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

Former Bank of England governor Mark Carney enters race to be Canada’s next prime minister

Former Bank of England governor Mark Carney enters race to be Canada’s next prime minister
Updated 2 min 13 sec ago
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Former Bank of England governor Mark Carney enters race to be Canada’s next prime minister

Former Bank of England governor Mark Carney enters race to be Canada’s next prime minister

VANCOUVER, British Columbia: Mark Carney, the first non-Brit to run the Bank of England since it was founded in 1694 and the former head of Canada’s central bank, said Thursday he is entering the race to be Canada’s next prime minister following the resignation of Justin Trudeau.
Trudeau will remain prime minister until a new Liberal Party leader is chosen on March 9.
Carney, 59, is a highly educated economist with Wall Street experience, widely credited with helping Canada dodge the worst of the 2008 crisis while heading the country’s central bank. He also helped the UK manage Brexit during his 7-year tenure as governor of the Bank of England.
“The prime minister and his team let their attention on the economy wander too often,” Carney said in Edmonton, Alberta, of Trudeau where he made his announcement. “I won’t lose focus.”
The front-runners for the Liberal Party leadership are Carney and ex-Finance Minister Chrystia Freeland, whose abrupt resignation last month forced Trudeau’s exit.
The next Liberal leader could be the shortest-tenured prime minister in the country’s history. All three opposition parties have vowed to bring down the Liberals’ minority government in a no-confidence vote after parliament resumes on March 24. An election is expected this spring.
Carney said he knows the Liberals are “well behind,” but said he would win the general election.
Trudeau announced his resignation Jan. 6 after facing an increasing loss of support both within his party and in the country.
Carney quickly launched into an attack on opposition Conservative Leader Pierre Poilievre, who the polls show has a large lead over the Liberals.
He also highlighted the threats by US President-elect Donald Trump, who has said Canada should become the 51st state and has threatened to impose 25 percent tariffs on all Canadian goods.
“This is no time for life-long politicians such as Pierre Poilievre,” he said. “Sending Pierre Poilievre to negotiate with Donald Trump is the worst possible idea.”
Poilievre painted Trudeau, Carney and Freeland with the same brush during a news conference in Vancouver earlier Thursday.
He blamed the Liberals for high taxes and slammed the government for suggesting it may put tariffs on energy exports to the US, saying it would hurt the oil-rich province of Alberta.
“Not only have the Liberals weakened our economy, now they’re resorting to dividing our people,” said Poilievre. “We don’t need to be divided; we need to be united.”
A major plank in Poilievre’s campaign has been removing the carbon tax, introduced by the Trudeau government as a fee on the amount of carbon emitted by fuels like gas.
Carney said if the carbon tax is removed, it should be replaced by something that is “at least if not more effective” in having the same impact of reducing greenhouse gas emissions while making Canadian companies more competitive and creating jobs.
An official close to Freeland said she would scrap the consumer carbon tax and instead make big polluters pay. The official spoke on condition of anonymity as they were not authorized to speak publicly ahead of her announcement.
When Carney, who grew up in Edmonton, was named the first foreigner to serve as governor of the Bank of England it won bipartisan praise in Britain.
“I have helped manage multiple crises and I have helped save two economies,” Carney said. “I know how business works, and I know how to make it work for you.”
More recently he served as the UN’s special envoy for climate change and led an alliance of international financial institutions pushing for carbon-cutting measures. Carney has long championed the notion that making companies accountable for their impact on the planet is the first step toward reducing greenhouse gas emissions.
When Carney led Canada’s central bank he was credited with keeping money flowing through the Canadian economy by acting quickly in cutting interest rates to their lowest level ever of 1 percent, working with Canadian bankers to sustain lending through the crisis and, critically, letting the public know rates would remain low so they would keep borrowing. He was the first central banker to commit to keep them at a historic-low level for a definite time, a step the US Federal Reserve would follow.
Like other central bankers, Carney is a former Goldman Sachs executive. He worked for 13 years in London, Tokyo, New York and Toronto, before being appointed deputy governor of the Bank of Canada in 2003. He has both financial industry and government credentials.
He has long been interested in entering politics and becoming prime minister but lacks political experience. The Liberal Party has tried to recruit him for years.
“Being a politician is quite different from being a policy adviser or a central banker,” said Daniel Béland, a political science professor at Montreal’s McGill University.


Sudan government denounces US sanctions as ‘immoral’

Sudan government denounces US sanctions as ‘immoral’
Updated 31 min 23 sec ago
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Sudan government denounces US sanctions as ‘immoral’

Sudan government denounces US sanctions as ‘immoral’
  • Washington had slapped sanctions on Burhan, accusing the army of attacking schools, markets and hospitals and using food deprivation as a weapon of war
  • US earlier imposed sanctions on Mohamed Hamdan Dagalo, commander of the paramilitary Rapid Support Forces, accusing his group of committing genocide

PORT SUDAN: Sudan’s army-aligned foreign ministry rejected as “immoral” US sanctions declared on Thursday against army chief Abdel Fattah Al-Burhan, saying that they “lack the most basic foundations of justice and transparency.”
In a statement, it said the sanctions “express only confusion and a weak sense of justice,” after 21 months of war between the army and the paramilitary Rapid Support Forces, in which the foreign ministry said Burhan was “defending the Sudanese people against a genocidal plot.”
On Thursday, the US treasury department announced sanctions against Burhan, accusing the army of attacking schools, markets and hospitals and using food deprivation as a weapon of war.
It came a week after the US slapped sanctions on RSF commander Mohamed Hamdan Dagalo, accusing his group of committing genocide.
Sudan’s foreign ministry on Thursday said the US’s “flawed decision cannot be justified by claiming neutrality,” saying it amounts to “support of those committing genocide.”

12 million people uprooted

Since April 2023, the war between the army and the RSF has killed tens of thousands, uprooted more than 12 million people and pushed hundreds of thousands into famine.
Both sides have been accused of targeting civilians and indiscriminately shelling residential areas, with the RSF specifically accused of ethnic cleansing, systematic sexual violence and laying siege to entire towns.

“Taken together, these sanctions underscore the US view that neither man is fit to govern a future, peaceful Sudan,” outgoing Secretary of State Antony Blinken said in a statement in which he voiced regret at his failure to end the brutal war.
The United States previously had steered clear of sanctions on the two leaders so as to preserve diplomacy with them.
But Blinken, who leaves office on Monday, said the army had repeatedly failed to join peace initiatives, although he hoped President-elect Donald Trump would keeping trying on Sudan.
“It is for me, yes, another real regret that when it comes to Sudan, we haven’t been able on our watch to get to that day of success,” Blinken said at a farewell news conference.
There have been “some improvements in getting humanitarian assistance in through our diplomacy, but not an end to the conflict, not an end to the abuses, not an end to the suffering of people,” he said.
The war erupted over a failure to integrate the army and the RSF, with joint US and Saudi diplomacy succeeding only in limited humanitarian agreements including on the entry of aid.
More than 24.6 million people — around half of Sudan’s population — face “high levels of acute food insecurity,” according to a recent review by the UN-backed Integrated Food Security Phase Classification.

Genocide in Darfur

The United States last week said that the RSF has committed genocide in Darfur through systematic killings and rapes of the ethnically African people there.
The atrocities are an echo of the scorched-earth campaign by the RSF’s militia predecessor, the Janjaweed, also accused of genocide two decades ago in Darfur.
The US special envoy on Sudan, Tom Perriello, pointed to actions taken last time in Darfur — “naming and shaming” of perpetrators, a “tremendous global activism” and the prospect of African Union intervention.
“Most of those tools are either off the table completely or seriously diluted right now,” Perriello said at the Council on Foreign Relations.
Perriello, a former Democratic congressman who also leaves office Monday, said the United States was also no longer the same “major bank for the world” that can spell dire economic consequences through sanctions.
US options are “much weaker in a world where people can go to other countries and get billion-dollar checks without having any conversations about human rights and democracy,” he said.
Perriello also voiced shock that regional power South Africa welcomed RSF leader Dagalo on a visit and that there was not “much of an outcry from South African civil society.”
But he said African powers increasingly focused on domestic issues and “want to be seen as economic powerhouses of the future, not necessarily the moral police.”
The Sudan conflict has brought in a series of foreign players, with the United Arab Emirates facing repeated charges of arming the RSF.
Perriello saluted the role of Egypt, saying he was surprised to work so closely but that Cairo exerted pressure on the Sudanese army in the interest of decreasing refugee flows.
 


Amad Diallo scores late 12-minute hat trick to rescue Man United in 3-1 win over Southampton

Amad Diallo scores late 12-minute hat trick to rescue Man United in 3-1 win over Southampton
Updated 49 min 21 sec ago
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Amad Diallo scores late 12-minute hat trick to rescue Man United in 3-1 win over Southampton

Amad Diallo scores late 12-minute hat trick to rescue Man United in 3-1 win over Southampton

Amad Diallo keeps coming up with big late goals for Manchester United.
There were three of them Thursday in a remarkable 12-minute flurry that rescued United from an embarrassing loss to the Premier League’s worst team.
Diallo, a 22-year-old winger from the Ivory Coast, scored a hat trick from the 82nd minute to earn United a 3-1 victory over last-place Southampton — just when it looked like his team was heading for a fourth straight home loss for the first time since the 1930s.
“In football you have to believe. We believed until the end,” said Diallo, who signed a new five-year contract with United last week as a reward for becoming one of its most important players.
That’s because Diallo is proving a man for the big occasion. Two weeks ago, he scored an 80th-minute equalizer at Anfield to secure a 2-2 draw against Liverpool; a month ago, he scored a 90th-minute winner at Manchester City; and who could forget his winner in stoppage time of extra time as United ousted Liverpool in the FA Cup quarterfinals.
Now he is a mainstay of the team, even trusted by manager Ruben Amorim to play the demanding position of right wing back. By the end of the game against Southampton, Diallo was playing like a forward and he equalized in the 82nd minute, scoring at the second attempt after his initial shot was blocked.
Diallo put United ahead in the 90th minute when he ran onto Christian Eriksen’s chip over the defense and volleyed home, and added a third goal in the fourth minute of stoppage time after dispossessing a Southampton defender in front of an empty goal.
“I am ready to play every position — I am ready to play as a wing back, No. 10, where the manager likes to put me,” said Diallo, the second-youngest scorer of a Premier League hat trick for United, after Wayne Rooney. “I am ready to fight for this club.”
Amorim said “good things are going to happen” for the Ivory Coast international if he continues to train well.
“He is in a great moment and he is having a very good season,” Amorim said.
The victory continued an uptick for the fallen English giant, which beat Arsenal in a penalty shootout in the FA Cup on Sunday and was impressive in a 2-2 draw at first-place Liverpool in United’s previous league game.
United climbed to 12th place in the league but was largely poor against Southampton, which took the lead thanks to an own-goal by Manuel Ugarte in the 43rd minute.
Southampton stayed on just six points for the season and looks a near-certainty for relegation. The team is 10 points from safety.
Ipswich drops into relegation zone
The three relegation places are now filled by the teams promoted last season after Ipswich lost at home to Brighton 2-0.
Kaoru Mitoma and Georginio Rutter scored second-half goals for Brighton, which climbed to ninth place.
Ipswich dropped below Wolverhampton into third-to-last place and is only ahead of Leicester and Southampton.


SpaceX catches its Starship rocket back at the launch pad, but the spacecraft is destroyed

SpaceX catches its Starship rocket back at the launch pad, but the spacecraft is destroyed
Updated 53 min 41 sec ago
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SpaceX catches its Starship rocket back at the launch pad, but the spacecraft is destroyed

SpaceX catches its Starship rocket back at the launch pad, but the spacecraft is destroyed
  • For the second time, SpaceX used giant mechanical arms to catch its Starship rocket back at the pad minutes after liftoff
  • The spacecraft was supposed to soar across the Gulf of Mexico on a near loop around the world similar to previous test flights

SpaceX launched its Starship rocket on its latest test flight Thursday, catching the booster back at the pad but losing contact with the ascending spacecraft as engines went out.
Officials for Elon Musk’s company said the spacecraft was destroyed.
The spacecraft was supposed to soar across the Gulf of Mexico on a near loop around the world similar to previous test flights. SpaceX had packed it with 10 dummy satellites for practice at releasing them. It was the first flight of this new and upgraded spacecraft.
Before the loss, SpaceX for the second time used giant mechanical arms to catch the booster back at the pad minutes after liftoff from Texas. The descending booster hovered over the launch pad before being gripped by a pair of mechanical arms dubbed chopsticks.
The 400-foot (123-meter) rocket thundered away in late afternoon from Boca Chica near the Mexican border. The late hour ensured a daylight entry halfway around the world.
Skimming space, the shiny retro-looking spacecraft — intended by Musk as a moon and Mars ships — targeted the Indian Ocean for a controlled but destructive end to the hourlong demo.
SpaceX beefed up the catch tower after November’s launch ended up damaging sensors on the robotic arms, forcing the team to forgo a capture attempt. That booster was steered into the gulf instead.
The company also upgraded the spacecraft for the latest demo. The test satellites were the same size as SpaceX’s Starlink internet satellites and, like the spacecraft, meant to drop into the Indian Ocean to close out the mission. Contact was lost about 8 1/2 minutes into the flight.
Musk plans to launch actual Starlinks on Starships before moving on to other satellites and, eventually, crews.
It was the seventh test flight for the world’s biggest and most powerful rocket. NASA has reserved a pair of Starships to land astronauts on the moon later this decade. Musk’s goal is Mars.
“Every Starship launch is one more step closer towards Mars,” Musk said via X ahead of liftoff.
Hours hours earlier in Florida, another billionaire’s rocket company — Jeff Bezos’ Blue Origin — launched the newest supersized rocket, New Glenn. The rocket reached orbit on its first flight, successfully placing an experimental satellite thousands of miles above Earth. But the first-stage booster was destroyed, missing its targeted landing on a floating platform in the Atlantic.
 


US says Gaza ceasefire to start as planned despite ‘loose end’

US says Gaza ceasefire to start as planned despite ‘loose end’
Updated 17 January 2025
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US says Gaza ceasefire to start as planned despite ‘loose end’

US says Gaza ceasefire to start as planned despite ‘loose end’
  • A US official earlier said the sole remaining dispute was over the identities of some prisoners Hamas wanted released
  • Media say Netanyahu’s cabinet to vote on deal on Friday or Saturday

DOHA/CAIRO/JERUSALEM: The Gaza Strip ceasefire should begin on Sunday as planned, despite the need for negotiators to tie up a “loose end” at the last minute, US Secretary of State Antony Blinken said on Thursday.
With longstanding divisions apparent among ministers, Israel delayed cabinet meetings to ratify the ceasefire with Hamas, and media reports said voting could occur Friday or even Saturday, although the deal is expected to be approved.
Israel blamed the militant group for the hold-up, even as Israeli warplanes pounded Gaza in some of the most intense strikes for months. Palestinian authorities said at least 86 people were killed in the day since the truce was unveiled.
Hamas senior official Izzat el-Reshiq said the group remained committed to the ceasefire deal, which is scheduled to take effect from Sunday to halt 15 months of bloodshed
“It’s not exactly surprising that in a process and negotiation that has been this challenging and this fraught, you may get a loose end,” Blinken told a press conference in Washington. “We’re tying up that loose end as we speak.”
A US official, who spoke on condition of anonymity, said the parties were making good progress in ironing out the last-minute obstacles. “I think we’re going to be okay,” the official told Reuters.
Earlier the official said the sole remaining dispute was over the identities of some prisoners Hamas wanted released. Envoys of President Joe Biden and President-elect Donald Trump were in Doha with Egyptian and Qatari mediators working to resolve it, the official said.
Inside Gaza, joy over the truce gave way to sorrow and anger at the intensified bombardment that followed the announcement.
Tamer Abu Shaaban’s voice cracked as he stood over the tiny body of his young neice wrapped in a white shroud on the tile floor of a Gaza City morgue. She had been hit in the back with shrapnel from a missile as she played in the yard of a school where the family was sheltering, he said.
“Is this the truce they are talking about? What did this young girl, this child, do to deserve this? What did she do to deserve this? Is she fighting you, Israel?” he asked.

The ceasefire accord emerged on Wednesday after mediation by Qatar, Egypt and the US to stop the war that began with deadly Hamas attacks on Israel and saw Israeli forces kill tens of thousands of Palestinians and devastate Gaza.
The deal outlines a six-week initial ceasefire with the gradual withdrawal of Israeli forces. Dozens of hostages taken by Hamas would be freed in exchange for hundreds of Palestinian prisoners detained in Israel.
It paves the way for a surge in humanitarian aid for Gaza, where the majority of the population has been displaced, facing hunger, sickness and cold. Rows of aid trucks were lined up in the Egyptian border town of El-Arish waiting to cross into Gaza, once the border is reopened.
Peace could also have wider benefits across the Middle East, including ending disruption to global trade from Yemen’s Iran-aligned Houthi movement which has attacked ships in the Red Sea. The movement’s leader Abdul Malik Al-Houthi said his group would monitor the ceasefire and continue attacks if it is breached.

Meeting revealed
Israel’s acceptance of the deal will not be official until it is approved by the security cabinet and government. A vote had been expected on Thursday, but Prime Minister Benjamin Netanyahu delayed the meeting, accusing Hamas of making last-minute demands.
“The Israeli cabinet will not convene until the mediators notify Israel that Hamas has accepted all elements of the agreement,” Netanyahu’s office said.
Israeli media outlets reported the cabinet was expected to vote on Friday or Saturday, but the prime minister’s office declined to comment on the timing.
Hard-liners in Netanyahu’s government were still hoping to stop the deal, though a majority of ministers were expected to back it and ensure its approval.
Hard-line National Security Minister Itamar Ben-Gvir said on Thursday he would resign from the government if it ratifies the Gaza deal.
But opposition leader Yair Lapid told the prime minister in a post on X that he would “get every safety net you need to make the hostage deal,” suggesting opposition lawmakers would support the government to ensure the return of hostages.
In Jerusalem, some Israelis marched through the streets carrying mock coffins in protest at the ceasefire, blocking roads and scuffling with police. Other protesters blocked traffic until security forces dispersed them.
The agreement leaves the fate of most of the remaining 98 Israeli hostages still in Gaza unresolved for now. The list of 33 due to go free in the first phase includes women, children, elderly, sick and wounded.
Palestinians said they were desperate for the bombing to stop as soon as possible.
“We lose homes every hour. We demand for this joy not to go away, the joy that was drawn on our faces — don’t waste it by delaying the implementation of the truce until Sunday,” said Mahmoud Abu Wardeh.
Israel launched its campaign in Gaza after Hamas-led gunmen burst into Israeli border-area communities on Oct. 7, 2023, killing 1,200 soldiers and civilians and abducting over 250 hostages, according to Israeli tallies.
If successful, the ceasefire would halt fighting that has razed much of heavily urbanized Gaza, killed over 46,000 people, and displaced most of the tiny enclave’s pre-war population of 2.3 million, according to Gaza authorities.