INTELLIGENT GREEN TECHNOLOGY
Considering the initiatives launched by the UAE government towards developing this sustainability sector,
it is crucial for IT and telecom organisations to align their business strategies with the overall national level
development objectives. (Source: KPMG UAE survey of corporate responsibility reporting 2017)
With the kind of environmental
impacts generated by this sector, it is
extremely important for the organisations
operating within this sector to focus on
understanding and disclosing the material
sustainability metrics. These include
parameters such as carbon-footprint and
carbon- reduction targets, strategy for
addressing business risks arising due to
issues such as climate change, approach
towards achieving the global sustainable
development goals, among others.
Key findings
The increase in corporate responsibility
reporting by the top 100 UAE companies
can be linked to a growing awareness
and focus on sustainable development
practices, a possible reflection of the
sustainable development agenda initiated
by the UAE government, notably to
position the UAE as one of the global
leaders in the sustainability. A key trend
observed in the analysis was the increase
in reporting by the top 100 companies
42
in the UAE; in 2017, 44 of the top 100
companies were observed to be reporting
on their sustainability performance,
compared to 36 in 2016, an increase of
22% in the reporting rates.
These trends highlight an increasing
level of maturity and sophistication in
sustainability-related disclosures, and
more specifically, a shift from historical
philanthropic disclosures to a more
risk-based approach, with the inclusion
of materiality applications. Furthermore,
we noted an increasing trend for
organisations to align their existing
sustainability strategies to those advocated
by global sustainability agendas, such
as the United Nations 2030 Agenda
for Sustainable Development and the
associated 17 Sustainable Development
Goals. Of the 44 companies reporting on
their sustainability performance, ten of
them have adopted these global goals as a
part of their business strategy.
The survey also revealed that
organisations in the UAE have become
increasingly aware of the application
of internationally accepted reporting
frameworks and guidelines for disclosing
non-financial performance. The most
common reporting framework adopted was
the Global Reporting Initiative reporting
guidelines, with 27% of the reporting
companies using the GRI G4 guidelines.
Notable was the increased focus of
organisations in the UAE towards disclosing
sustainability performance using the latest
GRI Standards reporting guidelines.
11% of the reporting companies
were found to follow the latest GRI
Standards framework when reporting
their sustainability performance,
though the new guidelines are slated
to become mandatory in 2018. Further
trends observed in KPMG’s analysis
are highlighted on this page. The
percentage values calculated for the
number of companies is reflective of
the respective indicator trend out of the
44 N100 companies reporting on their
sustainability performance.
Issue 14
INTELLIGENT TECH CHANNELS