Emsteel Achieves AA Rating in ESG Standards from MSCI
Emsteel, one of the leading companies in the iron and construction materials sector, has announced that it has received an AA rating in Environmental, Social, and Governance (ESG) criteria from the MSCI Global Index. This prestigious recognition is one of the highest ratings awarded to iron industry companies globally, reaffirming Emsteel’s position as a prominent player in responsible manufacturing.
Commitment to Sustainability
This milestone highlights Emsteel’s commitment to managing risks and opportunities associated with ESG concerns within the iron sector. The MSCI assessment acknowledges the company’s efforts to minimize its environmental impact through responsible practices aimed at reducing carbon emissions, alongside a steadfast dedication to enhancing the health, safety, and well-being of its workforce. The group’s scores in most areas notably surpassed the global average.
MSCI ESG Rating Overview
The MSCI ESG rating evaluates the performance of over 9,000 companies worldwide by assessing their exposure to ESG-related risks and their efficiency in managing these risks compared to industry peers. The rating categories range from “Leader” (AAA, AA) to “Average” (A, BBB, BB) and “Lagging” (B, CCC). Emsteel’s AA rating reflects its advanced global standing in managing ESG matters in its sector.
CEO’s Statement
Saeed Ghafran Al-Rumaithi, CEO of Emsteel Group, stated, “Achieving the esteemed AA rating from MSCI in ESG governance is a clear testament to Emsteel’s deep commitment to leading industrial sustainability. This accomplishment reflects our robust corporate framework, the efficiency of our teams, and our profound awareness of our responsibilities towards the environment and society. In aligning with the UAE’s goals for climate neutrality by 2050, this rating strengthens our resolve to provide responsible industrial solutions, create sustainable value for our stakeholders, and contribute to building a more balanced future for upcoming generations.”
Green Financing Framework
The receipt of the AA rating follows Emsteel’s announcement in May 2025 about launching its innovative green financing framework, which serves as a cornerstone of its comprehensive ESG strategy. The development of this framework has been supported by prominent partners, including ING Bank, which played a key role in structuring sustainability initiatives, alongside First Abu Dhabi Bank, showcasing regional and international collaboration in advancing sustainable finance efforts. ING also served as an advisor for the MSCI ESG rating assessment.
Decarbonization Goals
Emsteel is at the forefront of industrial sustainability through an ambitious decarbonization strategy aimed at reducing emissions by 40% in its iron division and 30% in its cement division by 2030, using 2019 as a baseline. The company is also committed to achieving full climate neutrality by 2050. Key initiatives in this direction include enhancing energy efficiency, integrating renewable energy sources, and developing green hydrogen solutions, aligning with the UAE’s agenda for achieving net-zero emissions by 2050.
Recognitions and Awards
In 2023, Emsteel reported total emissions of 4.5 million tons of CO2 from scope 1 and 2 sources, reflecting a significant reduction of 23% compared to the baseline year of 2019. This achievement has garnered global recognition for the company’s leadership in sustainability. Emsteel was awarded the title of “Steel Sustainability Leader of 2024” by the Global Steel Association, recognizing its significant role in reducing carbon emissions from steel production. Additionally, the World Economic Forum acknowledged Emsteel’s exceptional efforts in decarbonizing the iron industry, placing it among the top five leading iron companies worldwide to receive this honor. In September 2024, Emsteel was invited to co-chair the global decarbonization alliance led by the International Renewable Energy Agency (IRENA).