ESG

As the climate crisis intensifies, anti-ESG rumblings grow louder, global emissions continue to rise, and greenhushing rears its head, the World ESG Summit kicked off yesterday at Dusit Thani, Dubai, UAE. 

Experts, professionals and investors from across the space gathered to put the most important topics of 2024 under the microscope, exploring everything from ESG trends, challenges and opportunities to the evolving reporting landscape and ESG ratings.

The Race to Net Zero 

The event, now in its fourth edition, hosted a number of conversations focused on the energy transition and the race to net zero, against the backdrop of both record heat and energy emissions in 2023. 

In a panel discussion titled ‘Net Zero by 2050,’ moderated by Dr. Bhakti More, Chairperson and Professor, School of Design & Architecture, Manipal Academy of Higher Education, Dubai Campus, panellists discussed the key levers for driving impact. 

Ivano Lannelli, Board Director of the ESG Foundation and Senior Advisor to the CEO of Emirates Global Aluminium discussed the progress being made across different geographies and the central role of regulation in realising the 2050 target.

Comparatively, Meiraj Hussain, CCO of Al Masaood, emphasised the importance of internal initiatives to accelerate the energy transition rather than waiting for external drivers, such as internal net zero training initiatives. 

Elsewhere, Faisal Ali Al Rashid, from Dubai Supreme Council of Energy, discussed the parameters of the Demand Side Management Strategy, of which he is Senior Director, spotlighting both its successes and targets for efficiency. 

 ESG Ratings & Reporting

In another session, Pavel Shamanov, Head of Business Development at Finvizier Consultancies DMCC, explored the various methodologies across the ESG rating space in different geographies and the need for greater alignment. 

This conversation took place in the shadow of the recently adopted ESG rating regulations in the EU, which came in response to industry shortcomings. 

Indeed, over the last few years, issues have been raised regarding inconsistency across ESG ratings, a lack of transparency, and accusations of conflicts of interest among some rating bodies. 

Likewise, last year, index provider and consultancy Scientific Beta found that high-scoring companies can pollute as much as low-scoring companies—underscoring the importance of understanding what ESG ratings are and what they are not. 

Shamanov also discussed the role of ESG reporting in assessing investment risk, while Andrey Kozhevnikov, Fanda Founder and CEO explored reporting trends, spotlighting the emergence and evolution of digital reporting. 

Kozhevnikov noted that as reporting requirements grow ever more complex and companies are required to adhere to regulations across different geographies, developments in data collection and ESG software are simplifying compliance. 

This was echoed by Mazen Nasr, Head of Sustainability, Enova by Veolia, who, in a presentation titled “Digitalization and Technology in ESG Reporting,” outlined how technology is reshaping ESG reporting and improving sustainability practices. 

Circularity & Closing the Loop

Day one of the Summit ended with a panel discussion on the circular economy, moderated by Samar Alghalebi, Energy Expert and Sustainability Advocate, and featuring ESG Mena’s Founder, CEO and Editor-in-Chief Sal Jafar.

While the term has undoubtedly gained traction in the last few years, and understanding its role in reducing waste, pollution and biodiversity loss has grown, concerns have been raised about how the model has been co-opted and undermined, including by the plastics and fashion industry.

Looking through a regional lens, Maher Al Kaabi, an Independent Board Member of the Alserkal Group Advisory Board at the UAE Circular Economy Council, discussed the work of the Council in driving forward greater adoption of circularity. 

Meanwhile, Jafar highlighted the need to both establish local infrastructure and build regional capabilities to capitalise on the opportunity of circularity within the country, including through joint ventures.

Speaking about the fashion and textile space, Jafar also stressed the importance of upstream innovations, referencing companies such as materials company UBQ, and the need to scale sustainable solutions with the assistance of cross-border collaboration, and the establishment of “fashion reuse” factories. 

On where the buck stops with regard to the adoption and implementation of circularity, Jafar urged companies to make a bigger commitment, with CSOs pushing CEOs to pursue such policies. Other panellists positioned company boards as the main driver of change. 

The World ESG Summit resumes today. Stay tuned for on-the-ground coverage, expert insights, and interviews from ESG Mena.