Sustainability Reporting and Disclosure in UAE: A Guide to Business Excellence

Sustainability is no longer just a competitive advantage; it is an essential business practice in today’s dynamic UAE market. Effective sustainability reporting and disclosure in the UAE are crucial for companies to maintain trust, attract investors, and comply with regulations. Accurate Middle East, a leading consulting firm in Dubai, offers comprehensive services to help businesses create transparent, impactful, and compliant sustainability reports tailored to local and global requirements.

Why Sustainability Reporting and Disclosure is Essential in the UAE

The UAE has emerged as a global leader in sustainability initiatives, from the UAE Net Zero 2050 agenda to the government’s push for renewable energy adoption. Businesses operating in the region must align their practices with these goals to stay competitive. Sustainability reporting is a powerful tool to communicate your company’s commitment to environmental, social, and governance (ESG) principles.
Sustainability reporting is more than just a regulatory requirement; it demonstrates your company’s dedication to responsible practices, enhancing your reputation and building stakeholder trust. These reports provide valuable insights into your business’s impact on the environment, employees, and communities, enabling better decision-making and long-term planning.

Who Needs Sustainability Reporting in the UAE?

Businesses across all industries can benefit from sustainability reporting. For multinational corporations, it is a way to maintain consistency across global operations while adhering to local regulations. For startups and SMEs, sustainability reporting can attract investors and open doors to partnerships. Companies seeking government contracts or aiming to strengthen their market position also find sustainability disclosure an indispensable tool.

Mandatory ESG reporting in the UAE in 2024

In 2024, the United Arab Emirates (UAE) reinforced its commitment to sustainability by implementing specific regulations mandating Environmental, Social, and Governance (ESG) reporting for certain entities.

Mandatory ESG Reporting Requirements:

• Public Joint Stock Companies (PJSCs): According to Article (76) of the Chairman of the Securities and Commodities Authority (SCA) Board Decision No. (03 R.M.) of 2020, all PJSCs listed on the Abu Dhabi Securities Exchange (ADX) or the Dubai Financial Market (DFM) are required to produce annual sustainability reports. These reports must align with the Global Reporting Initiative (GRI) Standards and be published alongside the company’s annual financial statements. Tamimi
• Entities within Abu Dhabi Global Market (ADGM): On June 21, 2023, ADGM enacted the ESG Disclosures Framework, mandating that all ADGM-registered entities meeting specific threshold conditions comply with ESG disclosure requirements or provide explanations for non-compliance. This framework aims to enhance transparency and support the UAE’s Net Zero by 2050 strategy. ADGM

Voluntary ESG Reporting Initiatives:

• Abu Dhabi Securities Exchange (ADX): ADX has issued voluntary ESG disclosure guidelines, encouraging listed companies to report on 31 ESG indicators. These guidelines are aligned with the recommendations of the Sustainable Stock Exchanges (SSE) Initiative and the World Federation of Exchanges (WFE), promoting best practices in sustainability reporting. ADX Services

The Process of Sustainability Reporting and Disclosure in UAE

Accurate Middle East follows a structured approach to create sustainability reports that are accurate, compliant, and impactful:

1. Initial Consultation and Briefing
   We begin by understanding your business objectives, operations, and the specific goals for your sustainability report.
2. Materiality Assessment
   This involves identifying and prioritizing the ESG issues that matter most to your stakeholders and significantly impact your business.
3. Data Collection
   Our team gathers data from various departments, including environmental performance metrics, workforce statistics, and governance practices. We ensure the information is complete and verified.
4. Analysis and Benchmarking
   The data is analyzed and compared against industry benchmarks to highlight your company’s performance and areas for improvement.
5. Report Preparation
   The findings are compiled into a clear, professional report that aligns with international frameworks such as the GRI Standards, SASB, or local guidelines.
6. Design and Delivery
   We create a visually engaging and reader-friendly report, delivered in a digital PDF format, ready for stakeholder presentations or regulatory submissions.

Sustainability Reporting and Disclosure in UAE as a Service

At Accurate Middle East, we specialize in creating tailored sustainability reports for businesses of all sizes and industries. Our services include:

• Customized Reporting: Reports are aligned with your industry requirements and business goals.
• Global Standards Compliance: We ensure adherence to frameworks like GRI, SASB, and TCFD.
• End-to-End Support: We handle the entire process from data collection to final report design.
• Stakeholder Communication: The reports are designed to engage and inform key stakeholders, including investors, customers, and regulatory bodies.

Cost of Sustainability Reporting and Disclosure in UAE

The cost of sustainability reporting depends on several factors, including the size of your organization, the complexity of your operations, and the level of detail required. Larger companies with extensive operations may incur higher costs due to the scope of data collection and analysis. However, even smaller companies can achieve impactful results with a focused approach.

On average, the cost of a comprehensive sustainability report in the UAE ranges from AED 30,000 to AED 100,000. This investment not only ensures compliance but also enhances your company’s reputation and stakeholder engagement.

Why Accurate Middle East for Sustainability Reporting in UAE?

Choosing Accurate Middle East as your partner for sustainability reporting offers several advantages:
Expertise in UAE Regulations: We deeply understand local sustainability guidelines and international frameworks.
Comprehensive Approach: Our end-to-end service covers every aspect of reporting, from data collection to stakeholder communication.
Proven Track Record: Our clients include leading businesses across various industries, all of whom have benefited from our strategic insights and meticulous execution.
Focus on Impact: We don’t just create reports; we help you use them as tools to drive positive change and business growth.

With Accurate Middle East, you gain a partner dedicated to showcasing your company’s sustainability efforts in the best light.

The Value of Sustainability Reporting for UAE Businesses

Sustainability reporting is not just a compliance requirement but a strategic tool that drives trust, transparency, and long-term success. Investing in a professionally prepared sustainability report, your business can align with the UAE’s sustainability goals, attract investors, and enhance its market position.

Accurate Middle East is here to make your sustainability journey seamless and impactful. Our team of experts ensures that your report not only meets regulatory standards but also highlights your commitment to ESG principles in a way that resonates with stakeholders.

If you would like to order ESG service for the UAE market, please contact us via WhatsApp or call at +971 50 599 5603. Alternatively, you can request a callback or a free consultation by clicking the button below.