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Thursday, September 28, 2023

New approach could support KSA’s sustainability goals: ADL


Saudi Arabia’s industrial sector, which accounts for about 46 percent of the country’s total emissions, must choose sustainable inputs and adopt refined manufacturing processes to reduce industrial emissions by 65 percent by 2050, according to a report.

Additionally, the industry should opt for efficient transportation and distribution and green marketing, according to a report by management consultancy Arthur D Little (ADL).

ADL has released an exclusive report exploring how to balance economic growth, environmental protection and social wellbeing. The report, entitled Requirements for Sustainable Industrial Development: The Case of KSA, identifies the industrial sector as a key development focus and examines ways to keep its pace in a sustainable manner.

Industrial power

The kingdom has proven to be a fast-growing industrial force, with over 10,000 industrial facilities and a ranking of 41st on the Competitive Industrial Performance Index. Saudi Arabia’s National Industrial Strategy aims to increase the value of the country’s industrial exports to approximately $149 billion by 2030.

Saudi Arabia’s industrial sector accounts for about 46% of the country’s total emissions, followed by power generation at 28% and transport at 19%. It provides opportunities for green technology and industrial development in the Kingdom.

Dr Adham Sleiman, ADL Middle East Energy and Utilities Partner, said: “The MENA region has made significant progress towards sustainable development, with ambitious goals to reduce its carbon footprint and increase the share of renewables in the energy mix. However, more concerted efforts and cooperation are needed to accelerate the transition to long-term carbon neutrality. To achieve industrial sustainability goals, countries need to accelerate the transition to renewable energy and set more ambitious targets. Saudi Arabia as a reference point, our latest report outlines ways to reduce carbon emissions and mitigate the impacts of climate change for the benefit of people and the planet.”

As the largest industrial power in the GCC, Saudi Arabia is committed to building a greener future. It has set ambitious targets for the future, aiming to reduce industrial emissions by 65% ​​by 2050. The kingdom has launched many initiatives in different economic sectors, especially in its industrial sector. In the report, ADL identifies several aspects across the industry value chain that organizations should address to ensure sustainable growth.

sustainable industrial investment

Energy is critical to industrial operations; addressing its role in industrial development is necessary for a successful strategy. Transitioning from environmentally harmful energy sources to renewable energy alternatives is a critical step in improving sustainability.

Refined Manufacturing Process

According to the World Government Summit, more than 30% of greenhouse gas emissions are generated by industrial processes. Focusing on improving industrial manufacturing processes has been shown to have a significant impact—improving the energy efficiency of industrial processes can reduce manufacturing emissions by 8%.

Efficient Shipping and Distribution

In addition to industrial inputs and manufacturing processes, the transportation and distribution of manufactured goods has been shown to be a major contributor to emissions from this sector. Transportation and distribution can be optimized by rolling out green warehousing logistics, adjusting routes, and applying fuel-efficient processes.

green marketing

Adopting reusable packaging practices is another way manufacturers can reduce their carbon footprint. Most notably, replacing single-use plastic with environmentally friendly alternatives benefits the environment and saves companies money.

In addition to reducing emissions, the government is working to keep the industrial sector away from fresh water. The Saudi Authority for Industrial Cities and Technological Zones (Modon) has 16 industrial cities and the government wants 70% of their water to come from treated industrial wastewater by 2030.

regulatory pressure

Amer Hage Chahine, Head of Energy and Utilities, ADL Middle East, said: “Sustainable industrial development is now a requirement of private industry and government due to regulatory pressure and increased environmental awareness among consumers. , introducing innovation-related initiatives and promoting knowledge sharing to promote sustainable industry development. Our latest report highlights key ways to promote sustainable industrial development through policies and incentives that encourage companies to adopt environmentally friendly practices.”

The report says the Saudi government is unifying efforts in the region through continued cooperation among GCC countries, aimed at promoting sustainable industrial development and synergizing the region’s fight against climate change. This includes efforts to reduce greenhouse gas emissions, implement waste management solutions, and raise awareness of industrial sustainability.

The kingdom’s efforts have been incorporated into joint programs with GCC countries to adopt the concept of circular economy in the industrial sector. The plan aims to ensure that the proportion of industrial facilities adopting circular economy practices in each GCC country reaches at least 50% of all industrial facilities within five years. — trade arab news agency


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