What are the Middle East’s Most Sustainable Corporations
Unlike what was applied decades ago, company success currently transcends financial statements. It includes environmental responsibility, healthy governance practices, and societal contributions. This change is due to many reasons. However, the most prominent reason is the increased global attention on climate change and creating a sustainable future for the next human generation.
National governments have tailored their policies towards the sustainability drive, and companies are equally joining the bandwagon. According to a McKinsey study, 70 percent of the companies admitted that they had increased sustainability practices over the past decade. This article discusses the benefits of company sustainability and the Middle Eastern companies with significant sustainability metrics.
Why Sustainability is Important
The benefits of sustainable practices are numerous. First, it creates a more conducive environment for the current and future generation(s). This is because sustainable practices could significantly reduce the scourge of climate change. Aside from this, practices like diversity hiring, volunteering, and charitable programs are instrumental in empowering disadvantaged groups.
Apart from these general benefits, sustainable practices are also beneficial to the companies themselves. Research has shown that companies that invest in sustainability are more likely to attract a broader customer base.
Top Five Most Sustainable Companies in the Middle East
Abraaj Capital is headquartered in the United Arab Emirates (UAE). It is one of the region’s largest private equity firms and one of the most sustainable companies. The company reduces its carbon footprint by maintaining low-carbon emission cars in its corporate fleet. Since the company issued its first sustainability report in 2011, it has invested heavily in many environmental sustainability projects. The company is also a signatory to the United Nations Global Compact, an initiative where global CEOs voluntarily admit to adopting sustainable practices.
Diamond Developers is a construction and real estate development company based in the UAE. Since its inception in 2003, it has fully committed its operations to the sustainability drive. In 2022, the company jointly developed Dubai’s first sustainable city. The development area will reportedly utilize solar panels and a water recycling system.
Saudi Investment Recycling Company (SIRC)
The SIRC is one of the subsidiaries of Saudi Arabia’s Public Investment Fund. The company promotes proper waste management by encouraging recycling, upgrading waste management systems, and conserving resources. One of the SIRC’s primary aims is to reduce Saudi Arabia’s solid waste by 81% in the thirteen years. SIRC was recently named as one of the Middle East’s most sustainable companies by Forbes.
Aluminum Bahrain (AB)
Aluminium Bahrain is one of the oldest commercial companies in the Middle East. The company started its aluminum smelting operations as far back as 1971 and has since expanded its sustainability drive. In 2020 alone, the company spent about 4.5 BHD million on environmental conservation projects.
The sustainability drive is here to stay. As the trend continues to grow, it is expected that more Middle Eastern companies will direct efforts to reduce their carbon footprints and adopt sustainable practices.