COP28, the 28th annual Conference of the Parties to the 1992 United Nations Framework Convention on Climate Change, is just around the corner. As the world's leading forum for climate discussions, its significance cannot be overstated. The conference presents a unique opportunity for both the public and private sectors in the UAE and the wider GCC region, fostering a platform for impactful dialogue, innovative solutions, and most importantly, action.
While the UAE and the broader GCC region have made notable strides in Environment, Social, and Governance (ESG) initiatives, the readiness of organisations to embrace and present their sustainability progress will vary considerably across COP28’s key thematic programs broadly covering finance, technology, climate, energy, eco-systems, and people.
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Building Up to COP28
The time leading up to COP28 is not merely a period of preparation; it is a window of opportunity and corporate self-reflection. Organisations need to holistically review their current ESG positioning and maturity, identifying gaps and opportunities for improvement. Crucial to this process is the recognition of climate and wider ESG risks as a business risk. Once identified, these risks must be integrated into the core business strategy, aligning the business's financial performance against their sustainability goals.
In the pre-COP28 phase, companies should have focused on formulating clear, ambitious, and measurable targets. Their objectives should have taken into account an array of ESG topics, i.e. net zero commitments, climate change risks, supply chain assessments, energy consumption and transition plans, environmental management plans & mitigation and most importantly public disclosure on performance.
Showcasing at COP28
At COP28, organisations are not just participating but representing their commitment to a sustainable future. This is not merely about showcasing carbon reduction initiatives or clean energy projects; it's about presenting a comprehensive, strategic, and future-oriented ESG approach. Companies should strive to articulate their sustainability story, emphasising their transition strategies, engagement with stakeholders, and how they are aligning their objectives with the broader national and international mandates and directives.
Effecting Change
However, to bring about real, lasting change, organisations need to move beyond ambition to action. In this respect, there are two essential aspects companies should consider: collaboration and transparency.
Given the scope and scale of climate challenges, isolated efforts are insufficient. Businesses need to foster a culture of collaboration, partnering with other companies, governments, and NGOs, both within and beyond the GCC region. Joint initiatives can have a greater effect, multiplying the impact of individual actions and driving systemic change.
Transparency is equally important. Organisations must adopt robust reporting frameworks to showcase their progress and challenges openly. This transparency can encourage a culture of accountability, not only within the company but across the entire corporate sector.
Expectations from the UAE and GCC Region
As we inch closer to COP28, expectations from the UAE and the GCC region are high. These regions, rich in fossil fuel reserves, have a unique responsibility and opportunity to lead the transition towards a low-carbon economy.
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The UAE and GCC are expected to demonstrate their commitment to the global climate agenda, reflecting it in their national policies and corporate strategies. Their geographical positioning and economic status equip them with the potential to become pioneers in renewable energy, green financing, and circular economy – with some notable announcements including:
- The UAE's Ministry of Climate Change and Environment partnering with IIG and Venom Foundation to establish a blockchain-based national system for carbon credits, supporting the UAE's goal of climate neutrality by 2050.
- The UAE revising its goal to achieve net-zero emissions by 2050 and outlined in the National Determined Contribution (NDC) a target to reduce GHG emissions by 19% by 2030, compared to 2019 levels. Encompassing sector-specific goals for power, transport, industry, and agriculture, with an emphasis on nature-based solutions for CO2 removal. The NDC also underscores the importance of building resilience against climate change and devises adaptation strategies for critical sectors. With plans to self-finance, the UAE envisions leveraging advancements in technology and R&D for its transition, aiming to generate approximately 160,000 jobs and establish itself as a global clean energy hub.
- The UAE announcing its collaboration with the US, in support of the AIM for Climate initiative, with the plan to continue promoting climate-smart policies as it prepares to host COP28 in 2023, where sustainable agriculture innovation, climate-smart agriculture, hydroponic farming, and advanced organic certification, will be a crucial focus.
As the world converges on COP28, let us remember that it is not just about reaching an agreement; it's about creating a sustainable, inclusive, and resilient world. Now is the time for the organisations in the UAE and GCC region to transform challenges into opportunities and to transition from sustainability commitments to concrete actions. COP28 can be the platform to showcase this transformation and drive the change we urgently need to see in the world, always remembering that ESG integration is not a destination but a journey.
