Companies in the Middle East are increasingly prioritizing sustainability in their corporate agendas, according to a new survey.
PwC Middle East‘s recent sustainability report reveals that four in five executives (79 percent) now have a formal sustainability strategy in place, with over half of them (52 percent) fully embedding it across their organizations. The report also highlights the growing trend of companies creating senior-level sustainability roles, with 48 percent of respondents indicating their companies either have a Chief Sustainability Officer (CSO) or plan to appoint one in the next 12 months.
Commenting on the findings, Dr. Yahya Anouti, PwC Middle East Sustainability leader, said: “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 prioritising responsible investments and embrace advanced technologies to drive innovative climate solutions. It’s crucial for business leaders to understand that sustainability actions can not only generate a return on investment but also boost profitability.”
Net-zero emissions commitments on the rise
The report further shows that sustainability is rising higher on the C-suite agenda, leading to a wider adoption of net-zero greenhouse gas emission targets. Half of all respondents stated that they have made a net-zero commitment, with an additional 26 percent working toward making such a commitment.
Emphasising the need for tangible actions, Stephen Anderson, PwC Middle East Strategy leader, said: “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.”
Building a sustainability-focused talent pipeline
To create a talent pipeline for the future, companies are focusing on raising existing skill levels and employing diverse talent, essential for sustainability strategies. 79 percent of executives cited knowledge of sustainability reporting and regulations as a key requirement. Additionally, future-focused skills for technology adoption, like Generative AI (GenAI), are crucial for enhancing sustainability efforts. However, the survey reveals that AI deployment is still in its early stages, with respondents mainly using it to enhance existing capabilities, such as data analysis and insights (48 percent) or reporting (45 percent), rather than optimizing supply chains or developing circular economy models.
Diversifying green finance sources
Tapping into new sources of funding has been one of the critical breakthroughs over the past year. Respondents in the survey are looking to access a greater variety of financing opportunities and mechanisms, with self-funding remaining the most common green finance source. 34 percent of respondents reveal that they would opt for green loans, and an equal number (33 percent) considering capital markets (for example, green or blue bonds) as part of their financing options.
Private sector as a sustainability catalyst
The private sector is seen as a catalyst for action, with sustainability leaders surveyed indicating a clear appetite and opportunity for the private sector to drive the region’s sustainability agenda. The survey shows that nearly 9 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.
Anderson concludes: “In order for the momentum on the sustainability agenda to continue, we foresee four key areas of focus for sustainability leaders in the Middle East. These include upskilling the workforce, strengthening infrastructure in areas such as the circular economy, creating standardised sustainability regulations, and enabling funding for sustainable development.”
PwC’s third Middle East Sustainability survey captured insights from C-suite and director-level executives involved in sustainability activities within their organizations. Most participants were from organizations headquartered in the Gulf Cooperation Council (GCC) region, particularly the United Arab Emirates (UAE), Saudi Arabia, and Qatar. 64 perent of the participating organizations had revenues exceeding $100 million and represented a broad range of sectors.
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