The UAE is globally recognised for its resourcefulness and adaptability, particularly in its climate transition and commitment to sustainable infrastructure. One of the biggest threats to this resilience, however, lies in the strength and transparency of its global supply chain, which is heavily skewed toward an outsized Scope 3 emissions footprint.
Scope 3 emissions occur throughout a company’s value chain, both upstream (suppliers and raw materials) and downstream (distribution, product use, and end-of-life disposal). Globally, Scope 3 emissions typically represent more than 70% of total corporate emissions.
The UAE’s disproportionately high Scope 3 footprint, like much of the Middle East, is driven by a strong dependence on linear supply models, importing raw materials, producing goods and infrastructure, and overlooking circularity and Scope 3 impacts. Part of the challenge is the complexity of measuring value-chain emissions and the lack of clear ownership of Scope 3 responsibilities.
Yet, this challenge presents a major opportunity: the UAE can lead the region in controlling Scope 3 emissions, strengthening value-chain resilience, and achieving national Net Zero ambitions.
Given its desert geography, the UAE is unusually reliant on imported goods and services, with imports valued at approximately AED 1.3 trillion. The top import categories include:
These categories carry significant environmental and social risks throughout their value chains. Sectors such as energy, construction, manufacturing, and mining are deeply interconnected with these imports, creating high emissions and supply-chain vulnerabilities.
Despite these challenges, the UAE’s strategic location ensures its role as a global trade hub will continue to expand. Companies that proactively lead on Scope 3 emissions will hold a significant competitive edge in the coming years.
As the UAE advances its Net Zero 2050 strategy, new regulatory requirements are compelling companies to address emissions across their value chains.
The UAE Climate Decree requires companies to report Scope 1 and 2 emissions, with Scope 3 reporting expected in the near future, in alignment with the Greenhouse Gas (GHG) Protocol. This standard enables companies to assess full value-chain emissions and determine where to prioritise reduction efforts.
Even before Scope 3 becomes mandatory, large emitters (≥0.5 million tCO₂e per year) must reduce emissions—meaning suppliers that fail to decarbonise risk losing major clients transitioning to low-carbon inputs.
Other global frameworks reinforcing this direction include:
However, the UAE must address specific national challenges to lead effectively:
To get ahead, companies should focus on the following levers:
| Lever | How | Some Benefits |
|---|---|---|
| Materiality Assessments | Identify and understand your most material ESG issues across the value chain. |
|
| Supplier Engagement Strategies | Identify gaps in the supply chain and collaborate with suppliers for win-win solutions. |
|
| Carbon Reduction Roadmaps | Develop sector- and import-specific decarbonisation plans to strengthen resilience and reduce emissions. |
|
| ESG Reporting (CSRD, GRI, ISSB) | Report progress using globally recognised frameworks and strengthen digital ESG data systems. |
|
Let’s now take a closer look at where the UAE’s Scope 3 emissions hotspots lie. We have grouped these into two deep dives: Food industry and Construction & manufacturing. While other sectors, such as the financial and energy sectors, create significant Scope 3 problems due to their influence across all industries, we will address these in a separate white paper.
The remaining sections of this report address the practical steps, incentives, and strategies that key sectors can leverage to lead on Scope 3 emissions reductions and supply chain resilience.
Due to its desert geography, the UAE is exceptionally vulnerable to food insecurity. Over 90% of food is imported, and rising agricultural and domestic water use risks depletion of local groundwater by 2030.
As the population is projected to reach 15 million by 2050, food security is a key national priority. The UAE’s National Food Security Strategy aims to:
Key entities ADQ, Abu Dhabi Ports, and DP World are already securing supply chains and enabling local production.
Private-sector involvement is essential.
For example, Al Dahra, a prominent Abu Dhabi-based agribusiness, is heavily involved in advancing the National Food Security Policy. At the same time, the Comprehensive Economic Partnership Agreement (CEPA) aims to reduce trade barriers and keep supply chains flowing between major players such as India.
Financing tools support this push:
Food security also depends on low-carbon logistics, such as green marine, road, and rail networks, which open significant opportunities for climate-tech suppliers.
Under the UAE Climate Decree, large emitters must develop Decarbonisation Roadmaps to reduce emissions across operations and supply chains.
Current sector contributions:
Research on specific construction projects in Dubai shows that selecting low-carbon materials and utilising early-stage Life Cycle Assessment (LCA) can reduce embodied carbon by up to 26%. It is important to note, however, that the majority of a construction/infrastructure project’s emissions come from its operational phase, not its construction.
For instance, road construction accounts for only 4–6% of the project’s total emissions. In the UAE, energy consumption is among the highest in the world. This means industry players must work closely with clients, suppliers, and partners to enable meaningful emissions reductions in line with Nationally Determined Contributions (NDCs).
So, while operational emissions are the priority, action is only possible by procuring low-carbon technologies, buildings, and life-cycle-costed, green-certified materials. For instance, AD Ports’ new Shamal Admin Building consumes around 40% less energy than baseline facilities and uses recycled materials and high-GGBS concrete, resulting in around 20% lower embodied carbon.
Construction and manufacturing procurement teams are crucial to reducing supplier-related emissions through specifications and selection. Review your spend and identify where high-spend inputs can be replaced with lower-emissions alternatives. This could be for:
| Material | Notes / Low-Carbon Alternative | Emission Reduction |
|---|---|---|
| Cement | Low-carbon cement compositions | ≈0.9 tonnes CO2 per tonne baseline; up to 70% reduction with low-carbon mixes |
| Steel | Recycled steel | ≈75% reduction in emissions and water use |
| Aluminium | Recycled aluminium | Up to 95% reduction in emissions |
| Bricks | Reclaimed or recycled bricks | ≈95% emissions reduction |
| PVC | Bioplastics and low-carbon polymer alternatives | Up to 74% reduction in emissions |
Further Incentives
Procurement and supply-chain leaders in the UAE are uniquely positioned to deliver on UAE Vision 2030 and Net Zero 2050.
By taking proactive steps to measure emissions, strengthen ESG governance, and digitise value-chain data, climate-leading companies can:
As regulatory focus on Scope 3 intensifies, particularly under the Federal Climate Decree, companies that embrace ESG-aligned procurement will be more competitive, more resilient, and better positioned for long-term success.
