PwC’s third Middle East Sustainability Survey, conducted from April 1 to May 6, provides critical insights into the evolving sustainability landscape across the region.

The survey captured responses from C-suite and director-level executives, primarily from organizations headquartered in the UAE, Saudi Arabia, and Qatar, with most participants representing companies with revenues exceeding $100 million.

Key Findings

  1. Increased Adoption of Sustainability Strategies: The survey reveals that 79 percent of executives now have a formal sustainability strategy, indicating a significant shift towards prioritizing sustainability in corporate agendas. Notably, 52 percent of these companies have fully embedded their sustainability strategies across their organizations, demonstrating a deeper commitment to integrating ESG principles into core business operations.
  2. Focus on Long-Term Value Creation: Executives increasingly view sustainability as a driver of long-term value creation. The report highlights that businesses in the Middle East recognize the importance of sustainability in enhancing their competitive edge, mitigating risks, and meeting stakeholder expectations.
  3. Challenges in Implementation: Despite the positive momentum, the survey also identifies challenges in implementing sustainability strategies. These include difficulty measuring and reporting ESG performance, aligning sustainability initiatives with business goals, and securing the necessary resources and expertise.

Recommendations

PwC’s report emphasizes the need for companies to move beyond simply having a sustainability strategy in place. The key recommendations include:

  • Strengthening ESG Reporting and Metrics: Companies should enhance their ESG reporting practices by adopting standardized frameworks and improving the quality and transparency of their disclosures. This approach will help build trust with stakeholders and ensure accountability.
  • Integrating Sustainability into Business Models: Organizations should fully embed sustainability into their business models and decision-making processes. This practice involves aligning sustainability goals with financial performance and ensuring that sustainability considerations are integrated into all aspects of operations.
  • Building Sustainability Capabilities: Companies are encouraged to invest in internal sustainability capabilities to overcome implementation challenges. This course includes upskilling employees, leveraging technology, and fostering a culture of innovation and continuous improvement in sustainability practices.
  • Engaging Stakeholders: Active engagement with stakeholders, including employees, customers, investors, and regulators, is crucial for successfully implementing sustainability strategies. Companies should focus on transparent communication and collaboration to address stakeholder concerns and drive collective action towards sustainability goals.

Assessment

PwC’s survey underscores the growing importance of sustainability in the Middle East’s corporate sector, with a clear trend towards more structured and integrated approaches to ESG. However, the findings also highlight the need for continued efforts to overcome implementation challenges and ensure that sustainability strategies translate into tangible business outcomes for companies in the region to strengthen their sustainability performance and contribute to a more resilient and sustainable future.

For further details, refer to PwC Middle East’s sustainability report.