C O R P O R AT E S O C I A LRESPONSIBILITY IN DUBAICURRENT PRACTICES, CHALLENGES AND FUTURE OPPORTUNITIES

DUBAI CHAMBER SURVEY:

SUSTAINABLE DEVELOPMENTGOALS REPORT

NOVEMBER 2020

TABLE OF CONTENTS

01 Introduction

02 Sustainable Development Goals

03 SDGs and the Global Business Community

03 SDGs and the UAE

04 CSR Survey on SDGs - Methodology

05 CSR Survey on SDGs - Results

07 Recommendations for the business community

08 References

INTRODUCTION

Companies of all sizes around the world are increasingly realizing the potential value of Corporate Social Responsibility (CSR). As a result, more and more companies are revisiting their business models and processes to create positive societal and economic value through strategic CSR practices. As companies’ priorities and ways of doing things change over time, so do the challenges and opportunities.

To track the key trends in CSR in Dubai and help managers make informed decisions, the Dubai Chamber Centre for Responsible Business (DC-CRB) has been running the Dubai Chamber CSR survey since 2006. As the longest running CSR survey in the region, the objective of the Dubai Chamber CSR survey is to put together a comprehensive database to map-out the state of CSR in Dubai, identify challenges, opportunities and areas for improvement with regards to the development and implementation of effective CSR practices, and develop recommendations and tools to improve such practices.

The full report can be accessed by clicking here. In this report we present the results of the Dubai Chamber 2019 CSR survey but with a specific focus on the Sustainable Development Goals (SDGs). This report is divided into three parts.

The first part provides definitions and context to the SDGs. The second part presents results of the survey, specifically related to drivers behind the uptake of SDGs within the Dubai business community. The report will conclude by giving recommendations on how businesses can embrace the SDGs within their strategic business operations.

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SUSTAINABLE DEVELOPMENT GOALS

The Sustainable Development Goals (SDGs) are a set of 17 goals that provide a blueprint aimed at achieving a better and more sustainable future for all (UN 2019). They address (through a series of 169 measurable targets) the global challenges faced today, including those related to poverty, inequality, climate, environmental degradation, prosperity, and peace and justice.

The 17 SDGs are presented in figure 1 below.

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NoPoverty

Good Health& Well-being

ZeroHunger

QualityEducation

GenderEquality

Clean Water & Sanitation

Affordable & Clean Energy

Decent Work & Economic Growth

Industry Innovation &Infrastructure

ReducedInequalities

Sustainable Cities &

Communities

ResponsibleConsumption & Production

ClimateAction

Life BelowWater

Life onLand

Peace Justice & Strong

Institutions

Partnership for the Goals

Figure 1: Sustainable Development Goals

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SDGS AND THE GLOBAL BUSINESS COMMUNITY

Since their inception, the SDGs have been widely recognized by the wider business community. By 2018 - just three years after launching - PwC (2018) reported that 72 per cent of global companies mentioned the SDGs in their annual corporate or sustainability report. Half (50%) of those companies had strategically identified a number of SDGs to focus on. Furthermore, 54 per cent of those companies mention the SDGs in their business strategy. Research conducted by EY (2017) concluded that organizations that can harness the SDGs are better positioned to drive growth, address risk, attract capital and focus on purpose.

To continue with this initial momentum it is essential that the business community can translate recognition into measurable action. That said, the extent of progress towards the SDG targets remains unclear (Ethical Corporation 2017; Oxfam 2018). This was further evidenced in the PwC report (2018), which stated that just 23 per cent of companies had disclosed meaningful Key Performance Indicators (KPIs) and targets related to SDGs. The report stated that just 19 per cent of CEO and Chair statements mention them in annual reports.

SDGS AND THE UAEThe National Committee on SDGs was formed in January 2017 and includes 17 federal government entities. The committee is chaired by the Minister for International Cooperation whilst the secretariat and vice-chair is the Federal Competitiveness and Statistics Authority (FCSA) (UN 2018). The FCSA, along with other government entities, are ultimately responsible for the national implementation for SDGs, monitoring and reporting of progress towards targets and stakeholder engagement (FCSA 2018).

Given the rapid pace of economic development in the UAE, the federal government has recognized that efforts towards the SDGs are most effective when supported by the business community (Oliver Wyman 2019). This recognition of collaborating with the business community resulted in the launch of the Private Sector Advisory Council (PSAC) in October 2018. The aim of the PSAC is to involve the private sector in helping the UAE meet its SDGs commitments by ushering public-private partnerships defined by constructive collaboration and a holistic approach (Emirates News Agency 2018).

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CSR SURVEY ON SDGS - METHODOLOGYA survey questionnaire was sent to the Dubai business community in January - June 2019. 152 responses were received. 8 responses were discarded because of missing information. The figure below describes the three stages of the research. 38% of responding companies came from Manufacturing, trading and repair services sector and 23.6% came from Real estate, property management and business services firms sector.

The results were analysed across three main business groups: Multi-national organizations (MNC; companies with operations in two or more countries), Large organizations (Large; companies with >250 employees) and small to medium enterprises (SME; companies with <250 employees).

The survey included two questions relating to the SDGs, being:

To what extent do you agree with the following statements about your organizations’s efforts towards Sustainable Development Goals (SDGs):

There is increased efforts in our organization to achieve SDGs

Achievement of SDGs is one of our company’s key business targets

We have identified tools needed to impact SDGs

We regularly assess our impact on SDG goals

Do you focus on one of limited number of SDGs or all 17 SDGs?

The results were then analyzed across three business groups:

Multinational (MNC): businesses with presence in more than 1 country

Large: 251 employees and over

Small and Medium Enterprise (SME): 250 employees and under

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CSR SURVEY ON SDGS - RESULTS

In general, the results shown in fig.2 indicate that the Dubai business community has embraced the SDGs. The most embracing group in terms of efforts towards SDGs was MNC, followed by the Large group. SMEs scored lowest by a relatively large margin across all categories.

Efforts towards SDGs

‘There is increased efforts in our organization to achieve SDGs’ was the highest scoring category with 3.65 out of 5. This result supports the trend of the SDGs being adopted by the wider business community globally. This result was supported by the MNC and Large groups, which reported their highest respective scores in the category, with 4.03 and 3.87 respectively.

The results suggested however that organizations are facing challenges in assessing their impact on SDG goals. ‘We regularly asses our impact on SDG goals’ was the lowest scoring category overall with 3.25. This was chiefly due to the SME group reporting a score of 2.89 (3.69 MNC; 3.42 Large). The groups also faced challenges in ‘We have identified tools needed to impact SDGs’ with an overall score of 3.33. SMEs, Large and MNCs each scored 2.89, 3.54 and 3.72 respectively.

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Figure 2: SDG Efforts Across the Dubai Business Community

We regularly assess our impact on SDG goals

We have identified tools needed to impact SDGs

Achievement of SDGs is one of our company's key business targets

There is increased efforts in our organization to achieve SDGs

2.00

TotalSMELargeMultinational

2.50 3.00 3.50 4.00 4.50

3.25

3.33

3.54

3.72

3.54

3.65

3.87

4.03

3.18

3.69

3.95

3.22

2.89

2.89

3.42

3.69

5

SDG Focus

Table 1 below highlights that across the groups, an average of 15% of Dubai-based companies reported that they are focused on adopting all 17 of the SDGs. Large companies were the most embracing of SDGs with 18% adopting all seventeen of them. This was followed by the MNC group with 17% adopting all seventeen SDGs and 9% of SMEs.

Comparatively, 85% of organizations have adopted a limited number of the SDGs overall. 91% of SMEs reported the adoption of a limited number of SDGs. The MNC and Large groups reported 83% and 82% had adopted a limited number of SDGs respectively.

Table 1: Dubai Business Community Focus on the SDGs

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Limited Number SDGs

Multinational 83% 17%

Large 82% 18%

SME 91% 9%

Average 85% 15%

All 17 SDGs

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RECOMMENDATIONS FOR THE BUSINESS COMMUNITY

It is evident from the results that the uptake of SDGs across the wider business community globally has also been demonstrated in Dubai. To continue being part of the global movement, it is crucial therefore that businesses continue to systematically embrace the SDGs within their strategic business operations as well as set and meet targets.

To further facilitate the uptake of SDGs and meet the targets, the CRB makes the following recommendations to the business community:

Conduct a full review of all 17 SDGs and their associated targets

Map specific SDGs against existing business operations and strategic priorities

Consider tools for aligning the business model and operations to specific SDGs

Establish key performance indicators (KPIs) in order to measure impact

Set targets and monitor progress against the KPIs

Engage with internal and external stakeholders to support delivery of your targets and share best practice to the wider business community

Regularly monitor and report on progress

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REFERENCES

Emirates News Agency., 2018. FCSA launches Private Sector Advisory Council. http://wam.ae/en/details/1395302715626

Ethical Corporation., 2017. Top stories of 2017: #10 Corporates embrace SDGs but prove slow to act. http://www.ethicalcorp.com/top-stories-2017-10-corporates-embrace-sdgs-prove-slow-act

EY., 2017. Why Sustainable Development Goals should be in your business plan.https://www.ey.com/en_gl/assurance/why-sustainable-development-goals-should-be-in-your-business-plan

FSCA., 2018. Strategy. https://fcsa.gov.ae/en-us/Pages/About-Us/Strategy.aspx

Federal Competitiveness & Statistics Authority., 2019. Public Private Partnerships to Progress SDGs. https://www.dewa.gov.ae/~/media/Files/Sustainability%20week/ day%202/SDGs%20in%20the%20UAE-Abdullah%20Lootah.ashx

Gaffney, G., 2014. Sustainable Development Goals: Improving human and planetary wellbeing.Global Change Issue 82. http://www.igbp.net/down

Oliver Wyman., 2019. Achieving Sustainable Development Goals in the UAE. https://www.oliverwy-man.com/content/dam/oliver-wyman/v2/publi cations/2019/july/achieving-the-sustainable-develop-ment-goals-in-the-uae-.pdf

Oxfam., 2018. Walking the Talk: Assessing companies’ progress from SDG rhetoric to action. https://ox-familibrary.openrepository.com/bit stream/handle/10546/620550/dp-walking-the-talk-busi-ness-sdgs-240918-en.pdf

PwC., 2018. From promise to reality: Does business really care about the SDGs?. https://www.pwc.com/gx/en/sustainability/SDG/sdg-reporting-2018.pdf

UAE Vision 2021., 2018. Homepage. https://www.vision2021.ae/en

UN., 2018. United Arab Emirates: Voluntary National Review 2018. https://sustainabledevelopment.un.org/memberstates/unitedarabemirates

UN., 2019. About: Sustainable Development Goals.https://sustainabledevelopment.un.org/?menu=1300

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