Redefining sustainability in business strategy

From cost center to value driver: Redefining sustainability in business strategy

The energy transition is reshaping investment strategies for market leaders. Instead of riding fossil-fuel OPEX volatility, leaders are locking in predictable CAPEX for low-carbon assets, reducing risk and strengthening balance sheets.

In practice, “beyond OPEX” also means accessing cheaper capital through green bonds/green sukuk and sustainability-linked loans (SLLs) that reward credible decarbonisation with subsidised or risk-covered interest margins.

Regional leaders are showing the way:

Aldar Properties – widely recognized as one of the region’s most sustainable developers – raised a $500m green sukuk to fund energy-efficient buildings and low-carbon real estate projects.

Al Rajhi Bank – one of the largest Islamic banks globally – issued a $1bn sustainable sukuk, supporting both renewable energy investments and broader sustainable development financing.

IFC has partnered with ACWA Power on a $240 million Islamic Equity Bridge Loan to accelerate Uzbekistan’s renewable energy transition. The financing will support a 1 GW solar PV plant, a 668 MW battery energy storage system, and 500 km of transmission lines, reducing 1.3 million tons of CO2 annually. This milestone project underscores IFC’s commitment to climate action and ACWA Power’s role as a global leader in sustainable energy.

These transactions highlight the shift from “green as a cost” to “green as value”. Each example shows how sustainable loans and sukuk are tied to measurable outcomes—whether in real estate efficiency, renewable energy, or critical infrastructure like water and hydrogen.

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Unlocking green capital: Fueling the sustainable transition

Investors are actively chasing credible climate plans; Bloomberg Intelligence projects ESG-labelled assets could reach USD 40 trillion by 2030. Companies with transparent data and science-based targets tend to enjoy lower borrowing costs, longer tenors, anda wider investor base. In simple terms: a small reduction of a few basis points on largetickets adds up fast.

Banks in the UAE, including DIB, ENBD, and FAB, now offer Sustainability-Linked Loans (SLLs) that reward companies for meeting climate and ESG targets.

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Steps to secure a sustainability-linked loan in the UAE

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Why it matters: SLLs cut financing costs, build investor credibility, and integrate climatetargets directly into your core business strategy.

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Premium positioning: Enhancing brand value and customer loyalty through sustainability

Sustainability is a key differentiator that allows businesses to build a premium brand and earn customer loyalty.

In beauty and apparel, consumers show real willingness to pay: a 17-country survey found 11% would pay up to 25% more for sustainable cosmetics, while peer-reviewed studies on carbon labels report 20–30% premiums when the claims are trusted.

This premium is earned through authenticity, with companies that demonstrate a genuine commitment to sustainability building a strong reputation that also helps attract and retain top talent.

US/EU evidence is stronger: Global dealmakers say they’ll pay 1–10% more for assets with high ESG maturity, per KPMG’s 2024 ESG due-diligence study.

MENA companies are rapidly professionalizing ESG, and global evidence shows why: credible ESG disclosure lowers the cost of capital, about 0.5 percentage (%) points on average, helping finance growth while strengthening investor confidence.

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Valuation premium: Signal quality, attract better multiples

M&A and public-market evidence increasingly links ESG maturity with higher deal premiums and valuation multiples provided the strategy is real, measurable, and governance-backed.

Dealmakers say they’ll pay 1–10% more for assets with strong ESG readiness; academic research also finds positive links between ESG performance and firm value (while markets penalize greenwashing).

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New revenue opportunities: Innovation in sustainable business models and products

Sustainability isn't a constraint on innovation, it's a catalyst. When businesses frame environmental challenges as opportunities, new revenue streams emerge. Innovative business models, particularly within the circular economy, are driving this change. Strategies like "Product-as-a-Service" and product life extension (reselling, repairing, remanufacturing) fundamentally decouple revenue from resource depletion. This innovation is powering business growth, with revenues from sustainable products growing significantly faster than overall company revenues.

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Execute with precision: Intelligent transition, not guesswork

To lead — and to capture cheaper financing, pricing power, and valuation upside — you need AI-powered precision. AhyaOS gives teams the ability to accurately quantify emissions, manage reductions, and report with assurance.

1. AhyaAI - Reduction Optimization: Uses machine learning to identify the top emission hotspots and recommend targeted reduction actions. Prioritizes initiatives based on ROI, abatement cost, and feasibility, while linking emission cuts to CAPEX/OPEX implications through integrated financial analysis. Aligned with internal carbon pricing, it ensures that business decisions fully account for environmental costs.
2. Reduction Modeling: Breaks down reduction initiatives across supply chain and operational emissions (Scope 1 & 3) as well as energy transition (Scope 2). Users can model reductions for each activity, accurately assess annual impact, and compare options. AhyaOS highlights activities with the highest impact, making it easier to build credible strategies tied to financing and disclosure.
3. Decarbonization Roadmap: Converts targets into a clear, time-bound plan aligned with SBTi requirements. Businesses can view their trajectory under business-as-usual versus forecasted reductions, and assess the delta against near-term and long-term targets. This roadmap provides the governance-ready backbone for sustainability-linked financing and investor confidence.
4. Product Carbon Footprint: Provides emissions calculations at the product level, enabling companies to validate sustainability claims with transparent, audit-ready data. This supports premium brand positioning and customer willingness-to-pay, while also strengthening credibility in M&A and supply chain negotiations.
5. ClimateX - Climate Risk: Evaluates both transition and physical climate risks across operations and supply chains. By quantifying exposure and embedding risk insights into strategy, businesses can protect valuation, strengthen investor confidence, and ensure resilience against regulatory and market shifts.

Turn sustainability into a growth lever unlocking green capital, premium positioning, and new revenue opportunities as you transition intelligently.

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