The world around us is changing at an unprecedented pace, and with it, so are the expectations placed upon the region’s businesses. Gone are the days when success was measured solely by financial metrics.
Today, UAE businesses are increasingly being judged by their commitment to sustainability – their ability to operate in a manner that not only preserves our world but also uplifts communities and promotes fairness.
The importance of sustainability for our businesses cannot be overstated. We find ourselves at a critical juncture where the decisions we make today will shape the world of tomorrow. Our shared planet is facing a myriad of challenges, from climate change and environmental degradation to social inequality. In the face of these challenges, our region’s thriving businesses have a crucial role to play – as part of the solution.
The UAE was an early advocate of climate action – the first country in the Middle East to sign the Paris Agreement and the first to commit to being Net Zero by 2050. Our investment in green solutions and strategies has led to widespread awareness of sustainable practices, setting the bar high for businesses.
The connection between climate-mitigating solutions and economic growth is clear; our Net Zero 2050 strategy will create over 200,000 jobs and contribute significantly to the nation’s GDP.
Businesses embrace green opportunities
The transition to a low-carbon economy presents businesses with vast opportunities to develop sustainable products, adopt clean technologies, and tap into emerging renewable energy and green infrastructure markets. Organisations must embrace opportunities afforded by our nation’s pro-climate, pro-growth framework to remain competitive in these changing times.
Consumers increasingly demand brand transparency and accountability, embracing those championing environmental action. We are seeing investors to emphasise environmental, social, and governance (ESG) factors when making investment decisions.
And regulations are helping those businesses embrace reductions in their greenhouse gas emissions to remain competitive. Forward-thinking companies are leveraging sustainability as a source of competitive advantage, driving efficiency gains, reducing operational costs, and enhancing brand value.
Climate solutions and growth go hand in hand; we are seeing huge progress in sectors embracing a new way of thinking. In agriculture, for example, green technological innovation is future-proofing the UAE against the effects of climate change whilst immediately solving problems facing food producers today – like water scarcity and soil quality.
Businesses implementing waste reduction and recycling programs divert waste from landfills whilst benefitting from reduced disposal costs. And many businesses in the UAE have lowered their costs on a long-term basis by reducing their dependence on fossil fuels and investing in renewable energy like wind power and solar.
Our UAE initiatives and regulations support those who embrace sustainability, helping them grow. Through our Climate-Responsible Companies Pledge, launched in 2022, we have brought the private sector further into our decarbonisation drive, supporting businesses as they plan their own routes to Net Zero and set science-based targets.
The diversity of over 130 companies who have joined the pledge – from Etihad Water & Electricity, a leader in utilities provision, to HSBC, a global financial services group, and Emirates Steel Arkan Group, the UAE’s largest steel and building materials manufacturer – has shown the scale of awareness within the private sector for sustainability and their willingness to embrace it.
Our National Climate Change Adaptation Program (NCCAP) also assesses the impact of climate change on specific priority sectors and identifies adaptation measures to help businesses build resilience.
And the National Adaptation Plan Roadmap will serve as a blueprint for climate resilience. A foundation for comprehensive, inclusive, ambitious strategy to foster innovation, reduce risks, and advance sustainability goals, and ensuring long-term success and impact. For businesses, integrating NAPs into their strategies is not just a responsibility but an opportunity.
UAE building regulations, such as Estidama and the Dubai Green Buildings Regulations and Specifications, have encouraged developers to create environmentally sustainable buildings that reduce water usage and minimise energy consumption.
And COP28 in December last year saw monumental agreements designed to support purpose-led businesses and organisations. We launched the world’s largest private market climate investment fund, which is set to attract $250 billion of climate-focused investment by the end of the decade.
There is great opportunity in climate resilience and resource efficiency investment. Businesses can enhance their reputations as environmentally responsible organisations, strengthen their resilience to market shocks, future-proof their operations, and foster long-term value creation for shareholders and stakeholders.
We must remember that the effects of climate change are making business operations more difficult in many ways. Extreme weather events, for example, cause supply disruption and pose challenges for production. It is in our interest to invest in the protection of our future.
Businesses prioritising sustainability are better positioned to navigate the complex challenges of the 21st century, build trust with consumers and investors, and seize opportunities for innovation and growth in a rapidly evolving landscape.
We must embrace the age of purposeful business and take up opportunities afforded by the supportive framework the UAE is providing to help guide businesses to a more prosperous, greener future.
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