Aligning with the UAE’s ‘Year of Sustainability,’ Dubai Chamber of Commerce, one of the three chambers operating under Dubai Chambers, has announced the launch of a new Environmental, Social, and Governance (ESG) Label. This initiative aims to promote sustainable business practices across the emirate, the Dubai Media Office reported.
According to Mohammad Ali Rashed Lootah, president and CEO of Dubai Chambers, the Dubai Chamber of Commerce ESG Label was introduced to address the need for a comprehensive approach to sustainable business practices. These practices should benefit both society and the environment, while also supporting the chamber’s mission to promote good governance and ethical business practices. Lootah explained that by shifting the emphasis from corporate social responsibility to ESG labelling, the aim is to encourage businesses to adopt comprehensive sustainability strategies that integrate these considerations into their core operations and decision-making.
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Crafted by the chamber’s Centre for Responsible Business, the label is tailored to help organizations assess their ESG preparedness and maturity levels, earn recognition, and spur business growth. The development process involved a thorough assessment by globally recognised ESG experts, who examined global and regional regulatory landscapes, as well as reporting frameworks, to identify critical factors in determining an organization’s ESG maturity.
Eligibility and benefits
The business community was also consulted during the development phase to help shape the framework, which aligns with global best practices and meets the local and international baseline for ESG reporting and preparedness. Organizations of all sizes that have been established for at least two years are eligible to apply for the label.
Organizations that successfully obtain the label will enjoy the advantages of alignment with ESG best practices, bolstered brand image and reputation, and added appeal for prospective investors. The framework promotes ESG ownership within organizations by benchmarking their practices against key parameters and peer companies, both regionally and globally.
ESG as a strategic priority
Participating organizations receive a feedback report highlighting areas for improvement, along with a maturity level score based on their overall ESG rating. The Dubai Chamber of Commerce ESG Label certification remains valid for the duration of one year.
ESG has emerged as a strategic priority for organizations of all sizes, necessitating the integration of sustainability goals into core business practices and operations. This encompasses adopting transparent reporting standards, minimizing environmental impact, fortifying social responsibility initiatives, and ensuring governance practices align with ethical principles.
Engaging the business community
Recently, the chamber organized a virtual roadshow attended by 224 participants, covering the main concepts of ESG, the development of the framework, the application process, and the benefits for participating organizations. Additional sessions will be organized in the future to further engage the business community.
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