The Sustainabilist ISSUE 25
The Green Recovery
THE COST OF PPE
GREEN STOCKS TREND
ISBN 978 - 1978357310
PPEs are safeguarding our health, but what is their impact on the environment?
BUILDING BLOCKCHAINS Accelerating the post-pandemic recovery through blockchain technology
amidst major decarbonisation commitments
CFOS DRIVING SUSTAINABILITY Environmentally-conscious organisations are giving rise to the sustainability accountant role
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Issue 25 | October 2020
Letter from the Editor in Chief
Over the past months, UAE authorities have made tremendous strides in safeguarding the economy and its people to enable the reopening of the nation,
Eng Waleed Bin Salman Editor in Chief The Sustainabilist
The Sustainabilist
Through this issue, we wanted to provide our readers with information on best practices and strategies to recover from the adverse effects of the pandemic, implemented locally and regionally, that are contributing to the sustainability agenda to mitigate climate change.
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Editorial:
As we continue to witness the progression of this great nation into a new normal, it is imperative to remember that, although overshadowed by the Covid-19 pandemic, climate change is still a threat at large. As such, we cannot afford to disregard sustainability.
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Investments in climate action and a low-carbon future are more critical than ever.
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fter months of lockdowns and movement restrictions, we are now starting to see parts of the world beginning to open their economies again. During these times, the priority must undoubtedly be on maintaining the health and safety of society while formulating strategies aimed at restarting the various different industries that have been restricted globally for months. This, however, should not come as an additional cost to the planet.
Investments in climate action and a low-carbon future are more critical than through the jobs created, the economic stimulation, and the environmental protection. The green recovery is an opportunity for countries to learn lessons about the implications of a pandemic on climate change, the responses that were effective and those that weren’t, as well as recover while considering the imperatives of sustainability. From cooling services, investments in renewables, waste management and much more, this issue of The Sustainabilist is shining a light on the resilience of the UAE, its businesses, and its citizens.
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Contents
PROVIDING UNPRECEDENTED ACCESS TO MARINE SOLUTIONS GLOBALLY
The Sustainabilist ISSUE 25
10
The Green Recovery
THE COST OF PPE PPEs are safeguarding our health, but what is their impact on the environment?
BUILDING BLOCKCHAINS Accelerating the post-pandemic recovery through blockchain technology
GREEN STOCKS TREND
1
Editor in Chief
5
Green Recovery Powered by District Energy
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talabat mart UAE Goes Green with Biodegradable Bags
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Providing Unprecedented Marine and Costal Development and Protection
amidst major decarbonisation commitments
CFOS DRIVING SUSTAINABILITY Environmentally-conscious organisations are giving rise to the sustainability accountant role
12 A New Humanitarian Logistic Agreement
The Green Recovery issue focuses on the adaptations and innovations which came about in response to the COVID-19 pandemic. The planet is resilient, and so are we, but we need to work together to ensure a better future with no compromises.
14 The Sun Shines on Renewable Energy Projects 16 Investing in Clean Future Technologies 20 Fast-Tracking Sustainable Mobility
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22 Grinding Food Waste to a Halt
THE SUN SHINES ON RENEWABLE ENERGY PROJECTS
24 Sultan and Aisha: Green Investments 26 Unpacking the Eco-Friendly Future of Packaging 28 Action Plan for the Green Recovery 30 How Can CFOs Drive Sustainability? 32 Green Recovery: a Step Forward to the Sustainable Path 35 The Cost of PPE on the Environment 36 Building Block Chains 38 Green Stocks are a Mega Trend not to Ignore 39 The UAE’s Green Recovery 40 Country Covid-19 Safety Assessment
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TALABAT MART UAE GOES GREEN WITH BIODEGRADABLE BAGS
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GREEN RECOVERY POWERED BY DISTRICT ENERGY
42 Rapid Growth in EFTs with ESGs 44
Issue 25 | October 2020
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Our next issue will focus on the Aviation and Aerospace industries. How are these sectors evolving to promote development and security in nations?
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Embassy of Italy Abu Dhabi
ITALY AT WETEX 2020
26 – 28 October 2020 | 10:00 - 18:00 WATER Hall, SUSTAINABILITY Hall Register to attend and schedule B2B digital meetings with 31 italian companies: https://www.wetex.ae/Visitorb2b/BookVisitorB2BMeeting
The Italian Trade Agency (ITA), the official Agency of the Italian Government which promotes the globalization of Italian firms under the aegis of the Ministry of Foreign Affairs, in collaboration with the Embassy of Italy in the UAE, presents the Italian expertise on sustainable and renewable technology at the first ever 3D virtual edition of Water, Energy, Technology, and Environment Exhibition (WETEX) on 26-28 October 2020. 31 italian companies covering a cross-section of the country’s offerings in the sector will showcase the latest advancements in water treatment, recycling, solar energy generation and renewables, air control and environmental protection systems, and green building. Italy has consistently been one of the UAE’s preferred suppliers for renewable energy sector components for the last three years, with a notable increase of 16.47% in the first trimester of 2020, according to ITA Dubai office. Visit ITA pavilions at WATER Hall and SUSTAINABILITY Hall
Follow @ITAdubai on Linkedin, Twitter, Facebook and Instagram and check out https://www.ice.it/en/markets/united-arab-emirates for more updates.
Issue 25 | October 2020
FEATURE
Green Recovery Powered by District Energy District Energy presents a compelling case for the region’s particular conditions, needs and aspirations in transition to a green economy.
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he pandemic-induced shrinkage of the global economy resulted in a decline in global energy demand and consequently, CO2 emissions. The latter have rebounded rapidly, however, as lockdown conditions have eased. Meeting the 1.5°C Paris target means that global
emissions must be cut by 7.6% this year and every year after that for a decade. District energy can play a significant role in the green recovery in a number of ways. First and foremost, district energy is the infrastructure designed to integrate a multitude of local sustainable energy
balance the electricity grid through sector integration, and to address decarbonisation challenges. In the UAE, the National Central Cooling Company, the infrastructure’s potential to tackle
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The Sustainabilist | GREEN RECOVERY
Moreover, district energy enables job creation and thus stimulates the economy. the potential to create additional new and greener jobs. In the UAE, a preliminary estimation of green jobs constructed in 2018 by Ministry of Climate Change and Environment, estimated that by 2030, district cooling will be generating annually almost 10,000 jobs. This estimate solely accounts for employment positions in the specific sector and not those created as result of the district cooling investments in the financial, professional, manufacturing, construction, and academia sectors. A third crucial element of district energy to consider in recovery strategies postpandemic is the technology’s resilience to shocks. Environmentalists worldwide warn that Covid-19 is the first of many a result of the global activities destroying the natural world, including deforestation and capturing or killing wild animals, we from the incredibly diverse ecosystems inhabiting wildlife habitats. District energy, as a resilient urban infrastructure, ensures optimal operation during and after crises. Tabreed’s CFO, Adel Salem Al Wahedi, told The 6
“Our business model includes a capacity charge and a consumption charge. around 85% of our EBITDA, while the consumption charge is variable and is largely a simple pass through of our operational costs.” Even during the lockdowns in earlier months, facilities that were closed to the public nevertheless required a certain level of cooling to
Expanding “district energy
networks has the potential to create additional new and greener jobs.
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the same. The company’s Corporate Governance Report of 2019 states that the district cooling services, with landmark projects across five GCC countries, comprehensively reduced energy consumption by 2.06 billion kilowatt/ hours, equivalent to powering 117,500 homes in the UAE annually. These energy savings resulted in 1.23 million metric tonnes of avoided CO2 emissions, equal to the removal of 268,000 cars from the roads every year.
protect equipment and for maintenance purposes, allowing Tabreed to operate normally. District energy infrastructures’ guarantee of energy security, made possible by switching between varied local energy sources, ensures continuous thermal response through building demand-side management. In addition, the system’s digitalisation makes it possible for the network to be operated and monitored remotely and continuously. The case for district energy in the Middle East is tremendous given the year-round heat and rapid urban development.
District cooling is advantageous to traditional cooling systems in densely populated areas that have high airconditioning demands by pooling cooling demand. The system is undoubtedly more cost efficient over the long term than other cooling technologies, as well as more reliable and with significantly smaller environmental costs. Moreover, the potential for district energy increases further when coupled with the available water resources. Utilising sea water in district cooling systems manages the temperature of the district cooling plant condensers without implicating any water losses as all the water taken from the sea is released back and no additional fresh water is required for the system.
for district energy is the development of seawater cooling plant. Tabreed has recently signed a 20-year contract with Union Water and Electricity Co (PJSC) to provide cooling services to the Fujairah Water and Power Plant which will require uninterrupted cooling services every hour of every day. Placing green technologies and innovations at the heart of recovery systems to create a more resilient and sustainable energy system will support government directives with regard to the decarbonisation pathway as well as increased economic returns. Overall, investments in sustainable and efficient systems will allow for the green recovery we must all strive for. Upcoming initiatives and advancements in green technologies are opportunities that will change the lives of citizens across the world, while contributing to the quick recovery of our societies and economies, and prepare for future shocks.
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F U T U R E
BY THE ORGANISERS OF
25 NOVEMBER 2020 | DUBAI, UAE LEARN MORE: WWW.AVIATIONSUSTAINABILITY.AERO |
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The Sustainabilist | GREEN RECOVERY
FEATURE
talabat mart UAE Goes Green with Biodegradable Bags talabat scales up sustainable solutions towards building a green circular economy
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onsumers, millennials and generation Z in particular, are increasingly conscious of their carbon footprint and the impact their every day decisions have on the environment. Research shows they seek companies that actively do their part to fight climate change, favoring eco-friendly brands who care about our planet’s future. As one of the leading online food delivery platforms in Middle East and North Africa (MENA), talabat recognises the importance of eco-conscious consumerism and the vital role organisations play in changing consumer behavior. Millennials in the MENA region are embracing a greener 8
lifestyle with 59% having purchased at least one product or service to support a socially responsible enterprise. Effective sustainability demands more from businesses and customers alike, the need to adopt more environmentally conscious
decompose much faster than regular plastic in an open environment, hence reducing plastic waste and taking up less space in yet stronger than paper bags, which means they take less space and can easily be reused by customers.
requirement. Launched late February by talabat, In the United Arab Emirates, talabat mart, the first under 30-minute delivery grocery concept in the region which operates from paper bags to biodegradable plastic bags. In addition to consuming four times less energy than paper bags, Biodegradable plastic bags offer many benefits. They
Currently operating from 15 stores in Abu Dhabi, Dubai, Sharjah and Ajman, it caters to meet consumers’ everyday essentials with hyperfast delivery while contributing to the growth of e-commerce and the national economy. By switching to biodegradable bags, it is further aligning
Issue 25 | October 2020
This switch is talabat mart’s first step in its sustainability journey, as it remains focussed on studying different packaging solutions in the coming months to find the most suitable option that will contribute towards building a more circular economy. This trajectory is in line with the objectives of The United Nations Sustainable Development Group (UNSDG), in particular, Sustainable Development Goal (SDG) 12 “Responsible Consumption and Production” and SDG 13 “Take action against climate change”. Companies aligning their business practices closer to the SDGs will help set the roadmap towards ensuring a more habitable world for future generations. With consumer attention to the environment at an all-time high, it is very likely that focus on eco-friendly packaging will continue to rise over the coming years. Nowadays, nearly half of the population is proactively seeking information before purchasing a product to ensure that
What else is talabat mart doing to encourage sustainability?
In the United Arab Emirates, talabat mart, the first under 30-minute delivery grocery concept in the region which operates 24x7, has changed its existing packaging from paper bags to biodegradable plastic bags.
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talabat’s business practices with the UAE vision 2021 – to ensure sustainable development while preserving the environment.
the brand is environmentally-friendly. changing values of their more socially responsible consumers and offer products and services that show an alignment in priorities. Through implementing sustainable practices, organisations and governments are in turn encouraging more eco-conscious consumer behaviour and doing their part in safeguarding the planet. This is one of many sustainable initiatives adopted by talabat. In a bid to encourage consumers to reduce their unnecessary usage of plastic cutlery, it set the ’nocutlery’ option as default setting for all
talabat mart established an agreement with most of its suppliers to return near expiry items to them to reach zero food waste at its stores.
orders on the platform earlier this year, resulting in the no-cutlery orders growing from 6.5% to 62.6% in the span of just four months. Moving forward, all talabat mart orders will be delivered in environmentally friendly biodegradable bags, making it easier for consumers to make more ecoconscious everyday decisions and more sustainable purchases. talabat’s message to consumers is: watch out for more environmentally conscious practices in the coming future.
talabat mart is in the process of exploring deals with local charities to donate near expiry items, safe for human consumption, to people in need.
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The Sustainabilist | GREEN RECOVERY
Providing Unprecedented Access to Marine Solutions Globally
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cocoast is a driver of sustainable coastal and marine development that is progressively buoying its position as a global leader. Thanks to its recent acquisition of Bolina, the European leader in marine safety,
Ecocoast now fulfils its global clients’ needs with unprecedented access to environmental, safety and security solutions. Both Ecocoast and Bolina are leaders in their respective core markets. Ecocoast with coastal and marine protection, demarcation and navigation; Bolina with safety and security booms. The inclusion of Bolina’s brand will allow Ecocoast to offer safety and security solutions globally for inland waterways, dams and critical infrastructure. Protection, Demarcation & Navigation Ecocoast specialises in engineering, manufacturing and installing custom
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Issue 25 | October 2020
ABOUT ECOCOAST Ecocoast, founded by two Australian entrepre-
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solutions for clients that are seeking engineering knowledge and skills made purpose marine solutions for protection, demarcation and navigation applications.
of that. They had been testing a series of screen prototypes for a couple of years to measure whether they could withstand the harsh conditions in the Pacific Ocean. Unfortunately, all of them failed to pass the tests. These failures were euphemistically referred to as Unscheduled Learning Opportunities. At the end of 2017, Ecocoast partnered with The Ocean Cleanup. Within a period designed and manufactured a screen that passed the rigorous tests in the North Sea,
impossible. Safety & Security The Bolina Safety & Security Booms have been effective for the protection of commercial ports, naval bases, force protection and many other critical sites, such as docks, power stations and airport runways. They have proven to provide clear delineation of restricted areas where there may be a risk of intrusion, whether accidental or deliberate.
ABOUT BOLINA -
and critical infrastructure healthy, safe and
The booms are the preferred choice for both British Waterways and the Environment Agency who control the navigable waterways within the United have followed their lead. 11
The Sustainabilist | GREEN RECOVERY
FEATURE
A New Humanitarian Logistic Agreement Emirates SkyCargo and International Humanitarian City will cooperate to develop logistics solutions for crisis relief operations
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mirates SkyCargo, the freight division of Emirates and International Humanitarian City (IHC), the world’s largest hub for humanitarian aid, have signed an MoU to cooperate on humanitarian logistics and crisis relief solutions. The MoU was signed by Nabil Sultan, Emirates Divisional Senior Vice President, Cargo and Giuseppe Saba, CEO, International Humanitarian City. The partnership between the two entities underlines Dubai’s position as an international gateway for the rapid deployment of aid and relief efforts directed at humanitarian crises. Under the terms of the MoU, Emirates SkyCargo and IHC will work together to develop innovative logistics solutions for effective crisis relief operations. IHC will also approach Emirates SkyCargo as the air cargo carrier of first resort for transportation or urgently required aid materials to affected destinations. In addition, the two organisations will work together to share know-how and develop best practices around the transportation of specialised cargo for relief efforts. “We are a carrier with a strong sense 12
Issue 25 | October 2020
of social responsibility. Over the years, Emirates SkyCargo has operated a number of flights and transported relief cargo on behalf of International Humanitarian City in response to humanitarian disasters and crises around the world, including most at Beirut. Today, we are delighted to consolidate our partnership and develop a platform which will enable a more coherent and rapid response for aid delivery, and facilitate the development of robust and innovative solutions for humanitarian emergency response. With our wide-
body aircraft fleet and our global network centred in Dubai, we look forward to supporting International Humanitarian City as their preferred carrier for delivering aid to affected communities around the globe,” said Nabil Sultan.
appreciation to Emirates SkyCargo for their support in the past for IHC and its community,” said Giuseppe Saba. “A special thanks goes to the leadership of Emirates for the initiative taken immediately after the blast in Beirut, by launching the initiative for supporting the Lebanese population and facilitating many airlifts of humanitarian aid with favourable rates. I’m honoured to sign this MoU, which is a milestone for further started with the Lebanon initiative. It transforms our cooperation into something which goes beyond the use of the air assets and the large reach of Emirates SkyCargo, which still logistically represents a crucial worldwide network for the IHC Community in emergency service delivery of Emirates SkyCargo will continue to add a lot of value to the IHC community crisis response mechanism and our synergies will enable us to work together for One Humanity,” he added. During the month of August, Emirates launched a humanitarian initiative, creating an airbridge between Dubai and Beirut to facilitate transportation of aid material in of Beirut. Emirates continues to work with local and international NGOs including the IHC for this relief effort, which is also supported by worldwide donations of cash and Emirates Skywards Miles from across the globe through the Emirates Airline Foundation. 13
The Sustainabilist | GREEN RECOVERY
The Sun Shines on Renewable Energy Projects Stimulus packages, advancements in PV technologies, and corporate initiatives are paving the way for a clean energy future
Waleed AlHallaj Business Development Manager of the Middle East and North East Africa at Jinko Solar Co
Selected as Young Energy Professional of the Year 2019 for the Middle East region by the Association of Energy Engineers, AlHallaj has over eight years of experience in the EPC, Development, and Manufacturing sectors of the Photovoltaic industry around the region, with extensive certifications in the field of energy. 14
Issue 25 | October 2020
“Renewable energy has proven itself to be Usually, all this sector needs, in order to develop rapidly, is to be free from customs
energy, the country managed to increase its renewable energy contribution from 2% to 7% in less than 10 years. I believe freeing this industry from the financial obligations will help stimulate markets and economies rapidly, and overcome the AlHallaj, Business Development Manager of Jinko Solar Middle East & North East Africa, told The Sustainabilist. Studies by the International Renewable Energy Agency (IRENA) and the World Bank demonstrate that renewable energy plants and building retrofits to enhance energy efficiency are more effective at creating jobs and stimulating the economy than fossil fuel projects. The other obvious advantage is the contribution to lower air pollution. “The industry of photovoltaics in general is living a continuous development on both the technical and financial aspects. Even for professionals in the field, it is
I believe freeing this industry from the financial obligations will help stimulate markets and economies rapidly, and overcome the pandemic’s adverse effects.
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s of today, 189 countries globally have ratified the 2015 Paris Agreement, committing to the reduction of carbon emissions with the aim of limiting the rise in global temperatures to no more than 2°C above pre-industrial levels. It is understood globally that climate change is a systemic risk to long-term development of emerging economies. Yet, it is uncertain if governments in said countries will increase their commitments and investments in green energy and infrastructure in their post-pandemic recovery strategies.
sometimes hard to follow the development of this sector. Whether it is the N-Type or MBB or Cell Size development; they are all driving the levelised cost of energy continued. “We can easily see that is now cheaper to generate electricity from PV plants than it is to generate it from fossil fuel. This is why over 70% of the global investment in energy for 2019 went towards renewables according to the REN21 yearly report.” REN21 is a French multi-stakeholder governance group focussed on renewable energy policy building a sustainable energy future. Efficient stimulus packages have the potential to promote decarbonisation, even at corporate level. Corporate power purchase agreements (cPPAs) are contracts helping companies reduce their environmental footprint, energy costs, and overall accelerate the deployment of renewable energy projects. Green power procurement via cPPAs benefits from easier access to project finance and
secured revenue streams for generated electricity. cPPAs enable the private sector to drive decarbonisation beyond direct government support and materialise corporate green commitments, while benefitting from the competitive prices of the agreements. Notwithstanding cPPAs’ proven resilience during the past few months, with growing activity globally and their advantages for both suppliers and off-takers, there are some challenges at play. cPPAs require credit worthiness of off-takers, their willingness to participate in long-term contracts with market risks, factors which are not always available. Obstacles such as these have hindered the development of the cPPA market and have been heightened as a result of the Covid-19 outbreak. In spite of this, a green recovery with effective stimulus packages can provide opportunities and incentives to develop a healthy cPPA market through a stable investment environment, financial benefits to sustainable investments, and the provision of capital into renewable energy build-outs. As we recover from the unprecedented shocks of the pandemic across all sectors, curbing emissions, it is vital for both public and private sectors to develop policies and strategies aimed at creating long-term value for a resilient economy. The world needs to shift away from fossil fuels and embrace the decarbonisation movement toward a clean energy future. Cost-efficient solutions, such as cPPAs, which are enabling renewable energy deployment and private sector involvement in the transition, are a key tool do achieve this. 15
The Sustainabilist | GREEN RECOVERY
INTERVIEW
Investing in Clean Future Technologies The Sustainabilist spoke with Ageel Angawi, Vice President of Home Care, Unilever MENA, on the company’s Clean Future Programme. 16
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hat is the main goal of the Clean Future programme and how will it be achieved? Clean Future is how Unilever is reinventing age-old chemistry to give people high-performing, affordable cleaning and hygiene products that are kind to them and the planet. This bold strategy aims to help billions of people around the world who benefit from cleaning and hygiene products to live healthier, more sustainable lives using products, which are made with the planet in mind.
Issue 25 | October 2020
In the U.A.E. specifically, Unilever has been at the forefront of reducing its environmental impact via its’ manufacturing operations.
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powders and liquids to reduce the levels of conventional surfactant – our most GHG intensive class of ingredients – by up to 50%. Our phosphate reduction has reduced CO2 emissions by up to 50% per single use by consumers. Additionally, as a company Unilever has been working to reduce the carbon impact of its operations for many years under the Unilever Sustainable Living Plan. In the UAE specifically, Unilever has been at the forefront of reducing its environmental impact via its’ manufacturing operations by not sending any non-hazardous waste to landfill from its Lipton Jebel Ali Factory as early as 2014, and was the first manufacturing site in the UAE to achieve this.
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Our Dubai Personal Care Factory, at the time of its launch in 2016, was the largest private sector solar park across MENA, helping achieve 33% of the factory’s total energy requirements from renewable sources. And in mid-2019 all our UAE sites, both office and manufacturing, moved to 100% renewable electricity. All this has enabled Unilever’s UAE factories to with a 92% reduction in CO2 emissions between 2010-2019. It sets out how we are transforming our portfolio moving away from: • Using fossil fuel derived chemicals in our formulations to using renewable and recycled sources of carbon; • High carbon chemistry to low carbon products effective in cold and quick wash; • Wastage of water to water efficient and biodegradable formulations; • Single-use plastic to less plastic (refill/reuse), better plastic (PCR) and no plastic models; • Consumer distrust in chemicals to products designed for consumer trust.
What technologies is Unilever working on to transform its laundry and cleaning products to ultimately reduce their carbon impact in MENA? We’re working to reduce emissions at every stage of the product lifecycle. One of the ways we innovate is by formulating and packaging our products to reduce greenhouse gas (GHG) emissions while maintaining performance.
Why did Unilever develop the Carbon Rainbow? The term ‘Carbon Rainbow’ was coined by Unilever to help articulate the different sources of carbon available and is a description of our technology programme to create carbon renewability. The sources of carbon identified are not new concepts or unique to Unilever.
Through our eco-design programme, we are reformulating products to use fewer but higher performing ingredients. We’re taking this approach in both laundry
The Carbon Rainbow™ sets out how we will be diversifying our carbon sources from plant, air, marine, and waste materials. Non-renewable sources of 17
The Sustainabilist | GREEN RECOVERY
carbon sources to gradually phase out dependence on fossil fuels. Are you hopeful that the investments to finance biotech research will advance the CO2 utilisation industry as well as the public’s understanding of petrochemical feedstocks? The EUR1 billion investment for Clean Future to finance biotechnology research is a start towards diversifying sources of carbon and a call on an economy-wide transformation in how we all use carbon. This funding will be used to finance biotechnology research, CO2 and waste utilisation, low carbon chemistry, biodegradable and water-efficient product formulations, and alternatives to single-use plastic. It will be used to focus on creating affordable cleaning and laundry products with a significantly lower environmental impact. We will invest in projects most likely to deliver on these criteria.
consumers do not think green products perform well enough or are good value. By addressing these consumer frictions points through products that are more sustainable, simpler and without compromise on performance, Clean Future will help us recruit new consumers and drive growth. How will the Clean Future programme accelerate renewable and recycled carbon feedstock technologies? Our objective, through our recently announced EUR1 billion investment,
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In mid-2019 all our UAE sites, both office and manufacturing, moved to 100% renewable electricity.
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carbon (known as black carbon) will be replaced using CO2 capture (purple carbon), plants and biological sources (green carbon), marine algae (blue carbon), and carbon recovered from waste materials (grey carbon). This will be underpinned by life-cycle assessments
67% of consumers surveyed across the world are actively trying to buy products produced in an environmentally friendly way. 66% try to buy products packaged in an environmentally friendly way. 60% try to buy products from companies who seem to have genuine concerns about the environment.
is to focus solely on Clean Future initiatives. The aim is to accelerate the research performed by technology partners on promising technologies. Our investment focuses on de-risking our partners’ investments by giving them the opportunity of using their technologies at large commercial scale. The scale makes the business case work for our partners to invest, and our own focus is therefore on making their technologies applicable to our home care products.
At the same time, we know that many
The ring-fenced investment has been
The latest “Who Cares, Who Does”
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designed with deliberate agility. Some projects have already started - in Slovakia for instance, Unilever is partnering with biotechnology leader Evonik Industries to develop the production of rhamnolipids, a renewable and biodegradable surfactant which is already used in its Sunlight dishwashing liquid in Chile and Vietnam. In Tuticorin, Southern India, Unilever is sourcing soda ash - an ingredient in laundry powders - made using a pioneering CO2 capture technology. The soda ash is made with the CO2 emissions from the energy used in the production process. Both technologies are hoped to be scaled significantly under the programme. Our future allocation of funds will depend on 10 years, including successes we see in our pilot programmes that need upscaling, or new promising technologies that need investment to become more commercially viable. Has the UAE government been supportive in mitigating climate change and providing resources to do this? The UAE has a strong Climate Change agenda which commits it to driving sustainable development while preserving the environment and achieving a balance between economic and social development. The UAE government understands the importance of a multi-stakeholder approach and the important role of the private sector in helping achieve this agenda.
of our commitment and ambitions and early last year, the Dubai Foreign Direct Investment (FDI) Office and DEWA worked closely with us to help us achieve our commitment of moving all of our UAE office and manufacturing sites to 100% renewable electricity.
Integrated Energy Logistics Provider The Tristar Group is a fully integrated Logistics Solutions provider that offers a comprehensive list of services to cater to the needs of the petroleum, chemical and petrochemical industries, both in the region and globally. The company’s core expertise lies in its ability to safely handle and distribute all types of retail fuels, lubricants, chemicals, petrochemicals and liquid gases. Specialized Warehousing for Chemicals & Dangerous Goods
Commercial Aviation Refueling
The JAFZA South custom built warehouse has the capability to offer both ambient and temperature controlled storage for a wider range of petroleum products, including industrial solvents and soft chemicals. Total warehouse capacity is in excess of 15,000 pallet positions. The facility has an in-house fully automatic tank cleaning facility installed by Groninger (Europe). The tanks will be cleaned with soft water with chlorine content less than 50PPM alongside with a high pressure pump of 100 bar and a Boiler designed to produce steam at 1.2 TPH, which generates hot water of 80 Degrees Celsius. A fully automated effluent treatment plant will treat and recycle all waste water from the cleaning station to be used for general cleaning and irrigation purposes.
Tristar is into Commercial Aviation Refueling operations in South Sudan and Liberia. It has a 25-year contract with CAA Uganda for the construction and operation of an Aviation Fuel Farm and Hydrant Line facilities at Entebbe Airport which will commence operations in the 4th quarter of 2020. Tristar’s Aviation facilities comply with international standards, specifications and guidelines set by IATA, JIG, AFQRJOS, as well as with IFQP requirements set by Airlines for Aviation Fuel Quality Control and Operating Procedures. Tristar has been a member of IATA since 2008 and recently became a JIG member. It has a technical service agreement with Hansaconsult.
Polymer Bulk & Bagging Warehouse
Fuel Farm
The multi logistics polymers facility in JAFZA South is designed for receiving bulk PP/PE granules into silos and bagging of the granules by fully automated bagging operation into FFS film bags and/or big bags. The packed material can be stored inside the warehouse in racking with a capacity of 8,000 tons. It also has a drum filling station with capability to drum from ISO tanks and road tankers thus providing customers a solution to receive in bulk and store and distribute in packed conditions.
Tristar owns, operates and manages 62 fuel farms globally with a storage capacity of more than 788 million liters for handling a wide range of petroleum products like Jet Fuel, Gasoline, Gasoil, Fuel Oil, etc. Tristar’s fuel farms and storage depots are constructed and maintained in the services of its clients. Our largest fuel farm is in the Pacific island of Guam which has a capacity of 4.2M barrels. All the operations comply with the local and international safety and environment standards, including OSHA and USEPA.
Road Transport
Shipping
Tristar owns and operates over 1,700 vehicles ranging from road tankers, trailers and delivery pickups in the Middle East, Asia and Africa. Operations are certified for Integrated Management System including the latest ISO 9001, ISO 14001, ISO 45001 and ISO 39001. Tristar is periodically assessed by the Gulf Petrochemicals and Chemicals Association for SQAS (Safety and Quality Assessment System).
Email: info@tristar-group.co
The shipping business acquired Eships in early 2016 and now owns and operates more than 30 chemical, oil and gas tankers and bulk carriers trading globally, mostly with Oil Majors. The vessels include the six Eco MR tankers (50,000 DWT) delivered in 2016 and the six new build 25,000 MT DWT, IMO Type 2 Oil and Chemical tankers to be delivered between June 2020 till January 2021. These ships are fitted with fuel saving equipment such as the Propeller Boss Cap Fins and Trim Optimization System.
Website: www.tristar-group.co
The Sustainabilist | GREEN RECOVERY
FEATURE
Fast tracking sustainable mobility Infrastructure for rail transport systems are paving the region’s way to decarbonised mobility
D
espite a global shift towards renewable energy, as governments look to reverse the adverse effects of climate change, the fact remains that much of the world’s transport sector is still dependent on fossil fuels. When it comes to the future of sustainable mobility in the Middle East, however, rail transport is leading the way. With 25% of worldwide CO2 emissions, from energy combustion, coming from transport, and CO2 emissions forecasted to grow by 60% by 2050, the development 20
of sustainable, eco-friendly transport solutions is a matter of the utmost environmental importance here in the Middle East. Consequently, the region’s governments are taking major steps towards reducing greenhouse gas emissions, cutting down on the use of fossil fuels, and decarbonising transportation. In the
infrastructure for rail transport systems, as the country’s leaders continue to
reaffirm their commitment to the growth and innovation of sustainable mobility solutions. Alstom, a global leader in rail transport and sustainable mobility, is working closely with many regional transportation authorities to ensure the most advanced and sustainable technology innovations are in place to safeguard the health, wellbeing and mobility of communities across the region.
towards carbon neutrality in rail transport
Issue 25 | October 2020
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the region’s governments are taking major steps towards reducing greenhouse gas emissions, cutting down on the use of fossil fuels, and decarbonising transportation.
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– Alstom places a huge focus on greener and smarter mobility solutions. The company is in the process of delivering the world’s fastest-built turnkey driverless metro project, The Dubai Route 2020 Metro, which includes eco-friendly trains equipped with full electrical braking systems, LED lighting and other innovations to reduce energy consumption. One such innovation is the implementation of HESOP (Harmonic Energy Saver Optimiser) technology, which recovers the electrical energy generated by trains during braking. In addition to reducing operational costs, HESOP will also cut about 3 million kilograms of carbon emissions and decrease power consumption by 6.6 million kilowatts per annum.
“With rapidly evolving demographics and consequent massive urbanisation, Alstom has taken up the challenge of developing innovative sustainable mobility solutions that meet the increasing demand for transport, while preserving the environment,” says Tamer Salama, Alstom Managing Director for the GCC region. “We believe that the continued development of sustainable transport will only be made possible by increasing the adoption of eco-design methods. It is therefore Alstom’s goal to promote sustainable and Healthier Mobility™, worldwide, which is why we have given eco-design a central role in our business. In 2019 to 2020, 25% of newly developed Alstom solutions were
covered by an eco-designed process, including circular economy aspects,” Tamer Salama adds. As a dedicated and long-standing partner of the region’s transportation and mobility development, Alstom will continue to play an integral role in improving the environmental performance of rail across the region. Through innovations in electric transport and hydrogen fuel, Alstom aims to shape the future of the region’s mass transit and mobility for the better. In doing so, it remains dedicated to significantly reducing emissions, minimising land use and carbon footprint, and decarbonising rail transport. 21
The Sustainabilist | GREEN RECOVERY
FEATURE
Grinding Food Waste to a Halt
challenges of food waste and emissions
T
he UN Sustainable Development Goals were developed to promote prosperity while protecting the planet. Five years since their establishment, the world continues to use natural resources unsustainably as waste continues to be generated and not recycled. The pandemic is offering an opportunity to develop promising recovery plans that will build a more sustainable future. As many great leaders have stated over the past few months, we simply cannot afford to disregard sustainable development because of Covid-19. In fact, sustainability needs to be incorporated and harmonised with every country’s recovery plans to stabilise the economy while simultaneously safeguarding the planet and its resources. Over 80 countries globally have pledged their support of SDG 12 for Responsible Consumption and Production between 2017 and 2019, reporting at least one policy to promote sustainable consumption and production patterns. SDG 12 places importance on being mindful of what, how, and how much we produce and consume. This is an incredibly planet’s finite resources. It is estimated that the world population will reach 9.5 billion by 2050 and as the world’s population continues to grow, so do our needs, while we look for larger homes, nicer cars, entertainment, distant vacations, the latest gadgets, and so on. But as Ivano Iannelli, CEO of Dubai Carbon
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Issue 25 | October 2020
Our consumption and production patterns are problematic given the pace with which we are depleting the world’s resources. Human activity since the 1950s has had an incredible impact on the environment, including increased levels of carbon atmosphere, depleted parts of the ozone layer, increased rates of animal and plant
Considering the impact of our behaviours and activities, it is imperative to find solutions and compromises to our current ways of living. Ensuring development that addresses the needs of humanity planet can begin from the adoption of sustainable patterns of consumption and production. And if practiced by all, sustainable living does not need to mean going completely vegan and reusing water from your showers. A mass adoption of simple practices, such as switching off unused lights and appliances and recycling can result in a great impact – actually, in a reduced environmental impact! InSinkErator, Emerson, a leader in technology and engineering providing innovative solutions across markets, was founded as a result of John W Hammes’ desire in 1927 to help his wife clean up messy food waste after dinner. In other words, to change basic household habits for the better. His goal was to find a solution to the bothersome task of taking the trash out by creating a hygienic and practical tool to discard food scraps by grinding them into tiny pieces and flushing them down the kitchen sink into the city’s sewage treatment plant. As a result, the garbage disposal unit was invented. After
over a decade of perfecting the garbage disposal prototype, the commercial production of the InSinkErator brand began in 1938.
In the UAE, garbage disposals are not common. But just as microwaves were not common here 25 years ago, there is potential for widespread adoption.
Hammes’ invention addressed precisely the problem we are dealing with today –
Development Manager, Middle East & Africa of InSinkErator told The Sustainabilist “the current infrastructure developed in UAE and the individual public awareness for sustainability and climate change is helping to increase the demand and needs for our solutions.”
an ecological solution to discarding food waste by diverting it from landfills and avoiding methane production.
Garbage disposals present an ecological solution to discarding food waste by diverting it from landfills and avoiding methane production.
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Reducing food waste is undoubtedly the most ecological solution to the waste problem. Storing food correctly, being leftovers are just a few ways in which food waste can be reduced. But when there is option is the garbage disposal unit.
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put it, “individual needs may be limitless but resources are finite”.
Additionally, when a city’s wastewater system is equipped with facilities set up to convert food waste into renewable energy, such as the Sharjah Waste to Energy Facility, a project by Emirates Waste to to be completed in 2021, simply putting your food scraps down the drain can help address growing energy needs and reduce dependence on fossil fuels. Basically, garbage disposals address greenhouse gas emissions in two ways: diverting food waste from landfills, and generating renewable energy. 23
The Sustainabilist | GREEN RECOVERY
We know what to do! We should stimulate the economy, but let's do it our way, focusing on green and sustainable practices!
Oh no, what happened here?
DUBAI CARBON'S
SUSTAINABILITY SUPERHEROES
Sultan, Aisha! We need your help!
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The virus has shut down the city. It will take time for the city to recover.
Issue 25 | October 2020
Invest in renewable technologies to create green energy and jobs
Proper waste management to divert waste from landfills and to promote a circular economy
Adopt automotive technologies to reduce harmful emissions from fossil fuels There is so much we can do to help our planet recover along with society and economy!
Thank you Sultan and Aisha! Our city is back on track and much more sustainable than before!
The virus may not be gone, but investing in green strategies helped this city recover.
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The Sustainabilist | GREEN RECOVERY
FEATURE
Unpacking the Eco-Friendly Future of Packaging Sustainable computing doesn’t just mean watching what goes into making technology products, but the
By Mary Jacques Director of Global Environmental Affairs and Sustainability, Lenovo
I
t’s not every film you stream from your sofa on a weeknight that leaves a lasting impression on you or changes the way you work. But one documentary inspired me to pay more attention to the thing customers give the least thought to after buying a product: the packaging. We’re all used to recycling our cardboard, but that’s not the only material that goes into the packaging of the products we buy – often plastic is used in some form as well. The amount is growing too; in 2015 in China alone, courier companies used a total of almost 17 billion metres of adhesive tape, a figure which has only 26
increased as demand for home delivery has too. Now multiply that for every industry and country across the globe. When I watched the movie ‘A Plastic Ocean’ I was shocked; the truth is of all the plastic, 79% goes in the ocean or the earth, 12% is burnt, and only 9% can be recycled. In other words, just recycling and using isn’t enough. We need to eliminate the plastic from them too. That requires radical thinking – a challenge we as people should always be up for. Opening the self-closing box Packaging is often overlooked in the life cycle of consumer electronics, but in truth is a large part of the product offering, when measured by mass and energy footprint – not least because in practice it is often immediately discarded.
close and secure themselves.This would prove to be no small challenge: plastic tape has been a crucial part of heavy packaging since long before the advent of the laptop, after all. It’s how products stay secure and undamaged as they’re transported all over the world. Finding a solution to avoid its use and keeping the product protected would not only offer cost benefits but allow for a more environmentally friendly approach to packaging. But after several iterations, we solved it: self-locking structure, with two tongues at the bottom and matching lock holes to seal with more stability and security. It’s cost too. At scale, even small changes like this can make a huge impact on a business’ overall footprint and sustainability. ThinkPad products used to require 54 tonnes of one-time use plastic tape for 19,500km of it, enough to wrap halfway around the earth’s equator.
It’s also something that companies dedicate entire divisions to, and never stop
Closing the loop Simply reducing our reliance on plastic in packaging isn’t enough. Other materials once considered essential in packaging and shipping are fair game for sustainable innovation too.
our packaging engineers have recently eliminated plastic adhesive tape from the bottom of the packaging of select ThinkPad
Take polystyrene – the global polystyrene market was valued at USD 42.7 billion in 2019, and predicted to grow to USD
Issue 25 | October 2020
of packaging waste (or the equivalent of more than 500 African elephants in weight) so far.
Lenovo is also mindful of the fate of the packaging it produces in turn: in some, the end customer receives an optional returnable bulk packaging service, where the packaging materials can be sent back to be reused for new shipments. It’s all part of our commitment to closing the loop – that is, keeping any materials used and reused in a cycle that minimises waste. Close more
Lenovo began using 100% recycled packaging material in 2008, and now requires its own supplier to meet minimum standards for use of recycled materials. More recently, the company has also begun replacing other materials from the packaging in some ThinkPad product lines too. Beginning in 2018, the Lenovo ThinkPad X280 has shipped with thermoformed cushions made from bamboo and sugarcane.
with renewable, sustainable materials, and we can all help close that loop.
Why bamboo? It’s among the fastest growing plants in the world, grows all year
Taking cardboard out of the equation too
the manufacturing process and is rapidly renewable and totally compostable.
many green initiatives dating back over a decade that have saved over 3,100 tonnes
It also requires less volume, enabling more PCs to be stacked together. Lightweight
Close more boxes with less plastic, make more boxes with renewable, sustainable materials, and we can all help close that loop.
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62.3 billion by 2023. It doesn’t have to. Wherever possible, we now use moulded pulp, fiber and low-density polyethylene (LDPE) in favour of traditional polystyrene packaging, made from scrap foam.
packaging also has the benefit of lowering carbon emissions created in transit – you can simply stack more in a pallet, so fewer trips are needed, resulting in a 6.7% efficiency improvement in CO2 emissions. 27
The Sustainabilist | GREEN RECOVERY
RESEARCH
Action plan for the Green Recovery Encouraging LOW-CARBON INITIATIVES AMONG local businesses and workers
Enhancing public green spaces
Adopting district energy technologies
Boosting construction of green buildings and infrastructure 28
Issue 25 | October 2020
Accelerating the transition from fossil fuels
Massive investments in renewable energy systems
Who needs to be involved? Financial institutions
Supporting the upscale adoption of electric vehicles
Promoting food and water security with urban farming
National governments
Local authorities Construction and contracting Building owners Energy efficiency solutions suppliers Electricity and cooling suppliers Manufacturers 29
The Sustainabilist | GREEN RECOVERY
FEATURE
How Can CFOs Drive Sustainability? Organisations must align their organisational and environmental goals, paving the way for a new profession By Doreen Remmen CFO, Institute of Management Accountants (IMA)
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isk is something that every business must deal with, and, as the past 12 months have proven, risk is often due to circumstances beyond our control. December 2019 witnessed one of the biggest Australian bushfires, followed by Indonesian floods in January 2020, a volcanic eruption in the Philippines,
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locust swarms in East Africa, the Middle East and Asia, and epic wildfires in the western United States. And, of course, there is the novel coronavirus pandemic which still grips the world. The resilience of a company in the face of such events depends largely on the sustainability that has been built into its business processes, community relationships, and tangible and intangible assets.
what financial statements show. As much
as 80% of the valuation of a company depends on the worth of its intangible assets. A growing focus on integrated reporting (commonly understood as the merger of financial and nonfinancial reporting) is having a profound impact on the accountancy profession. Historically, accountants have struggled to account for and systematically integrate nonfinancial value into financial reports. That is now changing, as an increasing number of companies have begun to include the monitoring of environmental, social and
Issue 25 | October 2020
Conservation efforts around the world are now being increasingly supported by businesses big and small as they align their organisational goals with environmental goals. Companies are gradually shifting priorities to meet these demands in a way that drives value. Risk management and cost reduction are key drivers of a company’s sustainability agenda. According to an EY survey, “One key reason for growing CFO involvement is the growing scrutiny of company sustainability issues by equity analysts.” One may think that non-financial reporting is primarily the objective of marketing teams and the CEO, and something removed from the domain of the finance team. However, members of the finance function, led by the CFO, have a critical role to play in order to make the task of sustainability business-relevant, aligning this mandate with the organisation’s long-term goals. Sustainability reporting is an intricate, multi-layered challenge that requires a tactical approach that finance professionals with analytical skills are best suited to lead. Other teams may lack formal processes and adequate infrastructure, including resources and standardised tools, policies, data collection and analysis software, that are readily available to the finance teams. In line with the evolution of the profession towards better inclusion of sustainability in accounting practices, a new role is appearing: the sustainability accountant reporting to the CFO. The role encompasses reporting on a broad range of themes, such as managing carbon
footprint and assessing social impact. The leaders in the field are participating in the creation of non-financial reporting and sustainability accounting standards. Thanks to their accounting background, to bridge the rigor and language sustainability. The role supports better inclusion of social and environmental concerns in the day-to-day practices of the organisation. To be successful, the sustainability accountant must also be able to communicate the added value of their position to the organisation, both
The creation of this new position is of major benefit to the profession. The immensity of the task makes it unlikely
An increasing number of companies have begun to include the monitoring of environmental, social and corporate governance performance (the key sustainability metrics) in their strategic reviews.
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corporate governance performance (the key sustainability metrics) in their strategic reviews.
Doreen Remmen
that traditional CFOs will directly manage the social and environmental performance of their organisations. Sustainability accountants are a necessary intermediary for addressing landscape. This is a necessary evolution to encompass sustainability and become chief value officers. More than ever, companies need the finance team to provide intelligent, timely, and authoritative insights that better inform their decisions. The CFO sets the tone within the department and can drive the culture in a way that permits finance function professionals to serve as change agents within the organisation. The CFO can drive the right culture by articulating and embodying the organisation’s purpose and values. 31
The Sustainabilist | GREEN RECOVERY
FEATURE
Green Recovery: a Step Forward to the Sustainable Path Veolia Middle East contributes to power the circular economy addressing regional climate change issues
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his unprecedented time of global crisis and worldwide 2
emissions. This decrease was mainly due to the slowdown of industrial production and the reduction of transportation that account for more than 75% of the global emissions. In the meantime, the world has also seen an increase of disposable plastic, highly damageable for the environment and biodiversity. The Covid-19 crisis has made even more crucial the need for creativity, solidarity and innovation in terms of sustainability. The science is beyond dispute. If global warming is to be kept to no more than +2°C by the turn of the century, compared to the preindustrial era, then global greenhouse gas emissions must fall 61% by 2050, compared to current trends. To achieve this, we must constantly innovate and strive to reduce and eliminate atmospheric anthropogenic greenhouse gases emissions. The green recovery has already started More than ever, after this crisis, governments and economies will focus their efforts and growth strategies on sustainable development and green recovery. This is not a matter of creating a new economy from scratch. We already have all the tools and Veolia is paving the way of a circular economy, securing access to water and better utilisation of local resources for more selfsufficient economies.
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Issue 25 | October 2020
Through its several on-going renewable energy projects in Dubai, Ajman, and Abu Dhabi, Veolia is helping to mitigate the climate emergency by capturing and converting biogas to electricity as well as by installing solar panels, and other initiatives. In addition to this, Veolia is placing the development of a recycling culture at the heart of their approach.
connected to the emirates’ sanitation networks. The optimised management of wastewater systems helps to preserve the natural environment while crisis management and continuity planning ensure that essential services are supplied
Veolia also fosters adaptations to the climate emergency and its consequences by towns, cities, and industries, deploying solutions, such as the identification of water stress risks and water recycling to limit pressure on resources. With the implementation of appropriate desalination and water reuse strategies, Veolia contributes to supplying potable water to 1 million people within the region.
This moment of recovery will be an opportunity to rethink our society and develop a new growth model which will be more inclusive, resilient, circular, and digital. Indeed, the transition to a climate-neutral economy, the protection of biodiversity, and the transformation of agri-food systems have the potential to rapidly deliver jobs, economic growth, and contribute to building more resilient societies based on a global circular economy approach.
By operating optimally wastewater systems of cities in Ajman, Abu Dhabi, and Al Ain, Veolia Middle East ensures the safety of more than 2,8 million residents that are
Food security: a challenge that calls for green strategy only When we talk about agriculture in the UAE, the country faces many challenges
temperatures, intense urbanisation, industrialisation, as well as limited land suitable for agriculture. Despite these issues, however, the UAE continues to flourish, even though its increasing population growth needs to be supported by a steady food supply. The region is already endowed with the resources required to face this challenge. with the reuse of treated water, which remains largely underutilised in MENA — a total of 82% is not reused, according to the Water Resources Institute (WRI). This water would provide a viable source of clean water, the key to establishing food security programmes in the region. To protect water resources, Veolia is developing irrigation solutions with treated water recycling, including an innovative solution based on “intelligent reuse”. This approach makes it possible to reuse wastewater for agriculture and 33
The Sustainabilist | GREEN RECOVERY
conserve the nutrients it contains, such as nitrogen, phosphorus or potassium, thereby limiting the use of chemical fertilisers.
This is a colossal issue because most plastics don’t just ‘go away’, they end up in our waterways and take hundreds of years to degrade.
Globally, around one third of all food is wasted and the Intergovernmental Panel on Climate Change (IPCC) estimated that food waste contributed to nearly 10% of all man-made greenhouse gas emissions between 2010 and 2016. Waste management companies like Veolia have an important role to play in helping to mitigate against this problem through engaging with their client base.
By enhancing its commitment towards improving sustainable development in UAE and widely across the Middle East, Veolia places all its efforts to play an active role by raising awareness among current and future generations about the environmental challenges, such as decreasing the amount of waste generated in the region by spreading the recycling
Veolia is able to use sludge and organic waste to produce fertilisers and organic amendments, this achieves the loop of the circular economy. Thanks to their able to transform bio-waste into organic fertilisers and recycle wastewater sludge and compost. Create the green loop of plastic in the UAE In Abu Dhabi and Dubai, more than 900,000 metric tonnes of plastic resin are used annually, with consumer packaging representing 45% of plastic used in UAE. 34
circular economy: where others see problems, others see resources. Initiatives can be taken in order to help citizens limit waste globally and encourage them to segregate the waste in order to ease the recycling. To support this approach, Veolia has signed a partnership with Agthia Group to work on postconsumed PET sustainability initiatives, thereby making recycling easier and accessible through different collection schemes. Several initiatives about plastic recycling will be deployed which will establish a
circular ecosystem to pave the way towards more recycling in the region. The launching of a PET water bottles collection programme in the UAE, which includes the use of digital solutions, and various awareness programmes, along with incentive schemes and reward, will be a major step for communities in their sustainable path. Circular economy has the power to tackle the challenge of the region in the waste, energy and water sectors. Creating local loops of resources and enhancing food contribution to a greater future. “At Veolia Middle East, we are not simply contributing to the more efficient use of resources in MENA but rather discovering new approaches towards creating a truly sustainable and selfsufficient ecosystem. By supporting and helping local public infrastructure and industries to achieve their sustainable journey, by sensitising and helping customers to adopt a more sustainable lifestyle, our company aims to play the role of a key partner in the region to build the green recovery.” Sébastien Chauvin, CEO of Veolia Middle East.
Issue 25 | October 2020
HOT SEAT
The Cost of PPE on the Environment Disposable face masks contain plastic materials that are not recyclable
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n compliance with the UAE’s regulations, we have all been wearing face masks outside of our homes, thanks to their efficacy at preventing the spread of Covid-19. An unwanted consequence of mass mask usage, however, that we are all witnessing, is the accumulation of waste. While face masks have become the new normal for many as they protect us from the virus, personal protective equipment (PPE) are resulting in high environmental costs. Photographs of surgical masks littering our oceans and piling up on beaches around the world are surfacing. But we really don’t need to go far to find spot shocking sights. You can find used face masks on the streets, on our beautiful shores, and pretty much in any public space. Single-use masks are made from polypropylene (PP) which is a fossilfuel derived polymer that effectively blocks microbes and droplets, hence the material’s usage in surgical masks and
protective clothing for healthcare workers. Given the disposable face masks’ short life spans and light material it is almost inevitable that masks end up in the natural environment and have the same effect as plastic products that take hundreds of years to break down. These can be ingested by marine life mistaking them for food. On top of this, single-use masks, just as other plastic goods, shed harmful microplastics into waterways and are ingested by marine life and by us as we consume seafood. It is uncommon for PPEs to be recycled in order to avoid human interaction and safeguard the health and safety of sanitation workers. Also, the fact that virgin plastic is cheap and readily available require specific techniques and machinery to be recycled means that it costs more to collect, separate, and recycle PPE than the value of the recycled material. The economics don’t work and there is no incentive for PPE waste management.
The solution? Well, there isn’t a definitive one as of yet. Home-made face coverings provide some degree of protection from respiratory droplets airborne in a person’s surroundings, but not as much as surgical masks, given their inability to block small particles. Nevertheless, eco-friendly PPEs for the general public seem to be under development. In Spain, the Senior Council for Scientific Research is working on a project to develop biodegradable antiviral the Advanced Institute of Science and Technology created reusable filters that maintain a similar efficacy to disposable surgical masks that can be washed. Producing and supplying PPEs with lower environmental impacts to the masses is crucial to our efforts in our fight against single-use plastic and global pollution. Priorities have changed during the pandemic, but principles cannot be wavered. Responsible consumption and disposal of waste material is as crucial as ever to protect the planet. 35
The Sustainabilist | GREEN RECOVERY
FEATURE
Building Blockchains As we embrace the digital shift, blockchain could be the tool needed to accelerate the post-pandemic recovery
T
he COVID-19 pandemic has virtually impacted all businesses across every sector, disrupting economies globally. Now the focus is on how industries can recover with strategies with long-term consideration of the triple bottom line: profit, people, and planet.
forecasted in its Worldwide Blockchain Spending Guide that blockchain spending in Europe would be USD 1.4 billion account a number of changes in spending that took place this year, have anticipated a slowdown in blockchain solutions and a
It has become imminently clear over the past few months that advanced connectivity
Blockchain can play a pivotal role in solving for the lack of connectivity and data
Nevertheless, blockchain is being used to combat the adverse effects of the pandemic and facilitate the recovery process in many industries, proving the system’s potential to achieve a green recovery.
transformation initiatives and providing support in the recovery.
[Renewable] Energy Could blockchain rethink the traditional
Prior to the virus outbreak, the IDC had
transactions must go through established
and supply chains are fundamental for
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power holding companies or re-sellers buying from large electricity companies? There are companies, like the Transactive Grid, that are minimising the need for intermediaries by allowing customers to transact in decentralised energy generation schemes. This way, users can generate, buy, and sell energy to and from their neighbours. Blockchain is also revolutionising the electricity market through its efficiency in linking generation assets to specific consumption points, in addition to establishing a hierarchy of priorities for sources of origin. The technology allows for the automation and speed of renewable energy certification processes, as well as greater traceability, fundamental to
Issue 25 | October 2020
Through the reduced costs, increased privacy, security, and transparency, blockchain can encourage the adoption of renewable energy generation assets along with facilitating peer-to-peer energy transactions. Supply Chain Management across global supply chains while causing major disruptions. Unprecedented demand for goods soared while many factories shut down. Users resorted to sourcing goods from unknown suppliers and the long supply chains’ opacity made it difficult to plan and order supply accordingly. Blockchain’s provision of transparency and security make it particularly suited to supply chains and hence a fundamental component of recovery plans. The technology allows for connection among all stakeholders of a supply chain while providing a single source of true information undeniably increasing transparency and security of transactions. Waste Management Waste management is a lengthy process that includes segregation, transportation, recycling, disposal, and analysis of waste. The high volume and variety of procedures make process. The implementation of a single blockchain-based waste management system can facilitate tracking and monitoring the process and promote a greener environment through a number of activities.
Blockchain is being used to combat the adverse effects of the pandemic and facilitate the recovery process in many industries.
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long-term Power Purchase Agreements (PPAs) which need to certify that supplied energy is 100% generated from renewable sources. Moreover, blockchain guarantees transaction security and transparency while data is permanently stored in the platform, allowing for audits by parties.
Rewarding waste segregation is an initiative being taken by many governments and companies worldwide, including the UAE. Compensating recyclers with rewards generated through a blockchain waste tracking encourages an increase in number of recyclers as well as amount of waste segregated. Blockchain also assists in tracking waste management real-time by identifying amount of waste collected, where it was collected, who collected it and where it is being recycled or disposed of. This application of blockchain is insightful for identifying challenges and solutions among the waste management steps. An additional benefit blockchain brings to waste management systems is the accuracy of data of waste. Different types of waste require different disposal and recycling techniques, which is why it is essential to have the correct data to ensure the appropriate technique is adopted.
Crops and Agriculture Probably now more than ever, we want from. Improving traceability of the farming supply chain can safeguard food safety and quality while encouraging sustainable agricultural practices and lower environmental footprints, decreasing costs, and increasing profitability of operations. Adding QR codes to products would source of origin along with other information of the product’s like cycle up to the store shelf. Having stakeholders of the agriculture supply chain input information on the product, such as quality, pesticides used, and transportation, would allow for utmost transparency and generate value to the supply chain. Blockchain can eradicate counterfeits in agri-food production, providing consumers with healthier products and enabling a better life at a global scale. Blockchain technology, the virtual ledger that tracks and stores digital transaction data, has the potential to advance industries. From its banking and cryptocurrency beginnings, annual spending on the technology has grown tremendously as industries from waste to energy management discover its capabilities. The case for transparent and verifiable transaction data and its resistance to fraud, by operating through a decentralised platform that does not require a central supervision, make a compelling case for the adoption of the technology in a wide number of industries to increase efficiency and security, overall, benefitting the economy as we transition through the recovery phase post-pandemic. 37
The Sustainabilist | GREEN RECOVERY
FEATURE
Green Stocks are a Mega Trend not to Ignore Long-term prospects on green stocks remain positive as political capital globally in green industries increases, backed by the adapting sentiment
By Peter Garnry Head of Equity Strategy at Saxo Bank
S
ince our big research note on green stocks in January, where we
equities, the world has changed. The green machine, however, has continued to be bid up by investors around the world. Despite elevated valuations, we remain long-term positive on green stocks prospects - every long-term investor should consider green The rationale is simple: the climate crisis. While global green industries in solar, wind, hydro, fuel cells, electric vehicles, await November’s US presidential election, investors must consider when to tilt portfolios towards green industries. But regardless of whether Joe Biden’s Clean Energy Revolution plan ever gets stage time, US political capital in green industries can only increase over time and 38
stimulate economic growth in the direction of a green future. After pulling the US out of the 2016 Paris Climate Agreement, and systematically dismantling many of the previous administration’s major successes in climate and environmental policy, a President pave the way for four years of drastic reform and major investment in specific US sectors under Biden. The Biden administration is looking to spend USD 1.7 trillion in Federal money on top of local state and private sector commitments, as part of a policy plan to ensure the US achieves a 100% clean energy economy and net-zero emissions no later than 2050. That signifies a huge boost for any company or industry that would enable Biden’s US towards a 100% clean energy economy. From electric vehicle manufacturers through to solar, wind, waste management, recycling and water efficiency solutions, a Democrat government would start investing in a broad range of clean and environmental solutions and commitments. But Biden’s US will not go it alone. Governments around the world are already transitioning towards greener energy. As part of concerted transitions to renewable energy policies, over 160 countries have already made major commitments to renewable energy, decarbonisation and energy storage.
“In leading energy diversification drives in the Middle East, the UAE government is integrating a range of climate change measures into national policies, strategies and planning. With Dubai and Abu Dhabi both running horses in the UAE’s competitive and complementary solar race, Barakah Nuclear Energy Plant in Abu Dhabi’s Al Dhafrah region is already contributing clean energy over the national grid”. Weller also notes that “as political capital in the Gulf, and hopefully the US, increases over time, so will clean and environmental solutions driven by a strong fiscal impulse from developed countries. Europe may prove the pacesetter, but this global drive can only encourage institutional investors to opt for alternative energy equities as governments promote renewables, reinforce energy efficiency and accelerate the phase out of traditional fossil fuels to further stimulate the worldwide green economy”. The race is on and early adopters are already ‘in the green’. Covid-19 has impacted the green stock mega trend by changing general sentiment, forcing central banks and especially the Fed to move interest rates to the lower bound and duly increasing the value of high duration assets. With green stocks prospects inherently viewed as long-duration assets, high potential growth and cash flows in futures afar remain on the cards. With Covid-19 also spurring increased volatility in capital markets and accelerating the global trend of self-directed online trading and investment, a new breed of environment-first ethical traders is eyeing green stock baskets. They are shopping in the right supermarket.
Issue 25 | October 2020
#THEGREENECONOMIST
The UAE’s Green Recovery By Ivano Iannelli CEO, Dubai Carbon
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post-pandemic recovery response As the Covid-19 pandemic swept the world, little to no industries, countries, and economies were not adversely impacted. The International Monetary Fund (IMF) forecasted a shrinkage in global real GDP by 4.9% in 2020, yet the world’s economies are foresees a 5.4% real annual GDP growth. Within the UAE, the projected real GDP growth is negative 3.5%. The UAE, like other countries in the MENA region and the rest of the world, was impacted by the “double whammy”, a term coined by the IMF referring to impact of the lockdown and the severe oil price drop that took place this year. In spite of this, local authorities were able to quickly and swiftly adopt measures to prevent the spreading of Covid-19, by increasing the
number of testing, imposing movement restrictions, and introducing novel technologies as tools to contain the spread of the virus. Because of the swift response taking by local authorities, the UAE has been able to gradually re-open the economy, whilst many others are still in full lockdown. By opening up the economy, the UAE was able to regain access to the market while simultaneously developing further responses for more efficient and effective strategies to address the Covid-19 shocks. In fact, continued government stimulus and policies have played a significant role in the recovery. The national central bank rolled out stimulus measures worth while Dubai and Abu Dhabi announced individual fiscal packages on top of the UAE cabinet’s for all the emirates. Overall, industry sources have stated that
billion. The UAE’s tourism industry is arguably the most impacted by the pandemic as sectors like tourism and airline are those most this, the UAE’s swift tactics and responses have allowed Dubai to be awarded the “Safe Travel Certification” from the World Travel and Tourism Council, and thus the emirate remains one of the most sought-after international destinations. As the economy continues to normalize, it is imperative that the UAE continues to safeguard the health and safety of its citizens while simultaneously protecting the stability of the financial system. increase in access to finance and support for SMEs as well as continuing efforts to diversify the economy away from oil, allowing the UAE to maintain its role as a leading economy. 39
The Sustainabilist | GREEN RECOVERY
TOP 10
Country COVID-19 Safety Assessment organisations developed a framework to assess COVID-19 Regional Safety.
762.64
40
757.7
750.79
750.02
749.03
185.92
175.26
183.31
174.3
185.39
145.5
156.83
111.13
146.95
137.31
138.24
144.31
127.07
131.61
139.69
103.73
108.13
149.45
100.31
103.42
99.5
94.41
94.23
99.88
101
89.74
78.76
85.6
96.98
82.2
1 2345
Issue 25 | October 2020
The assessment considers the categories of: Quarantine Efficiency, Government Efficiency of Risk Management, Monitoring and Detection, Health Readiness, Regional Resilience and Emergency Preparedness. Through these, it ranked 250 countries to classify, analyse and rank their economic, social and health stability. The UAE is the only Middle Eastern country ranked in the top 10.
Monitoring & Detection Country vulnerability Quarantine Efficiency Government Efficiency Healthcare Readiness Emergency TOTAL SCORES
744.83
744.78
725.81
723.36
722.72
182.32
177.79
188.11
162.46
156.97
150.15
137.13
123.35
142.35
146.94
130.21
136.09
123.1
125.1
145.03
109.63
132.46
109.75
121.25
99.27
88.83
84.7
94.73
99.87
90.88
83.7
76.61
86.77
72.32
83.63
Source:
6 7 8 9 10
41
The Sustainabilist | GREEN RECOVERY
FEATURE
Rapid Growth in EFTs with ESGs New Invesco study reveals that ETFs including ESG considerations see strong growth in terms of net new assets as investors believe ESG can enhance long term performance
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ore than half of institutional investors (55%) believe the majority of their ESG (environmental, social and corporate governance) investments will be held in
in their portfolios said that, on average, one fifth (21%) of those assets are currently held in passive vehicles such as ETFs. Just under half (45%) of those investors plan to increase the amount they
two-thirds (68%) of institutional investors believe that the Covid-19 pandemic will accelerate the development and takeup of ESG investments further over the times, businesses have had to adapt in an
funds (ETFs) by 2025, according to new research study from Invesco.
years. Only 5% said they plan to decrease
The research also found that more than 42
access to healthcare, corporate culture and supply-chain sustainability are all core social (‘S’) ESG issues that rose to the
Issue 25 | October 2020
Alessio Cirillo, Sales Director at Invesco EMEA, said: “In the Middle East, we have seen certain investor segments in the region further re-think their strategy post-COVID, as clients push to adopt ESG principles into investment processes. While climate change has been a growing concern among regional investors over the last two years, the global COVID health pandemic has really brought forward the social focus of ESG investing.” According to a separate analysis of EMEA market flow data by Invesco, ETFs incorporating ESG criteria have been growing rapidly over the last five years, from USD 4 billion in assets under management (AuM) as in June 2015 to 5% of total AuM in Europe – as at the end of June 2020. In an indication of the market focus on ESG, across the first half of 2020, USD 11.5 billion of net new flows were into equity ESG products in the EMEA region, with the rest of the equity ETF market seeing net outflows on an aggregated basis, according to Bloomberg data. By comparison only around 7% of the USD 19 over the first half of the year were into funds with ESG considerations. Invesco’s survey among institutional investors found that half (51%) believe that the majority of flows into ESG ETFs
Corporate response will become more vital during tumultuous times as investors look at actions and behaviours as indicators of corporate culture.
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forefront during the pandemic. Corporate response will become more vital during tumultuous times as investors look at actions and behaviours as indicators of corporate culture.
ESG ETFs. The latter is a relatively new but growing segment of the ETF market, with currently only 36 funds available in Europe, less than a third of equity ESG ETFs.
Cirillo Alessio, Sales Director at Invesco EMEA
period ending 6 September, versus 4.9% same period. Alessio Cirillo added: “Investors are looking more and more towards investments that align with their sustainability preferences and values. ETF providers have responded by offering an
the growing number of investors looking for funds with ESG considerations, it is clear that ETFs are playing an increasingly Investors are often first attracted to ETFs due to their low costs and simplicity, but as we have seen so far this year, ESG ETFs have also been able to deliver on performance objectives.”
8.5% this year as of 4 September, versus 6.1% for the S&P 500. In the UAE, the
ESG ETFs with a quarter (24%) believing has had a 9.3% return for the 3-month
undesirable industries or with poor ESG scores or they could tilt the profile to reward companies that are industry leaders on key ESG issues.” Invesco, as one of the largest providers of ESG ETF products, including a suite of MSCI ESG ETFs, a global equity multifactor ESG ETF and the first Sterling corporate bond ETF in Europe that incorporates ESG criteria. 43
The Sustainabilist | GREEN RECOVERY
FEATURE
Cooling fit for a King building’s energy consumption by one-third
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ir conditioning systems in the MENA region contribute to up to 70% of the total energy usage and operation costs of a building. According to a report by the International Energy Agency (IEA), if immediate action is not taken, the global energy use of space cooling is estimated to increase over threefold by 2050. This highlights the pressing need to reduce the energy consumption and provide 44
sustainable cooling, which can be achieved by retrofitting old energy inefficient buildings with a new generation of cooling technology. Retrofitting benefits include huge savings in both energy consumption, electricity bills and emissions. One case study is the retrofit project Taqeef carried out on The Palace, a 20-year-old residential tower with 42 apartments in Deira, Dubai.
The Palace’s retrofitting project was one of the first quantifiable Variant Refrigerant Flow (VRF) retrofits in the region and has since become a benchmark for success in cooling technology improvements to air-cooled chillers of the Palace were outdated, inefficient and took up too much electricity, the developer, Bu Haleeba, was looking for a HVAC partner to refurbish the air-conditioning system. As a solution to provide a more sustainable air-cooled chiller system and improve its performance and efficiency, Taqeef carried out a full retrofit to replace the three air cooled chillers and plant in the tower with a VRF system to cater for the individual apartments and common areas. With thorough design and planning,
Issue 25 | October 2020
Taqeef was able to complete the new system upgrade while the residents remained in the building and the old chiller system was still operational. This kept costs and disruption to a minimum and reduced the need for any additional fit-out costs. Instead of the single indoor units used for the chiller system, the installation of multiple indoor Fan Coil Units (FCU) was used for each individual apartment for metering for each apartment allowed the new system to largely operate at part load which delivered significant and immediate energy savings and the units also benefitted from reduced service costs and noise emissions. In addition to this, the new system reduced the administrative burden on the landlord.
system upgrade was completed in only a year (2016-2017). Within just the first year of installation, independent Energy Management System (EMS)accredited auditors concluded that The Palace retrofit project delivered a 66% reduction in energy consumption and savings of almost to AED 400,000. Under the new VRF system, the annual chiller consumption dropped from AED 595,065 to AED 202,657. In addition, the new system delivered a superior end capacity, lower noise levels, and free individual control for each zone. This retrofit project was able to demonstrate measurable benefits to the owner and occupiers of this building,
making a clear and compelling case for the return on investment (ROI) of using new cooling technologies for old building stock. Retrofitting is a key driver in meeting government targets for energy reduction and provides important contribution towards increasing the efficiency of buildings and their use of energy to reduce building impacts on human health and the environment. The Palace project provides a perfect proof of what a successful retrofit can look like and how the high energy-use challenge can be overcome and provide unequivocal audit results with retrofitting old systems with new energy-efficient technologies. 45
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