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Why firms should adopt sustainability practices

Why firms should adopt sustainability practices

Why firms should adopt sustainability practices
Efficient resource utilization, waste reduction and energy conservation can yield substantial cost savings. (Shutterstock)
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Ƶ is home to some 245 publicly listed companies, all focused on maximizing value and delivering profits. So why should sustainability also be a priority?

Indeed, are corporate sustainability practices merely fleeting trends, regulatory obligations, government-driven initiatives, superficial reports or hollow efforts at reputation management?

Quite frankly, sustainability is not just an ethical imperative but a business one. It can significantly impact a company’s profitability, longevity and resilience — either positively or negatively. By embracing sustainability, companies can reshape their business models to drive revenue growth, improve margins, optimize capital allocation and mitigate risk.

Efficient resource utilization, waste reduction and energy conservation can yield substantial cost savings, enhancing a company’s bottom line. Similarly, sustainable and fair labor practices can resonate with consumers, fostering increased brand loyalty and customer preference.

Moreover, investing in sustainable technologies and practices can spur innovation, leading to the development of groundbreaking products and services. This can provide companies with a competitive edge, attract new customers and expand market share.

A strong commitment to sustainability can also reduce the cost of capital by improving creditworthiness. More than 500 academic studies have demonstrated a bidirectional positive correlation between corporate sustainability and financial returns.

Nonetheless, companies must approach sustainability with precision and meticulousness. Poorly executed sustainability initiatives can inadvertently erode value, while well-planned and properly implemented practices can significantly enhance a company’s performance.

The first step toward sustainable success should be a comprehensive assessment of a company’s current sustainability practices. This review should identify areas of strength and weakness, as well as opportunities for improvement.

Poorly executed sustainability initiatives can inadvertently erode value, while well-planned and properly implemented practices can significantly enhance a company’s performance.

Rodrigo Tavares

Organizations such as Clarity AI, MSCI ESG Ratings, Sustainalytics and the Upright Project can assess a company’s sustainability performance. By understanding the company’s sustainability baseline, businesses can develop a tailored roadmap to enhance their value proposition.

The second critical step is to identify and shortlist sustainability practices that can significantly impact a company’s financial performance and risk profile from a vast array of options. Tailoring these practices to each company’s unique circumstances remains one of the most complex challenges in corporate sustainability.

It is therefore important to avoid overextending sustainability efforts. While a strong commitment to sustainability is commendable, excessive or poorly executed initiatives can divert valuable resources and distract from core business objectives. A balanced approach, focused on material issues and measurable outcomes, is essential.

Over the past few weeks, Ƶ has hosted several events to discuss the merits of corporate sustainability. These include the Future Investment Initiative, the Saudi Green Initiative Forum, the One Planet Sovereign Wealth Funds CEO Summit and the UN Convention to Combat Desertification’s COP16 conference.

In April, the Ministry of Economy and Planning launched the Sustainability Champions program, through which selected Saudi companies commit to transforming the sustainability practices of at least three other companies within the Kingdom, aiming to create a ripple effect that multiplies the impact across the economy.

Ƶ is steadily building the foundational infrastructure to unlock the financial benefits of corporate sustainability. Now is the time for companies to embrace this challenge and seize the opportunities it offers.

  • Rodrigo Tavares is an invited full professor of sustainable finance at Nova School of Business and Economics, founder and CEO of the Granito Group, and former head of the Office of Foreign Affairs of the Sao Paulo state government.
Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Sellers cancel deals with Chinese oil refiner Yulong after UK sanctions, sources say

Sellers cancel deals with Chinese oil refiner Yulong after UK sanctions, sources say
Updated 59 sec ago

Sellers cancel deals with Chinese oil refiner Yulong after UK sanctions, sources say

Sellers cancel deals with Chinese oil refiner Yulong after UK sanctions, sources say
  • Most of the cancelations apply to spot cargoes that were due to load after November 13, when the sanctions take effect
  • The decision to cancel the contracts partly stems from concerns about the ability to make payments

SINGAPORE: Several suppliers have canceled sales of Middle Eastern and Canadian oil to China’s Yulong Petrochemical after the UK imposed sanctions on the refiner, which is likely to push it to buy more Russian crude, multiple sources familiar with the deals said.
The refiner, China’s newest with a capacity of 400,000 barrels per day and one of the country’s largest single Russian oil customers, is among the entities Britain designated last week to curb Moscow’s oil revenues used to fund the Ukraine war.
Suppliers that are unwinding supply deals include European majors TotalEnergies, BP, trading house Trafigura, Chinese state trader PetroChina International and others, the sources said.
Most of the cancelations apply to spot cargoes that were due to load after November 13, when the sanctions take effect.
PetroChina International and TotalEnergies each exited transactions supplying Access Western Blend, a heavy crude exported from Canada, said two other sources, who have knowledge of those transactions.
BP declined to comment. Total, PetroChina and Yulong did not respond to requests for comment.
Trafigura had been supplying Yulong with 2 million barrels a month of Omani and Abu Dhabi Upper Zakum crude under an annual contract, said sources with knowledge of the company’s transactions with Yulong.

PIVOT TO RUSSIAN OIL
The decision to cancel the contracts partly stems from concerns about the ability to make payments as large western banks will avoid working with sanctioned entities, the sources said.
With dwindling access to non-sanctioned crude supplies, Yulong will most likely buy more Russian oil, which already accounts for about half of its intake.
“We are already hearing Yulong is moving toward running predominantly sanctioned barrels, which, similar to the sanctions impact on Nayara, may necessitate run cuts,” said Sun Jianan, an analyst with consultancy Energy Aspects.
India’s Nayara Energy, partially owned by Russian major Rosneft, has reduced its refinery runs after European Union sanctions were imposed in July.
While larger companies step away from Yulong, smaller companies without UK connections could continue dealings, said an executive whose company continues supplying Yulong and declined to be named due to the sensitivity of the matter.
Yulong buys 150,000 to 250,000 barrels per day of Russian crude, according to estimates by traders and tanker tracker Vortexa.
Most of Yulong’s Russian imports are ESPO Blend from the country’s Pacific coast that Chinese refineries favor because of the short transit period for the shipments. Recently, Yulong has also imported Urals crude from Russia’s European ports, said three traders familiar with Yulong’s procurement patterns.
It secures most of its Russian supply from dealers linked to major Russian producers, said two of those sources.
Built on a man-made island near the port of Yantai in the northeastern province of Shandong, Yulong Petrochemical is a joint venture between private aluminum firm Nanshan Group and government-backed Shandong Energy Group.


Ƶ to host 100 startups in Entrepreneurship World Cup finals

Ƶ to host 100 startups in Entrepreneurship World Cup finals
Updated 9 min 42 sec ago

Ƶ to host 100 startups in Entrepreneurship World Cup finals

Ƶ to host 100 startups in Entrepreneurship World Cup finals

RIYADH: Some 100 startups from 46 countries have officially qualified for the finals of the Entrepreneurship World Cup 2025, set to be held in the Saudi capital as a centerpiece of the Biban 2025 forum.

Scheduled for Nov. 5-8 at the Riyadh Front Exhibition and Conference Centre, the EWC finals are organized by the Small and Medium Enterprises General Authority under the theme “A Global Destination for Opportunity.”

Hosting the finals of the EWC as part of Biban 2025 underscores Ƶ’s role in supporting global innovation and entrepreneurship, according to the Saudi Press Agency.

It reflects the Kingdom’s advanced position in attracting international startups, investments, and pioneering ideas, aligning with the economic diversification and sustainability goals outlined in its Vision 2030 blueprint.

The EWC is recognized as the largest global competition for entrepreneurs. This year’s edition is being held by ѴDzԲ’a in collaboration with the Global Entrepreneurship Network and the Misk Foundation. 

Participants will compete for a share of a prize pool exceeding $1.5 million in an event that gathers a global elite of entrepreneurs, investors, and experts, highlighting the Kingdom’s growing stature as a global hub for entrepreneurship and innovation, SPA reported.

The competition attracted an overwhelming response during its registration phase, with over 10,300 applications received from more than 169 countries. 

The submitted projects underwent multiple rigorous evaluation and judging processes starting last May. From this pool, 250 projects advanced to a virtual training camp, held in partnership with Spain's Esade Ramon Llull University, where the top 100 finalists were ultimately selected to compete for the title.

Among the countries with the strongest representation in the finals are Ƶ, the US, and the UK.

The qualifying startups span a wide array of vital and forward-looking sectors, including communications, health, and space.

The EWC plays a crucial role in empowering entrepreneurs worldwide by providing a platform to present their ideas directly to investors and venture capital funds. 

Finalists also benefit from specialized training, mentorship, and networking programs designed to enhance their competitive edge and help transform their ideas into scalable projects with global potential.


At Henkel, Saudi female leaders drive business transformation

At Henkel, Saudi female leaders drive business transformation
Updated 11 min 41 sec ago

At Henkel, Saudi female leaders drive business transformation

At Henkel, Saudi female leaders drive business transformation

The story of women in the workplace has long been told through the language of barriers: glass ceilings, thresholds and invisible walls. But in the Gulf today, national agendas centered on human capital development, diversification and women’s empowerment have opened a different path. Vision 2030 in Ƶ has created both the mandate and momentum to fundamentally transform women’s career trajectories, not just their presence, but their power to shape business outcomes. 

As a long-term contributor to the region, Henkel sees today’s mission distinctly: acceleration is not just about having women in the workforce; it’s about positioning them where their leadership carries real weight in strategic decisions that shape innovation, drive competitive advantage, and determine business success. The shift from participation to strategic influence marks the difference between inclusion metrics and sustainable business growth. 

For Henkel, this represents a fundamental business imperative. Innovation relies on different perspectives wielding actual decision-making power, and competitiveness relies on placing the best talent where it matters most. At Henkel, gender diversity in employment has never been a challenge — the company is continuously advancing its leadership pathways for female talent, recognizing that companies dominating the decade ahead are those that embed women’s leadership as a core organizational value and business strategy for sustainable growth. 

Strategic leadership as a competitive advantage 

“Diversity without decision-making authority is a missed opportunity. In Ƶ, where Vision 2030 has created momentum to place women as strategic decision-makers in industries that define the future, we see this as both a responsibility and a critical business driver,” said Simon Ulmann, vice president operations and supply chain, Henkel Adhesive Technologies IMEA. “At Henkel, we’ve maintained strong gender representation across all levels for years. Our commitment lies in continuously furthering our leadership pathways for female talent, ensuring we provide evolving opportunities for growth and strategic impact.” 

This conviction underpins the implementation of Henkel’s global programs in the region. The CHAiNGERS program, Henkel’s global initiative launched across the UAE and Ƶ, is an intensive 18-month-long leadership accelerator that transcends traditional training. Through technical training, mentorship, rotations and stretch assignments, we prepare female engineers for roles where their decisions directly impact operational excellence and financial outcomes. 

“The sophistication of CHAiNGERS lies in its focus on developing decision-making capability alongside technical mastery, as well as an emphasis on cultivating positive leadership characteristics,” said Marwa Mohamed, Henkel head of HR GCC and senior HRBP HR IMEA. “We’re developing talent which understands that their role isn’t just to support strategy but to shape it. With our next cohort in Dammam targeting early-career professionals at our Henkel Industrial Company and Polybit sites, we’re building a pipeline of Saudi female leaders ready to drive business transformation.” 

From presence to power: measurable business impact 

The results validate Henkel’s approach. One CHAiNGERS participant who began in plant operations now leads safety and risk management, where her strategic decisions directly influence operational efficiency. Another has stepped into sustainability leadership, where her initiatives strengthen the company’s competitive position while furthering its sustainability agenda. 

These outcomes reflect how Henkel transforms potential into business impact through structured mentorship and leadership tracks that prepare women for positions where their decisions shape company direction. 

Building strategic decision-makers 

Henkel’s commitment to creating equal opportunities for all extends through the NextGen Leaders program, which is another 18-month long talent development track for young Saudi STEM professionals. By rotating across various Henkel adhesive technologies divisions, participants of the program influence business decisions that support the Kingdom’s manufacturing sector while shaping Henkel’s regional strategy. 

“The NextGen program ensures that the voices of our talent are heard in strategic meetings where business direction is determined,” said Mohamed. “We’re creating leaders who set the agenda, not just have a seat at the table.” 

What distinguishes Henkel’s approach is measuring success by decision-making authority and business impact, not participation rates. The company’s strategies explicitly target moving women into positions where their leadership shapes innovation priorities and drives sustainable growth. 

“Women in our organization are architects of competitive advantage because they’re positioned where decisions matter most,” Ulmann said. Henkel has long been recognized as a leader in fostering a culture that values women in strategic roles, demonstrating the importance of their presence in shaping business outcomes. “Companies that overlook the inclusion of women in key leadership positions are essentially operating at only half their potential,” he added. 

Defining the future through strategic leadership 

The Gulf stands at a moment of profound transformation, with Ƶ as a decisive driver. Vision 2030 recognizes that sustainable economic growth requires women’s strategic leadership, not just participation. For industrial companies like Henkel, further accelerating women into decision-making roles is strategic business planning for competitive advantage. 

“The true test of leadership isn’t presence but impact. The talented women in our CHAiNGERS cohort and across Henkel in the GCC are an invaluable asset, defining our future through strategic decisions that shape our business trajectory,” said Ulmann. “We’ve built, and are furthering an ecosystem where women’s leadership directly determines business outcomes and creates competitive advantages that will define regional success.” 

The question is not whether women will define the future of work in the GCC but whether companies are positioning them in roles where their leadership can deliver the strategic impact that sustainable growth demands. 

  • Simon Ulmann, vice president of operations and supply chain for Henkel Adhesive Technologies IMEA, and Marwa Mohamed, head of human resources for Henkel GCC and senior HR business partner for HR IMEA, co-wrote this piece. 

PIF’s SURJ Sports Investment partners with ATP in first ever expansion of the Masters 1000 category in ATP Tour’s 35-year history 

PIF’s SURJ Sports Investment partners with ATP in first ever expansion of the Masters 1000 category in ATP Tour’s 35-year history 
Updated 8 min 23 sec ago

PIF’s SURJ Sports Investment partners with ATP in first ever expansion of the Masters 1000 category in ATP Tour’s 35-year history 

PIF’s SURJ Sports Investment partners with ATP in first ever expansion of the Masters 1000 category in ATP Tour’s 35-year history 
  • Landmark deal sees SURJ bring newly created ATP Masters 1000 tournament to Ƶ, cementing the country’s position as a premier global sports destination 
  • Announcement marks the first addition to the ATP Tour’s top-tier of events since its inception in 1990 
  • Backed by PIF, a strategic partner of both men’s and women’s tennis, SURJ’s investment reflects Ƶ’s ambition to help shape the future of the global game 

PARIS/RIYADH: SURJ Sports Investments, a PIF company, and ATP have announced the launch of an all-new ATP Masters 1000 tournament, to be hosted in Ƶ.  

In what is the first ever expansion of the tournament category, Ƶ will become the tenth ATP Masters 1000 host, joining the existing nine tournaments in Indian Wells, Miami, Monte-Carlo, Madrid, Rome, Toronto/Montreal, Cincinnati, Shanghai and Paris. The Saudi tournament will begin as early as 2028.

The agreement marks a new era for global tennis and a major sports transformation in Ƶ, bringing the most celebrated names in the sport to the country and delivering an unforgettable experience for fans.  

The hosting of the tenth ATP Masters 1000 event underscores PIF’s long-term commitment to shaping the future of international tennis and global sport, and elevating Ƶ’s position as a premier global sports and entertainment hub. The deal builds on the existing strategic partnership between PIF and ATP, which includes PIF as the official naming partner of the PIF ATP Rankings (as well as the WTA rankings), partnering on several key ATP Tour events and the recent launch of a next-generation technology platform, ATP Tennis IQ Powered by PIF. As part of the agreement, the new event will join ATP and the existing Masters 1000 tournaments as a shareholder in ATP Media, the Tour’s global broadcast and media arm. 

The tournament will also focus on accelerating the growth of the game at all levels. A nationwide grassroots program, developed in partnership with the Saudi Tennis Federation, will promote inclusivity, accessibility, and talent development, inspiring the next generation of Saudi athletes and champions and creating robust pathways for participation. This supports part of PIF’s broader ambition to grow sport at all levels, and to help drive the development of tennis across both the men’s and women’s game. 

Bander Bin Mogren, Chairman of SURJ Sports Investment, said: “Bringing an ATP Masters 1000 event to Ƶ is a major step forward for tennis in the region and a reflection of our shared commitment with ATP to the growth of the game around the world. This announcement underscores Ƶ’s emergence as a major destination for world-class sport and strengthens our ambition to support athletes, fans, and the wider tennis community for years to come. We are proud to be leading this effort with our partners, and we are committed to delivering a tournament that leaves a lasting legacy for the sport.” 

Andrea Gaudenzi, ATP Chairman, commented: "This is a proud moment for us and the result of a journey that’s been years in the making. Ƶ has shown a genuine commitment to tennis – not just at the professional level, but also in growing the game more broadly at all levels. PIF’s ambition for the sport is clear, and we believe fans and players alike will be amazed by what’s coming. Strengthening our premium events is driving record growth and transformation across the Tour, and we’re grateful to our partners at PIF and SURJ for helping deliver that growth and sharing in this vision.”  

Danny Townsend, CEO of SURJ Sports Investment, added: "The launch of an ATP Masters 1000 in Ƶ is a defining moment in our journey to enhance the sports landscape. This tournament is more than an event; it is a statement of ambition, showcasing Ƶ’s role as a global sports hub. In partnership with ATP, we are committed to creating an extraordinary experience for players and fans, while advancing our mission to develop sport at every level.” 

Sports is a key strategic sector for PIF, unlocking opportunities and enriching lives while establishing Ƶ as a global destination for sports and a driver of long-term economic growth. PIF supports a wide range of sports globally and domestically, including football/soccer, tennis, golf, electric motorsports, combat sports and esports both to drive sports’ global growth and encourage participation domestically.  

With Riyadh having hosted the WTA Finals since 2024 and Jeddah as the home of the Next Gen ATP Finals since 2023, this latest announcement is set to strengthen the country’s connection with tennis and inspire an emerging fanbase with yet another glimpse of the world’s best players. 

More details on the tournament venue and dates will be announced in due course. 


Test Twenty highlights ever-evolving business of spotting cricketing talent

Test Twenty highlights ever-evolving business of spotting cricketing talent
Updated 19 min 18 sec ago

Test Twenty highlights ever-evolving business of spotting cricketing talent

Test Twenty highlights ever-evolving business of spotting cricketing talent
  • Game’s ‘fourth format’ will use AI to help discover, nurture young players

As a boy, I dreamed of playing cricket for my county and my country. Obviously, I was not the only one. Very few made it to the top. The financial rewards at the time were slim but the status counted for something. The pathways to the top were random.

A scout would come to matches to watch players. Over time, he formed a view and reported to the county coaches. An invitation to a trial might be issued, a single chance to impress. Failure was unlikely to gain a second chance. Even success did not guarantee a second invitation. 

In today’s game there are much more structured pathways in place to identify talent capable of progressing to professional level. Generally, these are in age groups, starting with under-10s. In England and Wales, the pathways are organized by the county cricket boards. Naturally, the boards hope that their investment in these players will result in them displaying loyalty. The advent of franchise cricket has begun to disrupt this balance. It may be about to receive a new shock.

Last week, a new global initiative was launched, titled Test Twenty. Its focus is on 13- to 19-year-old males, with a female equivalent mooted for the second season. Test Twenty’s format concept comprises 80 overs, divided into two innings of 20 overs per side, with scores carrying forward as in Test cricket. Matches can end in a win, draw, tie or loss. There will be some tinkering with playing conditions but, crucially, players will wear white kit and a red ball will be used. The concept is billed as cricket’s fourth format, after Test, 50 overs (one day) and T20. This takes no account of either The Hundred, which is played only in England and Wales and is regarded as subset of T20, or T10 cricket, presumably for the same reason. 

The architect of Test Twenty is sports entrepreneur Gaurav Bahirvani, executive chair of the One One Six Network, whom I was fortunate to speak with on a Zoom call this week. His advisory board includes four of cricket’s luminary figures — AB de Villiers, Sir Clive Lloyd, Matthew Hayden and Harbhajan Singh. Their public statements reflect a belief that cricket must evolve while remaining true to its spirit, something that may be easier said than done. They regard the concept as visionary and evolutionary, a blend of tradition, innovation, excitement and opportunity. The opportunities are for youth. Test Twenty is designed to discover and nurture emerging talent from around the world.

Its first edition is scheduled for January in India. Player registration opened on Oct. 16, with invitations to complete the official form on the Test Twenty website. There is also a direct entry route for applicants who receive a formal recommendation from a registered cricket academy coach, a recognized cricket administrator (former or current), or a “notable” Indian cricketer, past or present. Test Twenty’s selection committee will make the final decision.

Applicants following the standard entry route will be subject to an initial evaluation conducted via the AI Discovery Engine and reviewed by the core selection committee. Short-listed players will advance to city trials at authorized Test Twenty centers across India and around the world. Ultimately this will lead to the selection of 1,000 players for the national — presumably India — and world pools.

Short-listed players from these pools will undergo an evaluation phase which will test on-field skills, mental acuity, cricket intelligence and temperament. The assessment will be based on the Test Twenty Intelligence Index, which combines AI-driven scenario testing, match simulations and expert psychological assessment.

Gaurav Bahirvani told me that TTII was proprietary, a pioneering system which had been made possible by recent advances in technology. These include stickers on the backs of bats and chips in cricket balls that transmit data to facilitate a 360-degree evaluation of performance. The owners aim to share the technology with counties, state associations and national boards through tech-transfer partnerships. In this way, coaches, academies and cricketing bodies will have access to performance data, trend analysis and developmental metrics at all levels of cricket.

After the selection of the initial pool of 1,000 Test Twenty players at stage one, the TTII will identify 300 players who will advance to a global auction pool. Six franchises will select talent for the inaugural season at auction. Each franchise is required to assemble a 16-player squad, comprising eight Indian and eight international players. Hence 96 players will be chosen at auction, with the unselected players forming a wildcard pool, or reserve group eligible for mid-season selection opportunities.

The competition is termed a Junior Test Twenty Championship, rather than a league. It will be played in one venue in India, on a round robin basis, followed by semifinals and a final.

Three city-based teams — Dubai, London and one in the US — are planned, along with three in India. Their identities have yet to be revealed but Bahirvani said that negotiations were at an advanced stage, with plans to close deals by the end of November.

Similarly, negotiations are progressing with potential broadcasters and sponsors, some of which have not previously invested in cricket. The amount of funding available to franchises has been set — this will cover the auction and player performance remuneration.

At this stage, there is no evidence of any national boards sanctioning or endorsing Test Twenty. It is not clear how experienced coaches will react to TTII. It is certainly not clear how national, regional and county boards will react to the prospect of promising young players on their books registering independently with Test Twenty. Even more unknown is how they will react should a player be selected.

Bahirvani is unfazed by these concerns. He is quite clear that Test Twenty does not seek to compete with existing cricket boards, authorities or coaches. In fact, quite the opposite. He believes that Test Twenty can co-exist with other formats and add to the talent pool of young players and provide benefits to coaches.

He is also aware of the doubters. It would be unwise to write off Test Twenty. After all, those who did so with T20 and the Hundred have egg on their faces. Test Twenty’s aim is not to compete with any cricketing institution but to complement the global effort to identify talent and expand the game. Its assessment platform blends machine intelligence with expert review to minimize human bias and assess each player solely on performance and ability to cope with pressure. The aim is to identify talent in an objective, data-driven, transparent and merit-based manner. This is a far cry from the system of assessment in my youth, when human judgement and bias were the core components of selection and progression, not to mention the breaking or making of dreams.