Dubai Chamber of Commerce launches ESG Label to enhance sustainable business practises

Date Posted: 27 August 2024

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• Mohammad Ali Rashed Lootah: “The Dubai Chamber of Commerce ESG Label addresses the need for a holistic approach to sustainable business practices that benefits society and the environment, while also supporting our mission to promote good governance and ethical business practices.”
• The label’s development frameworks relied on a comprehensive evaluation by internationally certified experts to analyse existing regulations and reporting mechanisms regionally and globally to identify key factors in measuring the maturity of adopting practices.
• The business community was engaged in the development phase to contribute to the label’s frameworks in line with the best global standards and meeting basic requirements regarding readiness.
• Companies can apply for the mark, which offers numerous benefits to its holders, including ensuring compliance with best practices, enhancing brand reputation, and creating added value.

Dubai, UAE – Coinciding with the UAE’s ‘Year of Sustainability,’ 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. 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.

His Excellency Mohammad Ali Rashed Lootah, President 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 highlighting 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.

Recently, the chamber organised a virtual roadshow that was attended by 224 participants. The online session covered the main concepts of ESG, the development of the framework, and the application process for the ESG Label, together with the benefits for participating organisations. More sessions will be organised in future to drive engagement with the business community.

Click here to submit your ESG Label application.

Dubai Chamber of Commerce’s Centre for Responsible Business plays a pivotal role in promoting responsible and sustainable business practices in the emirate and is committed to supporting and motivating companies to adopt best practices in ESG to enhance their performance, increase competitiveness, and enrich their social and environmental contributions. The centre provides a range of platforms and tools, as well as access to knowledge and expertise, to help companies embed governance, sustainability, and social responsibility throughout their operations.