companies worldwide. In September 2024, EMSTEEL was appointed as Co-Chair of the Alliance for Industry Decarbonisation (AFID) led by the International Renewable Energy Agency (IRENA).