Sustainability reporting in the United Arab Emirates has gained significant momentum in recent years, reflecting the nation's growing commitment to environmental stewardship and sustainable development. As a rapidly developing country with a strong emphasis on economic diversification, the UAE recognizes the importance of integrating sustainability into its corporate and governmental frameworks. From national climate commitments to corporate sustainability strategies, the UAE is taking measurable steps to embed sustainability into its long-term vision.
The UAE has made significant strides in addressing climate change and promoting sustainability. In November 2024, the nation pledged to reduce its greenhouse gas emissions by 47% compared to 2019 levels by 2035. This target aligns with the UAE’s updated Nationally Determined Contributions (NDCs) under the Paris Agreement, underscoring its dedication to global climate goals.
To achieve these objectives, the UAE is transitioning from fossil fuels to alternative energy sources, including solar power, and waste-to-energy technologies. The nation has also invested heavily in renewable energy infrastructure, such as the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, which aims to generate 5,000 megawatts of clean energy by 2030. Despite these efforts, the UAE continues to invest in fossil fuel production, highlighting the complex balance between economic growth and environmental responsibility.
The UAE’s Net Zero by 2050 Strategic Initiative is a key policy framework that aligns with global sustainability targets. The strategy encourages businesses, investors, and the public sector to integrate sustainability principles into their operations.
Companies in the UAE are increasingly adopting sustainability reporting practices to align with national goals and international standards. Corporate sustainability reporting is becoming a crucial element for businesses operating in the region, as investors, regulators, and consumers demand greater transparency on ESG factors. In 2019, the UAE Sustainable Finance Working Group (SFWG) was established to strengthen the UAE’s economic transition and increase nationwide adoption of sustainable finance.
2020 also marked developments in sustainability reporting in the UAE when the UAE Securities and Commodities Authority (SCA) issued mandatory annual sustainability reporting for public joint stock companies listed on the Dubai Financial Market (DFM) or the Abu Dhabi Securities Exchange (ADX).
With mandatory reporting now in effect, entities listed on the ADX or DFM were to submit their annual sustainability report to the SCA within 90 days from each financial year end or before the date of the annual general assembly meeting, whichever is earlier.
Listed entities must prepare an annual sustainability report that reflects the organization’s long-term sustainability strategy and its impact. The report should tackle environmental metrics, explaining how the company’s operations impacts the environment and communities where the company operates. Furthermore, social metrics are also discussed in the report. Companies must disclose details on the welfare of their workers and employees and contributions and impact made towards society and other local communities. Lastly, the report also covers governance metrics and economic performance as it includes details on the company’s impact and contributions to the local economy.
Companies must also observe the Global Reporting Initiative (GRI) standards when crafting their report. In addition, the DFM and the ADX both have issued their own sustainability reporting guides to be used by the listed company.
Sustainability reporting in the UAE is expected to evolve further as regulatory frameworks become more robust and corporate accountability increases. With initiatives like the UAE Green Agenda 2030 and potential laws that mandate the reporting of greenhouse gas emissions, businesses will be required to adopt more stringent sustainability practices. The growing influence of investors and stakeholders in demanding transparent ESG disclosures will further drive companies toward more comprehensive sustainability strategies.
The UAE’s commitment to sustainability, reinforced by national policies and corporate initiatives, positions it as a leader in the region’s transition toward a greener economy. While certain challenges remain when it comes to balancing economic growth and sustainability, these new efforts may help steer the UAE towards sustainable development. As sustainability reporting continues to develop, companies that embrace transparency and innovation will not only enhance their competitive advantage but also contribute to long-term environmental and economic resilience.
At Keslio, we are deeply passionate about sustainability reporting, having the expertise and extensive network needed to guide clients through their sustainability journey effectively and efficiently. Our expertise is particularly valuable for companies looking to embed sustainability practices into their businesses and investors looking to integrate ESG and impact into investment portfolios.
To learn more about how Keslio can assist your organization in its sustainability journey, reach out to us here or through hello@keslio.com
