INDUSTRY OUTLOOK
Urooj Khan: Bridging Finance and Sustainability in the Era of Climate Accountability
The last twenty years have seen a climate change shift in our discourse from a distant concern to an immediate financial imperative. Once just the domain of climate science canaries, professionals like Urooj Khan are leading the charge in translating moral obligation into business strategy, and redefining corporate responsibility. A chartered accountant turned ESG assurance expert at KPMG UAE, in addition to obtaining certification in ESG from the University of Copenhagen, NYU Stern, and Cambridge Business School, Urooj’ s career embodies the critical intersection of finance and sustainability. Her work focuses on helping organizations navigate the complexities of greenhouse gas( GHG) emissions reporting— particularly the often-misunderstood distinctions between Scope 1, 2, and 3 emissions. For companies aiming to future-proof their operations, Urooj’ s message is clear: understanding and addressing these emissions is not just about compliance; it is about survival in a world where investors, regulators, and consumers demand transparency and action.
By KCI Editorial
From Numbers to Net- Zero: The Evolution of a Sustainability Leader
Urooj’ s path into ESG was unconventional. With a background in chartered accountancy, she initially focused on financial audits, where precision and accountability were highly prized. However, as global markets began prioritizing sustainability, she noticed a significant shift: business success was no longer measured solely by profit margins but also by environmental and social impact. Investors increasingly demanded non-financial disclosures, and companies lacking credible ESG strategies faced higher capital costs.
Her move into ESG assurance at KPMG was a logical next step. Today, Urooj works with multinational corporations across the Middle East, advising them on decarbonization strategies, carbon accounting, and integrating sustainability into financial reporting. What distinguishes her is her ability to translate complex climate concepts— such as emissions scopes— into practical business insights. While many leaders still view ESG as a branding tool, she reframes emissions reductions in terms of risk mitigation, cost savings, and access to green financing, shifting the conversation entirely.
The Emissions Framework: Why Scopes 1, 2, and 3 Matter
Central to Urooj’ s work, as detailed in her newsletter * ESG Learning *, is the GHG Protocol’ s classification of emissions into three scopes— a framework that assesses a company’ s climate impact across its entire value chain.
Scope 1: The Foundation of Accountability
Scope 1 emissions are the easiest to measure and often the first focus for reduction efforts. These are direct emissions from sources a company owns or controls, such as fuel combustion in company vehicles, on-site boilers, or industrial processes. For instance, a logistics company’ s diesel trucks produce Scope 1 emissions with every kilometer traveled, while a cement plant’ s CO 2 emissions from production fall under the same category.
Urooj highlights that addressing Scope 1 is both a regulatory necessity and a strategic priority. In the UAE, where industries like energy and construction dominate, direct emissions are gaining more traction. Solutions vary from operational adjustments— such as optimizing delivery routes to reduce fuel consumption— to major investments like electrifying vehicle fleets or adopting carbon capture technologies. She emphasizes that accurate measurement is the first step, as effective management depends on reliable data.
Scope 2: The Indirect Impact of Energy Choices
While Scope 1 covers direct emissions, Scope 2 accounts for indirect emissions from purchased energy, such as electricity, steam, heating, or cooling. For example, a corporate office’ s air conditioning system powered by grid electricity contributes to Scope 2 emissions.
Urooj explains the two reporting methods for Scope 2: location-based( reflecting the average emissions intensity of the local grid) and market-based( ac-
12 FUGITIVE EMISSIONS JOURNAL • JUNE 2025