As ESG expectations continue to progress, the social dimension “S” has emerged as one of the main pillars of sustainability with investors, regulators, and consumers paying more attention to labor practices, addressing inclusivity in employment especially in sectors that have historically faced significant labor scrutiny, such as manufacturing (UN Global Compact, 2024). This transition reflects a recently established – driven by socioeconomic changes – point of view that evaluates equitable workplaces as not only a sign of moral standing but also a marker of good business.
DEI in Manufacturing
Diversity, equity, and inclusion aren’t just ethical issues, they are strategically important, especially in sectors such as manufacturing. How?
Diversio (2024) found that manufacturers with diverse teams are more likely to achieve better results in innovation, talent retention and productivity. The manufacturing industry in the U.S. faces a significant labor gap, with approximately 2.1 million jobs projected to be unfilled by 2030. Further, prioritizing inclusivity is essential, not only to foster an inclusive culture, but as a means to tap into broader, more accessible talent pools (Brightly Software, 2021).
According to the UN Global Compact (2024), businesses exhibiting exemplary labor practices demonstrate increased resiliency and trust from stakeholders. The prioritization of social performance shifts to the boardroom, this pressure from investors is gradually beginning to take shape in public policy as well. For example, the U.S. CHIPS Act requires recipients of funding to incorporate inclusion strategies within their workforce planning when capitalizing on “tech-advanced” manufacturers (Rizi et al., 2023).
DEI in UAE
The world seems to be catching on. Can the same be argued for UAE? The quick answer is yes.
As a lead host of COP28 and the home of IRENA, the UAE hold global significance in climate action and social sustainability, reinforcing its stance on gender-inclusive industrial leadership (UN Global Compact Network USA, 2024). Furthermore, as outlined in the UAE Federal Human Rights Strategy (2021), gender equality, labor welfare, and inclusive workforce development are paramount (UAE Government Portal, 2021).
DEI @ AGSI
“We commit to the UN Global Compact Principles 1 to 6 for Human Rights and Labor Standards which is our fundamental aspect of responsible and ethical business conduct”
With a multi-national workforce of over 30 nationalities, AGSI speaks through actions, actively promoting multicultural integration and demonstrating its commitment to internationally recognized social sustainability standards by signing on to the UN Global Compact Principles 1- 6, which cover fundamental human rights and labor standards.
But AGSI’s commitment goes way beyond baseline compliance. Through inclusive policies, dedicated infrastructure and community initiatives, AGSI embeds Diversity, Equality, and Inclusion (DEI) into the core of its corporate culture and People Strategy.
This is reflected in our diverse recruitment practices, regular in-house training across safety, technical, and behavioral development, and our gender-appropriate accommodations that meet rigorous labor welfare standards, including access to healthcare and recreational facilities. These efforts ensure dignity and wellbeing across all levels of employment.
Beyond the workplace, AGSI extends its social responsibility into the wider community through initiatives such as blood donation drives and partnerships with organizations supporting vulnerable groups.
Together, these efforts represent more than a response to compliance, they reflect a forward-looking approach to social sustainability. By weaving DEI into every layer of our operations, we are not only meeting today’s expectations but laying the groundwork for long-term ESG integration and leadership. In doing so, AGSI strengthens its position as a resilient, inclusive employer in a traditionally male-dominated sector, building cohesion, trust, and readiness for the future
A Strategic Advantage, Not Just a Social Duty. Why does all this matter?
Let’s step back though for a minute to try and better understand this gravitational pull towards DEI reform. Or better yet, let’s dive a little deeper.
Diversity is no longer just a nice to have. As manufacturing continues to evolve rapidly with advancements in robotics, Industrial IoT, and automation, companies that invest in creating an inclusive culture will have a competitive advantage in filling emerging high-skill roles and driving innovation (Seramount, 2024).
You see, companies that embrace DEI practices benefit from improved brand equity, reduced risk and better access to financing, especially as investors apply ESG scoring across their portfolios (UN Global Compact, 2023).
You can tell its serious business since government procurement bodies and large-scale private-sector buyers are now setting the same higher bar on social standards. As a result, verifiable DEI policies and demonstrable impact are increasingly becoming the eligibility criteria for major contracts (UNGC Network USA, 2024).
What’s ahead?
As established frameworks like ISO 26000 and GRI are expanding to include workforce diversity and social performance markers, companies will have even greater exposure to DEI on the regulatory and reputational fronts, especially with the introduction of new European regulations like the Corporate Sustainability Reporting Directive, requiring organizations to disclose their social impact. As for the future of sustainable manufacturing, it will not be defined exclusively by greenhouse gas emissions or efficiency metrics but rather by how a company treats people. In a time like this, AGSI’s strategy provides a competitive edge impacting credibility with partners, regulators and prospective employees.
References
- UN Global Compact, 2024
UN Global Compact (2024)2024: A Year of Major Progress. [online] Available at: https://unglobalcompact.org/compactjournal/2024-year-major-progress-un-global-compact - Diversio, 2024
Diversio (2024)DEI in Manufacturing. [online] Available at: https://diversio.com/industries/dei-manufacturing/ - Brightly Software, 2021
Brightly Software (2021)Fostering Diversity, Equity & Inclusion in Manufacturing. [online] - Rizi et al., 2023
Rizi, F., Aljanabi, H., Turetken, O. and Demirors, O. (2023)A Strategic DEI Perspective in Tech-Advanced Manufacturing: Workforce Strategies in CHIPS Act Applications. arXiv preprint. - UAE Government Portal, 2021
UAE Government (2021)Federal Human Rights Strategy. [online] - UN Global Compact Network USA, 2024
UN Global Compact Network USA (2024) Various Reports and Newsroom Updates. - Seramount, 2024
Seramount (2024)Top 5 DEI Trends for 2024. [online] Available at: https://seramount.com/articles/top-5-dei-trends-for-2024/ - UN Global Compact, 2023
UN Global Compact (2023)Annual Report 2023