DAE Announces ESG Risk Rating Review Completion and Additional ESG Disclosures

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by KnowESG

Dubai Aerospace Enterprise (DAE) Ltd., a global aviation services company, announced the completion of its yearly evaluation with Morningstar Sustainalytics, which assessed DAE's ESG Risk Rating as 'Low Risk,' with a score of 14.4. The Summary ESG Risk Rating Report on DAE can be found here or on DAE’s website.

DAE also revealed that it achieved a 'C' score from CDP for its Climate Change 2022 response, the best among its aircraft leasing peers. This score is consistent with the company's roadmap to improving overall ESG Risk Management, first through disclosure and now by building awareness, followed by increasing overall impact. DAE’s CDP disclosure can be found here or on DAE’s website.

DAE made its commitment to environmental transparency stronger in 2022 by disclosing its environmental impact through CDP, a global non-profit that runs the world's leading environmental disclosure platform, and S&P's Corporate Sustainability Assessment, an annual evaluation of the sustainability practices of over 10,000 companies around the world.

These updates come after several actions taken by DAE, such as the release of DAE's second annual Environmental, Social, and Governance Report in April 2022, which can be found here, and DAE Capital's signing of the Aircraft Leasing Ireland (ALI) Sustainability Charter, which is a framework for assessing and disclosing sustainability alignment for leasing portfolios and gives actionable advice on how to reach GHG reduction goals.

Sustainability is a requirement for the sector's long-term growth and performance. The Charter is centred on aviation's path to net zero emissions by 2050, and it addresses the whole ESG spectrum, including displaying leadership in carbon disclosures and driving progress in future aircraft and low-carbon technology.

The ESG Risk Ratings from Morningstar Sustainalytics measure how exposed a company is to material ESG risks that are specific to its industry and how well it is managing those risks. This multidimensional way of measuring ESG risk combines the ideas of management and exposure to come up with an ESG risk assessment, called the ESG Risk Rating, which is the same for 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.

"We have 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," said Firoz Tarapore, Chief Executive Officer of DAE. "We continue to engage with our stakeholders on ESG issues and are committed to supporting the aviation industry in its decarbonization journey.”

Dexter Galvin, Global Director of Corporations and Supply Chains at CDP, also commented, “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. 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. I look forward to their continued dedication to transparency and action for the benefit of all people and the planet.”

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Source: DAE