As part of the Ministry of Commerce, Industry & Investment Promotion’s newly launched Tejarah Talks series we sat down with Muscat-based environmental expert, Abeer al Mukhaini, Founder, Carbon 6 to get her views on Oman’s sustainability journey, green consumer behaviour, the potential wrath of investors and shareholders and an economy based on regenerative principles.
How do you define sustainability?
The United Nations definition of sustainable development strives to strike a balance between the present and the future and is a great source of inspiration:
“Sustainable development has been defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. For sustainable development to be achieved, it is crucial to harmonize three core elements: economic growth, social inclusion and environmental protection. These elements are interconnected, and all are crucial for the well-being of individuals and societies.”
Where is Oman on its sustainability journey?
Oman has a long-standing tradition of environmental protection, preserving the sultanate’s outstanding natural beauty and resources. One of the main goals of Oman Vision 2040 is to improve our Environmental Performance Index (EPI) standing to more than 74.69 (currently at 38.5). We are already seeing that translated into Oman’s 2nd NDCs GHG emission reduction target of 7 per cent by 2030 and raising renewable energy in the country’s energy mix to 20 per cent by 2030 and up to 35 – 39 per cent by 2040 as well as reducing oil’s share of GDP to 8.4 per cent by 2040.
Oil and gas companies such as PDO are also announcing NetZero targets by 2050, including a substantial investment in renewable and alternative energy sources and a commitment to achieve Zero Routine Flaring by 2030.
How do you advise companies about setting sustainability goals knowing there are so many directions they can go in terms of trying to deliver the impact they want to see?
The business community, especially SMEs have a vital role to play in achieving Oman’s Vision 2040 and the UN SDGs. The key to implementing a sustainability strategy is to:
o Define clear goals and work on small but consistent improvements.
o Incorporate sustainability requirements into your supply chain.
o Allocate resources to your sustainability goals, ROI should not only be calculated in financial terms but also in positive social impact, environmental protection, employee welfare, consumer engagement and loyalty and positive brand image.
o Last but not least, engage employees in developing the company’s sustainability strategy, this is key.
What do you see as the sustainability challenges facing Omani companies today?
The global climate crisis is the most significant challenge we face today. It affects all aspects of our daily lives. Most climate / sustainability issues require systemic change and systemic change requires collaboration among stakeholders. We need to encourage more communication, more dialogue.
Do you think there is a gap between consumer expectations and sustainable product availability?
Driven by a desire to protect the planet and improve local livelihoods, Omani consumers are adopting increasingly sustainable behaviour – they are scrutinizing the things they buy. Local businesses that have not embraced sustainability are risking their reputations, and clearly missing out on commercial opportunities. Despite the growth in sustainable goods, there remains a gap between consumer expectations and businesses meeting those expectations.
What do you think it is going to take for more companies to make larger investments in sustainability?
What is becoming clear is companies that prioritize profit at the expense of the environment, or disregard the social consequences risk the wrath of consumers, investors and shareholders. As a result we are beginning to see the emergence of purpose and impact driven businesses – organizations that are actively trying to solve social and environmental problems as part of their main business activities. I am delighted to see socially and environmentally responsible companies with sustainability at the heart of their business already finding success in the market.
One final question, what needs to be done for business to rise to the sustainability challenge?
To navigate and survive the coming decades of transformative change, we will clearly need business leaders and entrepreneurs who can steer our economy and their businesses away from relying on the exploitation of nature and resources and towards a new model of economic prosperity, one based on green and regenerative principles. With so much at stake, clinging to the business-as-usual model is not just risky, but a narrow and irresponsible approach.
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