The United Arab Emirates (UAE) has emerged as a global leader in sustainability, driven by ambitious climate goals such as achieving Net Zero by 2050. In 2024, the UAE introduced Federal Decree-Law No. (11), also known as the “Climate Law,” which marks a significant step in formalizing sustainability efforts across various sectors, including sport.
UAE’s New Sustainability Reporting Regulations
The UAE’s Federal Decree-Law No. (11) of 2024, effective from May 30, 2025, establishes a comprehensive regulatory framework to support the nation’s climate objectives. The law mandates that companies, aligning with the UAE’s commitments under the Paris Agreement and its updated Nationally Determined Contributions (NDCs) for 2025–2035.
Key provisions include:
- Mandatory Emissions Reporting: Organisations must calculate and disclose their greenhouse gas (GHG) emissions, focusing on high-emitting sectors such as energy and manufacturing.
- Climate-Related Risk Disclosure: Companies are required to report on climate-related risks and opportunities, ensuring transparency in their environmental impact.
- Science-Based Targets: Entities must set emissions reduction targets grounded in scientific methodologies to contribute to the global 1.5°C temperature goal.
- Decarbonisation Plans: Businesses are encouraged to develop strategies for reducing carbon footprints, incorporating technologies like carbon capture, utilisation, and storage (CCUS).
- Incentives for Compliance: The law promotes sustainable practices through incentive programs, though challenges such as high costs and technical complexities may hinder implementation, particularly for smaller organisations.
These regulations, set to be enforced six months after their announcement, require companies to enhance record-keeping and develop climate adaptation strategies.
Impact on the Sports Industry
The rapidly expanding sports industry in the UAE, encompassing major events, professional teams, governing bodies, rights holders, and grassroots initiatives, is not immune to these regulatory changes. The new sustainability reporting requirements are likely to influence sports organisations in several ways:
- Mandatory reporting: Early sustainability adopters recognise the need to measure their footprint and have invested in this process. Knowing the “score” is fundamental to how you play sport and the same applies to sustainability – you need to know what your state of play is in order to plot a path towards improved sustainability performance. Sports organisations outsource this to third parties at a cost – these run into 100’s of AED and hence the cost presents a hurdle the vast majority of sports organisations can’t get over and they then fail to get onto the sustainability pitch.
- Operational Changes: Sports organisations, particularly those hosting large-scale events like the Dubai Desert Classic, Dubai Marathon or Formula 1 Abu Dhabi Grand Prix, will need to quantify and report their carbon footprints. This includes emissions from travel, venue operations, and fan activities, which could necessitate investments in energy-efficient technologies and sustainable event planning. Big sport has a big cost to pay, and the consultancy supply chain will gear into action quickly as the vast majority of sports bodies lack the internal sustainability expertise and even when they do, they will need to look at the level of resource they will need to apply going forward.
- Financial Implications: Compliance with the Climate Law may strain resources, especially for smaller sports clubs or federations lacking the expertise or budget to implement robust sustainability programs. The need for additional staff, technology, or external consultants could divert funds from core activities like athlete development or infrastructure.
- Reputation and Sponsorship: As sustainability becomes an increasingly important criterion for corporate partnerships, sports organizations that fail to comply with reporting requirements risk weakening their commercial rights offering as the sponsorship market gets more competitive with sponsors demanding more ROI around sustainability initiatives. This has the potential to offer considerable opportunity to those that embrace the new law and use it as the turbo to drive genuine sustainability practices which can open up new partnership categories across the full sustainability eco system and enhance their brand value.
- Fan Engagement: There has been well documented demand for brands delivering sustainability from the consumers, so pressure from the “bottom up” is now matched by the Climate Law and sports organisations are now about to experience pressure from the “top down.” These macro factors combine to encourage organisations to influence fan behaviour toward sustainability, and many sports events who have already begun their journeys can lead the race and accelerate their own sustainability goals.
- Event Hosting Standards: The UAE’s ambition to host sustainable mega-events, such as the 2024 Sport Impact Summit, will be scrutinized under the new law. Organizers must integrate biodiversity considerations, minimize environmental impacts, and adopt sustainable sourcing practices, aligning with international standards like the Charter of 15 Environmentally Responsible Commitments.
Many of the smaller sports organisations will find these new regulations challenging initially, however the sports sector is uniquely positioned to drive sustainability due to its cultural influence and ability to mobilise communities that is unrivalled by any other business activity. The UAE’s sports industry can leverage its global visibility to inspire action and lead the industry towards and healthier future for all stakeholders.
Sports ability to drive collaboration and teamwork is one of the industry’s super powers. The journey that the Climate Law directs all UAE sports organisations to undertake is one that will both test us all but also provide lots of opportunity and will help future proof our industry for all.
Sport Impact’s mission aligns directly with the objectives of the new Climate Law as laid out in the launch of the Sport Impact Declaration back in December 2024 – join us on the sustainability pitch by signing the Sport Impact Declaration and be game ready for the new Climate Law.