< Previous40 Vol. 24/16, 16 – 31 December 2023 SUSTAINABILIT Y UAE, COP28, ESG: A trifecta for sustainable wealth creation The UAE presents a unique opportunity for the savvy investor rewarding but also crucial for the well-being of our planet and society. The UAE presents a unique opportunity in the realm of ESG investing, particularly in light of the Conference of the Parties (COP28) and the country's commitment to fostering sustainable development through the declaration of 2023 as the Year of Sustainability. A catalyst for sustainable growth The UAE has long been recognised as a global hub for commerce, innova- tion, and forward-thinking initiatives. In recent years, the nation has made significant strides in embracing sustainability as a core principle. From ambitious renewable energy projects to sustainable urban plan- ning, the UAE has established itself as a catalyst for sustainable growth in the Middle East and beyond. The promise of COP28 COP28 presents a unique opportunity for the UAE to showcase its commit- BY GAURAV AIDASANI, FOUNDER & MANAGING DIRECTOR, UNION SQUARE HOUSE REAL ESTATE BROKER SUSTAINABILIT Y COP and ESG investing cretaes a compelling investment landscape for both domestic and international investors. The global investment land- scape is rapidly evolving, and Environmental, Social, and Governance (ESG) factors are taking centre stage. Investors are increas- ingly recognising that sustainable wealth creation is not only nancially arabianbusiness.com 41 SUSTAINABILIT Y The UAE's commitment to ESG principles is evident in its comprehensive initiatives ment to sustainability on a global stage. As the first Middle Eastern country to host this prestigious event, the UAE has a chance to highlight its e orts in combatting climate change, advancing renewable energy, and promoting sustainable nance. Responsible investing: A rising priority ESG investing has witnessed a remarkable surge in popularity, with investors recognising the potential to generate long-term value while making a positive impact. According to recent studies, companies with strong ESG credentials tend to outperform their peers, demonstrat- ing that sustainability and pro tability can go hand in hand. The UAE's ESG initiatives The UAE's commitment to ESG prin- ciples is evident in its comprehensive initiatives. The country has estab- lished robust frameworks for environ- mental conservation, social develop- ment, and corporate governance. Some notable examples include: Environmental stewardship The UAE has launched ambitious initi- atives to reduce carbon emissions and promote clean energy. The nation is home to the world's largest single-site solar park and has set ambitious targets for renewable energy genera- tion. The UAE is also investing heavily in sustainable transportation and water conservation, making signi - cant progress toward a greener future. Social development Recognising the importance of social welfare, the UAE has implemented various programmes to support education, healthcare, and social inclusion. The nation's commitment to empowering women and promot- ing diversity is evident through initi- atives like the UAE Gender Balance Council and the Mohammed bin Rashid Al Maktoum Global Initiatives. Governance excellence The UAE has established a robust lenges, such as climate change, social inequality, or healthcare disparities, these startups are tapping into a growing consumer demand for ethical products and services. As consumers increasingly prioritise values, sustainability, and social responsibility, purpose-driven start- ups have a unique advantage in build- ing strong, loyal customer bases. Investors who support social entre- preneurs not only contribute to meaningful societal change but also position themselves to bene t from the potential for long-term growth and pro tability. Renewable energy and clean technology The UAE's focus on renewable energy and clean technology presents numer- ous investment opportunities. From solar and wind power projects to energy-e cient solutions, the coun- try's commitment to reducing carbon emissions opens up avenues for inves- tors seeking to capitalise on the tran- sition to a low-carbon economy. Sustainable real estate and infrastructure With its visionary urban planning and sustainable infrastructure projects, the UAE o ers attractive prospects for investors in the real estate sector. From green buildings and smart cities to sustainable transportation systems, investments in environ- mentally conscious developments can generate significant returns while driving positive change. Sustainable nance and impact investing The UAE is actively promoting sustainable nance, providing a plat- form for impact investors to support socially responsible projects. The country's commitment to green bonds, sustainability linked loans, and innovative financing mechanisms creates an environment conducive to investment that aligns financial returns with positive social and envi- ronmental outcomes. Gaurav Aidasani. On the opportunities and bene ts of ESG investing. corporate governance framework, ensuring transparency, accountabil- ity, and ethical practices. The coun- try's Securities and Commodities Authority has implemented stringent regulations to safeguard investor interests, promoting a fair and sustainable investment environment. Unlocking opportunities for investors The convergence of the UAE's commitment to sustainability, COP28, and the growing popularity of ESG investing creates a compelling invest- ment landscape for both domestic and international investors. Here are some key opportunities for investors to consider: Startups with purpose Unlike traditional businesses solely focused on profitability, purpose- driven startups aim to create a posi- tive impact on society and the envi- ronment while delivering financial returns. By aligning their core mission with addressing critical global chal-42 Vol. 24/16, 16 – 31 December 2023 SUSTAINABILIT Y Private sector partnerships and action are imperative in the face of climate change Action, partnerships and measurable outcomes are the ‘weather forecast’ we need The stark realities of climate change are omni-present. However, discussions and outcomes from COP28 show that through collaboration, commitment, and collective action, we can step up our global e orts to address issues around climate change. Like a weather forecast that shows dark skies, it will eventually make way for a ray of light. When it comes to the light that can fight climate change, a few things come to mind. Accountability for one. The private sector has a responsibility to do its part by reducing the emission of individual organisations, and by sharing best practices so industries and value chains can adapt for the better. Partnership is imperative – with each other, with science-based BY DIMITRIOS DOSIS, PRESIDENT, MASTERCARD EEMEA SUSTAINABILIT Y arabianbusiness.com 43 SUSTAINABILIT Y The private sector has a responsibility to do its part by reducing the emission of individual organisations, and by sharing best practices outlets, with governments, with regu- lators, with communities, with customers, and with consumers. According to an analysis published by non-pro t research group Climate Central, the period from November 2022 to the end of October 2023 was the hottest 12 months on record, with an average temperature of 1.32 degrees Celsius above pre-industrial levels. That number is uncomfortably close to the “rubicon” the world agreed we should not cross: our pledge to limit warming to 1.5 degrees. This knowledge should spur renewed focus and vital action from every possible industry and initiative we can muster. The potential of part- nership is one of the most important forces of humanity. When resources are pooled, goals streamlined, and purpose pursued with vigour and vision, we can gather momentum for a di erent trajectory. To catalyse action for nature, we must unite forces for investments in nature and restoration so our planet and communities can thrive. When Mastercard formed the Priceless Planet Coalition with a goal of restor- ing 100 million trees by 2025, it was because we recognised the power of partnership in addressing the climate crisis. Many others did too, joining a shining example of a great collabora- tion to bring change that matters – whether through mangrove forests in Abu Dhabi or fruit trees in Kenya. Action is imperative. In every industry and every vertical. In the case of the technology sector, e orts are being channelled into innovation, which can accelerate transformation. When we think about technologies like AI for example, there are amazing ways that Athis new technology can optimise power grids and increase the e ciency of renewable sources, helping our planet to move faster towards our collective clean energy goals. In a similar way that AI is deployed to predict the likelihood of fraud, AI can enhance predictive maintenance to reduce downtime in energy production. Deploying the power of technolo- tor in collaboration with Swedish fintech company Doconomy, a tool that banks can embed in their customer apps for easy access. We’ve also made headway in the working with issuers to adopt payment cards produced from 100 percent recycled or bio-sourced plastics. In a rst move for a payment network, all our newly produced plastic payment cards will be made from more sustainable mate- rials from January 1, 2028. Accountability in our own opera- tions is just as important. In 2021, we pushed forward our deadline to achieve net-zero emissions across our operations from 2050 to 2040. This means accelerating active steps to reduce our environmental impact and working with our suppliers to make similar commitments. We are proud to be among the rst players in the global payments industry to incorpo- rate supply chain emission reductions into their net-zero targets. We have developed a supplier engagement programme that will help us decar- bonise our supply chain and we were able to discuss this with some of our key stakeholder at COP28 recently. To help us reach our 2040 goal, we formally linked compensation to three global ESG priorities – operational carbon neutrality, nancial inclusion and gender pay parity – so all our employees are galvanised to act. Doing well by doing good isn’t just a feel-good mantra, it’s a cross-team collaboration that’s good for business too. At a time when climate change is rising on the agenda of the most pressing issues facing the world, all of us – businesses, consumers, govern- ments, communities – must embrace a responsibility to do everything in their power to accelerate the transi- tion to a low-carbon digital economy. Mastercard is committed to contrib- ute its part for a better tomorrow by executing a commercially sustainable social impact strategy to help accel- erate progress, while achieving reach through our global network, scale through cross-sector partnership, and long-term value for our share- holders. 2021 deadlines were pushed forward to achieve net-zero emissions from 2050 to 2040. Dimitrios Dosis discusses the stark realities of climate change. gies is also what we do at our Master- card Sustainability Innovation Lab, which spearheads the development of our portfolio of environmentally conscious digital products and solu- tions. The state-of-the-art R&D facil- ity focuses on empowering businesses and consumers to transform the ways they produce, distribute and purchase products and services, ensuring both people and the planet can thrive as the global economy rapidly digitises. Beyond innovation, transparency and understanding of the carbon foot- print of any one individual, business, sector or country, can help drive action. To give consumers better insight into the carbon footprint of their purchase categories, we devel- oped the Mastercard Carbon Calcula-44 Vol. 24/16, 16 – 31 December 2023 SUSTAINABILIT Y Paradise found in the Maldives’ Baa Atoll Welcome to the island hotel with no reception Stepping o the seaplane onto the glistening white sands of Anan- tara Kihavah felt like arriving in paradise. The isolated private island is located in the Baa Atoll, a UNESCO Biosphere Reserve considered one of the richest areas of biodiversity in the Maldives. Surrounded by a near-pris- tine house reef teeming with marine life and the turquoise waters of the Indian Ocean, Kihavah truly lives up to the imagery of a tropical island getaway. Anantara Kihavah o ers an indul- gent escape infused with understated luxury. Guests can choose from beach- side or stunning overwater villas, rang- ing from spacious one-bedroom suites to magni cent three-bedroom resi- dences perfect for families or groups. All are appointed to the highest stand- ard with custom designed interiors BY MATTHEW AMLOT TRAV EL arabianbusiness.com 45 TRAV EL drawing in uence from local Maldivian culture. A highlight is surely bathtubs with glass oors over the ocean – the perfect way to end each day. Each villa comes with a dedicated host on hand 24/7 to ensure every whim is meticulously catered to. Light touches like chilled towels, fresh coco- nut water and warm welcome snacks on arrival are a taste of the exceptional service standards across the resort. Whether guests prefer solitude in their villa or socialising, Anantara Kihavah seamlessly ows between the two. Opt for in-villa dining under the stars, or experience the resort’s fabulous cuisine and convivial atmosphere at one of the many restaurants and bars. Dining destinations around the island Seafood lovers will be in heaven at inti- Day trips can be taken for unforget- table encounters with elusive manta rays at Hanifaru Bay, considered the world’s best manta watching destination. Other excursions include big game fishing, sur ng lessons at nearby surf breaks, or seaplane safaris to remote atolls for up close whale shark experiences. Back on the island, overwater Sky Observatory offers a one-of-a-kind stargazing experience while luxurious spa treatments at the Anantara Spa o er pure relaxation. Tennis courts, a fully equipped gym and yoga platform provide ways to stay active amidst paradise. Young guests have their own fun zone at the Thiththi Boli Kid’s Club with a range of entertaining programmes and activities. Sustainable luxury and biodiversity commitment What truly sets Anantara Kihavah apart from other Maldives resorts however, is its pioneering focus on conservation and sustainability. Under the guidance of marine biologists, monitoring and protection programmes work to main- tain the pristine house reef ecosystem. Undersea environmental education centres help raise ecological awareness, highlighting the importance of preserving fragile coral reefs for future generations. Anantara Kihavah proudly champions responsible tourism by practicing mini- mal environmental impact and uplifting the local community through job oppor- tunities. Their ongoing scienti c research and published literature sets a bench- mark for other resorts to follow. Stepping ashore at Anantara Kiha- vah, one feels a long way from the routines and stresses of daily life. It o ers an idyllic private island paradise steeped in unspoiled tropical beauty and understated luxury. Most impor- tantly, guests know they can fully unwind and experience pure escapism, safe in the knowledge that their stay is respecting rather than harming this very special place. It’s no wonder Anan- tara Kihavah is consistently rated among the world’s best island resorts – one stay here leaves travellers longing to return to a true gift of nature. Para- dise has indeed been found. mate beachfront restaurant SEA, where oors of glass lift diners onto the ocean as they feast on sustainably caught seafood and regional specialties. The standout experience however must be Anantara Kihavah’s underwater dining – arguably the world’s best table with a view. Guests dine surrounded on all sides by swimming fish and corals through oor to ceiling windows, in a sensory explosion that will leave memories to last a lifetime. Throughout our time at Kihavah, we were lucky enough to experience a fully immersive dining experience focused on sustain- ability – a focus for the resort. Indian cuisine is elevated to fine dining levels at Spice, set in a gorgeous open-air pavilion amidst tropical garden surroundings. Share plates like tandoori swordfish with coconut sambal or malabar chicken biryani transport diners to the shores of Kerala in avour and atmosphere. In contrast, Italian fine dining destination FIRE o ers a taste of la dolce vita. Polished service and a wine list to rival any Euro- pean restaurant deliver dishes like saffron risotto and porcini crusted ribeye that wouldn’t be out of place in Rome or Florence. For the romantic, try beachside dining on demand for two. This is white cloth dinner service like you’ve never seen it, with local delicacies and global favourites served up by your own personal chef, with staff on hand to ensure your evening remains as magi- cal as it will be memorable. Activities t for an active island escape Nature lovers and water sports enthu- siasts will nd plenty to keep occupied on and around Kihavah. The house reef is one of the Maldives’ nest, home to over 300 species of vibrant coral and fish. Casual snorkelers can spot colourful parrotfish and angelfish right from the shore, while scuba divers and technical divers can explore deeper sites, along with the world-fa- mous yellow wall. During our time, we saw sleeping nurse sharks on one snorkel excursion and friendly turtles looking for the perfect sel e.46 Vol. 24/16, 16 – 31 December 2023 SUSTAINABILIT Y The global green economy – what it means for UAE entrepreneurs The green economy is not just a niche segment; it is an increasingly substantial part of the world economy The term green economy is not just a buzzword; it signi es a profound transformation in how we approach economic growth and environmental stewardship. The UN de nes it as ‘low carbon, resource e cient and socially inclusive’ and it could create up to 24 million jobs worldwide by 2030. The concept has been gaining substantial traction worldwide, encompassing a number of industries and initiatives that prioritise sustain- ability, environmental responsibility, and a harmonious coexistence between economic development and the well-being of the planet. The core principle of the green economy is this intersection of sustainability and BY RAMY JALLAD, GROUP CHIEF EXECUTIVE OFFICER, RAS AL KHAIMAH ECONOMIC ZONE (RAKEZ) SUSTAINABILIT Y Intersection. The core principle of the green economy is the intersection of sustainability and economic growth.arabianbusiness.com 47 SUSTAINABILIT Y The core principle of the green economy is this intersection of sustainability and economic growth economic growth. And it’s an initiative that needs everyone’s help – achieving it requires cooperation from govern- ments, investors, and entrepreneurs. The UAE is playing a pivotal role in this as we’ll see. In this article, we’ll look at the green economy globally, the position of the UAE, the key industries as well as the varied opportunities that it will provide for entrepreneurs. The green economy in the global context The green economy is not just a niche segment; it is an increasingly substantial part of the world econ- omy. It’s a rapidly growing sector, with renewable energy, green raise the bar even higher, with a target of making renewable energy consti- tute a substantial 80 percent of its power generation by 2030. • Netherlands: Despite its modest size, the Netherlands stands as the No1 agriculture exporter within the EU and the second largest in the world. This success can be attributed to innovative practices, including preci- sion farming, the utilisation of geothermal energy for greenhouse heating, and the recycling of CO2 emissions from local power plants to enhance greenhouse conditions. Thinking local: The UAE and the green economy In the UAE, the investments in renew- able energy and sustainable technol- ogies are contributing signi cantly to the growth of the green economy sector. As part of the Green Economy for Sustainable Development initia- tive, the UAE is dedicated to establish- ing itself as a prominent global hub and exemplar of the emerging green economy. The country’s aspirations include becoming a key player in the global arena, while also serving as a pivotal hub for the export and re-ex- port of eco-friendly products and cutting-edge technologies. The UAE Vision 2021 National Agenda places a signi cant emphasis on enhancing air quality, safeguarding water resources, expanding the role of clean energy, and executing strategies for sustainable green growth. This has been further enhanced by the UAE’s Green Agenda 2030. These govern- mental efforts are instrumental in driving the country towards a green and sustainable future. This commit- ment is exempli ed by the UAE’s ambi- tious goals around clean energy. Speci c green economy industries in the UAE: • Renewable energy: The UAE is making significant strides in the renewable energy sector with projects such as the Noor Abu Dhabi solar plant, one of the world’s largest solar farms. This year, the country revised its National Energy Strategy to add Ramy Jallad. Group CEO, Ras Al Khaimah Economic Zone construction, and sustainable agri- culture playing key parts. A number of nations are demon- strating how targeted investments in renewable energy, eco-friendly construction, and sustainable agricul- ture can result in both economic growth and environmental sustainability. Some of the key models to follow include: • Denmark: Green production plays a substantial role in bolstering Denmark’s economic landscape. Back in 2014, Denmark actively engaged in the production of environmentally friendly goods and services, amassing a total value of DKK 174bn. Notably, a substantial portion of these green products and services, amounting to DKK 72bn, found their way into inter- national markets, constituting approximately 7 percent of Denmark’s overall export volume. • Germany: The country is currently poised to achieve a signi - cant milestone this year with projec- tions indicating that over 50 percent of its electricity will be derived from renewable sources. However, the ambition doesn’t end there. The coun- try is steadfast in its commitment to 48 Vol. 24/16, 16 – 31 December 2023 SUSTAINABILIT Y new objectives including the genera- tion of 50,000 new green jobs and the tripling of renewable energy capacity by 2030. By 2031, the UAE aims to raise the percentage of clean energy within the overall energy blend to 30 percent. • Green construction: The UAE’s green building initiatives, exempli ed by the Sustainable City in Dubai, demonstrate a commitment to eco-friendly construction practices and sustainable urban development. In a forward-thinking move, in 2010 the UAE government approved the Green Building and Sustainable Build- ing standards, an initiative expected to save AED 10bn by 2030 and reduce carbon emissions by 30 percent. • Sustainable agriculture: Given the challenges of desert agriculture, the UAE has invested in innovative technologies such as vertical farming and hydroponics to ensure a sustain- able food supply while minimising water usage and environmental impact. As a country that imports a large amount of its food, it makes sense that as far back as 2019 the government approved Dh 1bn to create a global agtech centre. Mean- while, the UAE Sustainable Agriculture System aims to create an annual 5 percent boost in self-su ciency, a 10 percent annual increase in average farm income, and a 5 percent yearly expansion of the agricultural work- force – as well as a 15 percent annual reduction in water usage. Opportunities for entrepreneurs in the UAE green economy So, let’s look at some of these areas and where there are opportunities for startups and entrepreneurs. • Renewable energy: As discussed, the UAE is investing heavily in renew- able energy sources, including solar and wind power. Entrepreneurs can tap into this market by developing and 2031 the UAE aims to raise the percentage of clean energy within the overall energy blend by 30%. The UAE is investing heavily in renewable energy, including solar and wind power. SUSTAINABILIT Y arabianbusiness.com 49 SUSTAINABILIT Y providing innovative solar technolo- gies, energy storage solutions, and wind energy projects. • Sustainable construction: With a growing emphasis on sustainable infrastructure, startups can focus on sustainable architecture, green construction materials, and ener- gy-e cient building solutions. • Water management: The UAE faces water scarcity challenges, making water conservation and e - cient water management critical. Entrepreneurs can explore opportu- nities in water desalination, wastewa- ter treatment, and water-efficient technologies. • Electric vehicles (EVs): The UAE government is actively promoting electric vehicles as part of its sustain- able transportation initiative. Startups can develop EV charging infrastruc- ture, electric vehicle technology, and related services. • Waste management and recy- cling: Waste reduction and recycling are priorities in the UAE. Entrepre- neurs can explore opportunities in waste-to-energy projects, recycling technologies, and sustainable waste management solutions. • Green tech innovations: Startups can focus on developing innovative technologies and solutions that reduce carbon emissions, enhance energy e ciency, and promote environmen- tal sustainability. • Agtech: As noted, agriculture in the UAE faces challenges due to its arid climate. Startups can explore opportunities in agtech, such as verti- cal farming, hydroponics, and sustain- able agriculture practices. • Green finance: Sustainable nance and green investment oppor- tunities are growing in the UAE. Entrepreneurs can establish green investment platforms, sustainable banking solutions, or ESG advisory services. • Smart cities: The UAE is actively working on smart city projects. Entre- preneurs can participate by o ering smart city solutions, including IoT technologies, data analytics, and urban planning tools. • Research and development: Collaborating with local research institutions and universities can lead to opportunities in developing green technologies and solutions, as well as accessing government grants and incentives. • Green certi cation and consul- tancy: There is a growing demand for green certi cations like Leadership in Energy and Environmental Design (LEED) and Building Research Estab- lishment Environmental Assessment Methodology (BREEAM). Startups can provide consultancy services to busi- nesses seeking to make their opera- tions more environmentally friendly. • Eco-tourism: The UAE’s tourism sector is evolving to include eco-tour- ism, and startups can explore oppor- tunities in sustainab l e and eco-friendly travel experiences. Conclusion The green economy in the UAE o ers a wealth of opportunities for entre- preneurs, investors, and business people. By capitalising on the coun- try’s commitment to sustainability, learning from global models, and focusing on industries like renewable energy, green construction, and sustainable agriculture, individuals and businesses can not only contrib- ute to the local and global green econ- omy but also reap the significant economic bene ts it o ers. The UAE’s green journey is a remarkable exam- ple of how sustainability can drive economic growth and it should inspire entrepreneurs to consider how they can play a part. The UAE Sustainable Agriculture System aims to create an annual 5 percent boost in self-su ciency Sustainable construction is key to developing a green economy.Next >