Companies in the Middle East are increasingly making sustainability a priority in their corporate agenda. 

As per a recent PwC Middle East sustainability report, 79% of executives stated that they now have a formal sustainability strategy, with over half of them (52%) fully embedding it across their organization. The survey further highlights the growing trend of companies creating top-level positions, such as chief sustainability officer (CSO) or sustainability director roles, with 48% of respondents indicating their companies either have a CSO or plan to appoint one in the next 12 months.

“Businesses and government leaders in the Middle East are increasingly committed to tackling the climate crisis and adopting circular economy principles. Leveraging our region’s competitive advantage in renewable energy is key. Both governments and the private sector must collectively continue prioritizing responsible investments and embrace advanced technologies to drive innovative climate solutions. Business leaders must understand that sustainability actions can generate a return on investment and boost profitability,” Dr. Yahya Anouti, PwC Middle East Sustainability leader said.

With sustainability rising higher on the C-suite agenda, net-zero greenhouse gas emission targets are also widely adopted. Half of all respondents state that they have made a net-zero commitment, and an additional 26% are working toward making such a commitment.

“This year’s sustainability report highlights that the region’s business leaders are reacting positively to the growing pressure from regulators and society to show progress on the sustainability front. Yet concerns about the potential costs and the perceived low returns of sustainable investments persist despite evidence suggesting otherwise. Advancing the sustainability agenda will require focused and strategic improvements to ensure ongoing and intensified efforts, transforming climate discussions into tangible actions,” Stephen Anderson, PwC Middle East Strategy leader, said. 

According to the report, creating a talent pipeline for the future requires raising existing skill levels and employing diverse talent. This is essential for sustainability strategies, with 79% of executives citing knowledge of sustainability reporting and regulations as a key requirement. 

One of the critical breakthroughs over the past year has been tapping into new funding sources. This year’s survey found that people want more financing opportunities and mechanisms. Self-funding remains the most common green finance source, while 34% reveal that they would opt for green loans, and an equal number (33%) consider capital markets (for example, green or blue bonds) as part of their financing options.

The sustainability leaders surveyed indicated a clear appetite and opportunity for the private sector to drive the region’s sustainability agenda. Nearly nine out of 10 leaders believe that the private sector can play a role in scaling the region’s sustainability commitment through collaboration, partnerships, and alliances.