DP World publishes Sustainable Development Impact Disclosure - GulfToday

DP World publishes Sustainable Development Impact Disclosure

DP-World

The disclosure demonstrates DP World’s commitment to sustainable development.

DP World has published a Sustainable Development Impact Disclosure (SDID), making it the first company globally to adopt and disclose on its development impact in countries of focus in accordance with the recently released impact disclosure guidance from the Impact Disclosure Taskforce.

DP World invited industry participants and practitioners to share their feedback during a four-month public consultation period, from 18th April to 1st September, to shape and refine the guidance.

The disclosure serves as a framework for private sector companies and sovereigns, to demonstrate how they drive transformation through large-scale infrastructure development into emerging markets and developing economies.

Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, said, “I am immensely proud to announce the publication of our new Sustainable Development Impact Disclosure, which embodies our commitment to changing what’s possible through infrastructure development.

This disclosure not only demonstrates our commitment to sustainable development but also sets a path for industry-wide accountability. It’s a call to action, to catalyse positive change and drive sustainable infrastructure development on a global scale.” The SDID, which was developed in line with recent disclosure guidance from the Impact Disclosure Taskforce - led by JP Morgan Development Finance Institution and Natixis - uses impact measurement and monitoring to assess the impact of investments in advancing the UN’s Sustainable Development Goals and closing existing development gaps. It fosters transparency and accountability and genuine commitment to sustainable development, while empowering global capital markets to make informed financing decisions based on reliable, publicly disclosed information.

By leveraging existing best practices and resources, a five-step process has been defined to measure and disclose the impacts of business strategies or national development plans.

The SDID is characterised by being entity-level, impact-oriented, forward-looking and context-specific.

DP World and the Taskforce welcomed feedback on the SDID and invited the industry to contribute their insights to further enhance the effectiveness of the guidance. Experts and relevant stakeholders are encouraged to provide feedback by visiting https://orrick.formstack.com/forms/idtfeedback by 1st September 2024.

Arsalan Mahtafar, Co-Chair of the Impact Disclosure Taskforce and Head of J.P. Morgan’s Development Finance Institution, said, “By publishing its Sustainable Development Impact Disclosure, DP World demonstrates that it intends to manage its business to achieve both financial returns and development impact. I commend DP World for its commitment to promote sustainable and inclusive economic growth in places where it’s needed most to meet our global goals.”

Cedric Merle, Co-Chair of the Impact Disclosure Taskforce and Head of the Centre of Expertise and Innovation within Natixis Corporate & Investment Banking’s Green and Sustainable Hub, added, “Natixis is pleased to have worked with DP World and JP Morgan in the first Sustainable Development Impact Disclosure. Testing the Sustainable Development Impact Disclosure Guidance will be instrumental to ensure it is delivering the information needed to meet specific SDG-related needs and expectations of investors and lenders. We hope that others will follow DP World’s example in disclosing not only their commitments, but action to foster sustainable development in emerging markets.”

DP World Limited has announced recently the financial results for the year ended 31st December, 2023.

On a reported basis, the company’s revenue grew by 6.6 percent to $18.25 billion and adjusted EBITDA rose by 1.9 percent to $5.108 billion with a healthy adjusted EBITDA margin of 28.0 per cent.

The revenue growth was supported by Drydocks World (+$400 million) and the full-year consolidation benefit of the Imperial Logistics acquisition (+$900 million), with like-for-like growth driven mainly by the Ports and Terminals and Logistics business.

DP World’s adjusted EBITDA grew 1.9 per cent to $5.108 billion, and the EBITDA margin for the year stood at 28.0 percent. The like-for-like adjusted EBITDA margin stood at 28.9 per cent, while the profit for the year decreased by 17.7 per cent to $1.514 billion, mainly due to higher finance costs.

The cash generated from the company’s operating activities increased by 2.9 per cent to $4.579 billion in 2023 ($4.451 billion in 2022).

DP World logged a 13 percent decarbonisation in Scope 1 and Scope 2 carbon emissions, with a commitment to invest more than $500 million to reduce CO2 emissions in the next five years.

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