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

Pakistan vows to facilitate Chinese investors in Special Economic Zones

Pakistan vows to facilitate Chinese investors in Special Economic Zones
Updated 8 min 48 sec ago
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Pakistan vows to facilitate Chinese investors in Special Economic Zones

Pakistan vows to facilitate Chinese investors in Special Economic Zones
  • China, a major ally of Islamabad, has pledged $65 billion for a massive economic corridor project in Pakistan
  • Chinese investment and financial support since 2013 have been key for Pakistan’s struggling, fragile economy

ISLAMABAD: Pakistan’s Privatization Minister Abdul Aleem Khan promised to facilitate Chinese investors in Special Economic Zones (SEZs), state media reported this week as Islamabad eyes foreign investment in vital sectors to sustain growth and avoid a macroeconomic crisis.
SEZs are usually subject to different and more favorable economic regulations compared to other parts of the same country, which include tax incentives and the opportunity to pay lower tariffs.
China, a major ally and investor in Pakistan, has pledged over $65 billion in investment in road, infrastructure and development projects under the China-Pakistan Economic Corridor (CPEC) project. CPEC is a part of the Belt and Road Initiative, a massive China-led infrastructure project that aims to connect various countries around the globe through trade. 
“Federal Minister for Privatization and Communications Abdul Aleem Khan says the Board of Investment will provide all facilities to Chinese investors including sale and transfer of land in Special Economic Zones,” Radio Pakistan reported on Saturday. 
Khan, as per the state-run media, was presiding over a meeting in Lahore to discuss difficulties being faced by investors in SEZs. 
“He directed to resolve all problems being faced in the Special Economic Zones across the country,” the state broadcaster said. 
Chinese investment and financial support since 2013 have been key for Pakistan’s struggling economy, including the rolling over of loans so that Islamabad is able to meet external financing needs at a time its foreign reserves are low.
Though time-tested allies, recent security challenges have put a slight strain on Pakistan’s ties with China. Separatist militants have attacked Chinese projects in Pakistan over the past few months, killing Chinese personnel.
In October, a suicide blast claimed by the separatist Balochistan Liberation Army (BLA) killed three people in Pakistan’s southern port city of Karachi, including two Chinese nationals, who were targeted in the attack.
Five Chinese workers were killed in a suicide bombing in March this year, which was the third major attack on Chinese interests in Pakistan in a week.
China has called on Islamabad to ensure security for its citizens in Pakistan. The South Asian nation has in turn sought to ease Chinese fears, vowing to provide fool-proof security to its citizens living and working in the country.


‘Disney movies unite us,’ says Louaye Moulayess as he promotes ‘Moana 2’

‘Disney movies unite us,’ says Louaye Moulayess as he promotes ‘Moana 2’
Updated 12 min 53 sec ago
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‘Disney movies unite us,’ says Louaye Moulayess as he promotes ‘Moana 2’

‘Disney movies unite us,’ says Louaye Moulayess as he promotes ‘Moana 2’

DUBAI: From a young age, Lebanese animator Louaye Moulayess has loved Disney movies.

Speaking to Arab News about his latest project, “Moana 2,” which is released in cinemas in the Middle East on Nov. 28, Moulayess said diverse voice is what makes Disney storytelling so compelling.

From a young age, Lebanese animator Louaye Moulayess has loved Disney movies. (Supplied)

“We all grew up with different kinds of stories told to us, right? I grew up with specific Lebanese stories. For example, if I turned on the TV in Lebanon as compared to somebody in Lisbon, for example, we’re going to watch different things. Our sensibilities are going to be a bit different. Now we all have something in common, which is Disney movies,” he told Arab News.

At a time when his home country, Lebanon, is defending against Israeli attacks, US-based Moulayess finds comfort in his work and storytelling. “It all comes back to the stories my grandparents and parents told me,” he said, adding that Disney movies have always brought him hope.

“Moana 2,” set in ancient Polynesia, picks up three years after the events of the 2016 original. Moana (voiced by Auli’i Cravalho) receives an unexpected call from her wayfinding ancestors and forms her own crew to travel the vast seas of Oceania, reuniting with her shapeshifting, magical friend, Maui (Dwayne Johnson).

“I loved the first movie. When I started working on ‘Moana 2,’ I felt like I already knew the characters very well. So, I knew Moana and I knew Maui … I knew how they moved, I knew what their personalities were. But, at the same time, they became somebody else three years after.

“So, the challenge was a bit different compared a new movie, where we would have had to figure out the characters and how they moved and how they behave. The challenge here was, I know this character, but this character has changed. How do we make it new and find the specificity of this new personality?” Moulayess said.

When asked what sparked his interest in animation, Moulayess pointed to Disney again. “I think the moment I made my decision was after watching ‘Lion King.’ Like the first sequence of the ‘Circle of Life,’ after that when everything goes black and you see the title of the movie. It really shocked me in the best way. I was like, ‘Who is this Walt Disney?’ I thought it was one person doing this back when I was a kid, because I saw the name Walt Disney. I was like, ‘It must be one person doing this.’ And I decided I’d do this one day. So, this is what triggered everything. And slowly, I just gravitated towards animation,” he said.

Now based in Burbank, California, Moulayess left Lebanon for the US as a young student.

“In Lebanon, when I graduated high school, I looked around for majors that had animation, but back then, there wasn’t anything available. Now there are a couple schools that offer animation majors.

“Back then, I knew I had to leave to make my studies, so I went to San Francisco and joined a school called Academy of Art University in San Francisco,” Moulayess said.

After four years of university, Moulayess landed himself an internship with Pixar Animation Studios. “I was very, very lucky that I did an internship there, where I worked on ‘Cars 2,’” he said.

From there, he moved on to Blue Sky Studios for “seven wonderful years,” working on the “Ice Age” films, “The Peanuts Movie” and “Ferdinand,” before making his way to Disney in 2019, working on “Frozen 2” before taking on “Raya and the Last Dragon.” 


Israeli army orders Gaza City suburb evacuated, spurring new displacement wave

Israeli army orders Gaza City suburb evacuated, spurring new displacement wave
Updated 16 min 1 sec ago
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Israeli army orders Gaza City suburb evacuated, spurring new displacement wave

Israeli army orders Gaza City suburb evacuated, spurring new displacement wave
  • Israeli military blames Hamas rocket fire for renewed evacuation directive
  • Palestinians say hospitals in north Gaza barely functioning

CAIRO: The Israeli military issued new evacuation orders to residents in areas of an eastern Gaza City suburb, setting off a new wave of displacement on Sunday, and a Gaza hospital director was injured in an Israeli drone attack, Palestinian medics said.
The new orders for the Shejaia suburb posted by the Israeli army spokesperson on X on Saturday night were blamed on Palestinian militants firing rockets from that heavily built-up district in the north of the Gaza Strip.
“For your safety, you must evacuate immediately to the south,” the military’s post said. The rocket volley on Saturday was claimed by Hamas’ armed wing, which said it had targeted an Israeli army base over the border.
Footage circulated on social and Palestinian media, which Reuters could not immediately verify, showed residents leaving Shejaia on donkey carts and rickshaws, with others, including children carrying backpacks, walking.
Families living in the targeted areas began fleeing their homes after nightfall on Saturday and into Sunday’s early hours, residents and Palestinian media said — the latest in multiple waves of displacement since the war began 13 months ago.
In central Gaza, health officials said at least 10 Palestinians were killed in Israeli airstrikes on the urban camps of Al-Maghazi and Al-Bureij since Saturday night.
Hospital director wounded by gunfire
In north Gaza, where Israeli forces have been operating against regrouping Hamas militants since early last month, health officials said an Israeli drone dropped bombs on Kamal Adwan Hospital, injuring its director Hussam Abu Safiya.
“This will not stop us from completing our humanitarian mission and we will continue to do this job at any cost,” Abu Safiya said in a video statement circulated by the health ministry on Sunday.
“We are being targeted daily. They targeted me a while ago but this will not deter us...,” he said from his hospital bed.
Israeli forces say armed militants use civilian buildings including housing blocks, hospitals and schools for operational cover. Hamas denies this, accusing Israeli forces of indiscriminately targeting populated areas.
Kamal Adwan is one of three hospitals in north Gaza that are barely operational as the health ministry said the Israeli forces have detained and expelled medical staff and prevented emergency medical, food and fuel supplies from reaching them.
In the past few weeks, Israel said it had facilitated the delivery of medical and fuel supplies and the transfer of patients from north Gaza hospitals in collaboration with international agencies such as the World Health Organization.
Residents in three embattled north Gaza towns — Jabalia, Beit Lahiya and Beit Hanoun — said Israeli forces had blown up hundreds of houses since renewing operations in an area that Israel said months ago had been cleared of militants.
Palestinians say Israel appears determined to depopulate the area permanently to create a buffer zone along the northern edge of Gaza, an accusation Israel denies.
Israel’s campaign in Gaza has killed more than 44,000 people, uprooted nearly all the enclave’s 2.3 million population at least once, according to Gaza officials, while reducing wide swathes of the narrow coastal territory to rubble.
The war erupted in response to a cross-border attack by Hamas-led militants on Oct. 7, 2023 in which gunmen killed around 1,200 people and took more than 250 hostages back to Gaza, according to Israeli tallies.


Iran to hold nuclear talks with three European powers in Geneva on Friday, Kyodo reports

Iran to hold nuclear talks with three European powers in Geneva on Friday, Kyodo reports
Updated 23 min 57 sec ago
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Iran to hold nuclear talks with three European powers in Geneva on Friday, Kyodo reports

Iran to hold nuclear talks with three European powers in Geneva on Friday, Kyodo reports
  • A senior Iranian official confirmed that the meeting would go ahead next Friday

DUBAI: Iran plans to hold talks about its disputed nuclear program with three European powers on Nov. 29 in Geneva, Japan’s Kyodo news agency reported on Sunday, days after the UN atomic watchdog passed a resolution against Tehran.
Iran reacted to the resolution, which was proposed by Britain, France, Germany and the United States, with what government officials called various measures such as activating numerous new and advanced centrifuges, machines that enrich uranium.
Kyodo said Iranian President Masoud Pezeshkian’s government was seeking a solution to the nuclear impasse ahead of the inauguration in January of US President-elect Donald Trump.
A senior Iranian official confirmed that the meeting would go ahead next Friday, adding that “Tehran has always believed that the nuclear issue should be resolved through diplomacy. Iran has never left the talks.”
In 2018, the then-Trump administration exited Iran’s 2015 nuclear pact with six major powers and reimposed harsh sanctions on Iran, prompting Tehran to violate the pact’s nuclear limits, with moves such as rebuilding stockpiles of enriched uranium, refining it to higher fissile purity and installing advanced centrifuges to speed up output.
Indirect talks between President Joe Biden’s administration and Tehran to try to revive the pact have failed, but Trump said in his election campaign in September that “We have to make a deal, because the consequences are impossible. We have to make a deal.”


Lebanon military says one soldier killed, 18 hurt in Israeli strike on army center

Lebanon military says one soldier killed, 18 hurt in Israeli strike on army center
Updated 33 min 2 sec ago
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Lebanon military says one soldier killed, 18 hurt in Israeli strike on army center

Lebanon military says one soldier killed, 18 hurt in Israeli strike on army center
  • The attack caused severe damage to the facility, the army added in a post on X

At least one soldier was killed and 18 others injured, some seriously, after an Israeli attack targeted an army center in the town of Al-Amiriya on the Al-Qalila-Tyre road in southern Lebanon, the Lebanese army said on Sunday.
The attack caused severe damage to the facility, the army added in a post on X.
The Israeli military did not immediately comment on the incident.