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Green & Blue

Why firms should adopt sustainability practices

Author
Rodrigo Tavares
Author
Rodrigo Tavares

Why firms should adopt sustainability practices

Author
Rodrigo Tavares
Why firms should adopt sustainability practices
Efficient resource utilization, waste reduction and energy conservation can yield substantial cost savings. (Shutterstock)
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https://arab.news/my62q

ֱ 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, ֱ 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.

ֱ 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

Heavy rains lash Punjab as Pakistan warns of renewed flood risk

Heavy rains lash Punjab as Pakistan warns of renewed flood risk
Updated 53 sec ago

Heavy rains lash Punjab as Pakistan warns of renewed flood risk

Heavy rains lash Punjab as Pakistan warns of renewed flood risk
  • Over 1,000 people have been killed in this year’s monsoon season, millions of acres of farmland destroyed 
  • Punjab, Pakistan’s most populous and agriculturally vital province, has suffered repeated flooding since August
Updated 53 sec ago
SAIMA SHABBIR

ISLAMABAD: Heavy overnight rains drenched large parts of Pakistan’s Punjab province on Sunday, prompting fresh flood warnings as authorities reported rising water levels in major rivers following weeks of intense late-monsoon weather.

This year’s monsoon season, stretching from late June through September, has been one of the deadliest in recent years, killing at least 1,006 people nationwide and displacing tens of thousands, according to the National Disaster Management Authority (NDMA). The downpours have damaged hundreds of thousands of homes and large stretches of roads, while washing away livestock and destroying key crops, including cotton, rice and maize, across the country’s agricultural heartland.

Punjab, Pakistan’s most populous and agriculturally vital province, has suffered repeated flooding since August. Relief officials say persistent rains have left soil saturated, embankments weakened and drainage systems clogged, increasing the risk of renewed inundation even from moderate rainfall. 

“Rainfall is forecast in most districts of Punjab over the next 24 hours,” the Provincial Disaster Management Authority (PDMA) said in a Sunday bulletin. 

“Rising water levels are likely in major rivers due to continuing rainfall,” it warned, citing a potential increase in flows in the Indus and Jhelum rivers, and a possible surge in the Chenab between Oct. 5 and 7.

Flows in the Ravi and Sutlej rivers would depend on releases from Indian reservoirs, the agency said. 

“Commissioners, deputy commissioners and other officers are on alert. Citizens are urged to take precautions during bad weather and remain in safe locations,” it said. 

The PDMA added that rain could also swell smaller tributaries connected to the major rivers, warning residents in low-lying districts to stay vigilant. Local authorities have been ordered to monitor embankments and pre-position rescue equipment in vulnerable areas.

Pakistan, among the countries most at risk from climate change, has faced consecutive years of extreme weather. Experts say erratic monsoon patterns — alternating between long dry spells and sudden, intense rainfall — underscore the urgent need for climate-resilient infrastructure and improved early-warning systems across the Indus basin.

Topics: rains Pakistan Punjab Flood risk

Lionel Messi helps Inter Miami get back in win column vs. Revolution

Lionel Messi helps Inter Miami get back in win column vs. Revolution
Updated 12 min 37 sec ago
Reuters

Lionel Messi helps Inter Miami get back in win column vs. Revolution

Lionel Messi helps Inter Miami get back in win column vs. Revolution
  • Jordi Alba and Tadeo Allende each had two goals to lead host Inter Miami to a 4-1 victory over the New England Revolution on Saturday night in Fort Lauderdale
Updated 12 min 37 sec ago
Reuters

MIAMI: Jordi Alba and Tadeo Allende each had two goals to lead host Inter Miami to a 4-1 victory over the New England Revolution on Saturday night in Fort Lauderdale, Florida
The victory snapped a two-match winless streak for Inter Miami (17-7-8, 59 points), which moved into third place in the Eastern Conference standings. With two matches to play, Miami trails FC Cincinnati by three points for second place. Cincinnati has one match left.
Dor Turgeman scored the lone goal for New England (9-16-8, 35 points) as the Revolution came up short of victory for the fifth time in their past six matches.
Lionel Messi did not score for the second consecutive match, but he contributed by assisting on three of Inter Miami’s goals.
On the first goal, under a torrential downspout late in the first half, Messi delivered a precise through ball on the run to Allende, who fired the ball past New England goalkeeper Matt Turner in the 32nd minute.
Just before halftime, Messi intercepted a clearing attempt by New England near its own goal. He then dropped it back for Alba, who proceeded to bury it in the back of the net in the third minute of first-half stoppage time.
The Revolution put themselves back in contention for a victory in the 59th minute on a brilliant shot by Turgeman after he took the ball just past midfield from Carles Gil. As Turgeman worked the ball near Miami’s box, he fired a line drive past Inter Miami goalkeeper Rocco Rios Novo to cut the deficit to 2-1.
Rios Novo got the start in favor of Inter Miami’s regular starting keeper Oscar Ustari, who allowed a season-high five goals last Tuesday in a 5-3 loss to the Chicago Fire.
Inter Miami answered almost immediately. Within less than a minute, a rush up the field ended with Allende streaking toward the goal and finishing another assist from Messi.
Three minutes later, Alba tacked on another score off a great pass from Telasco Segovia.

Topics: Inter Miami Lionel Messi

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Heavy rains kill at least 22 in Nepal, block roads

Heavy rains kill at least 22 in Nepal, block roads
Updated 42 min 30 sec ago
Reuters

Heavy rains kill at least 22 in Nepal, block roads

Heavy rains kill at least 22 in Nepal, block roads
  • Hundreds of people die every year in landslides and flash floods that are common in mostly mountainous Nepal during the monsoon season
Updated 42 min 30 sec ago
Reuters

KATMANDU: Heavy rains triggered landslides and flash floods blocking roads, washing away bridges and killing at least 22 people in the last 36 hours in Nepal, officials said on Sunday.
Eighteen people were killed in separate landslides in the Ilam district in the east bordering India, police spokesperson Binod Ghimire said. Three people were killed in southern Nepal in lightning strikes and one person died in floods in Udayapur district, also in east Nepal, he said.
Eleven people were washed away by floods and have been missing since Saturday, authorities said.
“Rescue efforts for them are going on,” Shanti Mahat, a National Disaster Risk Reduction and Management Authority (NDRRMA) spokesperson, said.
Several highways have been blocked by landslides and washed away by floods, stranding hundreds of passengers, authorities said.
“Domestic flights are largely disrupted but international flights are operating normally,” Rinji Sherpa, a spokesperson for Katmandu airport said.
In southeastern Nepal, the Koshi River, which causes deadly floods in the eastern Indian state of Bihar almost every year, was flowing above the danger level, a district official said.
Dharmendra Kumar Mishra, district governor of Sunsari district, said water flows in the Koshi River were more than double normal.
Mishra said all 56 sluice gates of the Koshi Barrage had been opened to drain out water compared with about 10 to 12 during a normal situation, adding that authorities are “preparing to ban heavy vehicles from its bridge”.
In hill-ringed Katmandu, several rivers have flooded roads and inundated many houses, cutting the temple-studded capital off from the rest of the country by road.
Hundreds of people die every year in landslides and flash floods that are common in mostly mountainous Nepal during the monsoon season which normally starts in mid-June and continues through mid-September.
Weather officials say rains are likely to lash the Himalayan nation until Monday and authorities say they are taking “maximum care and precautions” to help people affected by the disaster.

Topics: weather nepal

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Indian states ban cough syrup linked to child deaths

Indian states ban cough syrup linked to child deaths
Updated 05 October 2025
AFP

Indian states ban cough syrup linked to child deaths

Indian states ban cough syrup linked to child deaths
  • The death of at least nine children, all aged under five, since late August, in the states of Madhya Pradesh and Rajasthan have been linked to a cough medicine they were prescribed
Updated 05 October 2025
AFP

NEW DELHI: At least three Indian states have banned a cough syrup after several children died allegedly after consuming the product, said local authorities and reports.
The death of at least nine children, all aged under five, since late August, in the states of Madhya Pradesh and Rajasthan have been linked to a cough medicine they were prescribed.
India’s health ministry Saturday said laboratory tests on samples of the syrup the children had consumed revealed it was contaminated with diethylene glycol (DEG), a toxic substance used in industrial solvents that can be fatal if ingested even in small amounts.
“The samples are found to contain DEG beyond the permissible limit,” the ministry said in a statement.
The product sold under the brand name Coldrif Cough Syrup was manufactured by Sresan Pharma at a unit in the southern state of Tamil Nadu.
“The sale of this syrup has been banned throughout Madhya Pradesh,” said Mohan Yadav, chief minister of the central state of Madhya Pradesh, where most of the deaths have been reported.
“The sale of other products from the company that manufactures the syrup is also being banned.”
Authorities in the states of Tamil Nadu and Kerala have also banned the product, local media reports said.
Cough syrups manufactured in India have come under global scrutiny in recent years with deaths linked to their consumption reported from around the world, including the death of more than 70 children in The Gambia in 2022.

Topics: India children medicine

Life back to normal as deal ends days of unrest in Azad Kashmir

Life back to normal as deal ends days of unrest in Azad Kashmir
Updated 05 October 2025
AFP

Life back to normal as deal ends days of unrest in Azad Kashmir

Life back to normal as deal ends days of unrest in Azad Kashmir
  • Shops reopen and phone services restored as protesters end days of unrest in Muzaffarabad
  • Civil rights alliance calls off demonstrations after government accepts most of its demands
Updated 05 October 2025
AFP

MUZAFFARABAD: Shops reopened and mobile services resumed in Azad Kashmir’s capital on Saturday after days of violent anti-government protests ended under a deal between demonstrators and authorities.

The agreement followed nearly a week of unrest led by traders and civil rights groups demanding better public services and subsidies in the disputed region that is part of the larger Himalayan valley of Kashmir claimed by both India and Pakistan. 

Thousands had taken to the streets in Muzaffarabad and nearby towns, calling for reforms in electricity pricing and government spending. Clashes between protesters and security forces left at least six civilians and three police officers dead, officials said.

Kashmir, divided between Pakistan and India since their independence from Britain in 1947, has a long history of political discontent. In the latest protests, demonstrators accused local leaders in Azad Kashmir of neglecting health, education and infrastructure while prioritizing perks for officials. Under the agreement that ended the unrest, Islamabad pledged new projects wort $35 million to upgrade electricity supplies and other public services.

“Our demands have been accepted, and this is the result of our long struggle,” said Choudhury Rafiqe Ahmad, a shopkeeper in Muzaffarabad.

“Most of our issues have been resolved, and this has been made possible by the grace of Allah. Even though we suffered losses in our businesses along the way, we have no regrets, because what has been achieved is in the interest of the nation, and we are proud of it.”

Another resident, Shujat Kazmi, said the movement had exposed the disconnect between political elites and ordinary citizens and praised the Joint Awami Action Committee civil alliance that led the protests. 

“The Awami Action Committee is the only force that truly represents the people,” he said. “Political parties have become irrelevant because they have abandoned their original agenda. They were engaged in self-serving politics, flattering the ruling elite, and pursuing personal gains instead of speaking for the public.”

He said it was only the Awami Action Committee and the people who took matters into their own hands. 

“The people had, in a way, sparked a new revolution,” Kazmi said. 

Officials said calm had returned to Muzaffarabad as roads were cleared, businesses reopened, and communication lines restored. The government said it would continue talks with community representatives to prevent a repeat of the unrest.
 

Topics: Kashmir AJK

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