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)
Short Url

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

Israeli PM Netanyahu says 21 hostages alive, doubts over three others

Israeli PM Netanyahu says 21 hostages alive, doubts over three others
Updated 1 min 39 sec ago
Follow

Israeli PM Netanyahu says 21 hostages alive, doubts over three others

Israeli PM Netanyahu says 21 hostages alive, doubts over three others
  • The fate of the hostages is a visceral issue for most Israelis and one that has caused increasing disquiet and division in Israeli society as the war has dragged on

JERUSALEM: Three Israeli hostages in Gaza previously thought to be living may be dead, leaving 21 definitely believed to be alive, Prime Minister Benjamin Netanyahu said on Wednesday, confirming comments made by US President Donald Trump.
Speaking at an event at the White House on Tuesday, Trump said 24 hostages were alive a week ago but the figure was now 21. He did not cite a source or provide further details.
Gal Hirsch, Israel’s coordinator for hostage issues, had said in a post on X that the Palestinian militant group Hamas was holding 59 hostages of whom 24 were alive and 35 dead — figures unchanged since before Trump spoke.
Netanyahu’s comments appeared to confirm the figure cited by Trump.
“We know for certain that 21 are alive — that’s not in dispute. There are three others where, unfortunately, it’s uncertain whether they’re alive,” Netanyahu said in filmed remarks posted on social media.
A spokesperson for a group representing hostage families said: “The headquarters again calls on the prime minister to stop the war until the return of the last abductee. This is the most urgent and important national task.”
The fate of the hostages is a visceral issue for most Israelis and one that has caused increasing disquiet and division in Israeli society as the war has dragged on. A total of 251 people were taken hostage during the Hamas attacks on southern Israel on October 7, 2023, in which some 1,200 people, mostly civilians, were killed, according to Israeli tallies.
Most of the hostages returned alive to Israel so far were released as part of deals with Hamas during two temporary ceasefires in late 2023 and early 2025.
Since the abductions, Israel has responded with an air and ground assault on Gaza that has killed more than 52,000 Palestinians, according to the Hamas-run health authorities there, and reduced much of the enclave to ruins.
The government says its two war aims are to destroy Hamas and release the hostages. This week it has announced an expansion of its offensive on Gaza, causing hostage families to fear this will further endanger their loved ones.


Putin’s order for three-day truce with Ukraine enters force

Putin’s order for three-day truce with Ukraine enters force
Updated 50 min 7 sec ago
Follow

Putin’s order for three-day truce with Ukraine enters force

Putin’s order for three-day truce with Ukraine enters force
  • Putin announced the truce last month as a “humanitarian” gesture, following pressure from Trump
  • Ukraine never agreed to the truce and has dismissed it as theatrics, calling instead for a 30-day ceasefire

MOSCOW: Russian President Vladimir Putin’s order for a three-day truce with Ukraine to coincide with Moscow’s World War II Victory Day commemorations has taken effect, Russian state media reported.
Ukraine never agreed to the truce and has dismissed it as theatrics, calling instead for a 30-day ceasefire.
The three-day order began at midnight Thursday (2100 GMT on Wednesday) and is scheduled to last until the end of Saturday, according to the Kremlin.
“The ceasefire ... on the 80th anniversary of the Great Victory has begun,” Russia’s state RIA news agency reported.
Hours before Putin’s order was scheduled to enter force, Moscow and Kyiv traded a slew of aerial attacks, prompting airport closures in Russia and leaving at least two dead in Ukraine.
The Kremlin has said Russian forces will honor Putin’s order to cease fire, but will respond “immediately” if Ukraine launches any attacks.
Putin announced the truce last month as a “humanitarian” gesture, following pressure from the United States to halt his three-year assault on Ukraine.
US President Donald Trump has been trying to broker a lasting ceasefire between Moscow and Kyiv since his inauguration, but has failed to extract any major concessions from the Kremlin.
Putin rejected a joint US-Ukrainian proposal for an unconditional ceasefire in March, and has since offered only slim contributions to Trump’s peace efforts.
Ukraine has said it does not believe Russia will adhere to this truce and accused Moscow of hundreds of violations during a previous, 30-hour ceasefire ordered by Putin over Easter.


Saudi Arabia ‘categorically rejects’ Israel’s plan to seize Gaza territory

Saudi Arabia ‘categorically rejects’ Israel’s plan to seize Gaza territory
Updated 08 May 2025
Follow

Saudi Arabia ‘categorically rejects’ Israel’s plan to seize Gaza territory

Saudi Arabia ‘categorically rejects’ Israel’s plan to seize Gaza territory
  • Israeli authorities on Monday approved plans to take over territory and forcibly displace population
  • Kingdom’s Foreign Ministry strongly condemns Israel’s violations of international law

RIYADH: Saudi Arabia’s Ministry of Foreign Affairs has “categorically rejected” plans by Israel to expand its military operations in Gaza and seize control of the territory.

The ministry also “strongly condemned the continued Israeli violations of international law and international humanitarian law.”

Israeli authorities on Monday approved a new ground operation to take over parts of Gaza, forcibly displace Palestinians into the south of the territory, and control the distribution of humanitarian aid. The Israeli army is calling up tens of thousands of reserve soldiers.

The announcement sparked widespread international condemnation. Saudi Arabia’s Foreign Ministry said it stood firmly opposed to any attempted expansion of Israeli settlements in the occupied Palestinian territories, and stressed the importance of holding Israel accountable for failures to comply with international resolutions.

The Kingdom continues to have “unwavering support for the Palestinian cause, in line with international legitimacy, the Arab Peace Initiative, and the establishment of an independent Palestinian state on the 1967 borders, with east Jerusalem as its capital,” the ministry added.


PSG finish off Arsenal to reach Champions League final

PSG finish off Arsenal to reach Champions League final
Updated 08 May 2025
Follow

PSG finish off Arsenal to reach Champions League final

PSG finish off Arsenal to reach Champions League final
  • Nevertheless, PSG made it 2-0 on the night when Dembele, on from the bench, teed up Hakimi to finish in style

PARIS: Paris Saint-Germain clinched a place in the Champions League final as goals by Fabian Ruiz and Achraf Hakimi gave them a 2-1 win over Arsenal in the second leg of their last-four tie on Wednesday, securing a 3-1 aggregate triumph.
Ruiz crashed in a shot from the edge of the area in the 27th minute at the Parc des Princes to leave PSG firmly in the driving seat after they had withstood an early bombardment from the visitors.
Already leading in the tie after Ousmane Dembele’s goal in last week’s first leg, PSG then saw Vitinha have a second-half penalty saved.
However, Hakimi put the tie beyond Arsenal when he scored in the 72nd minute, even if Bukayo Saka did then pull one back for the visitors.
PSG advance to a showdown in Munich on May 31 against Inter Milan, and it will be the second Champions League final in their history, five years after a defeat by Bayern Munich in Lisbon.
Arsenal, meanwhile, saw their European dream come to an end as they fell short of reaching what would have been their second final, 19 years after losing to Barcelona in Paris.
Still without a trophy since the 2020 FA Cup, all that is left to play for now for Mikel Arteta’s side is securing a third consecutive second-place finish in the Premier League.
There was an electric atmosphere all evening in Paris, and PSG were able to celebrate getting to a final in front of their fans for the first time, after their victory against RB Leipzig in the last four in 2020 was played behind closed doors during the pandemic.
There was a feverish mood in and around the ground pre-match, but PSG have tripped up in big Champions League ties plenty of times over the last decade.
In addition, their top scorer Dembele was not in the starting line-up having come off with a hamstring problem in the first leg.
Arsenal, with Thomas Partey back in midfield after missing the first leg through suspension, did their best to silence the raucous home support by throwing everything at the Parisians right from the off.
Declan Rice headed just wide, and goalkeeper Gianluigi Donnarumma denied Gabriel Martinelli from close range before producing a stunning save low to his left to keep out a Martin Odegaard shot, all inside the opening eight minutes.
PSG did eventually settle, and they almost went ahead on 17 minutes when Desire Doue teed up Khvicha Kvaratskhelia, whose curling shot hit the far post.
Then Doue wasted a great chance, shooting straight at David Raya in the Arsenal goal after Bradley Barcola had intercepted a loose ball.
But PSG did score before the half-hour mark, the goal coming in the wake of a free-kick awarded for a Rice foul on Kvaratskhelia.
Vitinha’s delivery was headed out by Partey but fell to Ruiz on the edge of the box, and he controlled before smashing in a left-foot shot as the ball bounced back up.
It was the ideal moment for the 29-year-old Spaniard to score his first Champions League goal.
Barcola failed to convert a good chance for the hosts to score again moments later, and Arsenal still had some hope going into the second half.
Only another stunning Donnarumma save with his fingertips prevented Saka from pulling one back on 64 minutes, before PSG were awarded a spot-kick.
German referee Felix Zwayer gave the penalty after being summoned to the pitchside monitor when a shot by Hakimi brushed the outstretched hand of Myles Lewis-Skelly.
Arteta was furious at the decision, yet Vitinha’s kick was turned away by Raya diving to his left.
Nevertheless, PSG made it 2-0 on the night when Dembele, on from the bench, teed up Hakimi to finish in style.
This being PSG, however, there was a wobble as Saka quickly pulled one back from close range after Arsenal substitute Leandro Trossard had got the better of Marquinhos on the wing.
Saka then somehow blazed over with an open goal gaping from Riccardo Calafiori’s cross, ensuring that there would be no miracle Arsenal comeback and it would be PSG’s night.


Al-Ittihad take step towards SPL title

Al-Ittihad take step towards SPL title
Updated 15 min 23 sec ago
Follow

Al-Ittihad take step towards SPL title

Al-Ittihad take step towards SPL title
  • Algeria international Houssem Aouar, scored the winner in added time from close range following a cross by Moussa Diaby

Al-Itithad defeated Al-Nassr 3-2 on Wednesday to take a big step towards the Saudi Pro League (SPL) title. With four games of the season remaining, Ittihad are six points clear and are looking good for the big prize.

It was not an easy win but somehow the visitors came back from two goals down to record the win. It was a close-run thing however. By the break, Al-Nassr were two goals to the good and were on course for a huge win.

It started in fine fashion as, Sadio Mane put Nassr ahead and then eight minutes before the break, Ayman Yahya  made it 2-0,

In the first ten minutes after the restart and Ittihad were level. First, French international striker  Karim Benzema pulled a goal back and then N’Golo Kante scored to level the game. It seemed as if it that was that but then Al-Ittihad scored once more through Houssem Aouar and that ended up winning the game.

In the other big game of the day, Al-Hilal won 5-3 at Al-Raed to ensure that the race for the top was not over.

Salem Al-Dawsari was the hero for Al-Hilal as he scored three goals for the 19-time champions. The Saudi Arabian international scored a hat-trick. His first came four minutes before the break.

The result means that there is still a long way to go in this season.