With COP approaching – we have seen many companies suddenly talking about ESG. What is your perspective on that?
Serco has been actively driving ESG (Environmental, Social, and Governance) initiatives and reporting publicly on them for several years. ESG, to us, is not just a checklist of components; it’s a commitment to taking tangible actions that make a positive impact on the world. Our overarching focus is to collaborate with the governments we serve and our private sector partners to work toward a better future.
Dr. Sultan Al Jaber’s recent call for decisive, innovative, and collaborative action, as the COP28 president, deeply resonates with us. We firmly believe that the private sector, including Serco, has a crucial role to play in aligning our businesses with the imperative of a sustainable future. This commitment is not only in line with global expectations but also with the local governments’ visions.
We’ve been on this path for a significant period and are now accelerating our efforts in response to the growing demand for accountability. Our approach is centered on aligning our business strategy with sustainability and social responsibility.
We understand that our success is intricately linked with the well-being of our employees, the communities we serve and the environment in which we operate. The upcoming COP28, hosted in the region also presents an excellent opportunity to showcase the Middle East’s potential for leading with innovative and disruptive thinking to address global challenges.
What are your key plans in the next 12 months from an ESG perspective?
As a government impact partner, Serco is fully committed to building a better future through sustainable practices and social responsibility. Our focus on ESG isn’t just a response to expectations; it’s integral to our values, and we aim to share our best practices from other markets with the region.
A significant development this year was the launch of our Advisory with Purpose offering, which covers various services with a central focus on delivering tangible positive impacts. This initiative remains central to our plans for the next twelve months.
We are also dedicated to supporting the Saudi government in bringing Vision 2030 to fruition, and all our contracts in Saudi incorporate elements of ESG in line with the vision’s core sustainability principles.
Our recent contract wins, such as our involvement in mobility services for Red Sea Group, are setting new global standards for sustainability. In the coming year, our goal is to secure more contracts of this nature through our Advisory with Purpose business.
Our overarching goal is to continue driving change and making a positive impact on the communities we serve as a responsible corporate citizen committed to ESG principles.
Tell us about your Advisory with Purpose Business – why now?
Advisory with Purpose, which we launched earlier this year is our strategic response to the growing emphasis on sustainability and social responsibility in achieving national visions. This development aligns with our long-standing history of supporting governments and organisations in reaching their ESG goals. With sustainability in focus, as seen in the “Year of Sustainability” in the UAE and the Vision 2030 in Saudi Arabia, we felt it was the right time to consolidate these efforts under one umbrella.
The Advisory with Purpose division offers the full remit, covering not only advisory services but also the execution of operations. It is an end-to-end service designed to empower our clients to meet their ESG commitments, reduce operational costs, enhance customer experiences, ensure safety and security, and work toward net zero ambitions, all while contributing to a better future for citizens and residents.
It also reflects our commitment to environmental and social impact and our role as catalysts in accelerating these essential goals. We are proud to be providing these services to a number of major giga projects and master developments in the Kingdom, in not only a consultancy capacity but then taking that right through to operations and delivery.
It’s a significant step forward for us as a business, and we’re excited to leverage our expertise and experience to make a meaningful impact in the region. We recognise the increasing demands for sustainability and social responsibility from lots of different stakeholders, from government bodies through to today’s society, and we’re here to meet those expectations.
How does Serco contribute to nationalisation agendas to reach ESG objectives?
Serco’s commitment to nationalisation and ESG objectives in the region goes beyond mere compliance; it’s deeply embedded in our strategy. We recognise the critical role of the social aspect in ESG, particularly in the Middle East and so nationalisation plays a big role in our own initiatives.
Three years ago, I advocated for the launch of our graduate programme specifically designed for national talent, and this year, we expanded that programme to nationals in the Kingdom of Saudi Arabia within our space division, which everyone is very excited about as it underpins our support for the building of a completely new business sector in KSA and building local talent experience within the space industry.
This initiative involves cohorts learning from our colleagues in Europe and bringing that knowledge back to the Kingdom. Our approach to nationalisation is about nurturing talent to become the future leaders.
Our National Graduate Programme has resulted in successful graduates now leading innovation and training for a key contract in Dubai. In KSA, they’ve progressed to the management consultant level in our advisory business.
We are especially proud of our commitment to gender diversity, with three ambitious UAE national women today participating in operational and functional placements through this programme. We have also been offering internships to nationals in both countries, with over 45 students from local universities completing internships in recent years.
Our dedication to nationalisation is reflected in our workforce composition, with a significant increase. We’ve doubled our national workforce in KSA to 25% since last year, and our UAE nationalisation rate has increased more than 2.5 times from 2021. In 2023, 17% of our hires are excellent national talent, with 41% being national women.
What would you recommend to having a deep integration of ESG into business to provide a sustainable competitive advantage?
I favour a holistic approach centered on creating “impact with purpose.” This entails making ESG an intrinsic aspect of every business operation and asking from the planning through to the operations stage what the impact will be in on stakeholders.
Every employee understands the significance of ESG, not as a mere compliance measure, but as a driving force behind our decisions. It’s about creating a culture where purpose is at the core, where our colleagues day to day work is more than just a job. Our purpose at Serco is to ‘Impact a Better Future’ and in the Middle East that is through bringing national visions to life; ESG plays a big part in that.
When ESG is integrated into our daily activities, we create a lasting impact. We build trust and partnerships with stakeholders, both internal and external. We contribute meaningfully to the betterment of our communities and the environment, aligning our goals with those of the regions we serve. Collaboration with both the public and private sectors is also deeply embedded in our corporate DNA.
This approach nurtures innovation, attracting like-minded partners and clients, and fostering a modern workforce driven by a shared sense of purpose. It’s through such a unified effort that I believe we can gain a sustainable competitive advantage.
What is your take on the best course of action for CEOs to tackle internal resistance to ESG? And how to communicate that strategy comprehensively?
Firstly, as CEOs, we must wholeheartedly believe in the value and significance of ESG principles. Our genuine commitment sets the tone for the entire organisation.
To tackle resistance effectively, employee engagement is essential. Employees must understand how ESG aligns with the purpose of the organisation and how their roles contribute to this greater purpose. It’s about creating unity, where everyone feels they play a vital role in achieving ESG objectives.
Communication is also key. CEOs need to comprehensively articulate the strategy, emphasising how ESG aligns with the long-term success of the business. This includes transparently addressing any concerns, providing clear examples of the positive impact of ESG on both the organisation and the broader community and being as clear as possible on the roadmap ahead and what the end goals should be.
Lastly, making the right decisions for the business is crucial. This includes considering ESG factors in every aspect of the company’s operations, from procurement to supply chain management. Do you have a sustainable office space? Where are your staff uniforms coming from? As an example, from us here, earlier this year we teamed up with the local UAE eco-conscious fashion brand The Giving Movement to kit out our 5,500 employees in the region in sustainable workwear.
When employees see that ESG principles are not just words but are integral to the decisions and actions of the organisation, it helps overcome internal resistance.
How do you see GCC ambitions toward ZERO carbon footprint or carbon-neutral economies, which sectors could be leading these efforts?
The ambitions of GCC nations toward achieving a zero carbon footprint or carbon-neutral economies are both commendable and necessary. Countries like the UAE and KSA have set ambitious commitments, and it’s encouraging to see these aspirations. The private sector has a significant role to play in achieving these objectives.
At Serco, we partner with governments to support them on their journey towards achieving net zero. We also collaborate with businesses and voluntary organisations to ensure that we, as a company, are doing everything in our power to reach net zero emissions.
These efforts encompass setting science-based targets, adopting sustainable procurement practices, and forging responsible relationships with third parties. We focus on the efficient use of natural resources, which includes minimising waste and maximising energy efficiency. Environmental protection is integral to our operations, and we are committed to initiatives that reduce our carbon footprint and preserve the natural world for future generations.
One example of this is that we recently launched the Serco Forest, an initiative aimed at actively contributing to the UAE’s goal of planting 100 million mangroves by 2030. By planting mangrove trees at the Jebel Ali Marine Reserve, we not only protect coastal communities and stabilize soil but have already helped remove 12.5 tonnes of CO2 from the atmosphere.
We estimate a total removal of 277.8 tonnes of CO2 over the lifetime of the trees. This initiative perfectly aligns with the UAE’s Year of Sustainability, showcasing our commitment to creating a greener and more sustainable future.
In terms of sectors leading these efforts, I believe it’s a collective endeavour that involves multiple sectors, including energy, transportation, and manufacturing, among others. Each sector has its unique challenges and opportunities, and they all have a part to play in moving us towards a carbon-neutral economy.
Ambitious tourism plans may carry harmful impact on environment and social sustainability, what is your recommendations to manage that in giga-projects?
Ambitious tourism plans can often come with the potential for environmental and social sustainability challenges but the technology, innovation and experience on how to mitigate the challenges is available and should be utilised.
We at Serco are supporting a significant giga-development across a range of activities and a few examples of what we are doing with our partners to manage harmful impacts are as follows.
Making sure ‘sustainability’ is a key part of the brief and your response from the first stage. When we secured the mobility services contract for the Red Sea group earlier this year, it was very clear this was a contract for sustainable mobility services.
Our remit on this contract is to ensure a world-class, net-zero mobility experience for guests at the destination. The carbon-neutral destination will be reliant on multiple modes of green transport across land, marine, and air –from seaplanes and boats to buggies –to ensure that guests enjoy a seamless luxury experience from the moment they arrive.
Aligning with Regional Sustainability Strategies. Collaboration is key. Multiple organisations are working with thousands of employees on the giga projects, and they need to work together – which is why regional sustainability strategies and initiatives, such as the Red Sea Net Zero and NEOM sustainability strategy need to be fed through from a very high level through to the employees on the ground, so everyone understands their own role within the ecosystem.
The senior leadership level themselves also need to be setting clear targets so there is clarity on what is and isn’t expected to ensure sustainable practises are happening and prioritised as an end goal.
Impact assessment on local communities. For giga-projects like AlUla, where tourism has the potential to also impact local residents, organisations should be conducting thorough impact assessments to understand and mitigate any potential negative consequences. Local governments and the public sector need to engage with local communities to ensure that their concerns and needs are addressed and integrated into the project planning.
Giga-projects by their very nature are a great opportunity to demonstrate a more responsible and sustainable approach to tourism development.
Serco recently launched a Space division – which may appear contradictory to an organisation promoting ESG. What do you say to that?
We are confident our new regional Space Division isn’t contradictory in the promotion and alignment with our own ESG goals and those of our partners, and this can be demonstrated in two very specific ways.
The first is our commitment to Space sustainability. We launched our Middle East Space division earlier this year but have been delivering sustainable space services globally for more than five decades. For example, the data we obtain from satellites (such as satellite-based remote sensing) provides the global scientific community with better insights into climate-related metrics. Space data-enabled tools and analytics provide decision-makers with the ability to take more effective action.
For example, Copernicus is the European Union’s Earth Observation Programme and Serco provides data support to the Copernicus Climate Change Service (C3S) and the Copernicus Marine Service (CMEMS). C3S supports society by providing authoritative information about the past, present, and future climate in Europe and the rest of the World whilst CMEMS supports Europe’s marine environmental monitoring and, in its efforts, to protect the marine environment, natural resources, and fight climate change.
Through Serco’s Data Hub Software (DHuS), developed under the Copernicus framework, we offer free and open access to data across all European Space Agency Sentinel missions, supporting the development of climate data and tools based on the best available science, and the products enabled through DHuS have supported global air quality monitoring, food security assessment through crop yield monitoring, sea level monitoring, and global greenhouse gas emissions monitoring, to name a few of the many climate-related use cases.
We hope to leverage this global experience for the Middle East market, by providing access to key space-based data and facilitating space-enabled tools that support policymakers with better decision-making that has a positive impact on the lives of citizens.
Another key area of ESG is nationalisation, Serco’s Space graduate programme is in place to support this. The global space economy is valued at over half a trillion dollars and is growing year-on-year. There is huge potential for the space sector to positively impact economic growth in the Middle East as the region drives towards diversification from oil and gas.
This programme is the first of its kind across Serco globally and across the Saudi Arabian space market. The aim of the programme is to transfer Serco knowledge and expertise to the new national workforce in the sector, to proactively support nationalisation goals.
In this first programme, graduates will develop their skills in space data management and spacecraft operations – two core capabilities within Serco’s space business and with it benefit from valuable placements across our operational contracts in Europe, before returning to KSA to deliver services across the emerging space division with Serco.
Beyond this programme, we also provide space training services, enabling knowledge transfer and capability building across the sector.
Leadership Commitment: Can you discuss your personal commitment to ESG issues and how it influences your leadership decisions?
My personal commitment to ESG is unwavering. I firmly believe that as leaders, we have a responsibility to drive meaningful change and advocate for sustainable practices. ESG isn’t just about compliance; it’s about doing the right thing for our people, communities, and the environment.
This commitment informs every leadership decision I make. It’s about setting an example, fostering positive, purposeful impact, and aligning our actions with our values. I’m dedicated to our employees and ensuring that our organisation not only prospers but also contributes to a better future for all.
Stakeholder Engagement: How does your company engage with various stakeholders, including employees, customers, investors, and local communities, regarding ESG matters?
In 2022 we surveyed our customers, investors, suppliers and partners on what ESG risks, issues and opportunities Serco should prioritise going forward. We similarly surveyed internal stakeholder communities including our diversity networks, Serco Goes Green network, and early career programme cohorts, alongside senior business and functional management.
From the results we have seen that all stakeholders inside and outside of Serco are broadly aligned in what they believe are the most critical elements underpinning the sustainable delivery of public services, these included, data privacy and information security, diverse workforce and inclusive workplace and building sustainable third-party relationships.
Serco is also a member of the UAE Alliance for Climate Action (UACA), established by Emirates Nature-WWF, acting as the implementing partner to the Climate Responsible Pledge. UACA aims for stakeholders to collaborate to increase momentum of science-based targets, enable policy solutions and achieve the Paris Agreement.
We have also committed to playing an active part in NAFIS’ goal of creating 75,000 jobs in the private sector by 2025 along with working in alliance with the Human Resources Development Fund to develop and increase the employability of nationals.
In 2021 we held our first Service Provider Forum, and this has become an important fixture in the regional calendar. The forum was launched to bring supply chain partners together to share knowledge and best practice and collaborate in raising their own ESG standards. We are also active participants in the annual Zero Harm Week whose vision, like our own, is to provide a safe, comfortable and sustainable workplace for all.
And finally, going back again to our Advisory with Purpose initiative which is a red thread running through our business to underpin our dedication to environmental and social impact and underscores our role as enablers in impacting a better future for all.