What Is The Importance of Sustainable Reporting For The Businesses in UAE?

UAE has long been known for the business-friendly regulations and environment that it has provided to the businesses established in UAE. The UAE has made all the efforts to develop itself into a global market where entities from around the world look up to set up businesses. The UAE has been competing at a global level for a long time. In order to cope with the global standards, it has been taking all such required measures. It has also placed a significant emphasis on sustainable development and environmentally friendly operations. One such move is compliance with the sustainability reporting standards laid out by the IFRS. The businesses in the UAE are expected to provide the sustainable reports, ensuring that there is no drastic impact of the operations of the business on the environment. In this blog, you will be able to understand the importance of sustainability reporting for the businesses in the UAE.

What is Meant by Sustainability Reporting?

Sustainability reporting is a type of reporting by the business entities apart from the normal financial reporting as per the IFRS (connect with us if you are in search for IFRS Advisory services), which includes the reports regarding the impact of the business on the environment, society, and economy. The report is strictly based on the environmental concerns, and the business issuing these reports will be able to ensure the transparency, thereby increasing the confidence of the stakeholders.

As now is the high time to adopt sustainable development and operations, the public, government organisations, investors, etc., are now becoming more conscious about sustainability, and hence the businesses will be expected to comply with such norms. The disclosure of such information will enable the users to understand how the operations are carried out by a business entity.

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Importance of Sustainability Reporting for Businesses in UAE

The importance of sustainability reporting in the UAE has been increasing due to many factors, along with the general reasons for the adoption of such reporting practices. The following are the important factors:

• UAE’s commitment towards sustainability: The UAE is planning to achieve several sustainable milestones in the near future, some of which include the National Agenda 2071, the goal of being a sustainable economy by 2030 by reducing the carbon emissions, and depending more on renewable energy use, etc. These reforms indicate that it's high time for the businesses too to adopt the sustainability reporting, thereby contributing to this achievement.
• Increasing demand for sustainable reports: The UAE is a great attraction for foreign investments and investors along with the entrepreneurs from all over the world. Hence, there is a rise in demand for the sustainable reports by most of the investors and entrepreneurs, which indicates that the entities must start to prepare these reports for more investments.
• Compliance requirements: Mostly the sustainability reporting is voluntary for the businesses. But compliance with these reforms would enable the businesses to stay in line with the international standards adopted by the neighbouring countries, where more transparency can be facilitated.
• Improved brand reputation: The stakeholders will have more confidence and trust in the businesses that provide sustainable information and reports, as there would be more transparency. This would further assure the stakeholders that the entities are taking all the efforts to reduce the impacts of the operations on the environment; hence, reputation will be improved.
• Enhanced use of resources and reduced costs: As the business entities try to reduce the impact on the environment, it would gradually result in a decrease in the costs and maximum utilisation of the resources, whereby the wastage would be reduced; hence, this would also have a positive impact on the overheads of the business.

CDA’s Assistance in Sustainability Reporting

The demand for sustainability reporting is on the rise, and there are many business entities that are still not aware of the reporting standards and the procedures to be followed. For such entities, CDA’s personalised team is on standby to provide all the assistance required for the businesses in the UAE. Our team will train your employees to adopt the new standards and also to account for each and every transaction related to the sustainability reporting in an accurate manner. Moreover, we will always be at your side to provide any accounting, auditing, or tax-related assistance.

To know more about the professional services, connect with the team now.