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Sustainability Reporting in UAE: Best Practices for Companies

Introduction

Sustainability reporting in the UAE publicly discloses a company’s environmental, social, and governance (ESG) performance. It is a voluntary practice, but it is becoming increasingly common among companies worldwide.

There are several reasons why sustainability reporting is important for companies in the UAE:

1. The UAE has committed to becoming a sustainable economy by 2030.
2. The country’s National Agenda 2071 reflects this commitment by outlining several sustainability goals, including reducing carbon emissions, increasing renewable energy use, and improving air and water quality.
3. Sustainability reporting can help companies attract and retain investors and customers, reduce their environmental impact, and save money.

Therefore, companies in the UAE should seriously consider developing and publishing sustainability reports.

Second, there is a growing demand for sustainability reporting from stakeholders, such as investors, customers, and employees. Stakeholders want to know how companies are managing their ESG risks and opportunities and how they are contributing to a sustainable future.

Finally, sustainability reporting can provide a number of benefits for companies, including:

• Improved transparency and accountability
• Enhanced reputation and brand image
• Attracting and retaining investors and customers
• Reducing risks and costs
• Identifying and managing sustainability risks and opportunities

Best Practices for Sustainability Reporting in the UAE

There are some best practices that companies in the UAE can follow when developing and publishing their sustainability reports. These include:

• Align sustainability reporting with the UAE’s National Agenda 2071 and other relevant government policies and frameworks. Aligning the report with the UAE’s sustainability priorities and the government’s development plans will help ensure its relevance.
• Adopt a recognized sustainability reporting framework, such as the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB) Standards. These frameworks provide a comprehensive and standardized approach to sustainability reporting.
• Cover all aspects of sustainability, including environmental, social, and governance (ESG) performance. This will help to provide stakeholders with a holistic view of the company’s sustainability impact.
• Disclose information in a clear, concise, and easy-to-understand manner. The report should be written in a way that is accessible to a wide range of stakeholders, including those who may not have any prior knowledge of sustainability reporting.
• Obtain external assurance from a qualified auditor or third-party assurance provider. This will help to enhance the credibility and reliability of the report.

Examples of Sustainability Reporting Best Practices from UAE Companies

Many UAE companies are already following best practices in sustainability reporting. Here are a few examples:

• Dubai Electricity and Water Authority (DEWA): DEWA’s sustainability report is aligned with the GRI Standards and covers all aspects of the company’s ESG performance. The report is also externally assured by a qualified auditor.
• Emirates Global Aluminium (EGA): EGA’s sustainability report is aligned with the SASB Standards and focuses on the company’s material ESG issues. The report is also externally assured by a qualified auditor.
• DP World: DP World is a global leader in ports and logistics. The company’s sustainability report is aligned with the GRI Standards and covers all aspects of its ESG performance. The report also includes a review of the company’s progress towards its sustainability goals, aligned with the UAE’s National Agenda 2071.
• Masdar: Masdar is a global leader in renewable energy and sustainable development. The company’s sustainability report is aligned with the GRI Standards and covers all aspects of its ESG performance. The report also includes a review of the company’s progress towards its sustainability goals, which are aligned with the UAE’s National Agenda 2071.
• Aldar Properties: Aldar Properties is a leading real estate developer in the UAE. The company’s sustainability report is aligned with the GRI Standards and covers all aspects of its ESG performance. The report also includes a review of the company’s progress towards its sustainability goals, aligned with the UAE’s National Agenda 2071.
• First Abu Dhabi Bank (FAB): FAB is the largest bank in the UAE. The company’s sustainability report is aligned with the GRI Standards and covers all aspects of its ESG performance. The report also includes a review of the company’s progress towards its sustainability goals, aligned with the UAE’s National Agenda 2071.

Many awards, including the GRI Gold Medal Award for Sustainability Reporting, have recognized DP World’s sustainability reporting. Furthermore, investors and other stakeholders have praised the company’s reporting for its transparency, comprehensiveness, and quality. Therefore, DP World is a leader in sustainability reporting.

Challenges of Sustainability Reporting in the UAE

While sustainability reporting is becoming increasingly common among companies in the UAE, there are still a number of challenges that companies face. These include:

• Lack of awareness of sustainability reporting among companies. We still need to make many companies in the UAE aware of the benefits of sustainability reporting and how to develop and publish a sustainability report.
• Limited resources and expertise. Developing and publishing a sustainability report can be a resource-intensive process; however, many companies in the UAE do not have the necessary resources and expertise.
• Lack of standardized reporting requirements. There are currently no standardized reporting requirements for sustainability reports in the UAE. Therefore, this can make it difficult for companies to know what information to disclose and how to report it.

Tips for Overcoming the Challenges of Sustainability Reporting

Here are a few tips for companies in the UAE that are looking to overcome the challenges of sustainability reporting:

• Start by conducting a sustainability assessment. This will help you to identify your key sustainability risks and opportunities.
• Develop a sustainability strategy and roadmap. This will help you to set clear sustainability goals and targets and identify the steps that you need to take to achieve them.
• Adopt a recognized sustainability reporting framework. This will help you to develop a comprehensive and standardized sustainability report.
• Engage with stakeholders. Get feedback from your stakeholders on your sustainability strategy and reporting. This will help you ensure your reporting is relevant to their needs.
• Obtain external assurance. This will help to enhance the credibility and reliability of your sustainability report.

Resources for Sustainability Reporting in the UAE

Many resources are available to help companies in the UAE with sustainability reporting. These include:

• Dubai Chamber of Commerce & Industry (DCCI) Sustainability Reporting Toolkit
• Emirates Securities and Commodities Authority (SCA) Sustainability Reporting Guidelines
• Abu Dhabi Global Market (ADGM) Sustainability Reporting Guide
• Global Reporting Initiative (GRI)
• Sustainability Accounting Standards Board (SASB)

Conclusion

Sustainability reporting is an important tool for companies in the UAE to demonstrate their commitment to sustainability and transparency. By following the best practices outlined in this blog post, companies in the UAE can develop and publish sustainability reports that are informative, comprehensive, and credible.