Essam Alsheibany

Asyad is Oman’s flagship logistics and supply chain group and offers end-to-end solutions for ports, free zones, maritime shipping, and last-mile express delivery.

What does sustainability mean at the group level, and what do you seek to achieve with that term?

Asyad has streamlined sustainability into ESG, identifying focus areas within each sector. Our ESG strategy guides all business lines, integrating KPIs for progress; however, to us, it is not just KPIs but a way of life and of planning business for the future. Global impact is crucial, especially for shipping lines. ESG disclosures matter in the global market, influencing our approach. Green financing, offering lower interest rates, drives our sustainability commitment. We have secured a sustainability-linked loan for two ships, contingent on KPI compliance and future regulations. This success prompts us to expand this approach company-wide. Green financing remains a key driver for future projects, aligning with global trends. In Oman, we lead in sustainability, anticipating a national focus next year. Initiatives like the sustainability center and mandatory ESG reporting by Muscat Exchange and Omani Investment Authority further validate our proactive stance. We are ahead of upcoming developments, building on our established KPIs and strategy.

What main challenges does Asyad Group expect to encounter in the coming years?

Sustainability faces multifaceted challenges requiring integration throughout the business. Convincing everyone to embrace these ideas remains an ongoing challenge, but we aim for all employees to become sustainability or ESG champions, driving transformative changes. Despite a mix of support and skepticism within the management team, we continue forward, confident that tangible results will justify our efforts and shape our future approach. With no current regulations in Oman, initiatives rely on cost-effectiveness rather than legal mandates. Nonetheless, we acknowledge the necessity for laws to propel action in Oman, where change often requires a legal mandate. Our commitment is evident in the country’s pledge to reduce CO2 emissions by 40%, yet the lack of governmental commitment poses a hurdle. The transport sector, including shipping, faces specific challenges with a directive to achieve only a 3% reduction by 2030, escalating to 47% by 2040 and achieving zero by 2050. Despite the initial low targets, we foresee achievable milestones, particularly with the expected development of technologies over the next decade and a half. Looking ahead to 2050, the availability of alternative fuels such as hydrogen, ammonia, methanol, or biofuel holds promise. The transport sector’s heavy reliance on diesel could shift with the adoption of electrical vehicles, contributing to cost reduction over time. While high initial costs persist, global examples demonstrate the potential for affordability through technological advancements. Navigating sustainability challenges involves fostering internal support, navigating regulatory gaps, and anticipating technological advancements to overcome financial barriers. Our commitment is unwavering, driven by the understanding that sustainable practices are vital for the future, even in the absence of immediate financial gains and legal obligations.

Which of Asyad’s sustainability efforts are you proudest of?

Our sustainability journey is just starting, though the strategy is clear, and we know where exactly we are headed. It requires a great deal of R&D on where exactly you want to add. For example, we are now clear on our shipping lines. The sector is defined as “hard to abate,” where it is tough to meet the net zero plan. However, with a clear strategy, we were able to commit to our net zero targets by 2050. For our shipping lines to meet net-zero targets by 2054, we would likely require changing the fleet, replacing the current ships that operate on diesel or heavy fuels. That is our biggest challenge, and if we can focus on that, others will come easier. We are also clear on what we want to do with our last-mile delivery, where we are planning to move to electrical vehicles. Currently, we have tried using biofuel in some of the buses, but the fuel is not widely available and is expensive. Hydrogen is another potential fuel in the future. We are conducting pilot projects for fuel. Currently, we are focusing on the alignment of regulations, green financing, and doing many pilot projects.