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COP28: Middle East Firms Push For Sustainable Change | |
| Sumita Pawar |
A report by PwC Middle East has shown that companies in the region are moving from an environmental, social and governance (ESG) start-up to a more sustainable scale-up mode, driven by climate risk awareness and regulatory compliance.
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Yahya Anouti, PwC Middle East’s ESG Leader said that along with an increased appetite and progress seen on ESG in the Middle East, companies are developing a stronger sense of what is needed to further progress on their ESG agenda.
"Businesses expect governments in the region to step up and develop policy frameworks similar to the Green New Deal in Europe for the Middle East region ahead of COP28. We strongly believe that with the right coordinated response from governments, 2023 could be the region’s most environmentally transformative year yet," said Anouti.
The survey revealed that 64% of companies in the region adopted a formal ESG strategy last year and the number of entities with no ESG strategy has halved.
"ESG transformation requires a joint effort between businesses and government bodies. To accelerate progress, companies must prioritise ESG imperatives, while policymakers should continue to develop clear policies and regulations to support their ambitions," said Stephen Anderson, PwC Middle East’s strategy and markets leader.
"Green standards, improved circular infrastructure and tangible incentives for green growth are becoming increasingly important for companies in the region. The three most desired ESG-related government policies are clear policies and regulations, certification mechanisms, and tangible incentives for green growth, which businesses hope to see announced at COP28."
The report also highlighted a lack of internal skills and expertise in sustainability as the top barrier to advancing the ESG agenda.
The Middle East is also witnessing a growing sustainability mandate at the executive level.