Abu Dhabi’s Sustainability Challenges and Opportunities: Abu Dhabi Sustainability Index 20 th April 2011

Abu Dhabi’s Sustainability Challenges and Opportunities: Abu Dhabi Sustainability Index

20th April 2011

Abu Dhabi’s Sustainability Challenge and Opportunity – January, 2011 2

Aim and objective

The report provides an in iti al assessm ent of A bu D habi’s progress

tow ards susta inability, and w hat could be done to both address

any gaps and accelerate perform ance in areas of strength. It is

not m eant to prescribe— rather it has been developed to provide

context, inform and insp ire A bu D habi’s strategic p lanning cycle

The report provides an initial assessment of Abu Dhabi’s progress towards sustainability, and what could be done to both address any gaps and accelerate performance in areas of strength. It is not meant to prescribe—rather it has been developed to provide context, inform and inspire Abu Dhabi’s strategic planning cycle


Abu Dhabi Performance Management Framework


Sustainability and Framework


Abu Dhabi Whole of Government Scorecard Measures: Extent of Inclusion in the Sustainability Index


Economic Development Social Development Environmental Sustainability Infrastructure Government Excellence

Proximity

to Sustainability: 41.1

%

Innovation Index16.49

Education Index49

Water consumption per day per capita in Abu Dhabi19.10

Gap between supply and demand of residential units in Abu Dhabi15.15

% of sustainability reports issued for government agencies26.47

Competitiveness Index66.41

Quality of education system65

Water Stress Index48.13

Park area available per capita5.07

% of government departments adopting environmentally friendly procurement0

GDP per capita100

Quality of scientific research62.86

Level of environmental awareness48

Quality of Living Index80.20

World Governance Index19.56

Non-oil GDP as a % of GDP36.39

% of all nationals living/working in the Emirate of Abu Dhabi enrolled in Thiqa97

Ambient Air Quality Index20

Estimated road traffic death rate per 100,000 population12.1

Budget Credibility Index50

CO2 emissions (metric tons per capita)0.64

% of all expatriates living in the Emirate of Abu Dhabi enrolled in a health insurance plan with a licensed health insurer75.7

Municipal waste treated3.62

Renewable percentage from energy generation0.01

Customer satisfaction for the whole government of Abu Dhabi85

Diversification quotient46.40

% of diabetes prevalence in national population10

Municipal waste generation per capita0

ICT Development Index72.90

Number of procedures required to start a business9.09

Foreign direct investment (inwards)29.85

Age-standardized mortality rates by non-communicable diseases69.27

Average score of entities on the Excellence Award Assessment40

Tourism sector contribution to GDP32.97

Life expectancy at birth90.24

Total unemployment rate among Emiratis37.71

The level of reported crime per thousand of population35.54

Emiratis female participation in labour force26.94

Judicial independence81.86

Consumer Price Index11.23

Gender empowerment measure (GEM)65.20Human Development Index90.30Minimum wage11.25Hiring and firing practices70% of tangible cultural assets conserved17

Sustainability Index: Measuring Abu Dhabi’s Proximity to Sustainability


Relative Strength

Performance Areas of Relative Strength

Dimension Index/Measure Performance

Sustainable Economy

IMD World Competitiveness Index 24th

Ease of doing business 33rd

Knowledge Economy Index 45th

GDP per capita 3rd

Social Development

Education Index 45th *

Life expectancy at birth Consistent with OECD countries

% of all nationals enrolled in Thiqa 90%

Environmental Sustainability

InfrastructureQuality of Living Index 84 of 215

Networked Readiness Index 27 of 122

Government Excellence

# of sustainability reports issued for government agencies

3 (tied)

Government Efficiency Index 22 of 55

Overall Arab Responsible Competitiveness Index 1st *


Areas of Improvements

Performance Areas Requiring Greatest Improvements

Dimension Index/Measure Rank

Sustainability Economy

CO2 emissions (metric tons per capita) 3rd highest

Diversification quotient Less than 45% of transformational economy diversification quotient

Social Development Employment of Emiratis in private sector 1.70%

Environmental Sustainability

Water Stress Index 17 of 113

Water consumption per capita 450

Municipal waste generation per capita 5.7x European average

# of buildings promoting energy and water efficiency and green design standards (i.e., Estidama, LEED)

<20

Roads Safety Index 4th highest road deaths per capita

Renewable percentage from energy generation

0 in 2009

Government Excellence# of government departments adopting environmentally friendly procurement standards or policies

0 (or immaterial amount)


Measuring Abu Dhabi’s Social Development Proximity to Best in Class

Sustainability LevelBest in classAbu Dhabi

0%

25%

50%

75%

100%Education Index

Quality of Education System

Quality of Scientific Research

% of all Nationals living/working in AD …

% of all expatriates living in AD enrolled in a …

% of Diabetes Prevalence in National …

Age standardized mortality rates by Non-…

Life Expectancy at Birth

Judicial Independence

Gender Empowerment Measure (GEM)

Human Development Index

Minimum Wages

Hiring and Firing Practices

% of tangible cultural assets conserved

Social Development


Measuring Abu Dhabi’s Social Development Proximity to Best in Class

Social DevelopmentCurrent Proximity to Sustainability: 59.35%

Abu Dhabi Performance Best in Class

Proximity to Best in Class

(%)Sustainability

LevelProximity to

Sustainability (%)

MEASURESG04/02 – “Student-Centred Learning”Education Index (component of the Knowledge Economy Index) 4.9 * 9.78 50.10 10 49Quality of education system 4.55 6.2 73.39 7 65G04/07 – Internationally Recognized and Nationally RelevantQuality of scientific institutions 4.4 6.2 70.98 7 62.86GO5/01 – Comprehensive Health Services, Accessible and Affordable for Everyone in the EmiratePercentage of all nationals living/ working in the Emirate of Abu Dhabi enrolled in Thiqa

97 ** ** 100 97

Percentage of all expatriates living in the Emirate of Abu Dhabi enrolled in a health insurance plan with a licensed health insurer

75.7 ** ** 100 75.7

G05/03 – Actively Educating Population Against Avoidable Health RisksPercentage of diabetes prevalence in national population (indicated via Weqaya) 21 2.1 10 2.1 10Age-standardized mortality rates by non-communicable diseases (per 100,000) 410 * 284 69.27 284 69.27Life expectancy at birth 74.9 83 90.24 83 90.24G06/01 – Safe Society with High Levels of Community Confidence in Public Order, Safety and SecurityThe level of reported crime per thousand of population 18.6 6.61 35.54 6.61 35.54G07/01 – Upholding the Rule of Law Through Independent and More Efficient JudiciaryJudicial independence 5.73 6.7 85.52 7 81.86G08/05 – Women Contributing to Prosperity and SuccessGender empowerment measure (GEM) 0.652 * 0.91 71.64 1 65.20G08/06 – Improved Social and Educational Care for ChildrenHuman Development Index 0.903 * 0.971 92.99 1 90.30GO9/03 – A Fair and Ethical Labour EnvironmentMinimum wage (PPPs) 185.46 1,648.24 11.25 1648.24 11.25Hiring and firing practices 4.9 * 5.9 83 7 70G10/O1 – Preservation, Conservation and Promotion of Local Traditions, Culture and the History of Abu DhabiPercentage of tangible cultural assets conserved 17 ** ** 100 17


Measuring Abu Dhabi’s Economic Development Proximity to Best in Class

0%

25%

50%

75%

100%

Innovation Index

Competitiveness Index

GDP Per Capita

Non-Oil GDP as a % of GDP

CO2 Emissions (Metric Tons Per Capita)

Diversification quotient

Foreign Direct Investment (Inwards)

Tourism Sector Contribution to

non oil GDP

Emiratis Female

Participation …

Consumer Price Index

Economic Development



Measuring Abu Dhabi’s Economic Development Proximity to Best in Class

Economic DevelopmentCurrent Proximity to Sustainability: 36.82%

Abu Dhabi Performance

Best in Class

Proximity to Best in Class

(%)Sustainabilit

y LevelProximity to

Sustainability (%)

MEASURESG01/01 – Rapid and Sustainable GrowthAbu Dhabi Innovation Index -0.19 0.62 16.49 0.62 16.49Abu Dhabi Competitiveness Index 66.408 100 66.41 100 66.41GDP per capita $115,364 $115,364 100 <115,364 100Non-oil GDP as % of GDP 36.39 63 57.76 100 36.39CO2 emissions (metric tons per capita) 32.94 * 8.63 26.17 0 0.64G01/02 – Diversified and Broadened Economic BaseDiversification quotient 2.9 6.25 46.4 6.25 46.4G01/03 – Global Economy Integration via Trade and InvestmentForeign direct investment (inwards) 8 26.32 29.85 26.85 29.85G01/07 – Economic Benefits from TourismTourism sector contribution to GDP 3.3 10.5 31.43 10.0 32.97G02/01 – Employment of Emirates (Public and Private Sector)Total unemployment rate among Emiratis 14.85 2.3 15.41 5.6 37.71G02/02 – Women Contributing to the Prosperity and Success of EmirateFemale Emiratis participating in labour force 0.27 1.00 26.93 1 26.94G03/03 – Sustainable Levels of Inflation and Stable Financial SystemsConsumer Price Index 117.81 101.68 9.43 102 11.23


Measuring Abu Dhabi’s Environmental Sustainability Proximity to Best in Class

0%

25%

50%

75%

100%

Water Stress Index

Ambient Air Quality Index

Municipal Waste Treated

Municipal Waste Generation per …

Environmenta Sustainability



Measuring Abu Dhabi’s Environmental Sustainability Proximity to Best in Class

Environmental SustainabilityCurrent Proximity to Sustainability: 23.14%


Best in Class

Proximity to Best in Class (%)

Sustainability Level

Proximity to Sustainability

(%)

MEASURES

GE11/02 – Economic Growth Managed in an Environmentally Sustainable WayWater consumption per day per capita in Abu Dhabi (litres/day/person)

450 149 33.1 86 19.1

Water Stress Index 41.1 * 0.35 0.84 <20 48.13

GE11/03 – An Informed and Aware Population Contributing to Environmental Sustainability

Level of environmental awareness 48 91 52.75 100 48

G11/04 – Clean Protected and Safe Environment

Ambient Air Quality Index – Percentage of exceedances of SO2, NO2, O3 and CO2

20 ** ** 0% 20

Municipal waste treated by type and method (e.g., recycled, composted) kg per capita per year

3.26 69.7 4.68 100 3.26

Municipal waste generation per capita 3,109.7 309 9.93 0 kg 0


Sustainability Index: Measuring Abu Dhabi’s Infrastructure Development Proximity to Best in Class

0%

25%

50%

75%

100%

Gap between supply and demand of

residential units in Abu Dhabi

Park Area Available per Capita

Quality of Living Index

Estimated Road Traffic Death rate

per 100,000 population

Renewable percentage from

Energy Generation

ICT Development Index

Infrastructure



Sustainability Index: Measuring Abu Dhabi’s Infrastructure Development Proximity to Best in Class

InfrastructureCurrent Proximity to Sustainability: 30.91%


Best in Class



Proximity to Sustainability

(%)

MEASURES

G12/01 – Coherent Urban Planning

Gap between supply and demand of residential units (excluding luxury units and labour camps)

27.4% 5.65 20.62 5% extra supply

15.15

G12/02 – Attractive, Liveable and Sustainable Urban EnvironmentPark area available per capita (m2/capita) 15.17 300 5.07 300 5.07

G12/06 – Infrastructure and Community Facilities that Meet the Needs of a Growing Population

Quality of Life Index 87.1 108.6 80.20 108.6 80.20

G13/04 – Transport Systems that Meet the Needs of all Residents and VisitorsEstimated road traffic death rate per 100,000 population 25.1 3.2 12.1 3.2 12.1

G14/03 – Alternative and Renewable Energy Resources

Renewable percentage from energy generation <0.01 46.7 0.021 100 0.01

G15/02 – High-Quality and Affordable ICT Infrastructure Available to AllICT Development Index 5.47 7.5 72.90 7.5 72.90


Measuring Abu Dhabi’s Government Excellence Proximity to Best in Class

0%

25%

50%

75%

100%

Number of sustainability

reports

World Governance

Index

Budget Credibility

Index

Customer satisfaction

AvG score of Entities on the

Excellence Award

No of Procedures required to

start a business

Government Excellence



Measuring Abu Dhabi’s Government Excellence Proximity to Best in Class

Government ExcellenceCurrent Proximity to Sustainability: 32.87%

Abu Dhabi Performan

ceBest in Class



Proximity to

Sustainability (%)

MEASURESGE16/02 – The Highest Standards of Integrity, Accountability, Openness and Transparency in PublicPercentage of sustainability reports issued for government agencies 26.47 26.47 100 100 26.47Percentage of government departments adopting environmentally friendly procurement standards and policies

0 90 0 100 0

World Governance Index (WGI) 0.489 * 1.795 27.24 2.5 19.56G16/06 – Effective Financial ManagementBudget Credibility Index (expenditure out-turn, revenue out-turn, stock and monitoring of payment arrears)

50 104 48.08 100 50

G19/09 – High-Performing WorkforceCustomer satisfaction for the whole Government of Abu Dhabi 85 ** ** 100 85Number of procedures required to start a business 11 1 9.09 1 9.09Average score of entities on the Excellence Award Assessment 40 ** ** 100 40


Key Levers for Accelerating Progress Towards Sustainability

Recalibrate all emirate-level performance targets to long-term sustainable levels.

Seek competitive advantage and international leadership in the key sectors of a “sustainable global economy”: renewable energy, low-carbon industry, sustainability tourism, water management, and smart and sustainable cities.

Adopt true-value (full-cost) accounting and apply across all government financial decision-making and forecasting.

Aggressively transition to a low-carbon economy.

Enhance demand-side management of energy and water, and reassess infrastructure needs.

Employ next-generation infrastructure, merging smart information technology and environmental technology (e.g., smart grids).

Realize significant sustainability gains through sustainable community design.

Aggressively transition to a “closed-loop”, zero-waste economy.

Facilitate the procurement of increasingly sustainable products and services by both the government and the private sector.

Promote stakeholder empowerment and responsibility (e.g., for community stewardship, environmental action and healthy lifestyle).

Achieve gender equality in the workplace and society.

Foster healthy lifestyles and improve healthcare results by bringing healthcare interventions to the resident’s immediate environment.

Reframe relationships and standards relating to immigrant foreign workers.

Promote and incentivize transparency and accountability for sustainability performance results of both the government and the private sector.


Suggested Initiatives

0 10 20 30 40 50 60 70 80 90 1000

10

20

30

40

50

60

70

80

90

100

Re-calibrate the targets for all Whole of Government outcomes

Align research and development in higher education

Establish an official Research Council

Foster innovation clusters

Financial sector as a catalyst for sustainability

Sustainability tourism

Adopt true value (full cost) economics

Implement industrial ecology

Develop comprehensive Low-Carbon Growth Strategy

Review low-carbon and decarbonisation strategies of leading economic zones

Aggressively transition to a low-carbon, high profile transport system

Apply smart energy and water saving technology

Restructure energy and water pricing

Implement load shifting

Maintenance for all Heating, Ventilating and Air Conditioning units

Set water consumption reduction targets

Modernize electricity delivery infrastructure

Promote digital learning environment in education

Common set of municipality level indicators

Implementation of the Estidama Integrated Design Process

Establish a sustainable procurement portal

Institutionalize a collaborative governance framework w+B4ith society

Mandate environmental education in all levels of school curricula

Bring health care interventions to each resident's daily environment

Improved physical education standards and sports facilities in schools

Align salaries and benefits between men and women

Continuously improve conditions for foreign labourers

Align Strategic Frameworks while embedding sustainability

Mandate sustainability reporting for all government entities.

Encourage companies to adopt sustainability management and reporting

Sustainability index for the Abu Dhabi stock market Impact

Ease

of I

mpl

emen

tatio

n


Abu Dhabi’s Sustainability Challenge and Opportunity:Further context and action

Abu Dhabi government entities to increasingly incorporate sustainability into strategic planning and performance review

Encourage adoption of sustainability management, performance and reporting by the private sector

Support and leverage the leadership work of the Abu Dhabi Sustainability Group

Documents

Abu Dhabi’s Sustainability Challenges and Opportunities: Abu Dhabi Sustainability Index 20 th April 2011