In The Headlines - September 2024

1. UAE’s New Climate Law: Implications for Businesses and Sustainability 

The United Arab Emirates' (UAE) Federal Decree-Law No. (11) of 2024 on the Reduction of Climate Change Effects was issued on August 28, 2024 and is set to take effect on 30 May 2025. Aimed at reducing the effects of climate change, the law introduces a robust framework to drive the nation’s sustainability agenda. As a cornerstone of the UAE’s Net Zero 2050 strategy, the law mandates organisations to actively contribute to reducing carbon emissions and transitioning towards sustainable operation and compels industries to align their activities with national climate goals. 

For businesses, this law introduces clear obligations, including mandatory reporting on emissions, compliance with decarbonisation strategies, and adopting innovative solutions such as clean energy, carbon capture, and offsetting mechanisms. Failure to comply with the law could result in penalties ranging from AED 50,000 to AED 2 million. Organisations operating across the public and private sectors, including free zones, will need to adapt swiftly by integrating sustainability into their core operations. 

The law emphasises research, development (R&D), and innovation as critical drivers for mitigating climate change. The creation of a National Carbon Credit Registry will also facilitate carbon trading and offsetting, enabling businesses to meet their emissions reduction targets. 

This legislation not only prioritises climate action but also presents economic opportunities, positioning sustainability as a competitive advantage.

Follow the link below to read the legislation.

2. Patch Releases a Carbon Credit Playbook for Chief Sustainability Officers to Link Strategy and Execution 

Climate action platform Patch has released a comprehensive playbook to help Chief Sustainability Officers (CSOs) navigate the complexities of incorporating carbon credits into their climate strategies. Designed to connect carbon credit investments with real climate action, the guide provides CSOs with the tools to ensure that their carbon credit purchases go beyond compliance and contribute meaningfully to decarbonisation efforts. The playbook is structured to assist organisations in maximising their sustainability budgets by aligning carbon credits with clear strategic objectives. 

The guide aims to support CSOs in navigating the entire carbon credit journey. Many CSOs are keen to engage with the voluntary carbon market but often lack a clear roadmap. This playbook offers practical advice on setting strategic goals, managing compliance, and building carbon credit portfolios, with examples from leading organisations.  

Follow the link below to download the guide.

3. SEB Launches New Fund with 50% Lower Carbon Intensity to Drive Sustainable Investments 

Northern European financial services company SEB announced the launch of the SEB Global Sustainable Companies Fund, a new groundbreaking index-linked global fund investing only in companies that are classified as sustainable. As a pioneer in sustainable finance, SEB aligns this fund with the EU’s Sustainable Finance Disclosure Regulation (SFDR) as an Article 9 fund with its focus on sustainability.  

The SEB Global Sustainable Companies Fund uses the MSCI World Net Return Index as a benchmark, strategically selecting around 500 companies from 1,500 in 20 developed countries. This approach ensures that the fund remains globally diversified while adhering to a systematic, rule-driven model to minimize deviation from the benchmark. 

One of the fund’s significant achievements is its lower carbon intensity, approximately 50% less than its benchmark index.  SEB aims to offer a cost-effective investment option that does not compromise on sustainability or returns.   

4. Hong Kong, Dubai Strengthen Collaboration on Sustainable Finance as Climate Risks Grow 

The Hong Kong Monetary Authority (HKMA) and the Dubai Financial Services Authority (DFSA) wrapped up their inaugural Joint Climate Finance Conference on September 16, 2024. Held in Hong Kong, the hybrid event brought together over 240 participants from financial institutions, industry groups, and international organizations across Asia and the Middle East. 

Under the theme “Building a Net-Zero Asia – Middle East Corridor,” the conference addressed the growing demand for transition finance and the need for stronger collaboration between Hong Kong and Dubai. The event also explored opportunities for greater investment to support the global net-zero transition. 

The HKMA and DFSA signed a Memorandum of Understanding (MOU) to deepen their partnership in sustainable finance. The agreement strengthens cross-border dialogue, promotes knowledge sharing, and encourages joint research and events to advance climate finance initiatives. 

5. FCA Grants Temporary Flexibility for Sustainable Fund Naming Rules  

The UK Financial Conduct Authority (FCA) has extended the deadline for sustainable fund marketing rules to April 2025. This extension applies to the “naming and marketing” rules designed to curb greenwashing. Funds must still submit applications to comply with the Sustainability Disclosure Requirements (SDR) by October 1, 2024, but now have additional time to make name changes and ensure marketing compliance. 

The FCA explained that this extension is critical as some firms need more time to meet the new high standards for ESG labeling and product name changes. The watchdog emphasised that firms must continue taking all reasonable steps to comply with the rules. 

The SDR, introduced in November 2023, aims to protect investors by ensuring that any environmental, social, or governance (ESG) claims made by funds are accurate. As global assets in ESG-oriented funds are expected to reach $34 trillion by 2026, this regulation is pivotal in maintaining the UK’s competitive edge in sustainable investment. 

6. Report Shows Organisations Ramping up Sustainability Efforts Despite Geopolitical Challenges 

The Capgemini Research Institute’s latest global report, ‘A world in balance 2024: Accelerating sustainability amidst geopolitical challenges’, reveals that 84% of executives this year say their organisations are is on target to meet its carbon emissions goals and their maturity in adopting sustainable practices has increased steadily since 2022.  

The report also reveals that nearly three-quarters of executives say that recycling products are a core aspect of their manufacturing strategy, over two-thirds said they were redesigning products to remove fossil fuel feedstock sources, and three-quarters have implemented a water-stewardship program. The numbers increased from 53%, less than half, and 55% in 2022, respectively.   

The report highlights the strides made in areas such as circularity, sustainable design, measurement and data sharing, water stewardship, biodiversity, social sustainability, and sustainability education and training. Despite these advancements, challenges remain, particularly in addressing Scope 3 emissions and effectively engaging consumers.  

Capgemini Research Institute surveyed 2,152 executives from 727 organizations with annual revenues exceeding $1 billion across 13 countries worldwide. They also surveyed 6,500 consumers from the same countries to gain a comprehensive view of sustainability from both organizational and consumer perspectives.  

The report has found that regulations have driven sustainability efforts and accelerated measurement and tracking capabilities. However, many organisations are still unprepared for upcoming directives like the EU Corporate Sustainability Reporting Directive (CSRD).   

FROM SS DESK

SS NEWS

1. Webinar Announcement: Technology for Sustainability Reporting

✨Join us as our Product Manager, Fatima Al Attar, shares her insights on how SQUARELY, Sustainable Square's ESG reporting software, is revolutionising ESG and Sustainability reporting and transforming the way organisations manage their sustainability data.

📊The webinar is organised in partnership with SGB & Co Africa Traction School of Governance & Business - Nairobi

🗓️ October 18, 2024

⏰10:00AM to 12:00PM

📍 Register now: https://lnkd.in/dpT3q-rQ

📢 Calling tech resellers, consultancies, and industry experts!!! Become a SQUARELY Partner and resell our AI-powered software as we continue to expand our global footprint. Want to learn more about SQUARELY? Reach out to us at [email protected].

2. Sustainable Square's Exclusive Offers for MEIRA Members

🌟 Exciting news! 🌟

🚀 Sustainable Square is a service provider partner for Middle East Investor Relations Association, offering exclusive benefits to MEIRA’s corporate members!

✅ Enjoy a 30% discount on SQUARELY, our AI-Powered SaaS platform, for the first year.

✅ Get a complimentary 1-hour ESG awareness building virtual workshop for your board & leadership team upon request.

✅ Get a 20% discount on ESG investor presentations and ESG framework development services.

✅ Receive a 20% discount on annual ESG reports produced in accordance with international frameworks.

✅ Enjoy a 20% discount on ESG IPO preparation services, including developing ESG prospectuses. With these exclusive offers, your company can tap into Sustainable Square’s decade-long expertise in #ESG, #sustainability, #responsibleinvestment, #climatechange, and #socialimpact.

Don't miss out on this opportunity to enhance your ESG efforts! To get a detailed breakdown of the exclusive offers, please visit our website.

3. SS Team Speaks at Muscat Stock Exchange on ESG

Our team, Group CEO Monaem Ben Lellahom and Senior Advisor Rach ElGolli delivered an ESG workshop in collaboration with Muscat Stock Exchange S.A.O.C to listed companies in #Oman. The session highlighted the significance of integrating #ESG principles into business strategies for long-term success and how #financialmarkets can be key players in driving #sustainablegrowth, focusing on #transparency, #responsibleinvestment, and #corporategovernance. The workshop also aligned with Oman’s Vision 2040, which aims for economic diversification and sustainable development.

4. SS Team in ESG Evolution Panel at Capital Club Dubai

Our team, Group CEO Monaem Ben Lellahom and Senior Advisor Rach ElGolli were panelists in a vibrant discussion titled 'ESG Evolution' hosted by Capital Club Dubai's Sustainability Action Society.

They explored the current ESG landscape, including existing and emerging reporting standards and their adoption in the region. These include CSRD, ISSB's IFRS S1 and IFRS S2, and other standards already in use in the region, such as GRI.

They were joined by Mohammad Junaid, Head of Corporate Governance Section, Securities and Commodities Authority (SCA), Daxita Rajcoomar, Chief Sustainability Officer, Africa, Middle East, Asia, ENGIE, Aruna Narayanan, Founder of Real Impact and a sustainability champion, and Piotr Konopka, Group VP, Global Decarbonisation & Energy Programmes, DP World.

5. SS is Supporting Partner of Middle East ESG Reporting Summit

Sustainable Square is a proud Supporting Partner for the 2nd Edition of the Middle East ESG Reporting Summit taking place on 28th November, in Dubai! 🌍

Join our Lead Sustainability & ESG Advisor Hussein Gubran, our Senior Responsible Investment & Sustainability Advisor Svenja Weber and other industry experts whowill be leading conversations at the summit..

Join us as we dive deep into the 𝐥𝐚𝐭𝐞𝐬𝐭 𝐬𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬 𝐚𝐧𝐝 𝐛𝐞𝐬𝐭 𝐩𝐫𝐚𝐜𝐭𝐢𝐜𝐞𝐬 𝐭𝐡𝐚𝐭 𝐚𝐫𝐞 𝐬𝐡𝐚𝐩𝐢𝐧𝐠 𝐭𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐬𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 in our region.

👥 Register now and be part of this transformative journey! 𝐅𝐨𝐫 𝐞𝐧𝐪𝐮𝐢𝐫𝐢𝐞𝐬 𝐨𝐫 𝐫𝐞𝐠𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐩𝐥𝐞𝐚𝐬𝐞 𝐯𝐢𝐬𝐢𝐭: https://lnkd.in/gU9pQWF6

6.Sustainale Square Speaks at MEIRA Chapter Meetings

Our CEO, Monaem Ben Lellahom, joined industry experts to speak on corporate strategy, IR, ESG, and governance at the Middle East Investor Relations Association (MEIRA) Jeddah Chapter meeting held yesterday, hosted by the First Mills - المطاحن الأولى team!

Monaem's presentation on 𝑷𝒐𝒔𝒊𝒕𝒊𝒐𝒏𝒊𝒏𝒈 𝑪𝒐𝒎𝒑𝒂𝒏𝒊𝒆𝒔 𝒇𝒐𝒓 𝑺𝒖𝒔𝒕𝒂𝒊𝒏𝒂𝒃𝒍𝒆 𝑮𝒓𝒐𝒘𝒕𝒉 𝒊𝒏 𝒂𝒏 𝑬𝒗𝒐𝒍𝒗𝒊𝒏𝒈 𝑴𝒂𝒓𝒌𝒆𝒕 𝑳𝒂𝒏𝒅𝒔𝒄𝒂𝒑𝒆 made the business case for ESG and corporate sustainability, offering actionable strategies for leveraging ESG to attract investment, enhance corporate reputation, and unlock new market opportunities. Also presenting: 🎤 Faisal Kanth, Managing Partner, Fairvue, discussed 𝑸𝒖𝒂𝒏𝒕𝒊𝒇𝒚𝒊𝒏𝒈 𝒕𝒉𝒆 𝑰𝒎𝒑𝒂𝒄𝒕 𝒐𝒇 𝑰𝑹 𝑨𝒄𝒓𝒐𝒔𝒔 𝒂𝒏 𝑶𝒓𝒈𝒂𝒏𝒊𝒔𝒂𝒕𝒊𝒐𝒏, exploring how IR can be positioned as a strategic function, with KPIs to measure its performance. 🎤 Tariq Al Buhosi, Partner and Head of Brunswick Riyadh, covered the rising trend of 𝑨𝒄𝒕𝒊𝒗𝒊𝒔𝒕 𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 𝒊𝒏 𝒕𝒉𝒆 𝑴𝒊𝒅𝒅𝒍𝒆 𝑬𝒂𝒔𝒕, sharing insights on how companies can prepare for potential activist campaigns and the implications for governance. 💼🌍

Abdulwahab Zarah, CIRO

Our Senior Advisor Svenja Weber is slotted to speak at the Abu Dhabi Chapter meeting on October 30th. Svenja will speak on The Evolution of Fixed Income Investments in the Middle East: Exploring the Surge in Green Bonds and ESG-Linked Instruments.

7. SS Advisor Conducts Workshop for Tabreed's ESG Committee

💡 Sustainable Square led an engaging session for Tabreed's ESG sub-committee members. Through interactive discussions and open dialogue led by Dinah Gengmei, our Senior Climate Change & Sustainability Advisor, staff including members of Tabreed's senior management, explored the #ESG landscape in relation to their company's #sustainability goals. The session covered a wide range of topics, and there was an exchange of valuable insights based on the participants' functions within the company.

8. We are ESG Partner for MEIRA 2024 Annual Conference!!

We are thrilled to support the Middle East Investor Relations Association (MEIRA) 16th Annual Conference in Abu Dhabi as an 𝗘𝗦𝗚 𝗣𝗮𝗿𝘁𝗻𝗲𝗿 𝐚𝐧𝐝 𝐒𝐢𝐥𝐯𝐞𝐫 𝐒𝐩𝐨𝐧𝐬𝐨𝐫.

We look forward to engaging with the #InvestorRelations (IR) professionals and sharing our deep expertise in ESG and #Sustainability.

Our team is excited to contribute to the agenda through 𝘁𝗮𝗿𝗴𝗲𝘁𝗲𝗱 𝗶𝗻𝘁𝗲𝗿𝘃𝗲𝗻𝘁𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝗮𝗻 𝗲𝘅𝗰𝗹𝘂𝘀𝗶𝘃𝗲 𝗘𝗦𝗚 𝘄𝗼𝗿𝗸𝘀𝗵𝗼𝗽, helping drive meaningful conversations and actions in the industry.

Event Details:

🗓️Date: 11 - 12 December, 2024

📍Venue: Conrad Abu Dhabi Etihad Towers Hotel

💼Participants: Open to MEIRA members, partners, sponsors, capital market professionals, and regulators.

Registration: https://lnkd.in/dKducxGE

Our Group CEO, Monaem Ben Lellahom will sit on the judging committee of the 𝐢𝐧𝐚𝐮𝐠𝐮𝐫𝐚𝐥 𝐄𝐒𝐆 𝐀𝐰𝐚𝐫𝐝𝐬 by MEIRA. Monaem joined other experts in the region to develop a rigorous methodology for assessing the award entries, and with applications now closed, will be sitting as a judge to select the finest ESG and sustainability reports, with the aim being to 𝒆𝒍𝒆𝒗𝒂𝒕𝒆 𝒕𝒉𝒆 𝒒𝒖𝒂𝒍𝒊𝒕𝒚 𝒐𝒇 𝒅𝒊𝒔𝒄𝒍𝒐𝒔𝒖𝒓𝒆 𝒑𝒓𝒂𝒄𝒕𝒊𝒄𝒆𝒔 𝒂𝒄𝒓𝒐𝒔𝒔 𝒕𝒉𝒆 𝒓𝒆𝒈𝒊𝒐𝒏. The ESG Awards ceremony will be held during the MEIRA’s Annual Conference.

9. SS Speaks on FAB's Student Outreach Roadshow Panel

🌱 Our Head of Strategy and Project Management, Sameera Sabharwal, joined a panel of experts and students at Zayed University, Abu Dhabi, discussing how to bridge the green skills gap and prepare future leaders for the sustainable transition. 🌍💡

The panel explored the growing need for sustainability knowledge across industries and business functions, as well as the crucial role of youth in driving this transition. 👩🎓👨🎓

This session is part of a roadshow for the annual Future Business Leaders competition, organised by First Abu Dhabi Bank (FAB), aiming to engage with students and raise awareness about sustainability. 🌿✨

Students from 10 universities across the UAE submit essays on sustainability topics for this impactful initiative! 📚✍️

Thank you for reading The ESG Bulletin. See you soon, with the next edition of our monthly newsletter tackling the latest in global sustainability. If you would like to get in touch with our expert consultants to find out what Sustainable Square can do for your organisation's sustainability goals, reporting and disclosure please write to us at [email protected].