Boost Your Company’s ICV Score With Your Sustainability And Technologies, Strategies, Actions And Goals

Did you know that making your company environmentally sustainable can enhance your ICV score? Recent updates in the National In-Country Value (ICV) Programme now prioritize sustainability which contributes in score improvement of the Company. The Advanced Technology and Sustainability Bonus rewards companies for their eco-friendly and upto date technologies approach and practices, contributing an additional 6% to the scores of goods manufacturers (Companies who hold industrial license) and 3% (Companies who hold commercial license) to service providers. This means your commitment to sustainability and advanced technologies not only benefits the environment but also boosts your competitive edge in the market through a very important medium as ICV.

In-Country Value Programme was pioneered initially by ADNOC and implemented by the ADNOC Group and its participating entities in the year 2017. The programme is now been taken up as a Federal Program by and under the Ministry of Industry and Advanced Technology (MoIAT) as National In-Country Value Programme. This initiative aims to enhance the performance and sustainability of the industrial sector under the Ministry’s oversight. Key strategic partners of the programme include ADNOC, the Department of Economic Development (DED), Aldar, Mubadala, Etisalat, EDGE, Etihad Rail, the Emirates Nuclear Energy Corporation (ENEC), and Shurooq.

The ICV score allocation for various components of evaluation as per the formula are as below:

Major Considerations With Regard To Sustainability Initiatives

For entities with an industrial license (goods manufacturers), key factors such as the ISO Environmental Standards Certification, Industrial Technology Transformation Index, and Green Industries Labelling are considered. For those with other licenses (service providers), obtaining ISO Environmental Standards Certification and implementing sustainability policies and procedures will earn valuable ICV bonuses.

1. ISO Environmental Standards Certification (Common for all license holders)

Suppliers holding any of the ISO 14001, 14046 or 50001 will be eligible for 1% in this category.

Environmental protection and upgrading is essential to ensure that future generation have a protected place to live and survive. The UAE Net Zero by 2050 strategic initiative is a national drive to achieve net-zero emissions by 2050, making the Emirates the first Middle East and North Africa (MENA) nation to do so. ICV being pioneer program looked forward by the industries and businesses operating in the UAE, MoIAT has strategized to include environment and sustainability as a part of the ICV, thereby assisting the UAE Government with a helping hand for achieving its goals comprehensively.

ISO 14001 is a globally acknowledged standard for environmental management systems (EMS). It offers a structured approach for organizations to establish and implement an EMS, with an ongoing focus on enhancing their environmental performance. The standard covers various elements, including resource utilization, waste management, environmental performance monitoring, and stakeholder engagement. By following this standard, organizations can actively reduce their environmental impact, adhere to relevant legal obligations, and achieve their environmental goals.

ISO 14046 outlines principles, requirements, and guidelines for assessing the water footprint of products, processes, and organizations using life cycle assessment (LCA). It provides a framework for conducting and reporting water footprint assessments either as standalone evaluations or as part of broader environmental assessments.

ISO 50001 follows a continual improvement management system model, similar to other standards like ISO 9001 and ISO 14001. The ISO 50001 standard for energy management systems aims to make a significant positive impact on both current and future energy management practices. This facilitates the integration of energy management with other quality and environmental management efforts within organizations.

The valid ISO certificates issued by a certifier within the UAE will be assessed or ICV score evaluation

2. Industrial Technology Transformation Index (For industrial license holders)

The Industrial Technology Transformation Index (ITTI) is an extensive tool designed for the manufacturing sector to evaluate their digital and sustainability maturity levels. It provides a tailored roadmap for achieving smarter and more sustainable production processes. Aligned with the manufacturer’s value chain, ITTI assists manufacturers in assessing their current digital and sustainability readiness, offering recommendations for enhancements. It highlights the importance of integrating Industry 4.0 applications and sustainability into manufacturing practices.

The ITTI process includes a on-site assessments, followed by a detailed report with recommendations aimed at generating significant business impact.

By participating in the ITTI Programme, companies can boost their ICV score by up to 5 percent, showcasing their adoption of advanced technology and sustainable practices.

Entities with a valid industrial license and operational facilities engaged in manufacturing (beyond just assembly or services) can apply for the ITTI assessment through the Ministry of Industry and Advanced Technology, United Arab Emirates at https://itti.moiat.gov.ae/register/manufacturer.

3. Green Industries Labelling (For industrial license holders)

The Green Industries Labelling initiative is designed to recognize and promote businesses that adopt eco-friendly practices, supporting the alignment of economic growth with environmental sustainability. This environmental performance certification is granted by the Environment Agency – Abu Dhabi to industrial facilities demonstrating eco-friendly operations or services. The certification process involves a thorough assessment based on various environmental criteria, such as energy efficiency, waste management, and carbon footprint reduction. Companies meeting these standards receive a Green Label, symbolizing their commitment to sustainable practices.

The goal of the Green Industries Labelling Programme is to help the public identify industrial facilities that operate with environmentally friendly practices, encouraging eco-consumerism in Abu Dhabi and highlighting the increasing demand for greener manufacturing in the market.

Industrial facilities with a valid environmental permit are eligible to apply for the Green Industries Labelling Programme, regardless of their size or type of operations. To obtain the label, facilities must meet the specific criteria set by the scheme. These environmental criteria are reviewed and updated every few years, requiring existing Green Label holders to reapply when new standards are introduced.

Applications can be submitted through the Environment Agency – Abu Dhabi website http://www.ead.gov.ae.

A case study on green industries labelling

ABC Steel Company is one of the leading steel manufacturers known for its high-quality products and commitment to innovation. The Company was facing challenges such as high energy consumption in steel production, significant carbon emissions and waste generation.

The Company has taken following action plans to overcome the challenges:

• Implemented advanced energy management systems to optimize energy use.
• Installed energy-efficient machinery and equipment.
• Adopted a comprehensive waste management strategy to reduce, reuse, and recycle waste materials.
• Established partnerships with local recycling firms to manage waste more effectively.
• Shifted to renewable energy sources for a portion of their energy needs to reduce the carbon footprint
• Implemented carbon capture and storage technologies to reduce emissions.

The Company has achieved the following results energy consumption reduced by 20% within the first year, achieved a 30% reduction in waste generation, and decreased carbon emissions by 25%.

These action plans and the results will be evaluated for the sustainability and eco-friendly practices. And based on the eligibility and documentation, the bonus score will be provided.

4.Sustainability Policies and Procedures (For other license holders)

The Sustainability Bonus is based on the implementation of policies and procedures that are related to sustainable practices. Supplier shall demonstrate that policies and procedures have been developed, communicated, implemented, and monitored within their organization. The policies and procedures shall be implemented during the financial year of certification and should cover the areas such as:

• Sustainability Strategy and Governance,
• Material Circularity,
• Water and Wastewater Management,
• Emissions Management.

Each policy will bring 0.5% score if the policy has been implemented within during the year of ICV certification. The policy should be communicated within the entity and monitored correctly.