Insights from the BCCD Green launch event: The rising importance of ESG

Date Posted:Thu, 25th Apr 2024

Insights from the BCCD Green launch event: The rising importance of ESG

This week we officially launched our #BCCDGreen programme ‘Leading ESG Excellence, Sustainability and Net Zero Solutions’ with an inaugural event at Towers Rotana.

 

The BCCD has a strong belief that businesses of all sizes can thrive while making a positive impact on the world around them. BCCD Green aims to support our members - through all growth stages and sizes - encouraging sustainable business practices and promoting net-zero solutions. BCCD Green is designed to inspire impactful ESG advancements by celebrating excellence and highlighting success stories.

At this week’s launch event, Paul Todd, Regional Sales Consultant at International Real Estate Partners gave a presentation on the rising importance of ESG and on the benefits of ESG reporting for SMEs in the UAE. In this article, we provide a summary of some of the messages Paul touched on in his speech.

What is ESG, Sustainability and Carbon Net Zero?

A key first step for any business interested in ESG practices is understanding the difference among ESG, Sustainability, and Carbon Net Zero, as these terms are often used in the same context but have different meanings.

ESG refers to the set of specific criteria used by investors, stakeholders and regulations to evaluate the sustainability and ethical impact of a company’s operation. They encompass environmental concerns (such as climate change, resource depletion and pollution), social issues (labour practices, human rights and community relations) and governance considerations (board diversity, executive compensation and transparency).

Carbon Net Zero is the term used to define efforts in balancing carbon emissions with removals or offsets initiatives. It focuses on reducing greenhouse gas emissions, particularly carbon dioxide, and is achieved through energy efficiency, renewable energy, carbon capture, and offsets. Carbon Net Zero is crucial for addressing climate change and promoting sustainability.

In this context, sustainability embodies a broader ethos and vision. Sustainability, which is defined as ‘the ability to maintain’, is about meeting present needs without compromising the future. Sustainability initiatives can be related to the economy, society and environment and often include efforts to minimize resource consumption, reduce waste, promote renewable energy, foster social equity, and ensure long-term viability.

How does ESG and the reporting relate to me as an SME?

There are several benefits for SMEs in having robust ESG strategies and plans in place, including better management of stakeholders expectations, higher transparency and accountability, more access to capital and a higher competitive advantage.

By implementing ESG and reporting on your ESG actions, you will create a better, stronger business, possibly positioning yourself ahead of your competition and therefore gaining access to more opportunities and ultimately increase your revenues.

So how can I start creating an ESG plan?

A successful ESG journey typically involves four phases:

  1. Assess current state: take a 360 view of ESG internally and externally.
  2. Build strategy: determine where you want to go with ESG, and your overall objective compared to your peers.
  3. Operationalise: put the right programs in place to reach targets and commitments.
  4. Report and monitor: more than compliance, it is about measuring the success of the organisation’s ESG strategy.

If you would like to know about ESG plans and reporting, please contact Paul Todd: [email protected].