Abu Dhabi – Mubasher: Aldar Properties has launched a sustainability incentive programme to be the first of its kind in the region aimed at rewarding suppliers with green bonuses that include financial and non-financial benefits, according to a press release.
The programme supports the objectives of the National In-Country Value (ICV) Programme, while aligning with the UAE’s Net Zero by 2050 commitment, the Industrial Decarbonisation Roadmap, launched by MoIAT in December 2023 on the margins of COP28, and the Green Public Procurement Pledge.
The sustainability incentive programme builds on Aldar’s strategic partnership with MoIAT, which oversees the National ICV Programme. The listed company contributed AED 10.50 billion to the National ICV Programme in 2023.
The initiative further evaluates contractors through a rating system based on various sustainability-related factors, such as sustainability data, recycling rates, renewable energy use, and carbon emissions intensity.
Additionally, companies will be assessed on their efforts to eliminate single-use plastics, implement employee wellness programmes, and align with Aldar’s low carbon materials policy.
Suppliers that participate in the Real Estate Climate Pledge, created by Aldar in partnership with the Ministry of Climate Change and Environment, will receive additional benefits. Over the past two years, more than 70 members have been onboarded to this initiative.
Aldar has invited suppliers to obtain the MoIAT-issued ICV certificate, which qualifies them during the tender stage of projects.
To be eligible for the programme, contractors must meet specific criteria related to sustainability and worker welfare metrics. Each sustainability factor contributes to the supplier’s overall score.
Depending on the rating, eligible contractors could benefit from various incentives, including monetary bonuses, training opportunities, recognition and awards, expedited payments, and sustainability evaluation bonuses for subsequent tenders.
Assistant Undersecretary for Industrial Development at the Ministry of Industry and Advanced Technology, Salama Al Awadhi, said: “The National Strategy for Industry and Advanced Technology (Operation 300bn) focuses on enhancing sustainability within the industrial and service sectors as one of its key pillars supporting the UAE’s net-zero objectives.”
Al Awadhi noted: “We are also working to drive industrial transformation toward sustainable practices through initiatives such as Make it in the Emirates and the National ICV Programme.”
She added that the National ICV Programme has experienced significant growth, being adopted by an ever-increasing number of governmental entities, as well as industrial and service companies.
Moreover, the number of participating entities has expanded to 31, while the number of companies obtaining the ICV certificate has exceeded 6,500, with more than 8,000 ICV certificates issued in 2024, compared to 7,000 in 2023.
Chief Financial and Sustainability Officer at Aldar, Faisal Falaknaz, said: “At Aldar, we are determined to implement a whole value chain approach to decarbonisation, working closely with our suppliers and encouraging them to integrate sustainability into their operations.”
Falaknaz concluded: “We believe that incentivisation is one of the most effective ways to catalyse change, and it’s our ambition to set a standard for increasing the adoption of such programmes across the region. Our strategic partnership with MoIAT will help accelerate this positive shift and inspire others towards this approach.”
It is worth noting that Aldar recently closed the largest sustainability-linked, syndicated deal by a real estate company in the Middle East.
Meanwhile, during the first nine months (9M) of 2024, the real estate firm registered net profits after tax of AED 4.57 billion, while its revenue and rental income hit AED 16.50 billion.
