New Research Charts Path for MENA to Meet Mounting Global Sustainability Demands

World Economic Forum, [email protected]

Geneva, Switzerland, 7 November 2024 - The World Economic Forum today released a new report on how the Middle East and North Africa region (MENA) can prioritize sustainability in critical industries such as oil and gas, retail, finance and utilities. MENA companies are facing increasing pressure from investors, regulators and global markets to strengthen transparency and adopt more sustainable business models.

The paper aims to empower companies in key industries to enhance their sustainability performance, meet market demands and help build a greener, more sustainable future for the region and beyond. The work comes as part of the Leaders for a Sustainable MENA community's efforts to translate global climate action goals into regional sustainability strategies that are grounded in local realities.

The new report, Prioritizing Sustainability in MENA: Mapping Critical Environmental Issues for Regional Businesses, released in collaboration with Bain & Company, finds that MENA faces increasing expectations to adopt more sustainable business practices. With 70% of the global economy expected to face mandatory sustainability reporting within the next two years, regional businesses urgently need to improve sustainability performance and transparency to remain competitive globally.

"With its natural endowments of solar and wind energy, a ready supply of capital and a long-term focus among many of its governments, MENA is well-placed to leapfrog traditional development phases and integrate sustainability directly into its agenda for economic diversification and growth," said Maroun Kairouz, Head of Middle East and North Africa, World Economic Forum. "The proactive adoption of sustainability practices, supported by clear regulatory frameworks and incentives, is essential for the region to navigate this complex landscape successfully."

The report emphasizes the importance of environmental materiality assessments as a critical starting point for companies aiming to meet sustainability goals. By prioritizing issues that are most relevant to their industry and sector, such as greenhouse gas emissions, water management and biodiversity, MENA businesses can improve risk management, transparency and investor confidence. To assist businesses at various stages of their sustainability journey, the report outlines sector-based roadmaps, including tailored recommendations on how to measure and disclose environmental impacts.

Despite 70% of the region's emissions falling under net-zero pledges, many businesses still lack clear guidelines to effectively navigate these ambitious climate goals. The report provides a comprehensive roadmap to help MENA companies align their practices with global sustainability standards, address specific regional challenges and ultimately strengthen resilience. By adapting to these standards, businesses can enhance investor confidence and play a vital role in the global fight against climate change.

Government leadership remains crucial in achieving these goals and fostering sustainability in MENA more broadly. The report analyses the national sustainability efforts of nine countries in the region, going beyond emissions calculations to examine the policy ambition and the maturity of the enabling environments. The report recommends that policy-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.

Akram Alami, Middle East Head of Utilities, Aviation, and Sustainability & Responsibility Practices at Bain & Company, said: "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. This report provides businesses with the tools and insights they need to navigate the complex sustainability landscape and take decisive action."

Ten best practices

The paper identifies best practices from public and private sectors in the region not only to embed sustainability into core operations but also to use their influence to transition the region to more sustainable business models:

About Leaders for a Sustainable MENA

Launched in 2022, the Leaders for a Sustainable MENA (LSM) is a World Economic Forum-led community made up of a diverse coalition policy-makers, business leaders, financial institutions and industry experts working to shape an ambitious sustainability agenda within the unique regional context of MENA. Through LSM, 40+ government and business leaders work together to scale low-carbon technologies and infrastructures to shape a climate-resilient future for the region.

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