Governance - Sustainability

Our ambition is to operate a responsible business with the highest ethical standards to preserve integrity and trust

Robust corporate governance policies and effective risk management controls are critical to our success, providing a platform for economic growth and strengthening stakeholder engagement and trust.

Our commitments

Drive best-in-class governance in the region, and continue to enhance ethical banking practices
Maintain industry leading data privacy and information security

Workstreams

Selected list category

Corporate Governance, Compliance and Code of Conduct

Our world-class corporate governance framework maintains ADCB’s compliance with local laws and regulations and enables us to effectively manage compliance risks. This creates a more resilient Bank, better able to manage risks and safeguard the interests of our diverse stakeholders.

Our Approach and Progress

As a leading financial institution in the region, ADCB is committed to adopting best practice in corporate governance and to ensuring compliance with regulatory requirements, while meeting our fiduciary responsibilities.

A robust corporate governance framework enables us to navigate risks, build stakeholder trust and deliver sustainable value, in line with our strategic ambitions. Our approach is guided by our values of integrity, care, ambition, respect, and discipline. These values shape our interactions with customers, colleagues, shareholders and the wider community. We rigorously adhere to local labour laws and regulatory requirements, including those set by the CBUAE and the SCA, across all our operations.

At the heart of our corporate governance framework is the 11-member Board of Directors, which provides essential oversight and sets the overall direction for the Group. The Board is supported by specialised Committees, such as the Board Executive Committee, the Nomination, Compensation, Human Resources and Governance Committee, the Board Risk Committee, and the Board Audit Committee.

We are committed to enhancing diversity within our governance bodies, including striving to ensure that at least 20% of candidates considered for directorship are female and that there is at least one female member on the Board. As of the end of 2024, women comprised approximately 20% of our Board.

Setting the standards

We have comprehensive policies and controls in place to identify and manage potential conflicts of interest for both our directors and employees.

The ADCB Code of Conduct sets the ethical standards expected of all employees and representatives, outlining our stance on business ethics, professional behaviour and key legal and regulatory requirements. We have a zero-tolerance approach to behaviour that breaches this Code or related policies, such as those on conflicts of interest, anti-bribery and corruption, related party transactions and insider trading.

To ensure robust compliance, we have an independent Group Compliance and Governance function that monitors risks and reports directly to the Group Chief Executive Officer and the Board Audit Committee.

Human rights

We are committed to upholding universal human rights, respecting international principles and complying with the UAE's labour law. This includes protecting employees from discrimination and having zero tolerance for harassment, bullying, exploitation of children, and human trafficking. Our whistleblowing policy provides confidential channels for employees and external parties to report concerns about misconduct without fear of retaliation, with all cases investigated by Internal Audit.

Further demonstrating our commitment to transparency and accountability, the remuneration of our Executive Management is linked to several key performance indicators, including those related to ESG, compliance, and risk metrics. This integrated approach ensures ethical conduct and strong governance are embedded at all levels of our organisation.

View our sustainability disclosures for more information on our approach to Governance change and sustainability.

Risk Management and Cybersecurity

ADCB is a systemically important domestic bank in the UAE. Our consistent and sustainable performance depends on our ability to successfully mitigate and manage risk at every level. A strong culture of risk awareness, including cybersecurity, is embedded across the organisation.

Our Approach and Progress

We conduct a systematic review and challenge of our risk appetite every year. This is presented to the Board Risk Committee for endorsement and ultimately approved by the full Board, ensuring alignment across all levels of the Group. Our risk framework, processes, and procedures are consistently applied across the organisation.

Cybersecurity and fraud prevention are among our top priorities, especially given the increasing sophistication of cyberattacks. We are continually investing in new tools and staff training to enhance our defences and ensure we are well-prepared for threats.

Protecting our customers

To protect our customers from fraud, we have implemented measures such as enhanced risk-based authentication and facial recognition technology. We maintain a cybersecurity action plan, a rigorous testing regime involving internal and external teams, and regular simulation exercises to ensure a high level of preparedness. We also validate our security practices through global standards like ISO 27001 and PCI DSS. Our rigorous approach was further validated by the successful completion of the CBUAE operational resilience review in 2024.

We leverage technology and AI to drive efficiency in our risk management processes and future-proof our operations. This includes deploying an AI-powered detection and response system to bolster defences against cyberattacks and data misuse. AI is used to reduce manual processes, improve reporting speeds, and enhance efficiency across different risk areas, including model documentation and stress testing. While embracing the potential of AI, we also recognise associated risks such as data privacy and ethical concerns, focusing on responsible AI implementation.

Our commitment to strong governance is reflected in our robust governance structures, including various risk committees and monthly portfolio reviews. We are also committed to integrating sustainability-related risks into our overall risk management process, with ESRM cutting across principal risk categories and ESG included as a type of reputational risk. Our aim is to maintain industry-leading data privacy and information security.

97^%
Employees formally trained on data privacy and protection

View our sustainability disclosures for more information on our approach to Governance change and sustainability.

Financial Crime and Anti-Corruption

Financial crime, corruption and bribery are growing risks in the global economy, particularly for financial institutions. ADCB seeks to manage and mitigate these risks to reduce the potential consequences for businesses, communities, and people.

100^%
Employees across the ADCB Group trained on anti-bribery and corruption policy

Our Approach and Progress

Maintaining the highest ethical standards and ensuring compliance with all applicable laws and regulations is fundamental to our approach.

To combat these threats, we have implemented a robust Financial Crime Compliance (FCC) framework. This comprises policies, processes, measures, systems, and training to combat money laundering, corruption, financing of terrorism, financing of criminal activity and proliferation financing.

Our Money Laundering Reporting Officer leads a team of experienced compliance analysts and specialists who manage financial crime risks.

The FCC framework includes strict Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), Know Your Customer (KYC), and Anti-Bribery and Corruption (ABC) policies. We maintain a zero-tolerance approach to any behaviour that breaches these policies.

In 2024, we enhanced our framework through various initiatives. This included refining machine learning models to bolster our AML/CFT control environment and implementing an automated enterprise-wide risk assessment tool to increase efficiency.

We also reinforced our ‘Counter Proliferation Financing and Sanctions Evasion Programme’ with significant enhancements to automated screening systems and risk assessments. We ensure all employees receive mandatory training on our ABC policy, and our Vendor Code of Conduct extends these high standards to our suppliers. This rigorous approach is overseen by the Board Audit Committee, and independent external reviews have confirmed the strength and effectiveness of our framework.

View our sustainability disclosures for more information on our approach to Governance change and sustainability.

Tax Transparency

As a corporate leader in the region, the ADCB Group adheres to the highest standards of corporate behaviour and values, including our approach to taxation.

Our corporate behaviour not only affects our own operations, it also affects our diverse stakeholder base, including customers, shareholders, employees and governments.

We believe greater transparency leads to greater trust and makes the Bank a more responsible business. As regulators around the world increase their scrutiny and enhance their requirements for tax transparency, it is vital we maintain our reputation as a transparent, ethical and trustworthy institution.

Our Approach and Progress

Our core commitment is to maintain a transparent approach by fully complying with all applicable tax laws, rules, and regulations in every jurisdiction where we operate. Crucially, we do not engage in artificial arrangements simply to minimise or avoid taxation. This responsible approach is governed by our comprehensive Tax Control Framework, which includes a Group-wide Tax Policy and detailed procedures and controls for each tax obligation. This framework applies across the entire Group, including subsidiaries and all personnel, covering both indirect taxes like VAT and direct taxes like corporate tax and withholding tax.

Our Tax Policy is built on fundamental principles: ensuring full compliance with tax laws, maintaining a robust framework and refraining from unacceptable tax planning, applying arm’s length transfer pricing for related party transactions, and maintaining a constructive working relationship with tax authorities.

Tax policy governance

Oversight of our tax risk management resides with the Board, with accountability delegated to our Group Chief Financial Officer and responsibility to the Executive Head of Tax. They report to the Board on key tax risks and the effectiveness of the framework on a semi-annual basis. We maintain robust controls, including a qualified in-house team, seeking external advice on complex issues, and engaging with authorities for tax rulings. We have also implemented changes to comply with new regimes like UAE Corporate Tax and BEPS Pillar 2. This diligent approach is reflected in our strong ESG tax transparency scores.

View our sustainability disclosures for more information on our approach to Governance change and sustainability.

View our other strategic ESG pillars

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^{Sustainability} Governance