With the launch of Expo 2020 Dubai, the UAE has been catapulted into the spotlight and last month became the first country across the GCC to commit to net zero carbon emissions by 2050. While the government has clearly demonstrated how it plans to achieve this impressive feat, it is less clear how businesses can follow suit and ensure that they too become net zero advocates.
For a business like ours, that helps clients meet evolving energy needs, achieving net zero means drastically reducing our greenhouse gas (GHG) emissions and ensuring that the remaining emissions we add into the atmosphere are no more than the amount we take away.
In August last year we set an ambitious target to reach net zero in Scope 1 and 2 emissions by 2030 and work to influence our supply chain to set their own reduction targets.
Investors are also stressing the importance of decarbonisation. In the current environment, diversification into activities that enhance ESG ratings and perceived market value are being embraced by stakeholders.
Petrofac is at the heart of the energy transition, and we believe that it is vital to support our clients and partners to develop strategies to reduce their carbon footprint and transform their entire business through the adoption of new technologies that promote a circular economy.
The road to net zero is not easy; it requires a well-defined and actionable long-term plan. We have developed a Net Zero Steering Committee made up of representatives from across the business who can oversee and guide strategic delivery and take ownership of progressing the plan in their own division.
Decarbonisation strategies should focus on a number of key areas including transitioning to renewable power, more efficient use of energy, reducing emissions and transport electrification.
Minimising demand through improvements in energy efficiency is another key focus area, and we are leading by example in this regard by incorporating efficiency measures in our offices, facilities and sites. Importantly, these can be put into effect and scaled up quickly to deliver immediate benefits. For example, in our main office in the UAE, our facilities team have installed smart building technology that now saves the equivalent of almost 3,500 tonnes of carbon each year.
There are many new technologies that can provide important analytics to deliver enhanced visibility of energy usage and associated emissions. By using digital tools, it becomes possible to bring carbon into the operational decision-making process.
The UAE was the first country across the GCC to commit to net zero carbon emissions by 2050.
A mix of approaches, including a shift to renewable energy, conservation of natural ecosystems, embedding climate action at the core of business operations, challenging each part of the business to improve the fuel and operational efficiency and progressively switch to lower carbon alternatives are also key.
While it is vital that each business considers their own carbon footprint, and what they can do to reduce it, it is important to also consider your supply chain. If possible, we would advise working in partnership with vendors and business associates to support their energy efficiency and emission reduction initiatives. It is imperative to combine long-term commitments with acting now to change the trajectory on climate change.
To drive this, we need an acceleration in investment in the new energies sector and an appropriately priced carbon tax. There are several technologies that simply won’t get off the ground and be implemented at scale until we see a significant return for reducing a business’ carbon emissions.
While the UAE’s commitment should serve as an important impetus for companies in the region to aim towards net zero, businesses need to take a more proactive approach. There is no one-size-fits-all solution, we have to deploy all the tools in the box and short-term fixes will not suffice. It is clear that the region is seeing a fundamental shift in mindset, but now we need to see a quicker acceleration of the energy transition.
As we look to increased ambition and urgency that will inevitably come out of the UN Climate Change Conference of the Parties (COP26), I believe the circular carbon economy is a great opportunity for the UAE, and the wider GCC. This plays to the strengths of the region and the national oil companies, the infrastructure is in place, and rather than just trying to get rid of carbon, we also focus on reusing, recycling, and removing as we transition towards net zero.
Greg Ross, head of sustainability at Petrofac.
Follow us on
For all the latest business news from the UAE and Gulf countries, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.
By Greg Ross
More of this topic
Why net zero is vital in transformation of UAE’s economy
It is clear that the region is seeing a fundamental shift in mindset, but now we need to see a quicker acceleration of the energy transition
Greg Ross, head of sustainability at Petrofac.
With the launch of Expo 2020 Dubai, the UAE has been catapulted into the spotlight and last month became the first country across the GCC to commit to net zero carbon emissions by 2050. While the government has clearly demonstrated how it plans to achieve this impressive feat, it is less clear how businesses can follow suit and ensure that they too become net zero advocates.
For a business like ours, that helps clients meet evolving energy needs, achieving net zero means drastically reducing our greenhouse gas (GHG) emissions and ensuring that the remaining emissions we add into the atmosphere are no more than the amount we take away.
In August last year we set an ambitious target to reach net zero in Scope 1 and 2 emissions by 2030 and work to influence our supply chain to set their own reduction targets.
Investors are also stressing the importance of decarbonisation. In the current environment, diversification into activities that enhance ESG ratings and perceived market value are being embraced by stakeholders.
Petrofac is at the heart of the energy transition, and we believe that it is vital to support our clients and partners to develop strategies to reduce their carbon footprint and transform their entire business through the adoption of new technologies that promote a circular economy.
The road to net zero is not easy; it requires a well-defined and actionable long-term plan. We have developed a Net Zero Steering Committee made up of representatives from across the business who can oversee and guide strategic delivery and take ownership of progressing the plan in their own division.
Decarbonisation strategies should focus on a number of key areas including transitioning to renewable power, more efficient use of energy, reducing emissions and transport electrification.
Minimising demand through improvements in energy efficiency is another key focus area, and we are leading by example in this regard by incorporating efficiency measures in our offices, facilities and sites. Importantly, these can be put into effect and scaled up quickly to deliver immediate benefits. For example, in our main office in the UAE, our facilities team have installed smart building technology that now saves the equivalent of almost 3,500 tonnes of carbon each year.
There are many new technologies that can provide important analytics to deliver enhanced visibility of energy usage and associated emissions. By using digital tools, it becomes possible to bring carbon into the operational decision-making process.
A mix of approaches, including a shift to renewable energy, conservation of natural ecosystems, embedding climate action at the core of business operations, challenging each part of the business to improve the fuel and operational efficiency and progressively switch to lower carbon alternatives are also key.
While it is vital that each business considers their own carbon footprint, and what they can do to reduce it, it is important to also consider your supply chain. If possible, we would advise working in partnership with vendors and business associates to support their energy efficiency and emission reduction initiatives. It is imperative to combine long-term commitments with acting now to change the trajectory on climate change.
To drive this, we need an acceleration in investment in the new energies sector and an appropriately priced carbon tax. There are several technologies that simply won’t get off the ground and be implemented at scale until we see a significant return for reducing a business’ carbon emissions.
While the UAE’s commitment should serve as an important impetus for companies in the region to aim towards net zero, businesses need to take a more proactive approach. There is no one-size-fits-all solution, we have to deploy all the tools in the box and short-term fixes will not suffice. It is clear that the region is seeing a fundamental shift in mindset, but now we need to see a quicker acceleration of the energy transition.
As we look to increased ambition and urgency that will inevitably come out of the UN Climate Change Conference of the Parties (COP26), I believe the circular carbon economy is a great opportunity for the UAE, and the wider GCC. This plays to the strengths of the region and the national oil companies, the infrastructure is in place, and rather than just trying to get rid of carbon, we also focus on reusing, recycling, and removing as we transition towards net zero.
Greg Ross, head of sustainability at Petrofac.
Follow us on
Latest News