Sal Jafar, CEO of ESG Mena interviewed Mehlam Murtaza, E-Director of UNS Vertical Farms, to find out about how the industry can become more sustainable in the MENA region through thoughtful production and distribution, and well-considered financing.
In an interview with Sal Jafar, CEO of ESG Mena, Prof. Karim Lakhani, Chair of DDDI at Harvard, discusses best practices in academia and the private sector, and shares insights on empowering business leaders to make a meaningful impact.
In an exclusive interview with Sal Jafar, CEO of ESG Mena, Dr. Najwa Aaraj, CEO of Tech Innovation Institution, shares her perspective on the challenges and benefits of integrating AI and sustainability in the Middle East.
In July, the Serbian government reinstated the permits for Rio Tinto’s lithium mining project, after canceling them in 2022 following public protests. The decision triggered demonstrations, with thousands of people taking to the streets of Belgrade over concerns that the mine would pose a threat to water sources and public health. After all, Rio Tinto had already demonstrated its willingness to circumvent the country’s environmental regulations.
Rio Tinto has a long history of alleged human-rights violations and water mismanagement and contamination at its mines around the world. But it is not just Rio Tinto: corruption and negligence are endemic in the mining industry. A US judge ordered Glencore to pay $700 million in fines for its decade-long scheme to bribe officials in several countries. Mining giant BHP and its Brazilian partner Vale are tied up in legal battles over the collapse of the Fundão tailings dam – Brazil’s worst environmental disaster.
As the European Union plans to increase domestic mining of materials that are essential to the green transition, as well as to numerous defense technologies and digital products, policymakers and populations are seeking reassurance that such efforts will be sustainable. To that end, the International Council on Mining and Metals (ICMM) – an association that Rio Tinto helped establish and includes Glencore, Vale, and BHP – and other major industry players are working to create a global standard, called the Consolidated Mining Standard Initiative (CMSI), to certify minerals as responsibly produced. Given their track record, can these mining giants be trusted to set their own rules and hold themselves accountable?
Voluntary standards and certifications are hardly new. They exist across a range of industries, from agriculture to construction, and many such initiatives already exist in the mining sector. In fact, the four associations leading the CMSI – the ICMM, the Mining Association of Canada, the World Gold Council, and the Copper Mark – each have their own assurance framework.
But evaluations of these voluntary schemes, conducted by Germanwatch, Mercedes-Benz, and others, have shown that most lack transparency, rigor, and oversight, and cannot ensure that their requirements are implemented. In short, they constitute a sophisticated form of greenwashing. In February, Lead the Charge published an assessment of third-party assurance and accreditation programs in the raw-materials sector, evaluating each one against a series of minimum criteria for credibility. Tellingly, the ICMM’s Performance Expectations Validation process met only 16 per cent of the criteria.
These failing grades have real-world implications for indigenous peoples, workers, and local communities. According to the Business and Human Rights Resource Centre, ICMM member companies, whether through direct ownership or joint ventures, account for more than half of the 20 firms responsible for the majority of alleged human-rights violations in critical minerals mining.
Policymakers and financial institutions are channeling billions of dollars into mining projects around the world based on voluntary certifications like the proposed CMSI. For example, the EU’s Critical Raw Materials Act uses these assurances as a proxy for determining whether companies are responsibly sourcing raw materials. And 78 per cent of automakers evaluated in Lead the Charge’s assessment reported using them to inform sourcing decisions – especially as the uptake of electric vehicles increases
In fact, a recent analysis of the proposed CMSI, conducted by indigenous groups, civil-society organisations, and policy experts, highlights several gaps in the framework that would harm communities and, crucially, pose risks for automakers. The standard is divided into three practice levels: foundational, good, and leading.
But the requirements for the foundational level – which, it should be noted, companies are permitted to fall below during the assurance process – do not align with international laws, legal norms, or widely accepted standards, such as the International Finance Corporation’s Performance Standards. Mining firms will therefore not be forced to address serious human-rights abuses, which could lead to penalties for automakers down the line.
Moreover, the draft standard does not protect the right of indigenous peoples – who are disproportionately harmed by mining – to free, prior, and informed consent, which is derived from their right to govern their territories and resources and to self-determination. Protecting this right must be a minimum requirement for the foundational practice level. But the very notion that respect for fundamental rights can be broken down and parceled into varying levels of performance reflects the CMSI’s flawed design. This approach would cause even more harm to indigenous communities, given that more than half of critical minerals are on or near their lands.
Despite the efforts of the ICMM and its partners, including CMSI advisory group members like BMW and Tesla, to market the standard as a tool for responsible mining, it is nothing more than an attempt by the industry to present a clean, green face to the public. If successful, the CMSI will consolidate the power and influence of mining giants like Rio Tinto, Glencore, and BHP, and allow them to act with impunity while providing false assurances to all major stakeholders.
Instead of delivering a just energy transition, the CMSI would allow extractive industries to prioritise profit over clean air and water, human rights, and a livable planet, and expose automakers, governments, and investors to reputational risk. Given the increasing demand for minerals to fuel the energy transition, setting high expectations and establishing strong, enforceable rules for the mining sector is more important than ever.
By Chelsea Hodgkins, Senior Electric-Vehicle Advocate in Public Citizen’s Climate Programme.
Copyright: Project Syndicate, 2024
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Barbara Frei of Schneider Electric highlights the global commitment to safety, leveraging digital twins, AI, and partnerships to enhance resilience and cybersecurity in challenging environments.
Ellora-Julie Parekh, Chief Sustainability Officer at Al-Futtaim Automotive, emphasises the critical role of integrated efforts in shaping sustainable urban futures.
In a bid to promote corporate sustainable practices, GMG, a global wellbeing and retail conglomerate, announced its key business achievements for 2024, highlighted by the expansion of its 12-year partnership with VF Corporation (NYSE: VFC), a global leader in branded lifestyle apparel, footwear, and accessories.
Building on GMG’s current operations of 90 VF mono-brand stores in MENA and Southeast Asia, the enhanced partnership will add more than 300 new stores across these regions over the next five years, alongside developing E-commerce operations for selected VF brands.
This strategic expansion aligns with significant market opportunities, as the global retail sector is projected to grow from $28.3 billion in 2023 to $37.7 billion by 2027. The MENA region continues to attract retail investment due to its growing population, robust spending power, and affinity for international brands, while Southeast Asia’s retail industry enters a new growth phase driven by rising disposable incomes, developing infrastructure, favourable business conditions, and increasing tourism.
“In 2024, we focused on strategic expansion and sustainable operations”, said Mohammad A. Baker, Deputy Chairman and CEO of GMG. “Our new partnerships and product launches have strengthened our market position, while our sustainability initiatives demonstrate our commitment to responsible business practices.”
GMG and Nike, partners since 1982, continue to evolve their collaboration to meet the demands of today’s digital shoppers. Responding to the surge in online shopping, GMG launched Nike.ae and Nike.sa, alongside the brand’s first mobile app in the region, prioritising customer convenience. Earlier this year, GMG further expanded Nike’s online presence by launching e-commerce platforms in Kuwait and Qatar, bringing the brand’s premium experience to even more customers in the region.
Across the Middle East and Africa region, GMG continued to strengthen its presence in Saudi Arabia through its partnership with JD Sports, marking its first store opening at Riyadh Park Mall. Meanwhile, the company’s Egyptian operations continue to flourish, with 26 stores across its retail portfolio and plans to reach 100 stores by 2026, supported by strategic partnerships with key local players.
GMG’s Everyday Goods division achieved significant milestones in 2024, launching innovative products at both GULFOOD and SIAL Paris, where it made its European debut. The company introduced Shnax, a healthy snacking alternative made from 100 per cent chicken, which earned an “Innovative Product” award nomination at SIAL. Additionally, GMG demonstrated its product innovation at these global events with an expanded portfolio of new brands, La Invitada and AL SERR, while showcasing established brands Farm Fresh, Sapora, RUH, and Klassic to international markets.
GMG capped a highly growth-focused year with the launch of GMG Home, adding a new dimension to the company’s retail portfolio. This division unifies Suncoast’s premium outdoor furniture with Monoprix Maison’s curated indoor collections, offering practical luxury for both outdoor and indoor living spaces.
GMG’s Health and Beauty division underwent a significant transformation this year with the rebranding of its Supercare pharmacy. Moving beyond the traditional pharmacy model, Supercare was repositioned as an “Ultimate Wellness Destination,” offering an expanded range of products and services focused on holistic well-being.
Advancing Sustainability and Community Impact
GMG launched its comprehensive CSR platform ‘GMG Cares‘ in 2024, built around three key pillars: Planet, Community, and People. The platform’s immediate impact was demonstrated through community initiatives providing over AED 70,000 worth of food staples to families in need and distributing 2,320 meals during Ramadan across the UAE, KSA, and Malaysia.
Additionally, this year, GMG reached a significant sustainability milestone with the publication of its inaugural Sustainability Report. The report highlights impressive progress, including a transition to 89 per cent green energy usage in its logistics operations between 2022 and 2023. This shift resulted in a substantial reduction of the company’s carbon footprint, avoiding over 2,000 tons of CO2 emissions.
Other ongoing environmental initiatives yielded significant results, including eliminating nearly 295,000 plastic bottles through a water station at Al Qudra cycle track as part of Dubai Can. Company-wide sustainability measures included replacing 35,000 square meters of plastic tape with paper alternatives and saving over 415,000 plastic bottles through water filter installations in the office.
In workplace empowerment, GMG introduced its Diversity, Equity & Inclusion (DE&I) committee, and launched the “EmpowHer” programme to advance women’s career opportunities. The company also established the GMG Sports Club and partnered with Al Noor Special Needs Centre to support employment opportunities for people of determination.
Advancing Digital Innovation and Customer Experience
Some of 2024’s impressive results include the Nike membership program, which generated 75 per cent of revenue through member sales in its first month. The company’s logistics infrastructure saw significant optimisation through AI implementation at its 23,070-square-meter mega-warehouse in Riyadh, enabling delivery times of 12-24 hours to major cities while reducing fleet size by 7 per cent.
“As we close 2024, our achievements across expansion, sustainability, and digital advancements demonstrate GMG’s evolution as a global retail leader”, said Mohammad A. Baker. “By combining strategic market growth with technological advancement and sustainable practices, we’ve created a foundation that positions us strongly for our next phase of growth. Our focus remains on delivering exceptional experiences to our customers while contributing positively to our communities and the planet.”
In a bid to advance the popularity of sustainable, yet artistic and aesthetically pleasing snacks, House of Pops and Emirates Bustanica have announced a collaboration. This partnership merges the innovative strengths of both brands, culminating in two new collections – the Blooming Collection and the Vitality Collection.
This collaboration highlights House of Pops’ commitment to sustainability, wellness and craftsmanship, while Emirate Bustanica’s premium ingredients, grown using cutting-edge vertical farming techniques, bring quality and freshness to the partnership.
“Leveraging our organisation’s massive capabilities to collaborate and innovate with home-grown businesses and entrepreneurs is one of the more exciting parts of our agenda”, said Shahreyar Nawabi, CEO of Emirates Flight Catering.
“This partnership is a celebration of shared values – a commitment to sustainability, a passion for delivering unparalleled quality, and a dedication to showcasing the best innovations born right here in Dubai. The use of our edible flowers within the ice lollies is a brilliant blend of creativity and innovation – art, taste and aesthetics all delivered using the freshest, locally grown inputs. I can’t wait for everyone to experience the magic of this collaboration and all that it will produce.”
The collaboration also underscores House of Pops’ ongoing commitment to innovation. Known for its focus on natural, plant-based ingredients, House of Pops’ new range prioritises flavour but also champions environmental stewardship.
The Blooming Collection features three flavours that combine fruit-forward tastes with edible flowers: Orange Passion Bloom, Rosey Lemonade and Citrus Sunshine.
The Vitality Collection offers a nutritious twist with two vegetable-fruit fusions designed to boost overall wellbeing: Lemon Apple Boost, a blend of lemon, apple, spinach, kale, and ginger; and Beet It, a mix of beetroot and fruits. These “detox pops” reflect a shared commitment to health and sustainability.
“We are beyond thrilled to see this partnership come to life, and with a company like Emirates Bustanica that provides the freshest premium ingredients from the world’s largest vertical farm here in the UAE”, said Mazen Kanaan, Co-Founder of House of Pops. “It’s a wonderful opportunity for us at House of Pops, and a great sign that when we remain committed to our values of sustainability, wellness, and purity, the business will continue to flourish with partnerships like this.”
The new collections will be available in the first phase at House of Pops outlets and online, with plans for broader distribution across more touch-points in the near future.
In a strategic effort to strengthen Rwanda’s water security, Abu Dhabi Fund for Development (ADFD) has signed a loan agreement worth AED 92 million with the Government of Rwanda to finance the expansion of water transmission and distribution systems at the Karenge Water Treatment Plant.
The project strengthens ADFD’s claim to be supporting sustainable development goals (SDGs), including SDG 6, which focuses on ensuring access to clean and sustainable water. By addressing a critical need, the project will support Rwanda’s national objectives, underscoring the UAE’s leadership in promoting sustainable infrastructure development worldwide.
The agreement was signed by His Excellency Mohamed Saif Al Suwaidi, Director General of Abu Dhabi Fund for Development; and His Excellency John Mirenge, Ambassador of Rwanda to the UAE. The signing ceremony was attended by senior officials from both sides.
“This agreement reflects ADFD’s commitment to financing infrastructure projects that promote economic and social progress in beneficiary countries”, said H.E. Al Suwaidi. “It also underscores our commitment to strengthening and advancing our strategic partnership with the Republic of Rwanda, contributing to the development of key sectors vital to the country’s growth.”
This water project is part of a comprehensive program aimed at ensuring self-sufficiency in water supply for Kigali, Rwanda’s capital. The initiative includes the construction of a water treatment plant with a daily capacity of 36,000 cubic meters, alongside expanding transmission and distribution systems to key areas of the city.
“We are proud of this cooperation with Abu Dhabi Fund for Development, which highlights the UAE’s steadfast efforts to promote sustainable development globally”, said H.E. John Mirenge. “The expansion of the water transmission and distribution systems at the Karenge Water Treatment Plant is a critical initiative to achieve our national objectives of providing clean water to our population and developing robust and sustainable water infrastructure to meet the needs of communities.”
A new report by Bloomberg Intelligence reveals the UAE banks’ growing position as a potential leader in sustainable finance, partially driven by an AED 1 trillion ($270 billion) commitment by 2030, announced by the UAE Banking Federation at COP28 in Dubai.
Commitments such as this announcement and the Sustainable Finance Framework, have accelerated the mobilisation of UAE financial institutions in sustainable bond issuance above other industries, as the country targets Net Zero by 2050. The report finds that financials now lead in the MENA region, accounting for 64 per cent of its green, social, sustainability and sustainability-linked bond (GSSS) issuance in 2024, an increase from 24 per cent in 2021.
In the UAE, First Abu Dhabi Bank (FAB), Abu Dhabi Islamic Bank (ADIB), and Emirates NBD are among most active banks, reflecting strong investor demand. Recent issuances, such as ADIB’s green Sukuk in 2023, was oversubscribed by up to 5.2x.
FAB, the largest issuer of sustainable debt among UAE banks, as of March has allocated around $1.1 billion to green buildings and $1 billion to renewable energy projects. Emirates NBD’s $750 million green Sukuk similarly supported green infrastructure, dedicating 40 per cent to renewables, 37 per cent to green buildings, and 18 per cent to clean transport as of June 2024. These efforts align with the UAE’s targets to cut emissions by 47 per cent by 2035 and triple renewable energy capacity by 2030.
“The UAE has emerged as a leader in sustainable finance in the Middle East, with the UBF AED 1 trillion by 2030 pledge accelerating the role of national banks in financing the country’s Net Zero 2050 ambitions”, said Grace Osborne, ESG Analyst at Bloomberg Intelligence.
“Banks are scaling finance towards green buildings, renewable energy and clean transport, key to meeting the UAE’s targets such as tripping renewable energy capacity by 2030, and to capturing potential green premiums, with UAE green bonds from banks seeing strong demand with deals 2-5x oversubscribed. Though our findings suggest clarity is needed on what counts towards to UBF target, with robust frameworks, polices and regulations in place to empower banks to further drive sustainable finance and capture green growth opportunities in the region.”
UAE’s green bonds from banks continue to see strong demand in the dollar market with deals 2-5x oversubscribed, resulting in more attractive pricing. However, there is a call for banks to tighten exposure to high-carbon clients while increasing sustainable finance volumes.
The UAE’s progress is fostering regional growth in sustainable finance, with Saudi Arabia and Qatar following suit. Saudi Arabia’s Public Investment Fund is driving $19 billion in green investments, and Qatar debuted its first $2.5 billion in green bonds. This regional push in green investments presents opportunities for banks in the region to initiate sustainable finance issuance.
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