Sustainability in UAE: Sustainable Strategy Trends in Dubai

Environmental, Social, and Governance (ESG) considerations are becoming increasingly important in the UAE, reflecting global trends and the country’s commitment to sustainability in the UAE.  The nation aims to boost its economic development and focuses on sustainable development. In fact, the UAE government, businesses, and financial institutions actively integrate ESG principles into their operations, policies, and investments.

Moreover, the UAE’s Green Agenda 2030 aims to raise the UAE’s GDP while making its economy more environmentally friendly. The government launched strategic objectives and included various programmes and initiatives to achieve its goals. In this article, we specifically dive into ESG initiative that contributes to the overall efforts towards sustainability in the UAE:

Environmental Developments

The UAE has been focusing on environmental sustainability, mainly through initiatives to reduce carbon emissions, promote renewable energy, and conserve natural resources. For iKey initiatives include:

• Renewable Energy Projects
  The UAE invests heavily in renewable energy sources, particularly solar power, to diversify its energy mix. The Mohammed bin Rashid Al Maktoum Solar Park and the Barakah Nuclear Energy Plant are prominent examples.
• Sustainability Strategies
  Launched in 2017, the UAE Energy Strategy 2050 aims to increase the contribution of clean energy to the total energy mix and reduce the carbon footprint.
• Conservation Efforts
  Efforts are being made to protect biodiversity and marine ecosystems, with initiatives like the UAE Green Growth Strategy promoting sustainable development.

Social Developments

The social aspect of ESG in the UAE encompasses various initiatives to enhance the population’s well-being, promote inclusivity, and support community development. Key areas include:

• Human Rights and Labor Practices
  The UAE has improved labour conditions, including regulations to protect workers’ rights and ensure fair treatment. The country has also been working on increasing the transparency of labour laws and enforcement.
• Community Engagement and Development
  UAE businesses jointly implement Corporate Social Responsibility (CSR) initiatives, focusing on education, healthcare, and community support.
• Diversity and Inclusion
  Efforts to promote gender equality and diversity in the workplace are being emphasized, with initiatives to increase the representation of women in leadership roles and the workforce.

Governance Developments

Governance in the UAE is centred on transparency, accountability, and ethical business practices. Key aspects include:

• Corporate Governance
  The UAE has established regulations and frameworks to ensure good corporate governance practices, including the UAE Commercial Companies Law and the Securities and Commodities Authority (SCA) guidelines.
• Regulatory Framework
  The UAE has a robust legal and regulatory framework to govern financial markets and corporate activities, ensuring compliance with international standards.
• Anti-Corruption and Compliance
  The UAE has tried to combat corruption significantly and promote ethical business conduct. This includes anti-money laundering regulations and compliance requirements for businesses.

Key Drivers in Sustainability in UAE

• Masdar City
  A model for sustainable urban development, showcasing renewable energy and environmental sustainability.
• Dubai Sustainable Finance Working Group
  A collaborative effort to promote sustainable finance in the UAE.
• Dubai Declaration on Sustainable Finance
  An initiative to foster a sustainable financial ecosystem in Dubai.

Overall, the UAE is positioning itself as a regional leader in ESG by adopting international best practices and implementing innovative solutions to address environmental, social, and governance challenges. Along with these initiatives is a drive for private companies to follow a sustainable path. Looking to develop and adapt an adequate, sustainable strategy for your company? Allow us to understand your organization’s goal better. Talk to our business consultants to learn more at info@nhmanagement.com or +971 4 2221327.