Why firms should adopt sustainability practices

Why firms should adopt sustainability practices

Why firms should adopt sustainability practices
Efficient resource utilization, waste reduction and energy conservation can yield substantial cost savings. (Shutterstock)
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Saudi Arabia is home to some 245 publicly listed companies, all focused on maximizing value and delivering profits. So why should sustainability also be a priority?

Indeed, are corporate sustainability practices merely fleeting trends, regulatory obligations, government-driven initiatives, superficial reports or hollow efforts at reputation management?

Quite frankly, sustainability is not just an ethical imperative but a business one. It can significantly impact a company’s profitability, longevity and resilience — either positively or negatively. By embracing sustainability, companies can reshape their business models to drive revenue growth, improve margins, optimize capital allocation and mitigate risk.

Efficient resource utilization, waste reduction and energy conservation can yield substantial cost savings, enhancing a company’s bottom line. Similarly, sustainable and fair labor practices can resonate with consumers, fostering increased brand loyalty and customer preference.

Moreover, investing in sustainable technologies and practices can spur innovation, leading to the development of groundbreaking products and services. This can provide companies with a competitive edge, attract new customers and expand market share.

A strong commitment to sustainability can also reduce the cost of capital by improving creditworthiness. More than 500 academic studies have demonstrated a bidirectional positive correlation between corporate sustainability and financial returns.

Nonetheless, companies must approach sustainability with precision and meticulousness. Poorly executed sustainability initiatives can inadvertently erode value, while well-planned and properly implemented practices can significantly enhance a company’s performance.

The first step toward sustainable success should be a comprehensive assessment of a company’s current sustainability practices. This review should identify areas of strength and weakness, as well as opportunities for improvement.

Poorly executed sustainability initiatives can inadvertently erode value, while well-planned and properly implemented practices can significantly enhance a company’s performance.

Rodrigo Tavares

Organizations such as Clarity AI, MSCI ESG Ratings, Sustainalytics and the Upright Project can assess a company’s sustainability performance. By understanding the company’s sustainability baseline, businesses can develop a tailored roadmap to enhance their value proposition.

The second critical step is to identify and shortlist sustainability practices that can significantly impact a company’s financial performance and risk profile from a vast array of options. Tailoring these practices to each company’s unique circumstances remains one of the most complex challenges in corporate sustainability.

It is therefore important to avoid overextending sustainability efforts. While a strong commitment to sustainability is commendable, excessive or poorly executed initiatives can divert valuable resources and distract from core business objectives. A balanced approach, focused on material issues and measurable outcomes, is essential.

Over the past few weeks, Saudi Arabia has hosted several events to discuss the merits of corporate sustainability. These include the Future Investment Initiative, the Saudi Green Initiative Forum, the One Planet Sovereign Wealth Funds CEO Summit and the UN Convention to Combat Desertification’s COP16 conference.

In April, the Ministry of Economy and Planning launched the Sustainability Champions program, through which selected Saudi companies commit to transforming the sustainability practices of at least three other companies within the Kingdom, aiming to create a ripple effect that multiplies the impact across the economy.

Saudi Arabia is steadily building the foundational infrastructure to unlock the financial benefits of corporate sustainability. Now is the time for companies to embrace this challenge and seize the opportunities it offers.

  • Rodrigo Tavares is an invited full professor of sustainable finance at Nova School of Business and Economics, founder and CEO of the Granito Group, and former head of the Office of Foreign Affairs of the Sao Paulo state government.
Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Philippines, US hold joint maritime exercises in South China Sea

Philippines, US hold joint maritime exercises in South China Sea
Updated 7 min 5 sec ago
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Philippines, US hold joint maritime exercises in South China Sea

Philippines, US hold joint maritime exercises in South China Sea
  • South China Sea joint maritime exercises is first for the year and fifth overall since launching combined activities in 2023
  • Security engagements between the two allies have soared under Philippine President Ferdinand Marcos Jr.

MANILA: The Philippines and the United States carried out joint maritime exercises for a fifth time in the South China Sea, Manila’s armed forces said on Sunday, in a move that would likely irk China.
The Philippine military said in a statement it held a “maritime cooperative activity” with the US on Friday and Saturday, its first for the year and fifth overall since launching the joint activities in 2023.
Security engagements between the two allies have soared under Philippine President Ferdinand Marcos Jr., who has pivoted closer to Washington, allowing the expansion of military bases that American forces can access, including facilities that face Taiwan.
The joint maritime activity included the United States’ Carl Vinson Carrier Strike Group, two guided missile destroyers, two helicopters and two F-18 Hornet aircraft.
The Philippine side deployed its Antonio Luna frigate, Andres Bonifacio patrol ship, two FA-50 fighter jets, and search and rescue assets of the air force.
The activities “reinforced bilateral maritime cooperation and interoperability,” the Philippine armed forces said.
Their joint activity came at a time when the Philippines had called out China over the presence of Chinese coast guard vessels inside its maritime zone, including the 165-meter-long ship that it describes as “the monster” for its size.
The Chinese embassy in Manila did not immediately respond for a request for comment on a weekend.


TikTok goes dark in the US as ban takes effect

TikTok goes dark in the US as ban takes effect
Updated 28 min 29 sec ago
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TikTok goes dark in the US as ban takes effect

TikTok goes dark in the US as ban takes effect
  • A federal law required ByteDance to divest its stake in the TikTok’s US platform or face a ban
  • ByteDance chose to take legal action against the law and ultimately lost their fight at the Supreme Court

NEW YORK: TikTok’s app was removed from prominent app stores on Saturday just before a federal law that would have banned the popular social media platform was scheduled to go into effect.
By 10:50pm Eastern Standard Time, the app was not found on Apple and Google’s app stores, which are prohibited from offering the platform under a law that required TikTok’s China-based parent company, ByteDance, to sell the platform or face a US ban.
When users opened the TikTok app on Saturday evening, they encountered a pop-up message from the company that prevented them from scrolling on videos.
“A law banning TikTok has been enacted in the US,” the message said. “Unfortunately that means you can’t use TikTok for now.”
“We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office,” the message said. “Please stay tuned!”
Before that announcement went out, the company had said in another message to users that its service would be “temporarily unavailable” and told them its working to restore its US service “as soon as possible.”
The federal law, that was signed by President Joe Biden last year, required ByteDance to divest its stake in the TikTok’s US platform or face a ban. ByteDance had nine months to sell the US operation to an approved buyer. The company, and TikTok, chose to take legal action against the law and ultimately lost their fight at the Supreme Court on Friday.
Under the statute, mobile app stores are barred from offering TikTok and Internet hosting services are prohibited from delivering the service to American users.
Both White House Press Secretary Karine Jean-Pierre and Deputy Attorney General Lisa Monaco had said that the Biden administration would leave the law’s implementation to President-elect Donald Trump given that his inauguration falls the day after the ban takes effect.
But TikTok said after the court ruling on Friday that it “will be forced to go dark” if the administration didn’t provide a “definitive statement” to the companies that deliver its service in the US
However, White House Press Secretary Karine Jean-Pierre called TikTok’s demand a “stunt” and said there was no reason for TikTok or other companies “to take actions in the next few days before the Trump administration takes office.”
In an interview with NBC News on Saturday, President-elect Donald Trump said he was thinking about giving TikTok a 90-day extension that would allow them to continue operating.
The federal law allows the sitting president to extend the deadline by 90 days if a sale is in progress. But no clear buyers have emerged, and ByteDance has previously said it won’t sell TikTok.
If such an extension happens, Trump said it would “probably” be announced on Monday.
On Saturday, artificial intelligence startup Perplexity AI submitted a proposal to ByteDance to create a new entity that merges Perplexity with TikTok US business, according to a person familiar with the matter. If successful, the new structure would also include other investors and allow ByteDance’s existing shareholders to retain their stake in the company, the person said.
Perplexity is not asking to purchase the ByteDance algorithm that feeds TikTok user’s videos based on their interests and has made the platform such a phenomenon.
Other investors have also been eyeing TikTok. “Shark Tank” star Kevin O’Leary recently said a consortium of investors that he and billionaire Frank McCourt put together offered ByteDance $20 billion in cash. Trump’s Treasury Secretary Steven Mnuchin also said last year that he was putting together an investor group to buy TikTok.


Pakistan, Britain reaffirm their resolve to further strengthen bilateral ties

Pakistan, Britain reaffirm their resolve to further strengthen bilateral ties
Updated 19 January 2025
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Pakistan, Britain reaffirm their resolve to further strengthen bilateral ties

Pakistan, Britain reaffirm their resolve to further strengthen bilateral ties
  • British high commissioner meets Pakistan's Planning Minister Ahsan Iqbal to discuss bilateral cooperation 
  • Iqbal highlights financial sector's importance in promoting export growth, enhancing agricultural exports

ISLAMABAD: Pakistan and the United Kingdom reaffirmed their resolve to further strengthen bilateral relations to ensure mutual economic development, state-run media reported this week. 

UK's High Commissioner to Pakistan Jane Marriott met Pakistan's Planning Minister Ahsan Iqbal on Saturday during which Pakistan's measures to improve its economy came under discussion. 

Iqbal spoke about Islamabad's efforts to eradicate basic education deprivation through public-private partnerships, provincial cooperation to enhance capacity in education, health, and human resources, and significant budget increases for higher education, state broadcaster Radio Pakistan reported. 

"Pakistan and Britain have reaffirmed the commitment to foster stronger ties and collaborative efforts for mutual growth and development," Radio Pakistan said in its report. 

The minister told the British official that Pakistan's economic strategy includes its aims to address five critical areas including exports, e-Pakistan, environment and climate change, energy and infrastructure, equity and empowerment.

He stressed the importance of Pakistan's financial sector in promoting export growth, enhancing agricultural exports, fostering industrial development and advancing critical areas such as IT, services, mining, workforce export, the blue economy, and innovation, the report said. 

Pakistan and the UK have strong military, economic and educational ties, with the latter hosting a large Pakistani diaspora.


KSrelief delivers prosthetic services, food supplies in Yemen, Lebanon and Pakistan

KSrelief delivers prosthetic services, food supplies in Yemen, Lebanon and Pakistan
Updated 19 January 2025
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KSrelief delivers prosthetic services, food supplies in Yemen, Lebanon and Pakistan

KSrelief delivers prosthetic services, food supplies in Yemen, Lebanon and Pakistan

RIYADH: The King Salman Humanitarian Aid and Relief Center’s (KSrelief) ongoing philanthropic work in Yemen, Lebanon and Pakistan continues with the provision of prosthetic services and food supplies in Yemen, Lebanon and Pakistan.

In Yemen’s Hadhramaut governorate, the Prosthetics and Rehabilitation Center in the Seiyun district provided various medical and prosthetic services in December last year to 523 Yemenis who lost limbs, with support KSrelief. Services included the fitting and rehabilitation of prosthetic limbs, physical therapy and specialized consultations.

In Lebanon’s Akkar governorate and Miniyeh District, the aid agency’ fourth phase of the Al-Amal Charity Bakery Project last week distributed 175,000 bags of bread to Syrian and Palestinian refugees as well as the communities hosting them.

The distribution benefited 12,500 families, equivalent to 62,500 individuals.

In Pakistan’s Dadu and Sanghar areas of Sindh province and the Torghar area of Khyber Pakhtunkhwa province, KSrelief recently handed out 1,500 food boxes to families in areas affected by floods. The latest activity is part of the aid agency’s 2025 Food Security Support Project for the south Asian nation.


KSrelief provides food, relief supplies in Syrian provinces

KSrelief provides food, relief supplies in Syrian provinces
Updated 19 January 2025
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KSrelief provides food, relief supplies in Syrian provinces

KSrelief provides food, relief supplies in Syrian provinces

RIYADH: Saudi aid agency KSrelief has provided vital food assistance and relief aid in several Syrian provinces as part of its ongoing relief project in the country, state news agency SPA reported.
In Homs Governorate, KSrelief on Thursday distributed 14 food parcels, each containing a 10-kilogram bag of flour, along with 14 winter bags and 14 personal care kits in Talbiseh city. 

This initiative benefited 1,982 individuals from 382 families as part of the relief materials distribution project there.

In Homs, KSrelief distributed 14 food parcels along with 14 winter bags and 14 personal care kits in Talbiseh city. (SPA)

The agency also distributed bags of flour, winter kits, and personal care kits on Saturday to 15 families in the city of Al-Rastan in Homs, benefiting 61 individuals.
In As-Suwayda, KSrelief distributed bags of flour, winter kits, and personal care kits on Thursday to 258 families, benefiting 984 individuals. 
This aid is part of a larger food distribution project coordinated with the Syrian Arab Red Crescent.