The last twenty years have seen a climate change shift in our discourse from a distant concern to an immediate financial imperative. Once just the domain of climate science canaries, professionals like Urooj Khan are leading the charge in translating moral obligation into business strategy, and redefining corporate responsibility. A chartered accountant turned ESG assurance expert at KPMG UAE, in addition to obtaining certification in ESG from the University of Copenhagen, NYU Stern, and Cambridge Business School, Urooj’s career embodies the critical intersection of finance and sustainability. Her work focuses on helping organizations navigate the complexities of greenhouse gas (GHG) emissions reporting — particularly the often-misunderstood distinctions between Scope 1, 2, and 3 emissions. For companies aiming to future-proof their operations, Urooj’s message is clear: understanding and addressing these emissions is not just about compliance; it is about survival in a world where investors, regulators, and consumers demand transparency and action.
By KCI Editorial
From Numbers to Net- Zero: The Evolution of a Sustainability Leader
Urooj’s path into ESG was unconventional. With a background in chartered accountancy, she initially focused on financial audits, where precision and accountability were highly prized. However, as global markets began prioritizing sustainability, she noticed a significant shift: business success was no longer measured solely by profit margins but also by environmental and social impact. Investors increasingly demanded non-financial disclosures, and companies lacking credible ESG strategies faced higher capital costs.
Her move into ESG assurance at KPMG was a logical next step. Today, Urooj works with multinational corporations across the Middle East, advising them on decarbonization strategies, carbon accounting, and integrating sustainability into financial reporting. What distinguishes her is her ability to translate complex climate concepts—such as emissions scopes—into practical business insights. While many leaders still view ESG as a branding tool, she reframes emissions reductions in terms of risk mitigation, cost savings, and access to green financing, shifting the conversation entirely.
Emissions Framework: Why Scopes 1, 2, and 3 Matter
Central to Urooj’s work, as detailed in her newsletter *ESG Learning*, is the GHG Protocol’s classification of emissions into three scopes—a framework that assesses a company’s climate impact across its entire value chain.
Scope 1: The Foundation of Accountability
Scope 1 emissions are the easiest to measure and often the first focus for reduction efforts. These are direct emissions from sources a company owns or controls, such as fuel combustion in company vehicles, on-site boilers, or industrial processes. For instance, a logistics company’s diesel trucks produce Scope 1 emissions with every kilometer traveled, while a cement plant’s CO2 emissions from production fall under the same category.
Urooj highlights that addressing Scope 1 is both a regulatory necessity and a strategic priority. In the UAE, where industries like energy and construction dominate, direct emissions are gaining more traction. Solutions vary from operational adjustments—such as optimizing delivery routes to reduce fuel consumption—to major investments like electrifying vehicle fleets or adopting carbon capture technologies. She emphasizes that accurate measurement is the first step, as effective management depends on reliable data.
Scope 2: The Indirect Impact of Energy Choices
While Scope 1 covers direct emissions, Scope 2 accounts for indirect emissions from purchased energy, such as electricity, steam, heating, or cooling. For example, a corporate office’s air conditioning system powered by grid electricity contributes to Scope 2 emissions.
Urooj explains the two reporting methods for Scope 2: location-based (reflecting the average emissions intensity of the local grid) and market-based (accounting for renewable energy purchases). A UAE company relying on the gas-dependent national grid would show high location-based emissions, but if it secures a solar power agreement, its market-based emissions drop significantly. This distinction is not just about accounting—it drives real investment in renewable energy.
Scope 3: The Frontier of Climate Responsibility
If Scope 1 and 2 are the low-hanging fruit, Scope 3 presents the most complex— and impactful—challenge. These indirect emissions span a company’s entire value chain, from raw material extraction and supplier transportation to product use and disposal. In many industries, Scope 3 accounts for over 70% of their carbon footprint.
Urooj uses the automotive sector as an example. While an automaker’s Scope 1 emissions come from its factories, the true impact lies in the oil consumed by the vehicles it sells — a Scope 3 factor. Similarly, a fashion brand’s emissions are overshadowed by those from cotton farming, fabric dyeing, and consumer laundry habits.
Despite their importance, Scope 3 emissions are often underreported due to their complexity. Data gaps are common, with many companies lacking visibility beyond their immediate suppliers. Urooj’s approach involves collaborative efforts: identifying high-impact suppliers, setting joint reduction targets, and using digital tools like blockchain for traceability. She advises starting with the largest emissions sources and building from there, emphasizing progress over perfection.
The Business Case for Emissions Transparency
For Urooj, thorough emissions accounting is not just an environmental necessity but a financial one. She outlines three key drivers for action:
- Investor Pressure – Major asset managers now evaluate ESG disclosures as rigorously as financial statements. Companies with weak Scope 3 reporting have missed out on investment opportunities.
- Regulatory Momentum – Mandatory disclosure requirements, such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and UAE policies aligned with COP28, make compliance unavoidable.
- Cost Savings – Energy efficiency and waste reduction directly improve profitability. One cline reduced packaging weight by 15%, cutting both Scope 3 emissions and logistics costs.
A Vision for Inclusive Climate Action
Looking forward, Urooj underscores the need for global cooperation. Climate change is a borderless issue, meaning a UAE company’s decarbonization efforts depend on suppliers in India or Germany. She supports initiatives like the UAE’s Industrial Leadership Group, where industry competitors collaborate on sector-wide emissions standards. For those entering the ESG field, Urooj recommends mastering technical frameworks while also focusing on the human aspect. Success in sustainability requires persuading executives, engaging suppliers, and uniting teams around a common goal.
Policy Reversal Versus Global Momentum
The return of the Trump administration has prompted a sweeping reversal of ESG-related policy in the United States, disrupting regulatory progress made in recent years. Notable federal actions include a renewed withdrawal from the Paris Agreement, the rollback of methane emission rules, cuts to climate program funding, limitations on the SEC’s ability to support ESG-focused shareholder proposals, and the reversal of Department of Labor guidance allowing ESG considerations in retirement plan management. These actions have introduced significant uncertainty, prompted several corporations to scale back their ESG commitments, and led to sustained outflows from U.S.-based sustainable investment funds. At the same time, green bond issuance has slowed, and clean energy equities have suffered under the current deregulatory agenda.
Interpreting these developments as the collapse of ESG would be misguided. Structural drivers such as climate risk, social inequality, supply chain fragility, and rising stakeholder scrutiny continue to shape global business strategies. Market forces and institutional investors, particularly those with international exposure, still expect companies to manage ESG risks effectively. As one industry analyst observed, despite President Trump’s agenda “It’s not game over for ESG”—rather, firms are recalibrating their approach while maintaining direction.
Meanwhile, global momentum is unmistakably gaining speed. The EU is pushing ahead with its CSRD frameworks, anchoring sustainability in corporate reporting and trade policy. Green finance remains robust across Europe, the Middle East, and Asia, with sovereign issuers like the UAE and Saudi Arabia channeling billions into climate-aligned infrastructure via green bonds. Countries around the world are advancing ISSB-aligned reporting. Australia has mandated climate disclosures starting FY2025, and Canada is finalizing national sustainability standards. In Asia, jurisdictions including Japan, Hong Kong, South Korea, Singapore, Malaysia, the Philippines, and Pakistan are progressing through implementation phases. In Africa, Kenya and Nigeria have committed to phased mandatory adoption from 2025–2027.
These developments highlight a widening global divide. As the U.S. federal government retreats from ESG, other jurisdictions are setting more rigorous disclosure expectations. Companies operating internationally must still adhere to frameworks like ISSB or CSRD, regardless of the U.S. stance. In effect, ESG is becoming an embedded feature of global finance and regulation, driven by long-term risks, capital flows, and growing accountability across borders.
Conclusion: The Accountant Who Measures More Than Profit
Urooj’s career reflects a broader shift in business—where success is measured not just in revenue but in reduced emissions and positive impact. She believes the future belongs to companies that treat sustainability not as an expense but as a competitive edge. For organizations still hesitant, her advice is clear: The time to act is now. Whether addressing Scope 1 or tackling Scope 3, immediate action is crucial. While the Trump administration has disrupted progressive regulations, global climate initiatives continue to flourish. The future will favor those who plan for it today.