ESG and Sustainability

The demand to support our clients with environmental, social and governance (ESG), together with sustainability and decarbonization advisory services has increased steadily in past 20 years in KSA. However, this demand increased significantly following the signing of the Paris Agreement at COP21 in 2016.

ESG, sustainability, climate change, and decarbonization reviews are now mandated across virtually all western developed countries and are an increasing requirement in KSA. Given that the KSA Vision 2030 includes national commitments to net zero by 2050 and 50% renewable energy by 2030, it follows that such ESG, sustainability, and decarbonization requirements will become mandatory across new project developments very soon if they are not already. This builds on the already mandated environmental requirements dictated since 2001 by the KSA General Environmental Regulation.

ESG and sustainability annual monitoring and disclosures are also becoming necessary for corporate entities in the Kingdom. Also, any public or private entity seeking international funding or financing or involved in international M&A deals will need full ESG/sustainability credentials and track records to comply with international finance requirements. To align with international best practices, the Saudi Exchange took a bold step towards sustainable growth in KSA by issuing Environmental, Social, and Governance (ESG) disclosure guidelines in May 2023.

Dar Al Riyadh has developed a range of ESG, decarbonization, and climate change advisory services specifically to address our Saudi clients’ challenges in these areas. Our in-house team works with local and international experts to provide tailored services ranging from site-based environmental and HSE surveys through to corporate-level ESG disclosures and decarbonization strategies.

Our ESG & Sustainability services include:

ESG & EHS ADVISORY:

• Environmental Impact Assessment & Action Planning
• Code requirements, permitting, and consents
• LEED, IFC Performance Standards, and Green Certification assessments
• Environmental Management Planning
• Circular economy assessments
• Social management systems and working conditions compliance
• Governance and business ethics (including CSR policy/strategy drafting)
• Remote sensing, GIS, and data analysis
• Environmental monitoring and compliance software systems
• ESG & EHS baseline assessment and compliance review
• ESG & EHS due diligence (lenders technical advisory & M&A)
• ESG & EHS transition to O&M/FM

SUSTAINABILITY ADVISORY:

• Sustainability/ESG policy & strategy drafting
• Asset condition and integrity
• Asset performance and lifespan assessments
• Lifecycle energy/carbon analysis
• EU Taxonomy, SFDR, CSRD assessment
• SDG Impact assessment
• Climate Change Advisory
• Urban and Rural Climate Resilience Assessments
• Impact analysis & mitigation planning
• Climate change adaptation options and costings
• Risk/opportunity screening

DECARBONISATION, LOW CARBON TRANSITION & NET ZERO ADVISORY:

• Carbon/energy/greenhouse gas baseline analysis
• Scope 1, 2, and 3 assessments
• Paris Agreement alignment
• Commercial impact assessment and mitigation
• Supply chain audit and monitoring
• TCFD assessment and disclosures
• Global and local energy systems scenario testing
• Net Zero/Low Carbon Transition policy/strategy drafting
• Low carbon technologies option assessment