• 64 percent of our survey respondents anticipate that the presence of COP28 in the UAE will have an impact on the sustainability and net-zero ambitions of their business. Primarily, this is expected to occur through increased awareness locally and regulatory change, with respondents largely optimistic about this impact on both their company and projects.
• Of those respondents anticipating impact, 89 percent expect that the outcomes from COP28 will change the way in which their business operates over the next 12 months.
• The largest imminent impact area (identified by 46 percent of the total respondents) was related to increased awareness and demands from employees regarding sustainability and well-being – indicating that the construction industry anticipates the ‘noise’ from COP28 to be loud and widespread.
• Following closely behind on the scale of impact, was the expectation of increased or more stringent sustainability requirements (identified by 43 percent of respondents), and an increased concentration on carbon emissions (noted by 39 percent of respondents), both of which align with the expected, and necessary, regulatory shifts that need to take place.
• Interestingly, our survey results indicated that these expected impacts are not anticipated to translate into more work for developers or contractors, although consultants and those with a focus on sustainability do foresee this being the case.

Noting the above findings, we anticipate that in the coming months, there may be a need to address sustainable procurement requirements for developers in response to these anticipated changes. This will ensure that future project delivery strategies consider the appropriate capabilities and necessary technical evaluations required to drive better performance on future projects.

Government incentives and supportive regulation will help fast-track progress towards emissions reduction.

The current global economic volatility will have a part to play in shaping the regional industry’s response to climate change in the near future. Macro scale factors will heavily influence supply chains through currency fluctuations, resource availability, and stability of logistics. Firms that are aware of and actively manage their risks will be most strongly placed to weather these storms.

It is evident that many anticipate economic uncertainty to impact the progression of ESG and net-zero commitments both within their own businesses and within their clients’ operations. That said, our survey respondents were divided as to whether the formulation and attainment of wider, national net-zero goals would be affected.

While there is clearly a value enhancement that a net-zero process can provide, many in the construction industry agree that a more constrained and economically driven market would actually be the ideal moment to leverage quick wins on the path to decarbonisation, to improve operational efficiency and to capitalise on further cost savings.