DUBAI: Dubai Chamber of Commerce, one of the three chambers operating under the umbrella of Dubai Chambers, has announced the launch of a new Environmental, Social, and Governance (ESG) Label to promote sustainable business practices.
Coinciding with the UAE’s ‘Year of Sustainability’ and developed by the chamber’s Centre for Responsible Business, the label is designed to help organisations evaluate their ESG readiness and maturity levels, gain recognition and foster business growth.
A thorough assessment was conducted by globally recognised ESG experts as part of the development process, which examined global and regional regulatory landscapes and reporting frameworks to identify the critical factors in determining an organisation’s ESG maturity.
The business community was also consulted during the development phase to help shape the framework, which is aligned with global best practices and meets the local and international baseline for ESG reporting and preparedness.
Mohammad Ali Rashed Lootah, Preside
nt and CEO of Dubai Chambers, commented, ‘The Dubai Chamber of Commerce ESG Label addresses the need for a holistic approach to sustainable business practices that benefit society and the environment, while also supporting our mission to promote good governance and ethical business practices. By shifting the emphasis from corporate social responsibility to ESG labelling, we aim to encourage businesses to adopt comprehensive strategies that embed sustainability into their core operations and decision-making processes.’
Organisations of all sizes that have been established for at least two years are eligible to apply. Companies that successfully apply for the label will benefit from alignment with ESG best practices, enhanced brand image and reputation, and added value for potential investors. The framework promotes ESG ownership within organisations by benchmarking ESG practices against key parameters and peer companies in the region and globally.
Participating organisations receive a feedback report highlig
hting any areas for improvement, together with a maturity level score based on their overall ESG rating. Once awarded, the Dubai Chamber of Commerce ESG Label certificate is valid for a period of one year.
ESG has emerged as a strategic priority for organisations of all sizes, creating a need for companies to integrate sustainability goals into their core business practices and operations. This includes adopting transparent reporting standards, reducing environmental impact, enhancing social responsibility initiatives, and ensuring governance practices align with ethical principles.
Source: Emirates News Agency