Regional-level alignment on sustainability reporting standards, policy, and taxonomies are needed to support the GCC’s economic transition to achieve net zero carbon emissions by 2050. That was the view of experts gathered for ICAEW’s joint webinar with the UAE Banks Federation (UBF), held virtually last month.

Moderated by Peter Van Veen, Director of Corporate Governance and Stewardship, ICAEW, the discussion centred on the necessary involvement of banks and chartered accountants to help companies and governments tackle climate change and reach sustainability commitments. He was joined by:

  • Shargiil Bashir, EVP & Chief Sustainability Officer, First Abu Dhabi Bank
  • Vijay Bains, Chief Sustainability Officer, Group Head of ESG, Emirates NBD
  • Jonathan Scott, Senior Manager Sustainable Finance, HSBC
  • Reuben Wales, Head of Financial Services, ICAEW

The UAE’s upcoming COP28 event, coupled by an increase in stakeholder interest and their willingness to pay a premium for sustainable products, has become a driving force for climate change action and investment. However, according to the panellists, the progress made in reporting is only the start of the ESG journey and international alignment is more important than the speed of its development.

Given the proximity and similarities within the GCC region, the speakers emphasised the opportunity to align legislative frameworks and taxology definitions so they can be more effective instead of breaking off into separate frameworks and standards. Not only will this help companies avoid under-reporting or over-reporting, it will also instil investor confidence as they can analyse consistent language across companies and industries.

The expert panel urged banks to act as strategic partners to businesses, not only providing the necessary capital but also aiding their understanding of their green transitions, just like they did with digitalisation and online banking. Banks can help companies understand and navigate market maturity in specific industries and provide the best possible advice.

Jamal Saleh, Director General, UBF, said: “The UAE was the first MENA country to pledge net zero by 2050 so expectations are high, particularly as the government has declared 2023 the Year of Sustainability. As one of the world’s fastest-growing economies, the UAE’s green transition relies on the active participation of banks. Many of us have already committed to reducing carbon emissions, and we understand our responsibility extends not only to the projects we support but also the emissions they generate.”

Hanadi Khalife, Head of Middle East, ICAEW, said: “As the sustainable business landscape grows more connected and complex, chartered accountants must strategically guide their organisations and clients, inspiring confidence in ESG reporting through the use of consistent and coherent methodologies.

“The chartered accountancy profession has long played the role of a trusted third-party opinion, assisting companies and industries in their transitions. Today, our responsibility to act in the public interest is greater than ever. We must strive to give our clients the highest quality advice, ensuring their objectives are measurable and robust enough to drive positive and sustainable change.”

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About ICAEW

Chartered accountants are talented, ethical and committed professionals. ICAEW represents more than 195,300 members and students around the world.

Founded in 1880, ICAEW has a long history of serving the public interest and we continue to work with governments, regulators and business leaders globally. And, as a world-leading improvement regulator, we supervise and monitor over 12,000 firms, holding them, and all ICAEW members and students, to the highest standards of professional competency and conduct.

We promote inclusivity, diversity and fairness and we give talented professionals the skills and values they need to build resilient businesses, economies and societies, while ensuring our planet's resources are managed sustainably.

ICAEW is the first major professional body to be carbon neutral, demonstrating our commitment to tackle climate change and supporting UN Sustainable Development Goal 13.

ICAEW is a founding member of Chartered Accountants Worldwide (CAW), a global family that connects over 1.8m chartered accountants and students in more than 190 countries. Together, we support, develop and promote the role of chartered accountants as trusted business leaders, difference makers and advisers.

We believe that chartered accountancy can be a force for positive change. By sharing our insight, expertise and understanding we can help to create sustainable economies and a better future for all.

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