The Dubai Chamber of Commerce has introduced an ESG Label aimed at promoting sustainable business practices.

The Dubai Chamber of Commerce, one of the three chambers operating under the umbrella of Dubai Chambers, has introduced a new Environmental, Social, and Governance (ESG) Label to promote sustainable business practices.

Aligned with the UAE’s ‘Year of Sustainability’ and developed by the chamber’s Centre for Responsible Business, the label aims to assist organizations in assessing their ESG readiness and maturity levels, gaining recognition, and stimulating business growth.

The development process involved a thorough assessment by globally recognized ESG experts, examining global and regional regulatory landscapes and reporting frameworks to identify the critical factors in determining an organization's ESG maturity. The business community was also consulted during the development phase to shape the framework, which aligns with global best practices and meets the local and international baseline for ESG reporting and preparedness.

Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, stated, “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 labeling, we aim to encourage businesses to adopt comprehensive strategies that embed sustainability into their core operations and decision-making processes.”

Organizations of all sizes 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 organizations by benchmarking ESG practices against key parameters and peer companies in the region and globally. Participating organizations will receive a feedback report highlighting 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 one year.

ESG has emerged as a strategic priority for organizations of all sizes, necessitating the integration of sustainability goals into their core business practices and operations. This encompasses adopting transparent reporting standards, reducing environmental impact, enhancing social responsibility initiatives, and ensuring governance practices align with ethical principles.