Aldar’s new sustainability incentive programme to support UAE ICV goals

Aldar Properties has launched a pioneering sustainability incentive programme aimed at rewarding suppliers with green bonuses, combining both financial and non-financial benefits.

The initiative, designed to support the UAE’s National In-Country Value (ICV) Programme, evaluates contractors based on a range of sustainability metrics, including recycling rates, renewable energy use, carbon emissions intensity, and efforts to eliminate single-use plastics.

The new programme was announced during Abu Dhabi Sustainability Week, where Aldar also signed a collaborative agreement with the Ministry of Industry and Advanced Technology (MoIAT).

It is the first sustainability incentive programme of its kind in the region and aligns with the UAE’s Net Zero by 2050 target, the Industrial Decarbonisation Roadmap launched at COP28, and the Green Public Procurement Pledge.

Incentives based on sustainability performance

Suppliers will be evaluated through a rating system based on their sustainability performance. Key factors include sustainability data, the implementation of employee wellness programmes, and adherence to Aldar’s low-carbon materials policy. Participating contractors must also meet specific criteria related to worker welfare and sustainability metrics.

“Suppliers who align with these sustainability goals will be rewarded with various incentives, including financial bonuses, training opportunities, recognition, and expedited payments,” Aldar said in a statement.

Companies that have participated in the Real Estate Climate Pledge, launched by Aldar in partnership with MoIAT and the Ministry of Climate Change and Environment, will also receive additional benefits. Over the past two years, more than 70 members have joined this initiative.

Aldar’s sustainability incentive programme further strengthens the company’s commitment to a low-carbon supply chain and sustainable construction practices for upcoming projects.

MoIAT and National ICV Programme Expansion

Salama Al Awadhi, Assistant Undersecretary for Industrial Development at MoIAT, expressed strong support for Aldar’s new programme, highlighting its role in advancing the UAE’s Net Zero objectives. “The National Strategy for Industry and Advanced Technology (Operation 300bn) focuses on enhancing sustainability within the industrial and service sectors as one of its key pillars,” she said. “The programme will stimulate local businesses, create more investment opportunities, and enhance the sustainability of the national supply chain.”

The National ICV Programme, which aims to increase local sourcing, has seen significant growth, with more than 6,500 companies obtaining the ICV certificate and over 8,000 ICV certificates issued in 2024, up from 7,000 in 2023. The programme’s expansion underscores the UAE’s efforts to create a more resilient and self-sufficient economy.

Aldar’s commitment to sustainability and local growth

Faisal Falaknaz, chief financial and sustainability officer at Aldar, emphasised the company’s dedication to supporting sustainable practices within its supply chain. “We are determined to implement a whole value chain approach to decarbonisation, working closely with our suppliers and encouraging them to integrate sustainability into their operations,” he said. “Incentivisation is one of the most effective ways to catalyse change, and we aim to set a standard for increasing the adoption of such programmes across the region.”

Aldar has also significantly contributed to the National ICV Programme, with the company contributing Dhs10.5bn in 2023, prioritising local businesses to channel spending into the national economy.

The newly launched sustainability programme is a cornerstone of Aldar’s ongoing efforts to foster a low-carbon economy and promote sustainable practices within the real estate sector.