Sustainable business strategies can generate 12.4 million jobs

dubai - It can also unlock unlock more than $637 billion in economic value

An accelerated shift toward sustainable business strategies could unlock more than $637 billion (Dh2.33 trillion) and generate 12.4 million jobs across the Middle East and North Africa (Mena) by 2030.

"As countries in the Mena rise up to open new opportunities for women, welcome refugees and diversify their economies, there remains a long road for the region as a whole to become inclusive and sustainable," said Mark Malloch-Brown, chair of the Business and Sustainable Development Commission.

Better Business, Better World Mena is part of a series of reports, first launched in January 2017, which makes the business case for the Sustainable Development Goals, or Global Goals-17 objectives to eliminate poverty, improve education and health outcomes, create better jobs and tackle environmental challenges by 2030.

The research shows companies pursuing strategies aligned with the Global Goals could open economic opportunities across 60 "hot spots" worth more than $12 trillion and generate up to 380 million jobs globally by 2030.

The report breaks down the estimated $637 billion of economic value for the Mena across four key systems - $229 billion for energy and materials; $183 billion for cities; $133 billion for health and well-being; $92 billion for food and agriculture.

The Business Commission has identified 20 of the largest opportunities across the four systems, which account for nearly 75 per cent of this prize. The top five include: improved energy efficiency in buildings ($52 billion); affordable housing ($50 billion); circular models in the automotive industry ($37 billion); resource recovery ($33 billion); and risk pooling in healthcare ($31 billion).

"The Sustainable Development Goals offer a coherent framework to effectively address fundamental societal challenges. Most importantly, they also serve as a guideline for targeting where capital can be allocated most productively for investors and corporate leaders," said Arif Naqvi, founder and group chief executive at The Abraaj Group, and commissioner of the Business and Sustainable Development Commission.

"The Goals are relevant to the Middle East and North Africa where we see a young dynamic population motivated to seize opportunities and make positive contributions to the wider society. This is the time for CEOs and investors within the region to step up, take the lead and partner together for inclusive growth."

According to the Business Commission, 12.4 million jobs could be generated through SDG-aligned business models in the region. Developments in urban construction, mobility and infrastructure will generate nearly six million jobs.

One World Bank study showed the region could generate 2.5 million jobs by meeting its estimated annual basic infrastructure needs. Almost one-fifth of the total employment potential in the region - around 2.2 million jobs - comes from just one opportunity: affordable housing.

Sustainable business models could also open up three million jobs related to energy and materials, 2.1 million in health and well-being, and more than 1.5 million in food and agriculture.

"We believe in being a positive force by developing communities with balanced living environments, while building affordable, eco-friendly and innovative solutions," said William Ali Mills, CEO, Red Sea Housing Services, which is featured in the report. "As an early disruptor in affordable housing in the region, this report underscores the value of sustainable and inclusive strategies for companies."

- waheedabbas@khaleejtimes.com