Why ESG Reports Are Now Essential for UAE Companies

In 2025, ESG reporting has officially moved from optional to expected for companies across the UAE. Two major regulatory shifts are driving this change.

1. Federal Decree-Law No. 11 of 2024 (UAE Climate Law) now requires companies to measure, report, and verify their greenhouse gas (GHG) emissions, and integrate climate-related risks into governance and strategy. Non-compliance can lead to penalties of up to AED 2 million.

2. Capital-markets regulators (ADX and DFM) are mandating annual sustainability disclosures for all listed companies, standardizing how organizations report their ESG data and communicate progress to investors and the public.

Together, these developments mean that an ESG report is no longer a “nice to have”, it’s a strategic and regulatory necessity for businesses aiming to maintain credibility, attract investors, and align with the UAE’s national sustainability goals.

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Three Key Reasons to Act Now

1. Regulatory Readiness
With new ESG and emissions disclosure requirements coming into effect, businesses need to demonstrate compliance. A well-structured ESG report provides the evidence regulators expect and protects against reputational or financial risk.

2. Investor Confidence & Market Access
Investors increasingly treat ESG performance like financial performance. Transparent reporting helps companies access financing, meet lender expectations, and stand out as credible, responsible partners.

3. Long-Term Business Value
Developing an ESG report enables companies to identify operational efficiencies, set measurable sustainability goals, and build long-term resilience, essential in a competitive and fast-changing market.

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What Companies Should Do Next, and How Living Business Can Help

Conduct a Materiality Assessment

Identify the ESG topics that matter most to your business and stakeholders. Living Business facilitates stakeholder engagement and sector-specific assessments to prioritize what truly drives impact.

Set Up Data Collection Systems
Collect accurate data for energy, emissions, diversity, and other ESG metrics. Our team helps design simple, practical templates and systems that make reporting efficient and repeatable.

Align with Global and Local Frameworks

Report in line with GRI and UAE regulatory expectations. We ensure your report meets both investor and regulatory requirements while reflecting your brand voice.

Develop and Publish Your ESG Report
Living Business manages the full reporting process, from data validation to drafting, design, and submission, delivering a professional, compliant report that demonstrates your leadership.

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In short, ESG reporting is now a requirement, but it’s also an opportunity.
With the right guidance, UAE companies can transform compliance into competitive advantage, attract partners and investors, and contribute meaningfully to the UAE’s Net Zero 2050 vision.

Living Business is here to help you every step of the way, from readiness to reporting.