CEO of Kinetic Consulting discusses the importance of ESG in the UAE
As the UAE sets clear targets for a more sustainable economy, there will be more opportunities for organisations able to demonstrate ESG best practices.
DUBAI, United Arab Emirates (PRWEB) February 28, 2023
Kinetic Consulting, the leading boutique consulting company providing business growth consultancy, has partnered with the highly recognised ESG consultancy in Australia, The Growth Activists, to bring Environmental, Social, and Governance best practices to the Gulf region.
The demand in countries like the UAE for ESG has been growing rapidly in the past 12 months. A 2020 survey by HSBC revealed that 41% of regional investors in the Gulf wished to adopt an effective ESG investment policy, which was confirmed by a May 2022 PWC report. The Dubai Investment Fund also recently announced the creation of an ESG investment department to track the local and global markets to uncover the most profitable sustainability assets. This also follows the trend in Australia, where in 2021, the RIAA reported that Australia’s responsible investment market reached $1.54 trillion in 2021, up from $1.28 trillion in 2020, representing a 43% share of the total FUM in Australia.
In addition, the UAE has set ambitious sustainability targets, such as the Abu Dhabi Economic Vision 2030 and Dubai Clean Energy Strategy 2050, which create opportunities for businesses to innovate and lead in the transition to a more sustainable economy.
The commitment to sustainability could require UAE businesses to comply with ESG benchmarks. Rather than leave it to businesses to decide how to make their contribution to sustainability, a set of unified benchmarks will make it easier for them to follow. Currently, a number of leading sustainability companies, such as Aldar in Abu Dhabi, are educating suppliers on the importance of sustainability and requesting potential suppliers to provide what actions they have taken towards achieving sustainability best practices.
“Most organisations have yet to link ESG practices with business growth. However, there is growing evidence that companies that implement ESG best practices achieve enhanced brand reputation, gain greater financial performance and can more easily attract investments. As the UAE sets clear targets for a more sustainable economy, there will be more opportunities for organisations able to demonstrate ESG best practices. We believe our relationship with The Growth Activists” will help accelerate the adoption of these best practices for organisations in the UAE and wider Gulf region”, said Joe Tawfik, CEO of Kinetic Consulting.
The Growth Activists have a proven ESG methodology using global best practice frameworks, such as the B Impact Assessment from B Lab, Global Reporting Initiative standards, and UNSDG’s Shared Value. The team is equipped with-deep knowledge of ESG fundamentals, starting from the whole of business, to supply chain mapping and audits, carbon accounting, materiality assessments, social impact strategies, and sustainability reporting, leading up to building an ESG strategy and long-term sustainability transformation program for a business. The Growth Activists have Australia’s largest contingent of B Lab-trained B Consultants to mentor businesses on their B Corp certification journey. “We are excited to be partnering with Kinetic Consulting and for the opportunity to provide our services to the UAE and wider Gulf region,” said Managing Partner for The Growth Activists, Rosanna Iacono.
COP28 will be hosted in the UAE in November 2023. There will be considerable focus on ESG, specifically environmental, to clarify a Net Zero pathway.
