Across the UAE, sustainability expectations are changing, steadily and unmistakably. ESG is no longer treated as a communications exercise or an annual disclosure obligation. Instead, it has moved directly into the domains of governance, compliance, capital access, and long-term strategy.
For organisations operating in Dubai and across the wider UAE, this shift is already visible. Regulators are introducing enforceable climate requirements. Capital markets are embedding ESG expectations into listing and disclosure frameworks. Investors and lenders are asking more detailed questions, and they are asking them earlier.
As a result, demand for structured ESG Advisory has increased significantly. Businesses are no longer asking whether ESG matters. They are asking how to implement it properly, how to govern it effectively, and how to ensure it supports resilience rather than creating additional risk.
This article explains how the UAE’s ESG landscape is evolving, why ESG advisory is now critical for organisations operating in Dubai, and how ESG advisory services help businesses move from fragmented initiatives to structured, decision-ready ESG governance.
The UAE’s ESG ecosystem is not emerging randomly. It is being shaped by deliberate policy direction, regulatory action, and capital market expectations.
Over time, sustainability has been integrated into national development plans, climate commitments, and financial frameworks. What businesses are now experiencing is the operationalisation of those commitments.
Several developments are already influencing disclosure and governance expectations.
First, climate regulation has moved from intent to enforcement. Second, capital markets are aligning ESG disclosures with recognised global frameworks. Third, cross-border regulations are beginning to affect UAE-based entities with international exposure.
Together, these developments are changing how ESG is governed, measured, and reported.
Federal Decree-Law No. 11 of 2024 establishes the legal foundation for climate regulation at a national level. It applies to public and private entities under federal and local jurisdiction, and as guidance evolves, it is expected to extend further across regulatory environments.
From May 2025, organisations are required to measure and report Scope 1 and Scope 2 greenhouse gas emissions. While Scope 3 reporting is not yet mandatory, it is increasingly referenced in policy discussions and future guidance.
In practical terms, this law introduces several operational responsibilities.
Organisations must quantify emissions using defensible methodologies. They must implement mitigation initiatives aligned with national climate objectives. They must maintain records for regulatory inspection. And, importantly, they must be prepared for penalties that range from AED 50,000 to AED 2 million in cases of non-compliance.
At this stage, many organisations recognise a clear challenge. Emissions data may exist, but it is often fragmented. Governance responsibilities may be unclear. Documentation may not be audit-ready.
This is precisely where ESG advisory services become critical, not as a reporting exercise, but as a governance and risk management capability.
Beyond climate law, capital markets in the UAE are reinforcing ESG disclosure norms.
The Dubai Financial Market introduced ESG disclosure guidelines in 2020 and revised them in 2023. These guidelines encourage listed entities to report ESG performance using recognised frameworks such as GRI, SASB, and TCFD.
Although adoption remains voluntary, investor expectations have already moved ahead of formal mandates. In practice, many listed entities are treating these guidelines as a preparatory step rather than an optional initiative.
The Abu Dhabi Global Market has introduced a Sustainable Finance Framework aligned with the Abu Dhabi Sustainable Finance Declaration. The framework encourages ESG integration across capital markets and promotes alignment with global reporting standards.
For organisations seeking institutional investment, particularly from international sources, alignment with these expectations significantly enhances credibility.
Globally, ESG reporting frameworks remain diverse. However, convergence is underway. Each framework serves a specific audience and purpose, and together they shape modern ESG governance.
GRI is widely used for stakeholder-focused sustainability reporting. It emphasises impact, materiality, and transparency across environmental, social, and governance dimensions.
For UAE organisations, GRI is particularly effective when public accountability, stakeholder engagement, and impact disclosure are priorities.
SASB focuses on financially material ESG issues at an industry level. It enables organisations to explain how sustainability factors affect financial performance and enterprise value.
SASB standards, now overseen by the ISSB, are increasingly used alongside GRI to balance stakeholder and investor expectations.
TCFD-based frameworks focus on governance, strategy, risk management, and metrics related to climate risks and opportunities.
Many UAE regulatory guidelines already reflect TCFD principles, particularly around climate governance and scenario analysis.
CDP provides a structured disclosure system for climate, water, and deforestation risks. Its benchmarking approach enhances transparency and comparability, especially for investor-facing disclosures.
ISSB is consolidating SASB and TCFD into a global baseline under IFRS Sustainability Disclosure Standards. This development signals a strong move towards globally consistent, financially integrated ESG disclosures.
For organisations with international exposure, ISSB alignment is increasingly becoming a strategic priority.
As ESG obligations expand, advisory support has evolved beyond report preparation.
Effective ESG Advisory now focuses on governance design, data architecture, risk modelling, and leadership engagement.
Strong ESG advisory services support organisations by:
For organisations seeking ESG advisory in Dubai, local regulatory knowledge combined with international standards expertise is essential.
At IFRSLAB, ESG advisory is approached as a strategic capability. The focus is on building systems that support compliance, resilience, and long-term value creation.
Through structured ESG Strategy Consulting, organisations are supported across materiality assessment, governance design, data optimisation, and reporting alignment.
This approach helps transform ESG from a reporting obligation into a business discipline that informs strategy and strengthens trust.
The UAE’s ESG environment is entering a more structured and enforceable phase. Climate law, capital markets guidance, and international convergence are reshaping expectations.
Organisations that act early build credibility, resilience, and strategic clarity. Those that delay face increasing regulatory pressure and operational strain.
In this environment, ESG advisory is no longer optional. It is a core business capability.
IFRSLAB supports organisations across Dubai and the UAE in navigating this transition with confidence, structure, and strategic intent.
ESG advisory helps organisations design governance structures, manage ESG risks, and align sustainability initiatives with regulatory and strategic objectives.
ESG advisory is important in the UAE due to climate legislation, capital market expectations, and increasing regulatory scrutiny on sustainability disclosures.
ESG advisory services include materiality assessments, regulatory gap analysis, climate risk modelling, ESG governance design, and reporting alignment.
Businesses operating in regulated sectors, listed entities, and organisations with international exposure benefit most from ESG advisory in Dubai.
Businesses should start ESG strategy consulting before regulatory deadlines, capital raising, listing activities, or expansion into new jurisdictions.
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