Key messages
  • Decarbonisation is now a strategic priority that drives competitiveness and long-term resilience.
  • Stakeholders expect credible emissions data and measurable progress on carbon reduction.
  • Businesses that act proactively on climate strategy gain market access, financing, and operational efficiencies.
  • Grant Thornton UAE helps organisations build robust strategies that align with regulations and deliver real business value.
Contents

A competitive currency

Carbon is fast becoming a competitive currency. Not long ago, compliance was the main driver of climate action, but the landscape is shifting. While global rulebooks continue to take shape, the direction is unmistakable: transparency and decarbonisation are now business essentials.

When we speak with clients, they tell us that climate disclosure and action are no longer about meeting regulations, they’re about meeting expectations. Investors, customers, and supply-chain partners increasingly demand credible progress on carbon. Businesses that act decisively today will earn trust, attract capital, and secure long-term advantage. Those that delay risk being left behind.

Treating it purely as a compliance exercise misses a bigger opportunity. The convergence of regulation, investor pressure and market dynamics means there’s never been a better time to view decarbonisation as more than a reporting requirement. 

In our work with organisations across sectors, we’ve seen that those who treat it as a strategic transformation gain measurable commercial advantage. Leaders in decarbonisation will win customers and capital, while laggards will face higher costs and shrinking markets.

Compliance is the floor, not the ceiling. Taking a structured, step-by-step approach turns decarbonisation from a reporting task into a source of real business value.

From compliance to catalyst 

Increasingly, businesses are aligning with standards for Greenhouse Gas reporting across Scope 1, 2 and 3 emissions, reflecting a broader shift toward transparency, accountability, and long-term business resilience. 

Frameworks such as the ISSB’s disclosure standards are being adopted to harmonise carbon reporting across jurisdictions, and the European Union is seeking to maximise alignment. Trade policies are also shifting, with carbon pricing and cross-border adjustment mechanisms introducing carbon costs into international trade and commerce.

Even amid regulatory uncertainty, the trajectory is set. Businesses must understand, measure, and reduce emissions to remain competitive. A robust climate strategy can strengthen relationships, demonstrate leadership, and open doors to sustainable finance and new strategic partnerships.

A proactive approach to decarbonisation can deliver meaningful business value:

Emissions data exposes inefficiencies that traditional cost controls may miss. Reducing energy waste, optimising logistics, and streamlining supply chains can cut both carbon and costs.

Customers increasingly require emissions data from suppliers. Without it, businesses risk exclusion from tenders and preferred supplier lists.

Investors, lenders, and customers expect credible climate strategies. Transparency signals leadership and can unlock financing and partnership opportunities.

Disclosure requirements are tightening globally. Even where timelines remain uncertain, stakeholder expectations continue to rise.

Where to start

As businesses move from measuring emissions to setting targets and integrating carbon into decision-making, a clear, staged approach makes the journey manageable.

1
Secure internal buy-in
Make carbon reduction a core business strategy. Define your ambition and assign clear ownership and accountability.
2
Measure emissions
Build your Scope 1, 2, and 3 inventory. Even estimated data demonstrates commitment and prepares you for future requirements.
3
Set credible targets
Align with the Science-Based Targets initiative (SBTi) or establish strong internal goals. Ensure targets are time-bound and integrated into business planning.
4
Integrate into decisions
Embed carbon considerations into procurement, capital investment, and operational planning.

How Grant Thornton can help

Wherever you are on your decarbonisation journey, we can help you take the next step. Our pathway supports businesses to move from emissions measurement to the development of a credible Net Zero strategy, delivering real business value along the way.

In the UAE, we support organisations to align with Federal Decree-Law No. 11/2024, which mandates enhanced climate disclosures and sets the expectation for measurable progress on emissions. Our team can help you build the data, governance, and reporting structures needed to meet these legal requirements,  while also strengthening investor confidence, access to sustainable finance, and long-term business resilience.