How sustainability benefits business performance

How sustainability benefits business performance

How sustainability benefits business performance
Using renewable energy can minimize vulnerability to fluctuations in the price of fossil fuels. (Shutterstock)
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Sustainability today is a core consideration in planning for organizational success. With tightening emissions targets and rising environmental awareness, there are tremendous pressures on businesses to become more sustainable.

This transition is not solely about compliance and social responsibility, however. It is about sustainability as a performance enabler — a driver of change that unlocks competitiveness and adaptability across the value chain.

Business sustainability can thus be described as a process of managing business activities in a way that maximizes efficiency without harming future generations.

Environmental sustainability, social responsibility, and corporate financial performance can all be included in the definition of the environmental, social, and governance concept, known in common parlance as ESG.

Sustainable value generation entails those actions that create and sustain growth, profitability, and enhanced value for shareholders in the long term.

There are clear economic benefits to be gained from greater sustainability. Embracing energy efficiency and reducing waste, for instance, cuts costs in production, while using renewables can minimize vulnerability to fluctuations in the price of fossil fuels.

Sustainable businesses are also able to attract cash from investors who prefer firms with strong ESG disclosures. Other analyses have revealed that a high ESG score reduces capital costs and enhances a firm’s performance.

The strategic management of environmental impact can bring both short and long-term benefits to organizations, including customer loyalty, reduced legal risks, and reputational capital.

Corporate social responsibility refers to the responsibilities that a business has to society and the impact of its operations on communities. To meet these responsibilities, firms are encouraged to respect labor practices and use ethical sources of labor.

Sustainability can give companies a competitive edge over their rivals, while at the same time being considerate to people and the planet.

Majed Al-Qatari

Cultivating a rapport and engaging with stakeholders, including employees, customers, suppliers, and communities, is an effective way of meeting those responsibilities.

Organizations with good social performance can attract talent, encourage return custom, and stave off the possibility of boycotts. Stakeholder engagement is a key factor in this, helping firms develop a robust business model that can easily cope with social shifts.

Potential barriers to sustainability include costs, resistance to change, and difficulties evaluating social and ecological impact. But with adequate planning, stakeholder input, and the use of technology in gathering and analyzing data, these can be overcome.

Meanwhile, industrial partnerships and government subsidies can assist with financial and operational challenges, while training and education programs can help shift organizational culture in favor of greater sustainability.

The circular economy, with its emphasis on recycling, and the growth of green finance will define the future business world, while artificial intelligence and the internet of things will allow organizations to monitor the effectiveness of their sustainability initiatives.

In sum, sustainability can give companies a competitive edge over their rivals, while at the same time being considerate to people and the planet.

Every firm that dreams of a prosperous future should invest in sustainable practices, thereby guarantee lasting benefits for itself and its stakeholders.

Majed Al-Qatari is a sustainability leader, ecological engineer and UN Youth Ambassador with experience in ESG and sustainability goals in business, nonprofits and financial institutions.

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Real Madrid condemn racist abuse of Barca players in Clasico

Real Madrid condemn racist abuse of Barca players in Clasico
Updated 27 October 2024
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Real Madrid condemn racist abuse of Barca players in Clasico

Real Madrid condemn racist abuse of Barca players in Clasico
  • The Spanish football federation expressed its “absolute condemnation” of the abuse

MADRID: Real Madrid condemned racism from some of their supporters aimed at Barcelona players including teenager Lamine Yamal during the club’s 4-0 Clasico defeat on Saturday.
La Liga said they would report the incidents to Spanish authorities, while the government was also critical of the abuse.
“Real Madrid strongly condemns any kind of behavior involving racism, xenophobia or violence in football and sport, and deeply regrets the insults that a few fans uttered last night in one of the corners of the stadium,” said Los Blancos in a statement Sunday.
Videos emerged on social media after the game of racial abuse aimed at Barcelona players including Yamal, with 17-year-old Spain star Yamal targeted during a goal celebration after becoming the youngest Clasico scorer.
The Spanish champions said they had “opened an investigation in order to locate and identify the perpetrators of these deplorable and despicable insults.”
“La Liga will immediately report the racist insults and gestures directed at Barcelona players to the hate crime unit of the national police,” said the Spanish top flight in a statement.
Real Madrid forward Vinicius Junior, who has often been the victim of racial abuse in Spain himself, offered his support to Yamal and other Barca players who were abused.
“It’s regrettable what happened yesterday at the Bernabeu with the racist insults,” wrote Vinicius on social media network X.
“There’s no space for these criminals in our society. All my support to Lamine, Ansu (Fati) and Raphinha.
“I know that Madrid and the police will work to identify and punish those guilty.”
The Spanish football federation expressed its “absolute condemnation” of the abuse.
Spain’s sports council (CSD) said their Commission against Violence, Racism, Xenophobia and Intolerance in sport would meet Monday to discuss the case.
“The Clasico is one of the greatest spectacles in the world, a true expression of the importance that football has in our country,” said the CSD in a statement.
“In it, as in any other sporting event, there can never be any room for expressions of violence, racism, xenophobia, hatred or intolerance.”
“Neither racism, nor insults, nor violence have a place in our country’s sport,” wrote Pilar Alegria, Spain’s minister for education, professional development and sports on X.
Elma Saiz, Spain’s minister for inclusion and migration, also offered support to Yamal.
“The racist insults aimed at Lamine Yamal in the Clasico are everything we in the government will fight against,” she wrote on X.
“We will not allow attacks that we do not tolerate in other spaces to become normalized in sport.”
Spanish football is struggling to combat racism in stadiums across the country.
Real Madrid forward Vinicius has become a figurehead in the fight against racism and has been targeted on numerous occasions since arriving in Spain in 2018.
The Brazilian winger earned worldwide support in May 2023 when he squared off with Valencia supporters after suffering abuse at their Mestalla stadium.
In June three Valencia supporters were sentenced to eight months in prison as a result.
In January 2023, an effigy in a Vinicius shirt was found hanging from a bridge near the club’s training ground alongside a banner saying: “Madrid hates Real.”
In December, four Atletico Madrid fans were charged over the incident, with prosecutors pushing for jail terms of four years.
This week Spanish police arrested four men suspected of inciting an online hate campaign against Vinicius.


Iran kills four after deadly attack in southeast: report

Iran kills four after deadly attack in southeast: report
Updated 27 October 2024
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Iran kills four after deadly attack in southeast: report

Iran kills four after deadly attack in southeast: report
  • In early October, at least six people, including police officers, were killed in the province in two separate attacks

TEHRAN: Iranian armed forces on Sunday killed at least four “terrorists” behind a deadly attack on police the day before in the country’s southeast, Tasnim news agency reported.
Ten police officers were killed in Sistan-Baluchistan province on Saturday in an attack claimed by the Pakistani-based Sunni jihadist group Jaish Al-Adl — Arabic for Army of Justice.
In response, Iran’s Revolutionary Guards backed by intelligence forces and police on Sunday killed at least four “terrorists” suspected of involvement in a drone strike, Tasnim said, citing the Guards.
“During this operation, four terrorists were killed, some were wounded and escaped and four others were arrested,” it said.
“The operation to arrest and destroy the remaining terrorists is still ongoing.”
The official IRNA news agency, citing a police statement, reported the death of “10 personnel in two patrol units” in what it called an ambush.
Sistan-Baluchistan borders Pakistan and Afghanistan and is one of the most impoverished provinces in the Islamic republic.
Saturday’s attack was one of the deadliest in the area in recent months.
In early October, at least six people, including police officers, were killed in the province in two separate attacks.
Jaish Al-Adl claimed responsibility for the two attacks in a message on Telegram.
Formed in 2012 by Baluch separatists, the group is considered a “terrorist organization” by both Iran and the United States.


Russian forces thwart attempted cross-border assault from Ukraine, official says

Russian forces thwart attempted cross-border assault from Ukraine, official says
Updated 27 October 2024
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Russian forces thwart attempted cross-border assault from Ukraine, official says

Russian forces thwart attempted cross-border assault from Ukraine, official says
  • Russian officials and state media have sought to downplay the significance of Kyiv’s thunderous run in Kursk, but the country’s forces have so far been unable to dislodge Ukrainian troops from the province

KYIV, Ukraine: Russian forces thwarted an attempt at another cross-border incursion by Ukraine into southwestern Russia, a local official reported Sunday, months after Kyiv staged a bold assault on its nuclear-armed enemy that Moscow is still struggling to halt.
An “armed group” sought Sunday to breach the border between Ukraine and Russia’s Bryansk region, its governor, Aleksandr Bogomaz, said but was beaten back. Bogomaz did not clarify whether Ukrainian soldiers carried out the alleged attack, but claimed on Sunday evening that the situation was “stable and under control” by the Russian military.
There was no immediate acknowledgement or response from Ukrainian officials.
The region neighbors Kursk province, where Ukraine launched a surprise push on Aug. 6 that rattled the Kremlin and constituted the largest attack on Russia since World War II. Hundreds of Russian prisoners were blindfolded and ferried away in trucks in the opening moments of the lightning advance, and Ukraine’s battle-hardened units swiftly pressed on across hundreds of square miles (square kilometers) of territory.
Responsibility for previous incursions into Russia’s Belgorod and Bryansk regions has been claimed by two murky groups: the Russian Volunteer Corps and the Freedom of Russia Legion.
Russian officials and state media have sought to downplay the significance of Kyiv’s thunderous run in Kursk, but the country’s forces have so far been unable to dislodge Ukrainian troops from the province. Western officials have speculated that Moscow may send troops from North Korea to bolster its effort to do so, stoking the almost three-year war and bringing geopolitical consequences as far away as the Indo-Pacific region.
Russian lawmakers Thursday ratified a pact with Pyongyang envisioning mutual military assistance, a move that comes as the US confirmed the deployment of 3,000 North Korean troops to Russia.
North Korean units were detected Wednesday in Kursk, according to Ukraine’s Main Intelligence Directorate, known by its acronym GUR. The soldiers had undergone several weeks of training at bases in eastern Russia and had been equipped with clothes for the upcoming winter, GUR said in a statement late Thursday. It did not provide evidence for its claims.
Moscow warns West against approving long-range strikes against Russia
Also on Sunday, Russian President Vladimir Putin said Moscow is working on ways to respond if the US and its NATO allies allow Ukraine to strike deep inside Russia with long-range Western missiles.
Putin told Russian state TV that it was too early to say exactly how Moscow might react, but the defense ministry has been mulling a range of options.
Russia has repeatedly signaled that it would view any such strikes as a major escalation. The Kremlin leader warned on Sept. 12 that Moscow would be “at war” with the US and NATO states if they approve them, claiming military infrastructure and personnel from the bloc would have to be involved in targeting and firing the missiles.
He reinforced the message by announcing a new version of the nuclear doctrine that considers a conventional attack on Russia by a nonnuclear nation that is supported by a nuclear power to be a joint attack on his country — a clear warning to the US and other allies of Kyiv.
Putin also declared the revised document envisages possible nuclear weapons use in case of a massive air attack, opening the door to a potential nuclear response to any aerial assault — an ambiguity intended to deter the West.
Ukrainian leaders have repeatedly said they need permission to strike weapons depots, airfields and military bases far from the border to motivate Russia to seek peace. In response, US defense officials have argued that the missiles are limited in number, and that Ukraine is already using its own long-range drones to hit targets farther into Russia.
That capability was evidenced by a Ukrainian drone strike in mid-September that hit a large Russian military depot in a town 500 kilometers (300 miles) from the border.
The US allows Kyiv to use American-provided weapons in more limited, cross-border strikes to counter attacks by Russian forces.
Civilian deaths reported in Kherson as warring sides trade drone strikes
In a separate update, Bryansk Gov. Bogomaz claimed that over a dozen Ukrainian drones were shot down over the region on Sunday. Separately, a total of at least 16 drones were downed over other Russian regions, including the Tambov province some 450 kilometers (290 miles) north from the border, officials reported. There were no reports of casualties from any of the alleged attacks.
In Ukraine’s southern city of Kherson, Russian shelling killed three civilians on Sunday, local Gov. Oleksandr Prokudin claimed. Another Kherson resident died in a blaze sparked by shells hitting a high-rise, according to Ukraine’s Emergency Service.
Air raid sirens wailed for over three hours in Kyiv overnight into Sunday, and city authorities later reported that “around 10” drones had been shot down. They said no one had been hurt. Ukraine’s air force on Sunday reported that it had shot down 41 drones launched by Russia across Ukrainian territory.


Saudi Cup Festival 2025 to have upgraded races, record prize money

Saudi Cup Festival 2025 to have upgraded races, record prize money
Updated 27 October 2024
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Saudi Cup Festival 2025 to have upgraded races, record prize money

Saudi Cup Festival 2025 to have upgraded races, record prize money
  • Developments reflect Kingdom’s growing stature in equestrian world

LONDON: The upcoming 2025 Saudi Cup Festival will see notable upgrades to its race lineup alongside substantial increases in prize money, the Saudi Press Agency reported on Sunday.

Key races, including the Riyadh Sprint Cup and the Longines Red Sea Cup, have been elevated to Group 2 status, reflecting Saudi Arabia’s growing influence in global horse racing.

The Jockey Club has announced enhancements for the Riyadh Dirt Sprint, now boasting a prize of $2 million following a $500,000 increase.

The Red Sea Cup, a $2.5 million race won last year by Aidan O’Brien’s horse Tower of London, will retain its substantial purse.

Held on Feb. 21-22 next year, the Saudi Cup Festival’s second day will include one Group 3 race, four Group 2 races, and two Group 1 races: the $20 million Saudi Cup, the world’s richest horse race, and the Obaiya Cup for purebred Arabian horses, sponsored by the Diriyah Gate Development Authority.

Day one will host the Group 1 Manifa Cup for purebred Arabian horses, sponsored by the Ministry of Culture, alongside the four-round World Jockeys Challenge, drawing top riders from around the world.

Prince Bandar bin Khalid Al-Faisal, chairman of the Equestrian Authority and the Jockey Club, said that the developments reflected Saudi Arabia’s growing stature in the equestrian world, adding that they provided a strong foundation for the future of Saudi racing on a global scale.


Britain foreign minister seeks to avoid ‘catastrophic’ escalation in calls with Israel and Iran

Britain foreign minister seeks to avoid ‘catastrophic’ escalation in calls with Israel and Iran
Updated 27 October 2024
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Britain foreign minister seeks to avoid ‘catastrophic’ escalation in calls with Israel and Iran

Britain foreign minister seeks to avoid ‘catastrophic’ escalation in calls with Israel and Iran

LONDON: Britain’s foreign minister David Lammy said he had spoken to his Israeli and Iranian counterparts in separate calls on Sunday seeking to avoid escalation into a “catastrophic” regional war after Israel struck Iranian military sites.
“Today I held important calls with Israeli FM (Israel Katz) and Iranian FM (Abbas Araghchi). The UK continues to press for de-escalation and an end to the conflicts in Lebanon and Gaza,” Lammy said in a statement after a Israeli air attack early on Saturday against Iranian targets.
“A regional war would be catastrophic and is in no one’s interests,” he said.