As the UAE’s landmark climate decree takes effect today, Muna Al Nahdi, Director of Sustainability and Consultancy at Farnek, outlines the urgent steps companies must take to comply with new emissions regulations.
The UAE Federal Decree Law No. 11 of 2024, relating to the reduction of climate change effects, becomes effective today, 30 May 2025. It mandates businesses in major industry sectors to measure, report, and begin to reduce their greenhouse gas (GHG) emissions.
With less than five years left to reach the UAE’s 2030 sustainability targets, organisations across the country must act now to establish a baseline and develop a robust transition plan.
Muna Al Nahdi, Director of Sustainability and Consultancy at smart and green UAE-based FM company Farnek, shares her thoughts on what steps companies should be taking, to comply with the federal decree and to contribute towards the nation’s environmental objectives and the integral role of FM providers.
The Role of FM Providers in a Net Zero Future
According to Al Nahdi, “UAE-based and indeed other companies based in the wider GCC, should by now be prioritising their own 2030 net-zero goals and progressive FM providers have a duty to support them by providing building managers and owners with innovative energy management, water conservation and sustainable building solutions. Moreover, FM providers should lead by example.”
In 2022, Farnek unveiled its own roadmap to achieve Net Zero emissions by 2050, which was embedded into its long-term corporate strategy. Even at that early stage we understood that climate action was a business-critical issue that needed to be addressed within our own operations and across our value chain.”
“The first step was to measure and monitor our emissions,” Al Nahdi explains. “You can’t reduce what you can’t measure.”
Farnek used 2021 as its baseline year, identifying the scope and boundaries for measuring carbon emissions. This included not just building performance (energy and water consumption), but also employee travel, logistics, procurement, waste, and efforts around recycling and renewables. Their approach aligns with Scope 1, 2, and 3 emissions standards.
Setting Targets and Tracking Progress
Farnek implemented category-specific emission targets, with an initial five-year reduction goal and annual reviews to track progress and adjust where needed.
“Our target by end-2026 is to reduce electricity, water, refrigerants and fuel consumption by 30%, cut waste by 10%, and lower emissions from purchased goods and services by 5%,” says Al Nahdi. “By 2030, we aim for a 50% reduction in these categories.”
To date, Farnek has already achieved a 9% reduction from its baseline – a testament to what consistent monitoring and commitment can achieve.
Smart Tech for Smarter Sustainability
Supporting both their internal goals and client-facing services, Farnek’s tech division, HITEK AI, has developed CARBONTEK – an intelligent carbon footprint calculation tool that benchmarks energy, water, and waste audits. It tracks progress, streamlines reporting, and provides actionable insights with monthly updates.
“Tools like CARBONTEK are game changers for building owners and managers,” says Al Nahdi. “They take the guesswork out of sustainability.”
Monitoring and controlling air conditioning, water temperature and pressure, recycling, and waste management reflects the core values and determination of any company’s sustainability strategy. This is particularly relevant in staff accommodation, commercial buildings, and hotels, where employees, guests, and visitors are increasingly environmentally conscious.
Sustainability, Al Nahdi emphasises, is not only about compliance or environmental impact – it also drives operational savings, competitive advantage, and stronger stakeholder relationships.
Sustainability Means Business
Al Nahdi underscores that sustainability isn’t just an environmental imperative – it’s a business one. “There’s a strong return on investment,” she says.
In the hospitality sector, for example, energy, water and maintenance account for approximately 15% of a hotel’s total revenue. For a 200-room hotel, this could equate to over AED 5 million annually – a figure that can be significantly reduced with sustainable practices and technologies.
The Clock Is Ticking
“There is no time to lose,” Al Nahdi warns. “It is no coincidence that technology, in particular advanced AI, is associated with sustainability, offering a safe, sustainable, efficient and cost-effective return. The clock is ticking and businesses across the UAE, must start to align their business objectives with the UAE government’s Net Zero plans now.”
For FM providers and the companies they support, the message is clear: sustainability is not optional. It is essential – for compliance, competitiveness, and the climate.