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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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º£½ÇÖ±²¥ 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, º£½ÇÖ±²¥ 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.

º£½ÇÖ±²¥ 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

Russian media say top official is in Pyongyang again to meet North Korean leader

Russian media say top official is in Pyongyang again to meet North Korean leader
Updated 2 min 28 sec ago

Russian media say top official is in Pyongyang again to meet North Korean leader

Russian media say top official is in Pyongyang again to meet North Korean leader

SEOUL: A top Russian security official traveled to Pyongyang for the second time this month for another meeting with North Korean leader Kim Jong Un, Russian state media reported Tuesday, the latest display of the countries’ deepening ties amid President Vladimir Putin’s war against Ukraine.
Russia’s Tass news agency said Russian Security Council Secretary Sergey Shoigu arrived in the North Korean capital on an unspecified “special†mission from Putin and was expected to meet with Kim. North Korean state media didn’t immediately confirm the visit.
Kim has supplied Russia with thousands of troops and large shipments of military equipment, including artillery and ballistic missiles, to support its military operation in Ukraine. Washington and Seoul have expressed concern that, in return, Kim may seek Russian technology transfers that could enhance the threat posed by his nuclear-armed military.
In April, Pyongyang and Moscow officially confirmed North Korean troops’ deployment to Russia for the first time, saying that soldiers of the two countries were fighting alongside each other to repel a Ukrainian incursion into Russia’s Kursk border region. Putin then thanked North Korea’s participation in the war and promised not to forget their sacrifices.
In their previous meeting on June 4, Kim told Shoigu that his government would “unconditionally support†Russia over the war in Ukraine and other critical international issues as they discussed strengthening the strategic partnership between their countries, according to North Korean state media. Tass then reported that Shoigu and Kim also discussed prospects for rebuilding the Kursk region and outlined steps to commemorate the combat contributions of North Korean soldiers.


India warns citizens to leave Tehran as some flee Iran

India warns citizens to leave Tehran as some flee Iran
Updated 4 min 15 sec ago

India warns citizens to leave Tehran as some flee Iran

India warns citizens to leave Tehran as some flee Iran

NEW DELHI: India on Tuesday urged its citizens to leave Tehran, while some nationals have already fled across the Iranian border as the country comes under Israeli bombardment.
With Israel vowing to keep up its attacks four days after launching its assault on Iran, which has launched retaliatory strikes, New Delhi said Indian students have already left Tehran.
“Residents who are self sufficient in terms of transport have also been advised to move out of the city in view of the developing situation,†the foreign ministry said in a statement.
The warning came after Israel’s ally US President Donald Trump said “everyone†should “immediately†leave the Iranian capital, which is home to nearly 10 million.
New Delhi said “some Indians have been facilitated to leave Iran through the border with Armenia,†hundreds of kilometers (miles) northwest of Tehran.
The foreign ministry did not detail how many of its citizens have been affected in Iran, where there are around 10,000 Indians according to government data last year.
Thousands of Indians are also in Israel, and New Delhi has issued warnings for its citizens there to “stay vigilant.â€


Pakistan, US agree to finalize trade deal ‘at the earliest’ after Trump’s reciprocal tariffs

Pakistan, US agree to finalize trade deal ‘at the earliest’ after Trump’s reciprocal tariffs
Updated 8 min 58 sec ago

Pakistan, US agree to finalize trade deal ‘at the earliest’ after Trump’s reciprocal tariffs

Pakistan, US agree to finalize trade deal ‘at the earliest’ after Trump’s reciprocal tariffs
  • Finance Minister Aurangzeb holds a virtual meeting with US Commerce Secretary Howard Lutnick
  • Both sides agree to hold technical-level talks in the coming days under a mutually agreed roadmap

KARACHI: Pakistan and the United States have agreed to move forward with negotiations aimed at finalizing a trade deal “at the earliest,†as Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick held a virtual meeting to discuss recently imposed American “reciprocal tariffs,†Pakistan’s finance ministry said on Tuesday.

Last month, Islamabad announced it had formally launched talks with the US following the imposition of steep tariffs by President Donald Trump’s administration on several countries, including Pakistan.

The duties, which Washington says are meant to correct trade imbalances and ensure fair treatment of American goods, have been widely criticized as a blow to global economic recovery efforts in the aftermath of the COVID-19 pandemic.

Pakistan has been hit with a 29 percent tariff on its exports to the US at a time when the country is trying to drive economic growth through increased exports.

“Further to Pak-US negotiations on US reciprocal tariffs, a virtual meeting took place between Mr. Muhammad Aurangzeb, Pakistan’s Finance Minister, and Howard Lutnick, United States’ Commerce Secretary on 16th June, 2025,†the finance ministry said in its statement.

“Both sides resolved to carry forward their negotiations through a constructive engagement to finalize the trade deal at the earliest,†it added.

The ministry informed the discussion focused on strengthening trade and investment and deepening economic ties between the two countries.

Both sides agreed to hold further technical-level discussions in the coming days, based on a mutually agreed roadmap.

The United States is Pakistan’s largest export market, and analysts warn that the new tariffs could undermine Islamabad’s fragile economic recovery.

According to Pakistan’s central bank, the country exported $5.44 billion worth of goods to the US in 2024. From July 2024 to February 2025, exports stood at $4 billion, up 10 percent compared to the same period last year.

Nearly 90 percent of Pakistan’s exports to the US are textiles, a sector likely to bear the brunt of the tariff impact.

Trade experts have also cautioned that the duties could erode Pakistan’s competitiveness, especially if regional players such as China, Bangladesh and Vietnam shift focus to European markets, intensifying competition in alternative destinations.


Pakistan urges global action on rising ‘Islamophobia’ at UN hate speech event

Pakistan urges global action on rising ‘Islamophobia’ at UN hate speech event
Updated 37 min 11 sec ago

Pakistan urges global action on rising ‘Islamophobia’ at UN hate speech event

Pakistan urges global action on rising ‘Islamophobia’ at UN hate speech event
  • The event was organized by Morocco and the UN Office on Genocide Prevention
  • Pakistan expresses commitment to inclusion, calls diversity a collective strength

ISLAMABAD: Pakistan’s top diplomat at the United Nations on Monday called for a collective international response to rising “Islamophobia,†warning that unchecked hate speech and extremist narratives were fracturing societies and threatening global peace and stability.

Speaking at a high-level event to mark the International Day for Countering Hate, Ambassador Asim Iftikhar Ahmad said growing intolerance, fueled by politicized media and digital platforms, was targeting not only Muslims but also people of various races, genders and nationalities.

The International Day for Countering Hate is observed each year on June 18, following its institutionalization by the UN in 2023 in response to the global rise in hate-driven violence, incitement and disinformation.

Monday’s event at the UN was hosted by Morocco and the Office on Genocide Prevention.

“The surge in Islamophobia through discriminatory laws, defamation of religious symbols and orchestrated vilification are particularly alarming trends,†Ahmad said. “Media platforms, especially those aligned with dominant political forces, have enabled this hate.â€

“Similar tactics now target other marginalized communities,†he continued. “We also observe rising racism and xenophobia fueling division and exclusion. These trends demand urgent collective response.â€

Pakistan’s Ambassador to the United Nations Asim Iftikhar Ahmad speaks during a special briefing to mark the International Day for Countering Hate, at the UN Headquarters in New York on June 16, 2025. (Photo courtesy: X/@PakistanUN_NY)

Ahmad welcomed the recent appointment of the UN Special Envoy on Combating Islamophobia, an institutional step initiated through a resolution presented by Pakistan on behalf of the Organization of Islamic Cooperation (OIC) in March last year.

Muslim countries, in recent years, have collectively raised their voice against acts of desecration such as the public burning of the Qur’an in several European countries.

Many of these incidents have coincided with the political rise of far-right parties, which have capitalized on anti-immigrant sentiment and targeted Islam and Muslim communities.

Muslim states have called for an end to such practices and have advocated for legal measures to prevent the desecration of religious symbols, arguing that such acts have no connection to free speech and must be addressed under international frameworks protecting religious and cultural dignity.

The Pakistani envoy said the appointment came at a critical time and urged full implementation of the UN Strategy and Plan of Action on Hate Speech.

He also condemned digital platforms and algorithmic systems, saying they reward sensationalism and amplify identity-based hate, warning that truth was being sacrificed in politicized media environments.

Ahmad reaffirmed Pakistan’s commitment to promoting respect, inclusion and peaceful coexistence, saying that diversity must be seen as a collective strength.


Fast-moving brush fire on Hawaii’s Maui island evacuates about 50 people. No structures have burned

Fast-moving brush fire on Hawaii’s Maui island evacuates about 50 people. No structures have burned
Updated 17 June 2025

Fast-moving brush fire on Hawaii’s Maui island evacuates about 50 people. No structures have burned

Fast-moving brush fire on Hawaii’s Maui island evacuates about 50 people. No structures have burned
  • Officials said it was 85 percent contained as of Monday morning

HONOLULU: A fast-moving Hawaii brush fire fueled by fierce winds forced the evacuation of about 50 Maui residents on the opposite side of the same island where a devastating blaze killed over 100 people two years ago.
The fire started Sunday in a sparsely populated area with land set aside for Native Hawaiians.
Here’s what we know about the fire so far:
Fire size now estimated at 330 acres
The Kahikinui was initially estimated at 500 acres (202 hectares), but aerial surveys overnight put the estimate at about 330 acres (134 hectares), Maui’s fire department said. The fire is 85 percent contained.
The remote, challenging terrain made it difficult to estimate the fire’s size, the department said in a statement. A police drone showed hot spots, but none flared overnight.
No injuries or structural damage was reported. Weather conditions were mostly sunny Monday with a high of 67 degrees Fahrenheit (19 degrees Celsius) and east winds of about 15 mph (24 kph), gusting up to about 25 mph (40 kph).
The US Drought Monitor says all of Maui is in drought.
Authorities conducted door-to-door evacuations and part of a highway remains closed.
Flashbacks to an earlier fire
Warren Aganos was on his family’s Hawaiian Homelands lot preparing to go on a Father’s Day hunt when a neighbor called him around 9 a.m. telling him a fire had broken out.
“I hung up and raced out, I didn’t let her finish,†said Aganos, who has been slowly rebuilding the three structures his family lost in a 2016 brush fire that burned over 5,000 acres (2,000 hectares) in the same area. “I was thinking about the last one,†he said. “It was super emotional.â€
Aganos said he rushed in his truck to make sure first responders knew where the community’s water storage tanks were before navigating Kahikinui’s dirt roads down to the highway where he could see smoke billowing over the hillside. The community lacks electrical and water infrastructure, and some of the roads are only navigable by four-wheel drive.
State and local leaders signed emergency proclamations so that the Hawaii National Guard can help and counties can access assistance.
What is the region like?
Kahikinui is less populated and developed than Lahaina, which was the Hawaiian Kingdom’s capital in the 1800s and is now a popular tourist destination. Kahikinui was used for cattle ranching for many years and is near a state forest reserve.
The fire department sent engines, tankers and a helicopter to battle the blaze. Three bulldozers cut firebreaks in the lower part of the community, Desiree Graham, co-chair of Kahikinui’s firewise committee, said.
The area has 104 Hawaiian homeland lots of 10 to 20 acres (4 to 8 hectares) each. About 40 lots have homes, including 15 with full-time residents. Some lots have more than one home, Graham said.
A state agency issues lot leases under a program Congress created in 1921 to help Native Hawaiians become economically self-sufficient. Those with at least 50 percent Hawaiian blood quantum can apply for a 99-year lease for $1 a year.
Fire devastated Lahaina nearly two years ago
Maui is still recovering from the massive inferno that enveloped Lahaina in August 2023.
That fire was the deadliest in the US in more than a century. It destroyed thousands of properties and caused an estimated $5.5 billion in damage. University of Hawaii researchers say unemployment and poverty rose after the blaze.
The Kahikinui fire may seem small compared to continental US fires, but it’s significant for an island of 735 square miles (1,903 square kilometers).
Other Western fires
Crews also are battling wildfires in the Pacific Northwest, around the Great Basin, in California and the Rockies.
National Weather Service forecasters and federal land managers have warned in recent weeks that fire danger is escalating in many places amid rising daytime temperatures and single-digit humidity levels.
The risks won’t start to wane — at least in the southwestern US — until the monsoon starts to kick in, bringing much-needed rain. In southern New Mexico, a wildfire ballooned to nearly 30 square miles (78 square kilometers) over the weekend in the Gila National Forest.
The flames forced the evacuations of homes that dot the mountains north of Silver City, blocked access to the Gila Cliff Dwellings National Monument and prompted air quality warnings as smoke drifted north. Campgrounds and access points to the Continental Divide National Scenic Trail also were closed.
In Oregon, several dozen homes in Wasco County were destroyed by a fire that started last Wednesday. Some evacuations remained, but fire managers said Monday that the threat to structures had diminished.
So far this year, the nation has seen double the number of fires as last year but the acreage is less, according to the National Interagency Fire Center. More than 2,700 wildland firefighters and support personnel were assigned to 15 large wildfires across the country.