EMSTEEL, an Abu Dhabi-based publicly traded manufacturer of steel and building materials, has announced that it has received a provisional ESG rating of “AA” from MSCI, one of the highest ratings among steel producers globally. This recognition highlights the Group as one of the few global steel and building materials manufacturers that excel in their performance on Environmental, Social, and Governance (“ESG”) issues.
Reinforcing EMSTEEL’s status as a leader in managing key ESG risks and opportunities, MSCI’s evaluation particularly emphasizes the Group’s initiatives in managing its environmental impact through innovative responsible practices aimed at reducing carbon emissions, as well as enhancing health, safety, and well-being practices for its workforce. Almost all categories are reported to be significantly above the global average, according to a statement.
MSCI ESG Ratings assesses over 9,000 companies worldwide, evaluating their exposure to industry-specific ESG risks and how effectively they manage these risks compared to their peers. The ratings range from ‘leader’ (AAA, AA) to average (A, BBB, BB) and ‘laggard’ (B, CCC). This score reaffirms the Group’s leadership in ESG among its global peers.
Eng. Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, stated: “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.”
Read more: Abu Dhabi’s EMSTEEL delivers $599 million in revenue for Q1 2025
Green Finance Framework boosts ESG strategy
The “AA” provisional ESG rating follows the Group’s announcement in May 2025 regarding its landmark Green Finance Framework, which is a cornerstone of EMSTEEL’s broader ESG strategy. The development of the Framework 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 decarbonization strategy. The Group aims to reduce emissions by 40 percent in its Steel Business Unit and 30 percent in its Cement Business Unit by 2030, using 2019 as the baseline year, and is firmly committed to achieving net-zero emissions by 2050. Moreover, 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.
Additionally, as of 2023, EMSTEEL reported total Scope 1 and 2 emissions of 4.5 million tonnes of CO₂, reflecting a 23 percent reduction from the 2019 baseline—a milestone that has earned the Group global recognition for its sustainability leadership. EMSTEEL was acknowledged as the 2024 Steel Sustainability Champion by the World Steel Association for its pioneering efforts in decarbonizing steel production. The World Economic Forum also recognized EMSTEEL for its outstanding contributions to decarbonizing the iron and steel industry, placing it among the top five leading steel companies worldwide to receive this recognition. In September 2024, EMSTEEL was appointed as Co-Chair of the Alliance for Industry Decarbonization (AFID), led by the International Renewable Energy Agency (IRENA).
