A new report by global management consulting firm Bain & Company in partnership with the World Economic Forum (WEF) titled ‘Prioritising Sustainability in MENA: Mapping Critical Environmental Issues for Regional Businesses’ highlights the environmental challenges facing businesses across the MENA region and provides a roadmap for corporate leaders to align their operations with sustainability goals.
Historic commitments were made at COP28 in Dubai in 2023, and the region is under mounting pressure from investors, regulators and global markets to enhance transparency, accountability and sustainability practices.
The UAE made several pledges as the host of COP28, including various climate financing efforts, such as the $200 million contribution to the International Monetary Fund’s Resilience and Sustainability Trust to fund climate resilience in low-income countries. Furthermore, the UAE made a $30 billion investment towards a climate fund intended to mobilise $250 billion by 2030 to help finance climate initiatives.
“The MENA region is at a crossroads, where the choices made today will determine the sustainability and resilience of its economy in the coming decades”, said Abram Alami, Middle East Head of Utilities, Aviation, and Sustainability and Responsibility Practices at Bain & Company.
“This report provides businesses with the tools and insight they need to navigate the complex sustainability landscape and take decisive action.”
Key findings:
1 – Post COP28 Pressure
The MENA region is at a pivotal point in its sustainability journey – especially considering the landmark commitments made at COP28. Net zero pledges now cover 70 per cent of MENA’s emissions, up from 60 per cent two years ago. However, the report finds that businesses still lack clear tailored guidelines to meet these ambitious goals effectively.
2 – Environmental Materiality Assessments
The report emphasises the importance of environmental materiality assets as a critical starting point for companies aiming to meet sustainability goals. By prioritising issues that are most relevant to their industry and sector, MENA businesses can improve risk management, transparency and investor confidence.
3 – Sector-Specific Recommendations
The report outlines sector-based roadmaps. “MENA businesses have a unique opportunity to lead by example and redefine sustainable growth,” said Raja Atoui, Partner and Leader within the Energy & Natural Resources and Sustainability & Responsibility Practices at Bain & Company.
“Our sector-specific recommendations are designed to empower organisations at every stage of their sustainability journey – from those taking their first steps to those looking to achieve full environmental transparency.”
Industries such as oil and gas, retail, financial institutions, and utilities, received tailored recommendations on how to measure and disclose environmental impacts.
4 – The Role of Governments
Government leadership remains crucial in fostering sustainability across MENA. Policy and decision-makers must continue to set clear regulations, provide financial incentives, and support collaboration between public and private sectors to accelerate the region’s transition to a more sustainable economy.
Industry and Government Collaboration is key:
The report acknowledges the significant progress made by major corporations in integrating sustainability into their core business practices. However, it stresses the importance of broader collaborations to ensure these advancements reach small and medium enterprises (SMEs) that play a critical role in the MENA economy. The region can better meet environmental and economic goals by fostering a collective effort across supply chains.
Looking ahead:
Sustainability is becoming a defining element of business strategy, but the report calls for more robust collaboration between the public and private sectors, the adoption of regional sustainability reporting frameworks, and the acceleration of policies that support a sustainable future. With this new roadmap, MENA businesses can strengthen their environmental resilience and contribute effectively and meaningfully to global sustainability efforts.
Read the full report here
