Majid Al Futtaim
Climate Risk Assessments Driving Decision-Making
Majid Al Futtaim (MAF) has taken a proactive approach to assessing and managing climate-related risks across its extensive portfolio. By conducting detailed climate risk assessments using Intergovernmental Panel on Climate Change (IPCC) scenarios RCP 4.5 and RCP 8.5, the company evaluates risks such as flooding, heat stress, and drought at short-, medium-, and long-term horizons. This quantitative modeling enables MAF to integrate climate risk considerations into its business strategy and financial planning. A key outcome of this approach is the Climate Resilience Strategy and Roadmap, a five-year action plan that prioritizes adaptation measures, assigns risk management responsibilities, and establishes monitoring frameworks. The company has also embedded climate risk into policies such as the Sustainable Pre-Acquisition Policy, ensuring that all new developments undergo climate risk assessments using its proprietary Climate Risk Assessment Tool before acquisition.
To drive resilience, MAF has extended its focus beyond climate risks to nature-related dependencies and impacts, aligning with the Taskforce on Nature-related Financial Disclosures (TNFD). Through its first TNFD-aligned Locate, Evaluate, Assess, Prepare (LEAP) Assessment, MAF evaluates its interaction with natural ecosystems across its portfolio, identifying material risks and opportunities. These insights inform strategic initiatives such as integrating nature-based solutions (NbS) into urban development - evident in the introduction of green roofs, beehives, and urban farms in key projects. Climate and nature-related risks are integrated into MAF’s risk governance processes, ensuring oversight at the highest governance levels.
Emirates Steel Arkan
Integration of Climate Risks into ERM
Emirates Steel Arkan (ESA), the UAE’s largest steel and building materials manufacturer, has taken a structured approach to understanding and addressing climate-related risks. In alignment with the Task Force on Climate-related Financial Disclosures (TCFD) framework, ESA conducted a comprehensive risk assessment of its operations across multiple time horizons (short, medium, and long term) and a 1.5°C global warming pathway scenario. The company identified key physical risks - such as heatwaves and flooding - as well as transition risks including carbon pricing and changing market demands.
By establishing a dedicated Climate Risk Register and integrating climate-related risks into its Enterprise Risk Management (ERM) system, ESA ensures that sustainability is embedded within its governance and strategic planning. Climate-related risks and opportunities are reviewed regularly by the Risk Management Committee and escalated to the Board of Directors where necessary. Additionally, as part of the UAE’s Climate-Responsible Companies Pledge, ESA has committed to disclosing its climate actions through a combined TCFD and TNFD report, which includes KPIs, scenario analysis, and a climate financial model to assess future risks and opportunities.
