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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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黑料社区 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鈥檚 profitability, longevity and resilience 鈥 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鈥檚 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鈥檚 performance.

The first step toward sustainable success should be a comprehensive assessment of a company鈥檚 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鈥檚 performance.

Rodrigo Tavares

Organizations such as Clarity AI, MSCI ESG Ratings, Sustainalytics and the Upright Project can assess a company鈥檚 sustainability performance. By understanding the company鈥檚 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鈥檚 financial performance and risk profile from a vast array of options. Tailoring these practices to each company鈥檚 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, 黑料社区 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鈥檚 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.

黑料社区 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

Germany launches drive to add military recruits without conscription for now

Germany launches drive to add military recruits without conscription for now
Updated 3 min 47 sec ago

Germany launches drive to add military recruits without conscription for now

Germany launches drive to add military recruits without conscription for now

BERLIN: Germany鈥檚 leaders on Wednesday launched a drive to attract more people into voluntary military service as the country scrambles to strengthen its armed forces in the face of growing fears about Russian aggression, a project that some in the governing coalition say doesn鈥檛 go far enough.
Germany, a leading NATO and European Union member, has moved to modernize its long-neglected military since Russia launched its full-scale invasion of Ukraine in 2022. That year, it set up a 100 billion euro ($117 billion) special fund to modernize the Bundeswehr, much of which has been committed to procuring new equipment.
New Chancellor Friedrich Merz鈥檚 coalition this year pushed plans through parliament to enable higher defense spending by loosening strict rules on incurring debt. Merz has said repeatedly he wants the Bundeswehr to be 鈥渢he strongest conventional army in Europe.鈥
Germany needs more recruits
The government is redoubling its efforts to attract more recruits, which the military struggled to do in recent years. Germany had some 181,000 active servicepeople at the end of last year. But the government says it needs to increase that in the long term to 260,000, plus some 200,000 reservists.
鈥淭he Bundeswehr must grow 鈥 the international security situation, above all Russia鈥檚 aggressive behavior, make this necessary,鈥 Defense Minister Boris Pistorius said Wednesday. 鈥淲e need not just well-equipped forces, we are going at full speed on that ... we also need a Bundeswehr that is strong in terms of personnel. Only then is deterrence toward Russia really credible.鈥
Pistorius spoke after Merz鈥檚 Cabinet approved his plan for a new military service system. It aims to draw sufficient recruits without reviving compulsory conscription for men, which was suspended in 2011, but leaves the door open for parliament to do so if not enough people volunteer.
The plan foresees more attractive pay and conditions for people who agree to join the military for short periods and what Pistorius describes as attractive training offers for those who join up for at least six months, as well as flexibility on how long people can serve.
Beginning next year, the government plans to send questionnaires to young men and women turning 18 about their willingness and ability to serve in the military. Starting in mid-2027, young men will be required to undergo medical examinations, though not to sign up for the military.
Some want easier return to compulsory service
The plan still needs parliamentary approval. It was authorized at a Cabinet meeting held for the first time in many years at the Defense Ministry. Before the decision, NATO鈥檚 supreme commander in Europe, US Gen. Alexus Grynkewich, briefed ministers on the security environment.
But there has been tension in the conservative Merz鈥檚 coalition with Pistorius鈥 center-left Social Democrats over whether the new system should foresee an automatic return to compulsory service if the military can鈥檛 draw enough volunteers.
Some conservatives pushed unsuccessfully for compulsory service. But Pistorius says the conditions aren鈥檛 in place at the moment as sufficient barracks and trainers aren鈥檛 currently available.
The plan allows for the government to move toward compulsory service 鈥渋f, in the course of the next one, two or three years, we see that the target figures aren鈥檛 being reached,鈥 Merz said. He added he was 鈥渃onfident, at least from today鈥檚 point of view, that in any case to begin with we will reach the figures we need.鈥
A senior conservative ally of the chancellor, Bavarian governor Markus S枚der, told ARD television Sunday that Pistorius鈥 plan is 鈥渁 first step in the right direction.鈥
鈥淚 don鈥檛 think we are going to manage with these appeals, by making the Bundeswehr a bit more attractive,鈥 S枚der said. 鈥淚 think there won鈥檛 be a way past compulsory service. ... Some say (Russian President Vladimir) Putin could be in a position to challenge NATO in 2027, others in 2029 鈥 why wait if we already know today at least that the danger is there?鈥
New ammunition factory
Later Wednesday, Pistorius joined Germany鈥檚 vice chancellor, NATO Secretary-General Mark Rutte and others to inaugurate a new artillery ammunition factory built by defense company Rheinmetall at its Unterluess site in northern Germany, a project that underlines Europe鈥檚 efforts to ramp up its weapons production.
Rheinmetall aims to produce 350,000 artillery shells a year at the facility. The inauguration only 18 months after a groundbreaking ceremony is 鈥渁 strong signal that we are increasing the reliability of our supplies here in Germany,鈥 Pistorius said.
Rutte said that 鈥渨e are being challenged鈥 by Russia and China, 鈥渂ut Europe and America together are on course to turn the tide on defense production.鈥


Trump moves to limit US stays of students, journalists

Trump moves to limit US stays of students, journalists
Updated 23 min 20 sec ago

Trump moves to limit US stays of students, journalists

Trump moves to limit US stays of students, journalists
  • Under a proposed change, foreigners would not be allowed to stay for more than four years on student visas in the United States
  • Foreign journalists would be limited to stays of just 240 days, although they could apply to extend by additional 240 day periods

WASHINGTON: President Donald Trump鈥檚 administration moved Thursday to impose stricter limits on how long foreign students and journalists can stay in the United States, the latest bid to tighten legal immigration in the country.
Under a proposed change, foreigners would not be allowed to stay for more than four years on student visas in the United States.
Foreign journalists would be limited to stays of just 240 days, although they could apply to extend by additional 240-day periods.
The United States, until now, has generally issued visas for the duration of a student鈥檚 educational program or a journalist鈥檚 assignment, although no non-immigrant visas are valid for more than 10 years.
The proposed changes were published in the Federal Register, initiating a short period for public comment before it can go into effect.
Trump鈥檚 Department of Homeland Security alleged that an unspecified number of foreigners were indefinitely extending their studies so they could remain in the country as 鈥溾檉orever鈥 students.鈥
鈥淔or too long, past administrations have allowed foreign students and other visa holders to remain in the US virtually indefinitely, posing safety risks, costing untold amount of taxpayer dollars and disadvantaging UScitizens,鈥 the department said in a press statement Wednesday.
The department did not explain how US citizens and taxpayers were hurt by international students, who according to Commerce Department statistics contributed more than $50 billion to the US economy in 2023.
The United States welcomed more than 1.1 million international students in the 2023-24 academic year, more than any other country, providing a crucial source of revenue as foreigners generally pay full tuition.
A group representing leaders of US colleges and universities denounced the latest move as a needless bureaucratic hurdle that intrudes on academic decision-making and could further deter potential students who would otherwise contribute to research and job creation.
鈥淭his proposed rule sends a message to talented individuals from around the world that their contributions are not valued in the United States,鈥 said Miriam Feldblum, president and CEO of the Presidents鈥 Alliance on Higher Education and Immigration.
鈥淭his is not only detrimental to international students 鈥 it also weakens the ability of US colleges and universities to attract top talent, diminishing our global competitiveness.鈥
The announcement came as universities were starting their academic years with many reporting lower enrollments of international students after earlier actions by the Trump administration.


Afghanistan seen as favorites in T20 tri-series with Pakistan, UAE starting this week

Afghanistan seen as favorites in T20 tri-series with Pakistan, UAE starting this week
Updated 58 min 42 sec ago

Afghanistan seen as favorites in T20 tri-series with Pakistan, UAE starting this week

Afghanistan seen as favorites in T20 tri-series with Pakistan, UAE starting this week
  • Rashid Khan鈥檚 spin-heavy squad suited to Sharjah鈥檚 slow pitches
  • Pakistan experimenting with new lineup under coach Mike Hesson

It鈥檚 time for Rashid Khan and his Afghanistan lineup to be favorites in a Twenty20 international cricket tournament.

Afghanistan has a formidable, spin-heavy squad for the tri-series that starts Friday and also features Pakistan and the host United Arab Emirates. It鈥檚 a tune-up for next month鈥檚 Asian Cup, which is also being staged in the UAE.

Last year Afghanistan reached the T20 World Cup semifinals before losing to South Africa, a run to the last four that underlined its strength in the shortest format of international cricket.

Seven T20 games over the next 10 days at the Sharjah Cricket Stadium will involve the teams competing against each other twice before the top two qualify for the Sept. 7 final.

The slow pitches of Sharjah Cricket Stadium are unlikely to produce any big scores 鈥 the 200-run mark has been crossed only four times in 41 T20 internationals at the 16,000-capacity stadium.
Afghanistan鈥檚 advantage

The slow nature of the pitches has encouraged Afghanistan to pack its squad with five spinners, including the uncapped AM Ghazanfar. Rashid Khan and mystery spinner Mujeeb Ur Rahman have conceded fewer than six runs per over in a combined 23 T20s at Sharjah, while picking up 43 wickets.

Experienced allrounder Mohammad Nabi, who also bowls offspin, is rich with experience from playing in 25 T20s for Afghanistan at Sharjah, where he鈥檚 taken 16 wickets at an impressive economy rate of 6.49.

Left-arm spinner Noor Ahmad had some impressive performances in IPL this season while representing Chennai Super Kings. The spin bowling attack is expected to pose some serious challenges to the rival batters.
Pakistan鈥檚 prospects

Pakistan has its spin bases covered. Specialist spinners Abrar Ahmed and Sufiyan Muqeem are backed up by off-spinners Saim Ayub and captain Salman Ali Agha and left-armer Mohammad Nawaz. They鈥檙e all capable of bowling a full quota of four overs in a T20 game, if the conditions favors slow bowling.

Pakistan鈥檚 new limited-overs coach Mike Hesson has yet again ignored experienced veterans Babar Azam and Mohammad Rizwan as he searches for batters with better strike-rates upfront.

Babar and Rizwan haven鈥檛 played a T20 international since December. Pakistan has instead given consistent chances to Sahibzada Farhan, Mohammad Haris and Saim Ayub to look out for quick runs in the batting powerplay as it builds a team for next year鈥檚 T20 World Cup.

Hesson wanted to see Babar not only improve his batting against spinners but also wanted him to score at a faster rate to regain his place in the T20 squad.

Pakistan has had mixed results over the last few months since Hesson was appointed coach. It started with Pakistan routing Bangladesh 3-0 at home before Bangladesh rallied to beat Pakistan 2-1 in the return series in Dhaka. Pakistan then won 2-1 against West Indies in Florida as Hesson experimented with batting and bowling combinations.

UAE aims for an upset

Uncapped left-handed batter Harshit Kaushik is among the four changes UAE has made after it lost to the hosts at the Pearl of Africa Cup in Uganda. Leg-spin allrounder Mohammad Farooq, who has nine wickets in 8 T20s, and fast bowlers Junaid Siddique and Mohammad Jawadullah are the others who鈥檝e returned to the UAE squad.

Coach Lalchand Rajput believes that after winning a T20 series against Bangladesh at home in May, the UAE team has the ability to beat any other test playing nation in the shortest format.


Pakistan says Israel burying two-state solution with settlement push, condemns Gaza occupation plan

Pakistan says Israel burying two-state solution with settlement push, condemns Gaza occupation plan
Updated 28 August 2025

Pakistan says Israel burying two-state solution with settlement push, condemns Gaza occupation plan

Pakistan says Israel burying two-state solution with settlement push, condemns Gaza occupation plan
  • Country鈥檚 UN envoy warns 83% of those killed in Gaza are civilians, slams settler violence and Al Aqsa incursions
  • He points out Israel鈥檚 military onslaught in Gaza continues since it faces no real consequences for its actions

ISLAMABAD: Pakistan told the United Nations on Wednesday Israel is burying the two-state solution by expanding settlements in the occupied West Bank and East Jerusalem, while facing no real consequences to prevent the killing of civilians with impunity in Gaza.

Addressing a UN Security Council briefing on the Middle East, Pakistan鈥檚 ambassador Asim Iftikhar Ahmad said Israel鈥檚 military campaign and declared plan to fully occupy Gaza City would lead to further humanitarian catastrophe.

Gaza has been under Israeli assault for 691 consecutive days, with more than 62,000 Palestinians killed, including nearly 19,000 children and at least 270 journalists, according to figures cited by the envoy.

鈥淧akistan condemns Israel鈥檚 so-called 鈥榤ilitary operation鈥 and planned full occupation of Gaza City 鈥 which is nothing but a blueprint for further humanitarian catastrophe, threatening to displace once more up to one million people,鈥 Ahmad said.

鈥淪imultaneously, annexation in the West Bank and East Jerusalem continues unabated,鈥 he added. 鈥淭he E-1 settlement plan is a deliberate attempt to bury the two-State solution. We strongly condemn this action, which constitutes a clear violation of international law, including Security Council resolutions.鈥

The Pakistan diplomat noted Israel was deliberately and systematically killing civilians in Gaza.

鈥淓ven Israel鈥檚 own military data, as reported in the international media, admits that 83 percent of those killed are civilians,鈥 he continued. 鈥淵et, the indiscriminate military onslaught continues, because Israel is confronted with no real consequences for its actions.鈥

鈥淗ospitals, schools, homes 鈥 nothing has been spared,鈥 he added. 鈥淭he world is now witnessing live-streamed killing of journalists and rescue workers.鈥

Israeli Prime Minister Benjamin Netanyahu鈥檚 government has declared its intent to occupy Gaza, while reports of settler violence have surged in the West Bank.

Rights groups and diplomats have also documented periodic visits by far-right Israeli officials to the Al Aqsa Mosque compound in Jerusalem, where they have performed Jewish prayers and rituals despite long-standing arrangements barring such acts.

The Pakistani envoy highlighted famine had taken hold in Gaza City, threatening half a million people, and accused Israel of using hunger as a weapon of war.

鈥淔ood stacks up at borders because of systematic obstruction by Israel,鈥 he said, warning that starvation of civilians could amount to a war crime.

Pakistan, a longstanding supporter of Palestinian statehood, called for an immediate and permanent ceasefire, unhindered humanitarian access, the release of hostages and Palestinian prisoners and an end to forced displacement and settlement expansion.

It also reiterated support for a two-state solution that would establish a sovereign Palestinian state within pre-1967 borders, with East Jerusalem as its capital.


Hundreds honor 2 children killed and 17 people wounded in shooting at a Minneapolis Catholic school

Hundreds honor 2 children killed and 17 people wounded in shooting at a Minneapolis Catholic school
Updated 28 August 2025

Hundreds honor 2 children killed and 17 people wounded in shooting at a Minneapolis Catholic school

Hundreds honor 2 children killed and 17 people wounded in shooting at a Minneapolis Catholic school
  • The children who died were 8 and 10, fourteen other kids and three octogenarian parishioners were wounded but expected to survive

RICHFIELD: Just hours after a shooter opened fire through the windows of a Catholic church in Minneapolis, killing two children and wounding 17 people, hundreds crowded inside a nearby school鈥檚 gym, clutching one another and wiping away tears during a vigil alongside Gov. Tim Walz and clergy members.
Speaking to a silent crowd crammed shoulder-to-shoulder Wednesday night, while hundreds more waited outside, Archbishop Bernard Hebda described the students trying to shield their classmates as the gunfire erupted.
鈥淚n the midst of that there was courage, there was bravery, but most especially there was love,鈥 he said at the Academy of Holy Angels, about 2 miles (3.2 kilometers) south of the shooting, in the suburb of Richfield.
Armed with a rifle, shotgun and pistol, 23-year-old Robin Westman shot dozens of rounds Wednesday morning toward the children sitting in the pews during Mass at the Annunciation Catholic School, Minneapolis Police Chief Brian O鈥橦ara said at news conferences. The shooter then died by suicide, he said.
The children who died were 8 and 10. Fourteen other kids and three octogenarian parishioners were wounded but expected to survive, the chief said.
Rev. Dennis Zehren, who was inside the church with the nearly 200 children, said they were almost to the end of the Responsorial Psalm, which speaks about light in the darkness. That鈥檚 when he heard someone yell, 鈥淒own down, everybody down,鈥 and the gunshots started.
Fifth-grader Weston Halsne told reporters he ducked for the pews, covering his head, shielded by a friend who was lying on top of him. His friend was hit, he said.
鈥淚 was super scared for him, but I think now he鈥檚 OK,鈥 the 10-year-old said.
Police investigate motive for the shooting
FBI Director Kash Patel said on X that the shooting is being investigated as an act of domestic terrorism and a hate crime targeting Catholics.
O鈥橦ara said police hadn鈥檛 yet found any relationship between the shooter and the church, nor determined a motive for the bloodshed. The chief said, however, that investigators were examining a social media post that appeared to show the shooter at the scene.
O鈥橦ara, who gave the wounded youngsters鈥 ages as 6 to 15, said a wooden plank was placed to barricade some of the side doors, and that authorities found a smoke bomb at the scene.
On a YouTube channel titled Robin W, the alleged shooter released at least two videos before the channel was taken down Wednesday. In one, the alleged shooter shows a cache of weapons and ammunition, some with such phrases as 鈥渒ill Donald Trump鈥 and 鈥淲here is your God?鈥 written on them.
A second video shows the alleged shooter pointing to two outside windows in what appears to be a drawing of the church, and then stabbing it with a long knife.
Westman鈥檚 uncle, former Kentucky state lawmaker Bob Heleringer, said he did not know the accused shooter well and was confounded by the 鈥渦nspeakable tragedy.鈥
The police chief said Westman did not have an extensive known criminal history and is believed to have acted alone.
Federal officials referred to Westman as transgender, and Minneapolis Mayor Jacob Frey decried hatred being directed at 鈥渙ur transgender community.鈥 Westman鈥檚 gender identity wasn鈥檛 clear. In 2020, a judge approved a petition, signed by Westman鈥檚 mother, asking for a name change from Robert to Robin, saying the petitioner 鈥渋dentifies as a female and wants her name to reflect that identification.鈥
Police chief says officers rescued children who hid
The police chief said officers immediately responded to reports of the shooting, entered the church, rendered first aid and rescued some of the children.
Annunciation鈥檚 principal Matt DeBoer said teachers and children, too, responded heroically.
鈥淐hildren were ducked down. Adults were protecting children. Older children were protecting younger children,鈥 he said.
Vincent Francoual said his 11-year-old daughter, Chloe, survived the shooting by running downstairs to hide in a room with a table pressed against the door. But he still isn鈥檛 sure exactly how she escaped because she is struggling to communicate clearly about the traumatizing scene.
鈥淪he told us today that she thought she was going to die,鈥 he said.
Walz lamented that children just starting the school year 鈥渨ere met with evil and horror and death.鈥 He and President Donald Trump ordered flags to be lowered to half-staff on state and federal buildings, respectively, and the White House said the two men spoke. The governor was the Democratic vice presidential nominee in last year鈥檚 election against Trump鈥檚 running mate, now Vice President JD Vance, a Republican.
From the Vatican, Pope Leo XIV sent a telegram of condolences. The Chicago-born Leo, history鈥檚 first American pope, said he was praying for relatives of the dead.
Monday had been the first day of the school year at Annunciation, a 102-year-old school in a leafy residential and commercial neighborhood about 5 miles (8 kilometers) south of downtown Minneapolis.
Karin Cebulla, who said she had worked as a learning specialist at Annuciation and sent her two now-college-aged daughters there, described the school as an accepting, caring community.