Responsible Business Sourcing

The clarion call was made during the 2015 Paris Agreement that decarbonisation is no longer a matter of choice but a global imperative! We explore the risks and mitigations of carbon offset projects to help companies achieve net zero targets without jeopardising their reputation.

In this blog, we will delve into this Decree and understand how following strict due diligence measures can help various entities operating in the UAE assess and mitigate risks associated with the sourcing of gold. We will also explore what relevant entities in the supply chain and precious metals dealers, that fall under the ambit of this new law, should do to stay compliant and avoid administrative penalties in the process.

In the age of heightened environmental awareness, businesses are being pressured increasingly by multiple stakeholders in the economy to adopt sustainability across their operations. In order to successfully implement a sustainable supply chain, businesses must set clear sustainability goals, employ the latest and most innovative technology into operations, setup a skilled and efficient compliance function, involve employees in sustainability initiatives, and most importantly, should have sustainability as a key criteria while selecting and engaging with suppliers and business partners.

Increasingly, there is a growing emphasis on responsible supply chain management, prioritising ethical practices, sustainability, and consumer safety. In this blog, we delve into compelling case studies that spotlight the repercussions of supply chain mismanagement and, conversely, the triumphs of responsible practices. These real-world examples serve as cautionary tales, each offering valuable insights into the multifaceted realm of responsible supply chain management. From crisis response to international cooperation, these case studies encapsulate the spectrum of challenges and successes that define modern supply chain dynamics.

Any non-financial risk associated with human rights, environment or ethics and integrity can be that bad apple that has the potential of rotting the good basket of apples that you may have collected over the years. That is, essentially, a danger of not building a responsible supply chain. The reputation that you build, goodwill that you create and the social license to operate that you acquire after years of hard work can come crashing down because you did not pay attention to one single non-financial risk in your supply chain. We tend to overlook these risks as trivial or even don’t know about them.

Climate change is a serious concern that is being discussed in board rooms across the globe, highlighting that combatting it and its impacts are a necessity. The UAE’s ambitious Net Zero by 2050 plan, which aims to make the country the first in the Middle East and North Africa (MENA) to reach this milestone, serves as a beacon of hope and motivation. The plan recognises that the path to net-zero emissions offers substantial economic opportunities, aligning with the vision of transforming the Emirates into the most dynamic economy globally. Similarly, a list of over 70 countries which cover around 76% of global emissions have committed to setting net-zero targets. But what does this imply for businesses and what strategies must they implement to align themselves with the changing landscape? What role do sustainability consultants, often referred to as green consultants or climate change consulting firms, play in shaping strategies for achieving net-zero emissions?

Over the past few decades, the context in which businesses operate have changed drastically. Technology has transformed the way the world behaves; data assimilation presents a picture where every business is laid bare. As businesses have benefited from economic growth and globalization, technology’s contribution to critical sustainability topics like climate change, biodiversity, access to medicine, wages, children and women’s rights, and labor rights has grown. The rise of technology has ensured that Stakeholders are now able to challenge businesses on how they behave. Compliance is not a means for fixing blame, but an opportunity to mitigate risks.