BrazilQ&A with Sarah Safi (New Metrics) on the UAE’s new landmark climate law
In a significant move towards its net zero goals, the UAE has today enforced the Federal Law No. 11 – a law that aims to reduce greenhouse gas emissions, enhance resilience of ecosystems and economic sectors, and support innovation and research in climate-related fields. But what does the new climate law mean for businesses? A discussion with Sarah Safi, Head of ESG at New Metrics.
From your perspective as an ESG expert, what are the key challenges companies will face in adapting to Federal Law No.11 of 2024 on the reduction of climate change effects?
Federal Law No. 11 is now in effect, placing immediate requirements on high-emitting sectors to measure, reduce, and report emissions. The scope extends across all industries as the UAE accelerates its net-zero agenda.
Key challenges include developing reliable emissions data systems, integrating decarbonization into business operations, and achieving internal alignment. This transition calls for strong leadership, coordinated execution, and sustained investment. Many companies are in the early stages of ESG maturity, so building internal knowledge and embedding sustainability across functions will be critical.
Beyond Federal Law 11, are there any other regulatory trends that businesses should be preparing for in the next few years?
Regulatory activity is increasing across the region. Oman will implement mandatory ESG reporting for listed entities through the Muscat Stock Exchange in 2025. The UAE already requires ESG disclosures for public companies. In Saudi Arabia, reporting remains guided by the Saudi Exchange framework and continues to gain momentum.
Financial institutions are starting to assess ESG performance in lending and investment decisions. Companies that prioritize ESG readiness may access more favorable financing and improve market reputation.
The UAE is also advancing the MOCCAE Regulatory Framework for Carbon Credits. This will introduce standardized rules for issuance, validation, and trading of carbon credits, creating incentives for companies to decarbonize while exploring new value streams through emissions reduction.
Navigating Compliance and Advisory Needs
Many companies struggle with identifying what is truly material to their business in sustainability reporting. How should they approach materiality assessments under these evolving regulations?
Materiality assessments form the foundation of effective ESG reporting. At New Metrics, we help organizations map sustainability impacts across their value chain and prioritize topics based on stakeholder expectations, sector benchmarks, and regulatory requirements.
Many companies are adopting the double materiality approach, which considers both the impact the business has on environmental and social outcomes and the potential financial implications of ESG-related risks. This approach supports more robust risk management and strategic alignment.
Why is a pure tech-driven approach insufficient? How do companies benefit from ESG advisory beyond automation and reporting?
Technology enhances efficiency in data collection and analysis. For organizations still building ESG maturity, advisory support strengthens understanding, strategy development, and internal engagement.
At New Metrics, we combine digital platforms with tailored advisory to embed sustainability across functions. We collaborate with leadership and teams through enablement programs and roadmap design, helping organizations align with regulatory frameworks and stakeholder expectations.
This integrated approach allows companies to transform data into meaningful action and long-term impact.
Building a Competitive Advantage through Sustainability
How can organizations turn regulatory compliance into a competitive advantage rather than just a legal requirement?
Compliance can serve as a springboard for growth. Small and mid-sized companies can create distinction by building a unique sustainability narrative, aligned with their capabilities and ambitions.
At New Metrics, we support clients in defining their sustainability identity, aligning impact with innovation, and building trust through transparency. Purpose-led initiatives and strong communication strengthen stakeholder relationships and enhance competitiveness.
What role does sustainability play in long-term business resilience, and how can companies future-proof their strategies against rapid regulatory shifts?
Sustainability supports long-term resilience. A well-governed data infrastructure enables companies to conduct scenario planning, forecast risk, and adapt to evolving expectations.
At New Metrics, we guide organizations to use ESG data strategically to inform decision-making, accelerate innovation, and align with future regulation. This approach enhances agility, improves stakeholder engagement, and reinforces operational strength.
For organizations just starting their sustainability journey, what are the key steps they should take now to prepare for Federal Law 11 and beyond?
The first step is establishing strong data governance. Companies should define what to measure, how to capture it, and who is responsible. This structure enables effective strategy and regulatory alignment.
Internal engagement is also essential. Teams need to understand how sustainability contributes to performance, resilience, and value creation. At New Metrics, we work closely with organizations to build capabilities, align stakeholders, and create ESG strategies that drive measurable outcomes.
