For almost a quarter of a decade, corporate sustainability reporting has been a priority for companies globally. While the efforts of some regions, for example Europe, to report sustainable practice has been propelled by government initiatives and wider sustainability drives, other region have been less active in challenging established mindsets. This approach, however, looks set to change – particularly in the United Arab Emirates (UAE).

In December 2017, global professional services company KPMG released its Corporate Responsibility Reporting survey. Named ‘The Road Ahead,’ the survey studied the annual financial and corporate responsibility reports published by the top 100 companies in the UAE. It showed that 44 of the 100 UAE-based global firms reported on their sustainability performance, up from 36 out of 100 in 2016.

While the figure is not yet at 50%, the significant improvement of 22% in just one year indicates a region willing to embrace its future needs.  

“The higher number of reporting companies shows a continued, positive trend in the UAE – that of local companies being increasingly aware of the impact of their business and operational activities on society and the environment,” says Raajeev B Batra, partner and head of risk consulting at KPMG Lower Gulf Limited. “With less than half of the top 100 companies currently assessing and reporting their CR performance, there is scope for improvement, but the increase from last year is definitely an encouraging sign.”

Indeed, the embracing of corporate sustainability reporting is indicative of a wider environmentally- and socially-conscious trend across the UAE. The region has recently welcomed nationally-relevant agendas and charters; the 2015 UAE Green Agenda 2015-2030 under the ‘Green Economy for Sustainable Development’ initiative and UAE Energy Plan 2050 to cut carbon dioxide emissions by 70% are just two initiatives among many which aim to protect and enhance the quality of both life and business in the UAE.

For Hanife Ymer, director in charge of sustainability services at KPMG in the Lower Gulf, corporate responsibility and reporting is integral for a wider framework of citizen and environmental protection at the micro and macro level. “Sustainable environment and infrastructure is one of the key pillars of the UAE Vision 2021, the local government’s long-term strategy for socioeconomic development,” says Ymer.

She continues, “Further, 2017 was declared the 'Year of giving' in the UAE, a government initiative which focused on three key pillars: corporate social responsibility, volunteering, and serving the nation. Given this increased commitment to sustainability in the region, we expect corporate reporting to become the norm for larger companies in the next five years.”

KPMG’s report also signals a move from companies focusing only on financial results, with several of the 100 organisations surveyed reporting on metrics such as any social or environmental impact generated through business operations, human rights or the adoption of sustainability practice across the supply chain. However, financial services companies emerged on top in the KPMG report – 15 of 40 surveyed provided corporate responsibility report metrics, compared to just two each in the healthcare, construction and materials, retail and telecommunication industries.

While obstacles to a fully sustainable economic model remain, the significant increase in corporate sustainability reporting in just one year is cause for encouragement. For the UAE, adopting a more holistic approach to the economy, society and the environment is key way of securing the future for investors, travellers and citizens alike.

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