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1、Prioritizing Sustainability in MENA:Mapping Critical Environmental Issues for Regional BusinessesW H I T E P A P E RN O V E M B E R 2 0 2 4In collaboration with Bain&CompanyImages:Getty Images,UnsplashDisclaimer This document is published by the World Economic Forum as a contribution to a project,in

2、sight area or interaction.The findings,interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Pa

3、rtners or other stakeholders.2024 World Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,including photocopying and recording,or by any information storage and retrieval system.ContentsForewordExecutive summary1 The case for

4、sustainability in MENA:post-COP28 pressure and challenges1.1 Global trend towards tighter sustainability regulations1.2 Transition to sustainability a prerequisite for all organizations1.3 Barriers to MENA taking a leading role in the transition2 Materiality assessments:navigating the path to enviro

5、nmental transparency2.1 Key disclosure areas2.2 Materiality assessments:a critical starting point2.3 Approach to materiality assessments2.4 Sector-based recommendations for environmental materiality assessments3 Regional sustainability policy landscape3.1 Policy ambitions and enabling environments4

6、Case studies and best practices4.1 Private sector case studies4.2 Public sector case studies4.3 Other best practices for regional reference4.4 What does this mean for MENA?5 Conclusion:next steps in MENAs sustainability journeyContributorsEndnotes34556699101011 17172121283234353738Prioritizing Susta

7、inability in MENA2ForewordAt the crossroads of a rapidly changing global landscape,the Middle East and North Africa(MENA)region is at a pivotal moment in its journey towards a sustainable economy.The historic commitments made at the 28th Conference of the Parties(COP28)to the United Nations Framewor

8、k Convention on Climate Change(UNFCCC)have set the stage for transformative action.Now,more than ever,it is imperative for leaders in MENA to embrace this momentum and proactively address climate action.While the region faces considerable climate-related challenges,it is endowed with abundant access

9、 to solar and wind energy,a ready supply of capital and a long-term focus among many of its governments.As a result,it is well-placed to leapfrog traditional development phases and integrate sustainability directly into its agenda for economic diversification and growth.Since 2022,the World Economic

10、 Forum,together with Bain&Company,has been convening the Leaders for a Sustainable MENA(LSM)a diverse coalition of policy-makers,business leaders,financial institutions and industry experts to help shape an ambitious sustainability agenda that works within the unique regional context of MENA in orde

11、r to leave no one behind.Realizing a transparent,resilient and equitable sustainable future in the region requires looking beyond emissions.Broader environmental issues such as water management,waste management and biodiversity must be actively integrated into the strategies of regional stakeholders

12、.While there are many impressive“green shoots”from some of the largest corporations,these efforts need to be expanded throughout the entire value chain for the region to truly realize the potential of its sustainable transition.This includes suppliers and small and medium enterprises that are notabl

13、y lagging in these efforts,despite their critical economic role.The transition towards sustainability in MENA demands increased corporate accountability and disclosure,particularly on environmental topics,and a commitment across all businesses in the region to adopt more sustainable practices.This r

14、eport,developed with the LSM community,offers a roadmap for how diverse companies across the region can elevate their environmental disclosure practices and sustainability performance.Based on an analysis of top listed companies,as well as insights from dialogues,surveys and interviews with C-suite

15、executives,this report brings a unique approach to environmental materiality assessments in the region,highlighting the need to develop regional disclosure mechanisms that are closely aligned with internationally recognized standards,while ensuring that local and sector specific contexts are adequat

16、ely represented.To achieve a sustainable and equitable future in MENA,it is critical to acknowledge that no single solution fits all.Sustainability strategies need to be grounded in local realities,while also aligning with global goals and ambitions.Now is the moment for bold,decisive action,with in

17、novation and collaboration required to create lasting change.Brge Brende President,World Economic ForumChristophe De Vusser Worldwide Managing Partner,Bain&CompanyPrioritizing Sustainability in MENA:Mapping Critical Environmental Issues for Regional BusinessesNovember 2024Prioritizing Sustainability

18、 in MENA3Executive summaryFollowing the high-profile commitments made at the UNs Climate Change Conference in Dubai in December 2023(COP28)and in alignment with global trends,the MENA region faces increasing pressure from different stakeholders including investors,regulators and global markets to en

19、hance transparency around corporate sustainability practices and transition to more sustainable business models.The region needs to accelerate its progress and MENA companies must be prepared to remain competitive in the global economy,attract international investors and support the regions economic

20、 diversification goals.Lack of region-specific guidelinesHowever,corporations in the MENA region often encounter significant challenges due to the lack of clear guidelines and best practice on reporting that are tailored to the regions unique context.1 Many companies are still in the early stages of

21、 their sustainability journeys,grappling with awareness and capability gaps as well as financial constraints,particularly in understanding and implementing effective reporting practices.Additionally,the regions ambition to accelerate its progress and diversify the economy will involve the use of mat

22、erials and resources,so it is crucial that this development is underpinned by robust principles of sustainability.Towards effective environmental materiality assessmentsTo navigate this complex landscape,companies embarking on sustainability journeys should prioritize environmental topics that most

23、significantly impact their operations,investor decision-making and the broader ecosystem.These topics can be effectively defined through a“materiality assessment”exercise that enables companies to accurately understand and report on their sustainability performance,allowing for greater transparency

24、among key stakeholders and more effective risk management,which in turn will result in increased investor confidence.This report serves as a roadmap towards effective environmental materiality assessments in MENA,providing high-level guidance on material environmental topics and metrics that should

25、be prioritized by companies based on their sector and stage in the environmental reporting journey.Promising developments are emerging in the region,with organizations demonstrating notable progress in integrating sustainability into core business operations,recognizing the importance of sustainable

26、 development as a key driver of long-term resilience and growth.These examples can inspire organizations across MENA to contribute to a sustainable,resilient and decarbonized MENA economy,covering critical areas such as reducing greenhouse gas(GHG)emissions,decarbonizing the value chain,small and me

27、dium enterprise support and water management.Government leadership is crucialGovernments in the region play a pivotal role in developing clear policies and frameworks and providing incentives.Their leadership is crucial in setting guidelines and best practice,and creating an enabling environment tha

28、t fosters sustainable business practices across all sectors,thereby driving impactful sustainability outcomes.An examination of the main sustainability policies in the MENA region reveals several innovative programmes which act as inspiration for other countries seeking to enhance their sustainabili

29、ty efforts and adopt effective strategies.The shift from traditional to innovative and sustainable solutions is imperative.By focusing on key material issues,embracing knowledge sharing and fostering the combined efforts of the private and public sectors,MENA companies have the potential not only to

30、 overcome the regions most pressing sustainability challenges but also to lead in creating a new era of sustainable economic growth and innovation.Pressure is growing on companies in MENA to accelerate their progress on sustainability.To achieve this will require regional guidelines,materiality asse

31、ssments and political leadership.Prioritizing Sustainability in MENA41Sustainability has emerged as a crucial aspect of corporate strategy and global investment decisions.Companies are now expected to report on their sustainability performance,not just to meet regulatory requirements but also to mee

32、t rising stakeholder demand for transparency and accountability.Countries representing over 70%of global GDP are expected to be subject to mandatory sustainability reporting in the coming years.2 Investors and banks have increasingly factored sustainability into their decision-making processes.The s

33、hare of managed global assets with a sustainability mandate reached 35%in 2022 and is projected to hit 95%by 2030.3 This is driving corporations to increase their sustainability disclosures as asset managers prioritize investments with proven sustainability commitments.Furthermore,studies and market

34、 indicators show a positive correlation between sustainability efforts and financial performance.For example,global sustainability-focused exchange-traded funds(ETFs)have outperformed global stock market ETFs by 30%since 2018.4At the same time,global markets are putting pressure on companies to redu

35、ce the carbon footprint of their products.Given the increasingly global nature of their operations,MENA companies must be well equipped to respond.A notable example of regulation is the Carbon Border Adjustment Mechanism(CBAM)of the European Union(EU),which will impose a carbon tariff on products im

36、ported from non-EU countries starting in 2026.Initially,CBAM will cover EU imports of cement,iron and steel,aluminium,fertilizers and electricity,which are key exports of many MENA countries to the EU.For example:Aluminium:United Arab Emirates(UAE)contributes 8%and Bahrain contributes 3%to EU import

37、 volumes.Fertilizers:Egypt contributes 21%and Algeria contributes 20%to EU import volumes.Cement:Algeria contributes 6%,Morocco contributes 5%and Tunisia contributes 3%to EU import volumes.Looking at this situation through a cross-sector lens,the MENA countries most affected by the initial phase-in

38、of CBAM are Egypt,Algeria,UAE and Morocco due to their significant export volumes in the initially targeted sectors.51.1 Global trend towards tighter sustainability regulationsThe case for sustainability in MENA:post-COP28 pressure and challengesCompanies in the region need regulatory clarity and in

39、centives from government to accelerate their sustainability reporting and actions while remaining competitive.The share of managed global assets with a sustainability mandate reached 35%in 2022 and is projected to hit 95%by 2030.Prioritizing Sustainability in MENA5The transition towards sustainable

40、practices is becoming less a differentiator for large players and increasingly a prerequisite for all organizations.In response to increasing global pressure,MENA governments have launched long-term national strategies with key sustainability goals and net-zero targets.Approximately 70%of the region

41、s emissions now fall under net-zero pledges,up from 60%two years ago.6 Governments have shown an ability to move quickly on sustainability,exemplified by the UAEs launch of 78 environmental initiatives in preparation for COP28.7These public decision-making efforts are supported by pioneering sustain

42、able finance initiatives.In 2023,over$29 billion was issued through green,social,sustainable and sustainability-linked bonds in MENA.8 For instance,the Dubai-based conglomerate Majid Al Futtaim recently raised$500 million through a green“sukuk”(Islamic bond),its fourth in about four years,setting a

43、precedent for successful offerings in the region.9 Large corporations have also set strong precedents,with companies like ACWA Power aiming for a 50%reduction in GHG intensity in electricity production by 2030(compared to 2020).Similarly,Emirates Global Aluminium(EGA)has formed an alliance with rene

44、wable energy company Masdar to work on decarbonizing aluminium and growth opportunities for low-carbon aluminium.101.2 Transition to sustainability a prerequisite for all organizationsDespite public decision-making efforts,pioneering sustainability initiatives and significant progress by large corpo

45、rations,MENA companies continue to grapple with several challenges and that require tailored solutions.Complexity of global sustainability reporting frameworksThe challenge of adhering to a diverse range of global reporting standards adds significant obstacles for companies and investors.Within this

46、 complex landscape,the International Sustainability Standards Board(ISSB)of the International Financial Reporting Standards(IFRS)Foundation is aiming to provide a global standard that consolidates and aligns with the progress made by similar existing frameworks.Their first standard(IFRS S1)focuses o

47、n general requirements for sustainability-related financial disclosures,while their second standard(IFRS S2)addresses climate-related disclosures in particular.11ISSB has committed to maintaining,enhancing and evolving the work of the Sustainability Accounting Standards Board(SASB)and will continue

48、to align SASBs standards with the industry-based guidance accompanying IFRS S2 climate-related disclosures.More than 20 jurisdictions,representing nearly 55%of global GDP,have already announced plans to either adopt or adapt the ISSB standards in the latter case,issuing their own standards adapted t

49、o the regional context while using ISSB as a baseline.12Lack of regional regulatory clarityOne of the main challenges for companies seeking to become more sustainable is a lack of regulatory clarity.In a 2024 survey of LSM community members(C-suite executives from some of the largest companies in th

50、e region),73%of respondents recognized the lack of clear sustainability-related regulations as a key barrier up from 64%in the same survey in 2023(see Figure 1).Conversations with LSM community members in workshops and interviews delivered the same verdict,with one major financial institution highli

51、ghting the uncertainty around regional reporting and disclosure standards,as well the gap between policy direction and practical implementation.This indicates that,despite the launch of significant policies in recent years,there is a perception that regulations are still evolving and often unclear.T

52、his lack of clarity adds complexity to strategic planning and sustainability efforts.1.3 Barriers to MENA taking a leading role in the transition 70%of the regions emissions now fall under net-zero pledges,up from 60%two years ago.Prioritizing Sustainability in MENA6Which external challenges have yo

53、u faced in your sustainability programme implementation?(%respondents,May-August 2024;March-June 2023).2024202320406080100%Market-related challengesRegulatory and policy-related challengesFinancialchallengesTechnologicalchallengesInfrastructurechallengesAbsence of customeror regulatory/policy driver

54、s82%50%64%50%36%57%27%7%073%64%Key challenges to achieving sustainability,as reported by leading companies in MENA(2024)FIGURE 1Source:World Economic Forum and Bain&Company.(2024).Leaders for a Sustainable MENA(LSM)Executive Survey.13Financial constraintsMore than 80%of respondents highlighted marke

55、t-related challenges,such as market volatility and international competition,as barriers they face in implementing their sustainability programmes.Respondents also pointed to financial constraints,despite considerable growth in pioneering sustainable finance in the region.Even with the value of sust

56、ainability-linked bonds in 2023 reaching more than$29 billion,14 companies are not sufficiently tapping into green funding sources to fund sustainable initiatives.This financial struggle is highlighted by the fact that nearly two-thirds of companies report they are struggling to secure adequate fund

57、ing for their low-carbon transition initiatives.The majority of surveyed executives are convinced that government interventions could help companies improve their sustainable practices,both by providing greater clarity on regulations and policies and by offering subsidies or financial investment.The

58、 absence of metrics to gauge sustainability performance that are tailored to the regions unique context highlight the urgent need for MENA to develop its own regional sustainability reporting guidelines and best practices.Nearly two-thirds of companiesreport they are struggling to secureadequate fun

59、ding for theirlow-carbon transition initiatives.Prioritizing Sustainability in MENA7Opportunity for MENA to tailor reporting practices to its unique needsIn this context,the MENA region is at a crossroads in its sustainability reporting practices.One executive within the LSM community labelled this

60、the“Nokia moment of sustainability in the region”that is,the tipping point beyond which trends gain disruptive momentum.The region can either seize the opportunity to participate in the development and adoption of global reporting practices,ensuring adequate representation of the unique regional con

61、text,or risk falling behind by adopting one-size-fits-all standards that may not fully address its specific challenges.Interviews with small and medium enterprises(SMEs)within MENA have confirmed another key insight:the critical need to support suppliers and SMEs in their decarbonization journeys an

62、d broader sustainability efforts.According to the 2024 LMA executive survey in the region,60%of respondents agree.Surveyed companies have started to take actions to engage key suppliers.For instance,nearly 70%have set up sustainability procurement policies,while 40%have started training initiatives

63、to build capacity around sustainability issues.However,there is still much more work to be done.Interviews and discussions with SMEs and suppliers15 in the region highlight the following barriers:Lack of awareness around decarbonization and broader sustainability topics:it is hard to attract the att

64、ention of management,which typically assigns a low perceived value to sustainability.“I dont know where to start,”said one respondent.Limited capabilities:SMEs in the region have limited knowledge on sustainability topics or decarbonization pathways.Insufficient finance:SMEs lack the cash buffer to

65、finance sustainability initiatives.These barriers demonstrate the need for a collaborative approach between larger and smaller corporate players,supported by an accelerated adoption of concrete actions.Addressing these challenges is imperative for MENA companies not only to comply with evolving regu

66、latory demands but also to access necessary capital and maintain competitiveness in a global market increasingly focused on sustainability.60%of executives recognize the importance of supporting their suppliers andSMEs in their decarbonization journeys and broader sustainability efforts.Prioritizing

67、 Sustainability in MENA8GovernanceThis area includes the processes,controls and procedures used to monitor and manage sustainability risks and opportunities.Important disclosures involve identifying the governance body or individuals responsible for overseeing sustainability risks and opportunities

68、and detailing managements role in monitoring and managing sustainability.StrategyOrganizations must disclose information on sustainability-related risks and opportunities that could impact their strategy or decision-making.This includes the potential impacts of these risks and opportunities on the b

69、usiness model,strategy,cash flow and overall financial performance.22.1 Key disclosure areasMateriality assessments:navigating the path to environmental transparencyThis chapter proposes recommendations for sector-based materiality assessments to help companies at all stages of reporting to progress

70、 towards greater transparency.When beginning their sustainability reporting journeys,organizations should disclose information across four key areas:strategy,governance,risk management and metrics/key performance indicators(KPIs).16Metrics/KPIs Organizations also need to disclose the metrics/KPIs an

71、d targets used to monitor sustainability performance.Using the framework of a materiality assessment,this report contains a high-level roadmap for environmental reporting for the key sectors in the region,tailored to their stage along the sustainability reporting journey.While this report focuses on

72、 environmental sector-based topics and metrics as a first step,comprehensive sustainability disclosure should also consider socio-economic and governance factors.Risk management The objective of risk management disclosures is to help stakeholders understand how organizations identify,assess,prioriti

73、ze and monitor sustainability risks and opportunities.Required disclosures include processes for identifying climate risks and opportunities and for integrating these processes into overall risk management frameworks.Prioritizing Sustainability in MENA9Many companies in the MENA region,particularly

74、SMEs,struggle with understanding where to begin,when considering the complex,evolving standards for sustainability reporting.Conducting a materiality assessment that is,identifying and prioritizing the sustainability topics that most significantly impact their operations,investor decision-making and

75、 the broader ecosystem is crucial for companies to define clear metrics/KPIs to measure and track sustainability performance and progress.Conducting a materiality assessment offers the following advantages:Focus on critical issues:Enables companies to manage risks and define targeted initiatives by

76、focusing on the most crucial sustainability issues.Efficient resource allocation:Allows for accurate measurement of sustainability performance and efficient allocation of resources.Strategic alignment:Ensures alignment of strategies and effective stakeholder engagement.Transparency and compliance:In

77、creases transparency for investors and ensures compliance with current and future regulations.Innovation boost:Drives innovation within the company.Regional adaptation:Facilitates the adaptation of sustainability practices to the specific regional context.Increased value:Companies that excel in addr

78、essing critical sustainability issues enhance business value and tend to achieve higher annual stock returns compared to their competitors.To fully leverage these benefits,materiality assessments should be embedded in a companys strategic priorities,rather than viewed merely as a reporting exercise.

79、This will empower organizations not only to meet regulatory demands but also to drive significant impacts throughout their value chains,thereby enhancing overall sustainabilityperformance.2.2 Materiality assessments:a critical starting pointUsing the framework of materiality assessment,this chapter

80、contains a high-level roadmap for environmental reporting for the key sectors in the region including oil and gas,retail,financial institutions,utilities,and metals and mining.It outlines the key topics and metrics to prioritize,measure and report depending on the level of the companys maturity in t

81、heir sustainability journey.By customizing these recommendations and highlighting regional differences,this guidance aims to set best practice for environmental materiality assessment in MENA.It is crucial for larger players at a more advanced stage in their journey to support smaller companies in p

82、rogressing to the next stage.Global sector-based standards established by SASB(currently being enhanced by ISSB)were used as a baseline to develop the recommendations highlighted in this report.Furthermore,recent sustainability reports from over 200 leading publicly listed companies in the MENA regi

83、on,as well as non-listed entities from hard-to-abate sectors,were examined to evaluate best practices in environmental reporting.These recommendations were enhanced with insights from members of the LSM community,ensuring that guidance is tailored to the regions unique context.The approach identifie

84、s which metrics/KPIs are most critical at each stage,depending on the maturity of a companys sustainability reporting.The result is a MENA-specific approach to assessing the materiality of sustainability-related issues that can inform the early steps that companies take on their sustainability discl

85、osure journey.2.3 Approach to materiality assessments Materiality assessments should be embedded in a companys strategic priorities,rather than viewed merely as a reporting exercise.Prioritizing Sustainability in MENA10As companies progress on their environmental reporting journeys,they need to have

86、 a well-defined reporting roadmap that addresses the specific needs of both the region and their sector.Different sectors in MENA are at different stages in their journeys.For example,the retail sector features a high number of privately held companies and often lacks strong incentives for comprehen

87、sive reporting.Conversely,the oil and gas sector benefits from stringent regulations,fostering more advanced environmental reporting practices.This section presents five sector-based strategic blueprints for assessing materiality,comprising three transformative stages depending on the maturity of a

88、companys environmental reporting:Mastering the quick wins:Reporting priorities for all companies,but especially for those just embarking on their environmental reporting journey.Bridging the gaps:New focus areas for companies progressing along their reporting pathway.Embracing full transparency:More

89、 detailed and sector-specific metrics for leading companies with advanced environmental reporting maturity.Each stage is designed to increase the level of transparency and detail around the data disclosed on environmental risks and opportunities.Companies should regard each issue detailed below as a

90、 minimum reporting requirement essential at the relevant stage of reporting maturity.172.4 Sector-based recommendations for environmental materiality assessmentsPrioritizing Sustainability in MENA11Depending on the current stage of their environmental reporting journey,companies need to identify whi

91、ch of these material topics and metrics to prioritize and report,based on their strategic priorities.From quick wins.and bridging gaps.towards full transparency on sustainability-related risks and opportunitiesHigh level of adoption among regional reporting best practices,closely aligned with region

92、al priorities.Starting point for companies at the beginning of their disclosure journey.GHG/methane emissions,energy consumption and respective intensity metrics.Strategy and targets to reduce emissions and achieve sustainability goals.Reductions in GHG emissions.Water withdrawn and consumed.Scope 1

93、 emissions from i)flared hydrocarbons,ii)other combustion,iii)process emissions,iv)other vented emissions,v)fugitive emissions.Scope 3 emissions and intensity.Non-GHG air emissions(e.g.particulate matter).Total waste generated and disposed(hazardous vs.non-hazardous).%of water withdrawn/consumed in

94、regions with high water stress.Number of non-compliant water incidents.Volume of produced water and flowback.%of water discharged or injected.%of waste recycled and diverted(hazardous vs.non-hazardous).Impact on local ecosystems and biodiversity.Protected areas affected by operations;land disturbed

95、or rehabilitated.R&D expenses from sustainability-related projects(e.g.CCUS,DAC etc.).Improvement areas in the region:material topics with medium adoption among best practices.Existing gaps in the region with low adoption among best practices and a degree of complexity involved with reporting on the

96、se metrics(especially lack of infrastructure to monitor and measure).Companies more mature in sustainability reporting and with greater impacts related to these topics should report these metrics.Journeystarting pointEarly stagecompaniesDevelopingcompaniesEmergingleadersEnvironmental reporting leade

97、rsEnergyAirGHGsWaterWasteBiodiversityStage 1:Mastering the quick wins GHG emissions and carbon intensity:Begin by reporting GHG emissions and carbon intensity.Establishing and communicating strategies and targets to reduce emissions is crucial,as is tracking year-on-year GHG reductions.Methane emiss

98、ions and intensity:Make reporting methane emissions and intensity a priority.Energy consumption:Report on both energy usage and intensity.Water usage:Monitor and manage water usage critically important,given MENA faces significant water scarcity challenges.Even at this early stage,companies should d

99、isclose water consumed and withdrawn.Stage 2:Bridging the gaps Air emissions:Reporting on non-GHG air emissions such as particulate matter and volatile organic compounds(VOCs)is essential.Waste management:Report on hazardous and non-hazardous waste generated and disposed during downstream operations

100、.Emissions segmentation:Provide a detailed analysis of emissions from various sources,including flared hydrocarbons,other combustion processes and fugitive emissions.Companies also need to report scope 3 emissions and intensity.Stage 3:Embracing full transparency Advanced water management:Focus on r

101、eporting water withdrawal and consumption in high-stress regions,non-compliant water incidents and the amount of“flowback”generated(mixture of water and chemicals returned to the surface,following hydraulic fracking),among other important water-related metrics.Comprehensive waste management:Report o

102、n the percentage of hazardous and non-hazardous waste recycled and incinerated,especially for downstream operations.Biodiversity:Disclose data on local ecosystem impacts,protected areas affected by operations and land rehabilitation efforts.Research and development(R&D):Sector leaders in sustainabil

103、ity should report R&D into transition pathways such as renewable energy,carbon capture utilization and storage(CCUS),direct air capture(DAC)and clean hydrogen.Materiality assessment for oil and gasBlueprint1Materiality assessment for oil and gasFIGURE 2Source:Bain analyses,considering regional adopt

104、ion of best practices and ease of reporting.Notes:Blue text=metric more relevant for downstream operations.CCUS=carbon capture,utilization&storage.DAC=direct air capture.Prioritizing Sustainability in MENA12Stage 1:Mastering the quick wins Scope 1 and 2 emissions:Begin by reporting scope 1 and 2 emi

105、ssions,including transport GHG emissions,and outline strategies to reduce those emissions in line with specific targets.Energy and water risk management:Disclose energy consumption(including transport-related energy)and the companys water risk management approach.Stage 2:Bridging the gaps Comprehens

106、ive energy management:Provide more detailed analysis of emissions and energy consumption.Report scope 3 emissions and intensity,the percentage of renewable energy used and fuel consumed,including transportation fuels.Water stress mitigation:Report on water withdrawal and consumption critically impor

107、tant,given MENA faces significant water scarcity challenges.Document and address non-compliant water incidents.Stage 3:Embracing full transparency Waste management:Report on waste generation,recycling,composting and processing methods.Transparency in this area is a vital priority,given the regions h

108、igh waste volumes and limited recycling infrastructure.Advanced food retail metrics:Specialized metrics such as refrigerant emissions,average emission rates and the use of refrigerants with zero ozone-depleting potential are key indicators of environmental responsibility for the food retail sector.A

109、dvanced water metrics:Report on the percentage of water consumed and withdrawn in regions experiencing water stress;demonstrate deep commitment to sustainable water management.Enhanced energy reporting:Transparency in energy use includes detailed reporting on percentage of renewable fuel used by veh

110、icle fleets and grid electricity usage.Materiality assessment for retailFIGURE 3Materiality assessment for retailDepending on the current stage of their environmental reporting journey,companies need to identify which of these material topics and metrics to prioritize and report,based on their strat

111、egic priorities.From quick wins.and bridging gaps.towards full transparency on sustainability-related risks and opportunitiesHigh level of adoption among regional reporting best practices,closely aligned with regional priorities.Starting point for companies at the beginning of their disclosure journ

112、ey.Gross scope 1 and 2 emissions(incl.transport GHGs).Strategy and targets to reduce emissions.Operational and total energy consumed(incl.transport).Water risk management.Scope 3 emissions and intensity.%of renewable energy used.Fuel consumed(incl.transport).Water withdrawn and consumed.Number of no

113、n-compliant water incidents.Amount of waste generated.Amount of waste recycled,composted and processed.For food retailers:Emissions from refrigerants.Average refrigerant emissions rate.%of refrigerants consumed with zero ozone-depleting potential.%of water consumed in regions with water stress.%of w

114、ater withdrawn in regions with water stress.%of renewable fuel used by vehicle fleets.%of grid electricity used.Improvement areas in the region:material topics with medium adoption among best practices.Existing gaps in the region with low adoption among best practices and a degree of complexity invo

115、lved with reporting on these metrics(especially lack of infrastructure to monitor and measure).Companies more mature in sustainability reporting and with greater impacts related to these topics should report these metrics.Journeystarting pointEarly stagecompaniesDevelopingcompaniesEmergingleadersWas

116、te is more challenging in MENA,due to volume and lack of infrastructureEnvironmental reporting leadersEmissions(incl.transport GHGs)EnergyWaterWaste mgmt.Fuel mgmt.(incl.fleet fuel)Source:Bain analyses,considering regional adoption of best practices and ease of reporting.Blueprint2Prioritizing Susta

117、inability in MENA13Stage 1:Mastering the quick wins Scope 1 and 2 emissions:Begin by reporting on scope 1 and 2 emissions.Sustainability risks from internal operations:Report on other sustainability risks,such as water and energy consumption.Stage 2:Bridging the gaps Sustainability factors in credit

118、 analysis and investment management:Disclose how sustainability factors are incorporated into credit analysis and investment management.Credit exposure to high-risk sectors:Provide insights into the exposure of credit to high-risk environmental sectors.Value of investments or loans integrating susta

119、inability factors:Disclose the value of investments or loans that integrate sustainability factors,along with respective revenues by sector.Stage 3:Embracing full transparency External exposure to climate risks:To achieve full transparency on sustainability-related risks and opportunities,companies

120、should report on external exposure to climate risks,especially physical and transition risks.Policies for managing climate change risks:Develop and report on policies for managing and mitigating climate change risks.Financed emissions reporting:Report financed emissions,including scope 1,2 and 3 emi

121、ssions related to activities financed by the company or institution.Measuring financed emissions requires robust data collection and consistent methodologies,so it is important to detail the methodology used to calculate financed emissions.This is particularly relevant given that MENA lacks regional

122、 standardized frameworks for financed emissions reporting.Materiality assessment for financial institutionsFIGURE 4Materiality assessment for financial institutionsDepending on the current stage of their environmental reporting journey,companies need to identify which of these material topics and me

123、trics to prioritize and report,based on their strategic priorities.From quick wins.and bridging gaps.towards full transparency on sustainability-related risks and opportunitiesHigh level of adoption among regional reporting best practices,closely aligned with regional priorities.Starting point for c

124、ompanies at the beginning of their disclosure journey.Gross scope 1 and 2 emissions.Other sustainability risks from internal operations(e.g.water and energy consumption).Credit exposure to high-risk sectors.Value of investments and loans that incorporate ESG factors and respective revenues,by sector

125、.External exposure to climate risks(especially physical risks and transition risks).Policies to manage risks of climate change mitigation and adaptation.Financed emissions(scopes 1,2 and 3).Gross exposure by sector included in financed emissions.Methodology to calculate financed emissions(e.g.how em

126、issions related to investments&loans are measured&reported).Improvement areas in the region:material topics with medium adoption among best practices.Existing gaps in the region with low adoption among best practices and a degree of complexity involved with reporting on these metrics(especially lack

127、 of infrastructure to monitor and measure).Companies more mature in sustainability reporting and with greater impacts related to these topics should report these metrics.Internal topics for the bankEmbed ESG into operationsClimate risk exposureFinanced emissionsEmissions and“internal”operationsClima

128、te risksFinanced emissionsESG factors in credit analysis or investment(internal process)Incorporate ESG factors in credit analysis(approach).Incorporate ESG factors in investment mgmt.,investment banking and brokerage(approach).Note:ESG=environmental,social and governance.Source:Bain analyses,consid

129、ering regional adoption of best practices and ease of reporting.Blueprint3Prioritizing Sustainability in MENA14Stage 1:Mastering the quick wins Scope 1 and 2 emissions management:Begin by reporting scope 1 and 2 emissions and carbon intensity.Establish strategies and targets to reduce these emission

130、s.Air emissions and energy management:Disclose air emissions,energy consumption and the percentage of renewable energy used.Waste management:Report on total waste generated and recycled,distinguishing between hazardous and non-hazardous waste and disclose waste management policies.Stage 2:Bridging t

131、he gaps Advanced emissions and energy management:Provide a detailed analysis of emissions,including scope 3 emissions and intensity.Report the percentage of grid electricity used.Comprehensive water and waste management:Address water stress in specific regions,by reporting on the volume of water con

132、sumed and withdrawn.Report on non-mineral waste generated,tailings and waste rock,as well as documenting significant waste-related incidents.Stage 3:Embracing full transparency Advanced water management:Report on management of non-compliant water-related incidents and environmental management polici

133、es.Biodiversity:Report on the percentage of proven and probable mineral reserves near protected sites and the percentage of mine sites with acid rock drainage.Provide detailed reports on environmental management policies,to showcase a holistic approach to sustainable practices.Materiality assessment

134、 for metals and miningMateriality assessment for metals and miningFIGURE 5Depending on the current stage of their environmental reporting journey,companies need to identify which of these material topics and metrics to prioritize and report,based on their strategic priorities.From quick wins.and bri

135、dging gaps.towards full transparency on sustainability-related risks and opportunitiesHigh level of adoption among regional reporting best practices,closely aligned with regional priorities.Starting point for companies at the beginning of their disclosure journey.Scope 1 and 2 emissions and carbon i

136、ntensity.Strategy and targets to reduce emissions.Air emissions.Energy consumed and%of renewable energy used.Total waste generated and recycled(hazardous vs.non-hazardous).Waste management policies.Scope 3 emissions and intensity.%of grid electricity used.Volume of water consumed and withdrawn.Non-m

137、ineral waste,tailings,and waste rock generated.Number of significant waste-related incidents.Number of non-compliant water-related incidents.Environmental management policies.%of proven and probable reserves near protected sites.%of mine sites with acid rock drainage.Improvement areas in the region:

138、material topics with medium adoption among best practices.Existing gaps in the region with low adoption among best practices and a degree of complexity involved with reporting on these metrics(especially lack of infrastructure to monitor and measure).Companies more mature in sustainability reporting

139、 and with greater impacts related to these topics should report these metrics.Journeystarting pointEarly stagecompaniesDevelopingcompaniesEmergingleadersEnvironmental reporting leadersEnergyAirGHGsWaterWasteBiodiversitySource:Bain analyses,considering regional adoption of best practices and ease of

140、reporting.Blueprint4Prioritizing Sustainability in MENA15Stage 1:Mastering the quick wins Scope 1 and 2 emissions management:Begin by reporting scope 1 and 2 emissions for both power generation and water desalination.Establish strategies and targets to reduce these emissions.Energy and water managem

141、ent:Disclose energy consumed and the volume of water consumed and withdrawn.Report on water management risks and the percentage of renewable energy used.Water stress mitigation:Report on the volume of water consumed and withdrawn,ensuring practices align with sustainable water management principles.

142、Stage 2:Bridging the gaps Comprehensive emissions management:Provide a detailed analysis of emissions,including scope 3 emissions and air emissions.Improve reporting on these areas to align with best practices.Stage 3:Embracing full transparency Advanced emissions and electricity management:Manage G

143、HG emissions associated with power deliveries and report the percentage of grid electricity used.Transparency in these areas demonstrates a strong commitment to sustainability.Advanced water and consumer management:Report on non-compliant water incidents,electricity consumption per consumer and smar

144、t grid coverage.Materiality assessment for utilitiesFIGURE 6Materiality assessment for utilitiesJourneystarting pointEarly stagecompaniesDevelopingcompaniesEmergingleadersEnvironmental reporting leadersDepending on the current stage of their environmental reporting journey,companies need to identify

145、 which of these material topics and metrics to prioritize and report,based on their strategic priorities.From quick wins.and bridging gaps.towards full transparency on sustainability-related risks and opportunitiesHigh level of adoption among regional reporting best practices,closely aligned with re

146、gional priorities.Starting point for companies at the beginning of their disclosure journey.Scope 1 and 2 emissions,for both power generation and water desalination.Strategy and targets to reduce emissions.Energy consumed.Volume of water consumed and withdrawn.Description of water management risks.%

147、of renewable energy used.Scope 3 emissions.Air emissions.GHG emissions associated with power deliveries.%of grid electricity used.Number of non-compliant water incidents.Electricity consumption per consumer.Smart grid coverage.Improvement areas in the region:material topics with medium adoption amon

148、g best practices.Existing gaps in the region with low adoption among best practices and a degree of complexity involved with reporting on these metrics(especially lack of infrastructure to monitor and measure).Companies more mature in sustainability reporting and with greater impacts related to thes

149、e topics should report these metrics.EnergyAirGHGsWaterConsumer mgmt.Source:Bain analyses,considering regional adoption of best practices and ease of reporting.Blueprint5Prioritizing Sustainability in MENA163To gain a comprehensive understanding of the national efforts of nine countries in the regio

150、n,this report examines sustainability policies through two key dimensions(see Table 1):Policy ambition including:National strategy Decarbonization/emissions reduction Enabling environment encompassing:Energy transition/renewables/energy efficiency(e.g.adoption of EVs,CCUS,hydrogen)Financial regulati

151、ons/incentives(e.g.reporting guidelines,green financeframeworks)Environmental initiatives(e.g.protected areas,recycling targets,water treatmentprogrammes)Support for value chain/suppliersAs a result,this approach goes beyond simply emissions to provide a comprehensive perspective on each countrys su

152、stainability policies and the main frameworks and programmes supporting their implementation.Governments across the MENA region have been refining sustainability policies and regulatory frameworks to support and enhance private sector efforts.They are actively expanding national strategies to addres

153、s climate change,focusing on areas such as decarbonization,energy transition,financial incentives,environmental conservation and sustainable supply chains.3.1 Policy ambitions and enabling environmentsRegional sustainability policy landscapeNational progress on sustainability can be measured by asse

154、ssing the policy ambition and enabling environment in each country.Prioritizing Sustainability in MENA17Assessing the sustainability policy landscape in MENATABLE 1ParametersPolicy ambitionNational strategy1Is there a national net-zero commitment?2How progressive is the countrys net-zero commitment?

155、(E.g.year of national net-zero commitment showing how aggressive or passive the countrys timeline is).Decarbonization/emissions reduction 3Has the country set specific emissions reduction targets by 2030?(Baseline:Paris Agreement).4How progressive is the national decarbonization strategy?(E.g.scopes

156、 1 and 2).5Has the country set specific sectoral targets for high-emitting sectors?(E.g.percentage of sectors with targets).6Has the country committed to and implemented zero-flaring policies?(E.g.zero routine flaring by 2030 target of the World Bank).7Has the country developed agriculture policy fo

157、r low-carbon practices?Enabling environmentEnergy transition(renewables/energy efficiency)8What is the target share of clean/renewable energy mix by 2030?9Is there a specific target for energy efficiency improvements or electricity reduction?10What is the level of government support for energy trans

158、ition technologies?(E.g.CCUS,hydrogen etc.).11What is the adoption of EVs/zero-emission vehicles(ZEVs)?(%of new sales).12What is the coverage and density of EV/ZEV charging stations?(E.g.number of charging stations/100 km).13Are there any policies on energy performance standards?(E.g.buildings,equip

159、ment etc.).Financial regulations/incentives 14Has a reporting and disclosure standard been established?15What is the current stage of development for the reporting and disclosure standard?16Is there any sustainable finance framework from authorities?17Are there any public funds/financial tools for s

160、ustainable projects?Environmental18What percentage of the countrys landmass is designated for protected areas or ecosystems?19Are there recycling/circular economy policies present?20What is the target recycling rate?(Incl.plastic,metal etc.).21What is the target reuse rate of treated water?22What is

161、 the target reduction for water demand?23Is there any financial support for SMEs/suppliers to achieve sustainability/energy efficiency/decarbonization?Support for value chain/suppliers24Is there any technical/educational support for SMEs/suppliers to build capabilities and awareness for sustainabili

162、ty?25Are there any government procurement policies that consider the level of sustainability/emissions of suppliers?26Has a reporting and disclosure standard been established?Prioritizing Sustainability in MENA18Based on this research,four country archetypes emerge(see Figure 7):Pioneering leaders:C

163、ountries with comprehensive sustainability strategies,strong policy ambition and mature enabling environments.They utilize advanced financial tools,technologies and regulatory frameworks to achieve their sustainability goals.These include mandatory reporting regulations,circular economy policies,ded

164、icated green finance frameworks and a foundation for green energy technology research.Ambitious developers:Countries with robust policies and ambitious targets,still actively evolving their capabilities,financial tools and technological development to enhance their sustainability efforts and enabler

165、s.These include voluntary reporting guidelines or some support in sustainable finance.Progressive builders:Countries with strong enabling environments that are maturing with growing support frameworks.These nations have implemented relevant sustainability policiesand are setting emerging targets.The

166、ir primaryfocusis on advancing these policies to drive the adoption of renewable technologies and enhance energy efficiency.As they continue to refine and expand their policy frameworks,they are building the foundation for more ambitious sustainability goals.Emerging starters:Countries at the emergi

167、ng stages of developing national strategies and sectoral targets for sustainability.They are in the process of constructing the financial and technological infrastructure required to advance their sustainability ambitions.These countries are laying the groundwork for future progress,focusing on the

168、initial implementation of basic policies and the development of essential support systems.MENA country archetypes in relation to policy landscape parametersFIGURE 7Strong policy ambitionNascent enabling environmentEmerging policy ambitionMature enabling environmentAmbitious developersPioneering lead

169、ersProgressive buildersEmerging startersJordanOmanBahrainMoroccoKuwaitQatarSaudi ArabiaUAE Progressive policies with detailed strategies Extensive financial tools and advanced technologies Robust regulatory and support frameworksPioneering leaders Strong national policies and ambitious targets Devel

170、oping financial tools and support Evolving technological frameworksAmbitious developers Clear policies with emerging targets Developing renewable energy and efficiency initiatives Increasing support frameworksProgressive builders Early-stage national strategies Initial sectoral targets Building fina

171、ncial and technological supportEmerging startersEgypt Research on MENAs sustainability policy landscape reveals that the Kingdom of Saudi Arabia and the United Arab Emirates(UAE)are pioneering leaders with comprehensive initiatives,while many other MENA countries are ambitious developers.Prioritizin

172、g Sustainability in MENA19Given that countries in the region have significantly varied economic contexts(e.g.resource availability,GDP per capita)and emissions intensities(per capita and per unit of GDP),two distinct country groupings emerge:members of the Gulf Cooperation Council(GCC)and non-GCC co

173、untries.GCC countries(Bahrain,Kuwait,Oman,Qatar,Saudi Arabia,UAE)generally have significantly higher per capita CO2 emissions than non-GCC countries(e.g.Egypt,Morocco,Jordan).Moreover,GCC countries tend to exhibit higher CO2 emissions per unit of GDP PPP(purchasing power parity),which reflects the c

174、arbon intensity of economies largely driven by the oil and gas sector and accompanied by higher energy consumption per capita.18 This distinction is important,as countries with lower emissions may require fewer targeted sustainability policies and enablers,while those with higher emissions must impl

175、ement a more comprehensive and robust regulatory landscape.This analysis provides a more dynamic understanding of each countrys sustainability policy landscape and how they can accelerate their sustainability agenda,which in turn results in the following recommendations:Diverse approaches to sustain

176、ability:While countries in the region are at varying stages of policy development and implementation given their economic context,development needs and unique environmental challenges they remain focused on achieving the common overarching goal of driving forward their sustainability agenda.Achievin

177、g success in sustainability therefore requires a balanced approach,where ambitious common goals are underpinned by practical,well-supported frameworks.Importance of an enabling environment:Countries that are more advanced in their sustainability efforts not only have ambitious policies but also robu

178、st enabling environments.Some GCC countries are particularly focused on creating this environment,as they tend to have higher per capita emissions and greater carbon intensity compared to non-GCC countries.They often push beyond commitments,emphasizing the importance of financial incentives,technolo

179、gical innovations and effective frameworks in achieving sustainability goals.This can be reflected by the amount of investment in specific green initiatives and new regulations around energy efficiency standards or the circular economy.Collaboration and knowledge sharing:The varying positions of cou

180、ntries indicate significant opportunities for regional collaboration.Countries further along the sustainability spectrum can share best practices and insights with those at earlier stages,promoting collective regional progress.This could be the opportunity to work towards regional reporting sustaina

181、bility standards and fostering a unified approach that not only aligns with global sustainability goals but also enhances the regions capacity to meet the evolving demands of economic transformation and environmental stewardship.Countries with lower emissions may require fewer targeted sustainabilit

182、y policies and enablers,while those with higher emissions must implement a more comprehensive and robust regulatory landscape.Prioritizing Sustainability in MENA204Selection of these case studies has been guided by specific criteria aimed at showcasing the most high-impact and scalable sustainabilit

183、y initiatives in the region,demonstrating how stakeholders have risen to the challenges and made significant progress in their sectors.These criteria include:Sectoral diversity:Ensuring representation across key industries in the region including sectors with a high share of emissions to provide a c

184、omprehensive overview of how sustainability can be integrated into company priorities across various sectors.Innovation and replicability:Highlighting initiatives that not only address sustainability challenges in innovative and effective ways but also offer solutions that can be replicated and scal

185、ed-up across different organizations.Impact on core operations:Focusing on examples where sustainability is integrated into the core operations of companies,demonstrating that profitability and growth can go hand-in-hand with sustainable practices.As sustainability becomes increasingly integral to b

186、usiness success,the MENA region is witnessing a wave of promising developments.This chapter presents a collection of 10 case studies to demonstrate this transformative journey,highlighting how various institutions in the region from both private and public sectors are not only embedding sustainabili

187、ty into their core operations but also using their influence to transition towards more sustainable business models.4.1 Private sector case studiesCase studies and best practicesTen regional case studies from a diverse range of sectors demonstrate innovative,replicable solutions making a positive im

188、pact on corporate growth and sustainability.Prioritizing Sustainability in MENA21Majid Al Futtaim is a leading conglomerate in the retail,hospitality and real estate sectors across the Middle East,Africa and Asia and a significant player in the MENA economy.The company has made significant strides i

189、n its sustainability agenda,including reducing scope 1 and 2 emissions by 24%19 from its 2019 baseline and securing over$2.75 billion20 in sustainability-linked loans.The company aims to become net positive in carbon and water by 2040.Sustainable procurement policyOverview and objective Majid Al Fut

190、taim has developed a sustainable procurement policy as a central component of its strategy to minimize its carbon footprint and promote ethical business practices.Until the end of 2025,the policy will focus on working with tier 1 suppliers with strict environmental and social standards.Key success f

191、actors The success of the policy is underpinned by Majid Al Futtaims proactive engagement with suppliers.The company began surveying,informing and training suppliers about its sustainability strategy and expectations two years before the policys official launch in 2019.This communications strategy w

192、hich continues to this day has allowed the company to gauge response and improve supplier engagement.Majid Al Futtaim supported its new policy with a comprehensive supplier training programme first conducted by the company itself,then later in cooperation with the Carbon Disclosure Project(CDP)which

193、 supports the company and its suppliers throughout their disclosure processes.The company will also be working with other service providers to cover areas such as diversity,equity and inclusion(DE&I),human rights and a focus on comprehensive sustainability metrics.Relevant outcomes The sustainable p

194、rocurement policy aims to improve supply chain sustainability.Majid Al Futtaims ongoing education and engagement efforts with suppliers have set new standards for ethical business practices in the region,making the policy a model for others to emulate.Green sukuk(Islamic bond)Overview and objective

195、Majid Al Futtaims green sukuk integrates sustainability with finance,aiming to advance corporate sustainability goals by aligning financial and environmental objectives.Key success factors Strong leadership support.The ability to navigate initial challenges such as the need for an ESG rating.The suk

196、uks alignment with the companys broader sustainability strategy has been crucial.Relevant outcomes The green sukuk has significantly accelerated the companys sustainability objectives,serving as a powerful enabler of sustainability within the company.Its successful launch in a short timeframe highli

197、ghts the potential for innovative financial instruments to drive sustainability in the region.CASE STUDY 1Retail Majid Al Futtaim,United Arab Emirates24%reductionin scope 1 and 2 emissions(from 2019 baseline)$2.75billionsecured in sustainability-linked loansPrioritizing Sustainability in MENA22Emira

198、tes Global Aluminium(EGA)is a leading company in the global aluminium industry and the largest industrial entity in the UAE outside the oil and gas sector.EGA accounts for about 4%of global aluminium production.The company is focused on sustainability,having produced 66,000 tonnes of low-carbon“sola

199、r aluminium”in 2023.It is committed to expanding its recycling operations,including the construction of the UAEs largest aluminium recycling facility.CelestiALOverview and objective Generating the electricity required for aluminium production accounts for 60%of the industrys greenhouse gas emissions

200、.EGA uses solar power to produce CelestiAL green aluminium with a reduced environmental footprint.This initiative marks a significant step towards sustainable manufacturing in the region.Key success factors The initiatives success depends on EGAs cooperation with the local electricity industry in bo

201、th Dubai and Abu Dhabi.EGA has also formed a strategic alliance with Masdar,a leader in renewable energy.Their collaboration focuses on identifying suitable renewable energy sources,investing in the necessary infrastructure and leveraging expertise in low-carbon technologies.Relevant outcomes The Ce

202、lestiAL initiative has demonstrated the feasibility of large-scale green manufacturing in the MENA region.This project can set a new standard for sustainable practices in the metals industry.Green finance frameworkOverview and objective In 2024,EGA established its green finance framework to issue bo

203、nds(including private placements)and loans.These finance or refinance decarbonized aluminium projects(in the primary and secondary aluminium space)and initiatives that contribute to EGAs energy transition journey.Key success factors EGA collaborated with three leading financial institutions with exp

204、ertise in green financing,especially to identify the taxonomy most appropriate for the specificities of the region and industry.The group identified the Transition Pathway Initiative(TPI)21 which examines how industries,such as aluminium,can make the transition to a low-carbon economy.EGA used TPIs“

205、below 2 degrees”scenario to set the benchmark for aluminium production and GHG emissions.Relevant outcomes The green finance framework enables EGA to advance its sustainability goals by accessing a broad range of funding options for loans and bonds.This can potentially lower borrowing costs and ensu

206、re greater transparency.The recent acquisition of the European speciality foundry Leichtmetall was fully financed through EGAs first green loan facility.Leichtmetall uses renewable energy to produce up to 30,000 tonnes of aluminium billets annually at its plant,with secondary aluminium comprising ab

207、out 80%of the input material.CASE STUDY 2Metals Emirates Global Aluminium,United Arab EmiratesPrioritizing Sustainability in MENA23Gulf International Bank(GIB)is a leading financial institution in the banking sector,headquartered in Bahrain with a significant presence across the GCC and UK.The bank

208、is primarily owned by the governments of GCC countries and focuses on supporting economic growth in the region.GIB has been increasingly focusing on sustainable finance,aligning with global best practices to support environmental and social governance initiatives.Sustainable finance frameworkOvervie

209、w and objective GIB has established a sustainable and transitional finance framework to classify and manage sustainable finance transactions.GIBs framework includes clear environmental,social and transition criteria based on international best practices.A significant aspect of this framework is the

210、inclusion of“blue”categories that support sustainable ocean and marine resources.According to GIB,the framework is designed to be an internal tool,as well as a client engagement resource that helps clients understand GIBs sustainable offerings.Key success factors The frameworks success is driven by

211、its clear criteria and rigorous implementation,which includes frequent updates and second-party reviews.GIBs ability to engage clients and align the organization around a unified sustainability vision has been crucial to its impact.Relevant outcomes GIBs sustainable finance framework enables better

212、sustainability performance,attracting environmentally conscious stakeholders and setting guidelines for sustainable finance in the region.Sustainability-linked loan(SLL)Overview and objective In October 2021,GIB closed a$625 million sustainability-linked loan(SLL),making it the first Bahrain-headqua

213、rtered and majority Saudi-owned bank to achieve such a milestone.This financial product ties loan terms to a borrowers performance on predefined sustainability targets,promoting sustainability practices among borrowers.GIBs SLL included goals related to emissions reductions,sustainability disclosure

214、s and gender balance.These metrics demonstrate the robustness of GIBs sustainability efforts.Key success factors The key to the SLLs success was the careful selection of relevant KPIs,supported by robust data collection and measurement mechanisms.There should be a story behind each KPI and effective

215、 data collection and measurement mechanisms must be in place.It is also critical to understand how green financing intersects with other topics,such as gender and circularity.Relevant outcomes GIBs SLL promotes sustainability practices among borrowers,demonstrating the banks commitment to integratin

216、g sustainability into its financial products.The success of the SLL has positioned GIB as a leader in sustainable finance within the region.CASE STUDY 3Financial institutions Gulf International Bank,Bahrain$625millionsustainability-linked loan closed in 2021Prioritizing Sustainability in MENA24ACWA

217、Power is a leading company in the energy sector,specializing in the development,investment and operation of power generation,water desalination and green hydrogen projects.A key player in Saudi Arabias transition to renewable energy,ACWA Power has ambitious plans to triple its assets under managemen

218、t(AuM)to$250 billion by 2030.22 Under this plan,more than 75%of power additions will come from renewables.ACWA Power is actively participating in projects that focus on reducing carbon emissions,including the development of one of the worlds largest green hydrogen projects.Partnership with Internati

219、onal Renewable Energy AgencyOverview and objective ACWA Power has partnered with the International Renewable Energy Agency(IRENA)23 to accelerate the global adoption of renewable energy,particularly in the MENA region.The collaboration aims to enhance ACWA Powers ability to implement large-scale,eco

220、nomically viable renewable energy projects,aligning with global sustainability goals.Key success factors The partnerships success hinges on the alignment of shared goals,IRENAs global expertise in renewable energy and ACWA Powers experience in executing large projects.Their combined efforts focus on

221、 knowledge exchange,best practices and leveraging innovative technologies to advance clean energy solutions.Relevant outcomes The partnership has facilitated the development of significant renewable energy projects,such as the Sudair Solar PV plant in Saudi Arabia.This collaboration strengthens ACWA

222、 Powers leadership in the renewable energy sector and contributes to the global energy transition.Initiative to increase renewable energy capacityOverview and objective ACWA Power is committed to expanding its renewable energy generation capacity to transition towards a low-carbon portfolio.This ini

223、tiative supports global efforts to mitigate climate change by increasing the proportion of renewables in its energy mix.24Key success factors Key to this initiatives success are ACWA Powers strong financial backing,expertise in large-scale project development and strategic partnerships with governme

224、nts and financial institutions.The focus is on developing new solar,wind and other renewable energy projects across key markets.Relevant outcomes ACWA Power has successfully launched several major renewable projects,including the 1,500 MW Sudair Solar PV plant,significantly reducing its carbon footp

225、rint and diversifying the regions energy mix.This initiative cements ACWA Powers role as a leader in clean energy.CASE STUDY 4Energy ACWA Power,Kingdom of Saudi Arabia$250 billion planned assets under management by 2030Prioritizing Sustainability in MENA25As the worlds top producer of phosphate rock

226、 and phosphate-based fertilizers,OCP Group is a major player in the global market for soil and plant nutrition solutions.The company is the custodian of the largest reserves of phosphate globally and operates a vertically integrated business that spans mining,chemical processing and fertilizer produ

227、ction,making it crucial to global agriculture and food production.OCPs sustainability strategy focuses on responsible mining practices and investing in technologies that enhance the sustainability of its operations,such as improving phosphorus recovery rate from low content phosphates and increasing

228、 recycling rates from the by-products of mining processes.Green investment programmeOverview and objective OCP Group has launched a$13 billion green investment programme for the period 2023-2027 to enhance sustainability in its operations.25 This programme focuses on reducing environmental impact,im

229、proving resource efficiency and supporting sustainable agriculture and innovation,while increasing the production of green fertilizers from 15 million tonnes to 20 million tonnes annually,in alignment with Moroccos energy transition strategy.Key success factors The programme is driven by OCPs commit

230、ment to sustainability,substantial R&D investments and collaborations with international partners enabling the implementation of energy-efficient technologies and innovative practices.Key initiatives include producing 1 million tonnes of green ammonia by 2027(with plans to increase to 3 million tonn

231、es by 2032),generating 5 GW of clean energy in 2027(meeting 100%of OCPs energy needs and increasing to 13 GW by 2032),increasing seawater desalination capacity to 560 million m3 by 2027 and optimizing local value chains.These investments will enable OCP to achieve carbon neutrality in operations and

232、 energy sources(scope 1 and scope 2)by 2030.Relevant outcomes The programme is designed to strengthen local value chains in the groups industrial and mining sites and promote green growth in the agriculture sector.It has led to reduced energy consumption and lower GHG emissions in its production pro

233、cesses.In supporting the emergence of an innovative national industrial ecosystem,this programme supports around 600 SMEs in the energy,agricultural and industrial sectors and aims to create 25,000 direct and indirect jobs.CASE STUDY 5Mining OCP Group,MoroccoPrioritizing Sustainability in MENA26Saud

234、i Aramco is a leading company in the global energy sector,recognized as the worlds largest oil producer and the most profitable company globally.The company is primarily state-owned by the Saudi government,which holds 97.6%of all shares(including those owned by PIF,the countrys sovereign wealth fund

235、),26 making it a cornerstone of the kingdoms economy.Aramco has launched a$1.5 billion sustainability fund aimed at investing in technologies that support a stable and inclusive energy transition,making it one of the largest sustainability-focused venture capital funds globally.Taleed programmeOverv

236、iew and objective Saudi Aramcos Taleed programme is a strategic initiative designed to empower SMEs in Saudi Arabia.The programme provides essential support through funding,mentorship and access to Aramcos extensive resources to enhance SMEs operational excellence and sustainability practices.Key su

237、ccess factors The programmes success lies in its comprehensive support system which includes targeted workshops on carbon net zero,taxation and operational efficiency.Partnerships with consulting firms provide SMEs with crucial guidance on strategy and ESG,ensuring they can achieve sustainable growt

238、h.The simplification of financing processes has also been a critical factor in enabling SMEs to scale-up operations and innovate.Relevant outcomes Since its inception,the Taleed programme has supported over 1,200 SMEs,with more than 550 SMEs benefitting from a dedicated net-zero programme.These effo

239、rts have significantly contributed to the decarbonization of SME operations,positioning them for success in a low-carbon economy and enhancing their long-term competitiveness.Sustainability fundOverview and objective Aramcos$1.5 billion sustainability fund,launched in October 2022,is focused on inve

240、sting in projects and start-ups that advance sustainable technologies including carbon capture,reducing GHG emissions,digital sustainability and low-carbon fuels.Key success factors The funds success is driven by its long-term investment perspective,focusing on market disruption and the reduction of

241、 technology costs.Strategic investments in start-ups such as EnerVenue,Rondo and Xpansive exemplify this approach,with a strong emphasis on scaling-up effective technologies.The companys sustainability investments tend to be longer-term with a focus centred not on immediate net present value but rat

242、her on the potential for the company to disrupt the market or to reduce the cost of the technology in a timely manner.Relevant outcomes The sustainability fund is supporting key start-ups,contributing to advancements in sustainable technologies.These investments are expected to accelerate the adopti

243、on of sustainable practices,reinforcing Aramcos commitment to global sustainability goals.CASE STUDY 6Oil and gas Saudi Aramco,Kingdom of Saudi Arabia1,200+SMEssupported by Taleed programme$1.5billionsustainability fund launched in 2022,focused on investing in projects and start-ups that advance sus

244、tainable technologiesPrioritizing Sustainability in MENA27Government policies and interventions play an important role to incentivize MENA businesses to improve their organizational sustainability practices.Several countries have taken significant steps to support sustainability efforts,the results

245、of which are already bearing fruit.These success stories can inspire countries across MENA to contribute effectively to a sustainable,resilient and decarbonized MENA economy.The selection of case studies is guided by three key criteria:Impact and scalability:Emphasis is placed on initiatives that de

246、monstrate significant,measurable impact in areas such as emissions reductions,resource efficiency and job creation.These initiatives also possess the potential for scalability across different sectors or regions.Demonstrated results and cross-sectoral engagement:These programmes have tangible outcom

247、es that involve collaboration across multiple sectors,including government,private industry and local communities,ensuring broad and inclusive sustainability efforts.Innovation and catalytic potential:The focus is on initiatives that bring innovative solutions and have the potential to drive broader

248、 transformations in policy or industry,setting new standards and encouraging widespread adoption of sustainable practices.4.2 Public sector case studiesOverview and objective The Sustainability Champions programme is a knowledge-transfer initiative that aims to enhance the adoption of sustainability

249、 across the private sector by mobilizing the expertise of Saudi Arabias leading companies.This initiative is part of the countrys ongoing efforts to develop inclusive and sustainable economic growth pathways.Nineteen leading corporations across seven core sectors serve as“Sustainability Champions”an

250、d support other entities to enhance their sustainability practices.These mentors are not only leaders in their respective industries but are already at the forefront of integrating sustainable practices into their own operations.The seven core sectors are:energy and utilities;banking and financial s

251、ervices;minerals and petrochemicals;telecoms,media and technology;real estate and construction;food and agriculture;and family businesses.The programme is part of Saudi Arabias approach to addressing environmental challenges and accelerating its transition towards a green economy.Key success factors

252、 The programme aims to provide companies with the necessary tools and techniques to improve how they adopt and report on sustainability,via the provision of shared insights within their sectors and across the valuechain.Each champion commits to mentoring at least three other companies,thereby creati

253、ng a ripple effect that extends sustainable practices throughout the corporate landscape.Expected outcomes Over 60 corporations,supported by the champions,are expected to establish their own sustainability practices and reporting.Champions will also enhance their own sustainability performance and r

254、eporting.Still in its early stages after launching in April 2024,the initiative is a promising example of how networks can facilitate leading industries to employ their resources to increase sustainability efforts across value chains.CASE STUDY 7Sustainability Champions Ministry of Economy and Plann

255、ing,Kingdom of Saudi ArabiaAs we look ahead,let us take a smarter,more pragmatic approach to deliver more tangible progress.Let us prioritize the challenges we can address now and fast,so that we can unlock more capabilities,more energy and more hope.H.E.Faisal F Alibrahim,Minister of Economy and Pl

256、anning,Kingdom of Saudi ArabiaPrioritizing Sustainability in MENA28CASE STUDY 8National Initiative for Smart Green Projects(NISGP)Ministry of Planning,Economic Development and International Cooperation,EgyptOverview and objective The National Initiative for Smart Green Projects(NISGP)launched at COP

257、27 in Sharm El-Sheikh is a nationwide movement that mobilizes local solutions to combat climate change.The initiative invites innovative smart green projects across Egypts 27 governorates,fostering a culture of environmental stewardship and technological innovation at a grassrootslevel.By focusing o

258、n diverse project categories ranging from large-scale industrial endeavours to small,community-led initiatives NISGP ensures inclusivity and broad-based participation in the green transition.Key success factors NISGPs success is underpinned by strategic partnerships with national and international e

259、ntities,transforming climate challenges into viable economic and investment opportunities.Supported and promoted at the highest levels of government,the initiative has established collaborations with various multilateral organizations andfinancial institutions to support project implementation and s

260、caling-up.NISGPs comprehensive capacity-building programmes,including numerous training sessions and workshops,have equipped thousands of participants with the skills and knowledge necessary to drive sustainable projects.Relevant outcomes The NISGP highlighted Egypts green innovation potential with

261、12,000 project submissions over two rounds and 3,817 qualifying for further stages.These projects cover various sectors,including waste management,renewable energy,climate adaptation,sustainable agriculture,emissions reduction and pollution control.Notably,while 36 projects were selected as winners,

262、over 500 received additional support of which more than 60%are currently operational,illustrating the initiatives significant impact.Through NISGP,the winning projects have been linked with donors,financial institutions and international organizations,providing them with critical technical support a

263、nd investment.They were also highlighted at international forums,including COP27 and COP28.Key projects highlighting the initiatives impact Egypt Waste Bank:To date,this project has resulted in the transformation of 50 million tonnes of agricultural and municipal waste into valuable resources and th

264、e creation of over 27,000 direct and indirect job opportunities.Key initiatives include converting worn-out tyres into rubber powder(Bidaya Factory)and developing an app to streamline waste management.27 Engazaat:As Egypts first independent power and water producer,Engazaat offers renewable energy a

265、nd water services without upfront costs,investing$51 million in Egypt and Lebanon.The project has offset 461,214 tonnes of CO2 and produced 15 million m3 of water annually,creating 500 jobs.Bab Rizq Scrap:This project empowers women,including those with special needs,to recycle scrap materials to pr

266、oduce innovative clothing,furniture and art.It has trained more than 25,823 individuals and produced 40,000 diverse pieces,contributing to both economic growth and environmental preservation.3D Cutter:Addressing electronic waste,this project employs women to recycle e-waste using the“MINI CNC Machin

267、e”to create 3D designs and spare parts.It has trained approximately 700 women,providing them with sustainable employment and contributing to environmental sustainability.50million tonneswaste converted into useful resources27,000direct and indirect job opportunities createdPrioritizing Sustainabilit

268、y in MENA29Overview and objective Rapid growth in the UAEs economy and population has increased the demand for resources such as energy,food,materials and water.The UAEs Circular Economy Policy 2021-2031 aims to mitigate these impacts by promoting the sustainable use of resources,ensuring the well-b

269、eing of current and future generations and transitioning from a traditional linear economy to a regenerative circular economy.Key success factors The UAE has identified four priority sectors that are crucial for the transition to a circular economy due to their significant roles in the national econ

270、omy and potential for stimulating circular practices:1.Sustainable manufacturing:Encourages the design,manufacture,repair,reuse,remanufacture and recycling of products to minimize waste and maximize resource efficiency.2.Green infrastructure:Focuses on the sustainable design,construction and demolit

271、ion of buildings to reduce waste and enhance the productivity of urban environments.3.Sustainable transportation:Aims to reduce carbon emissions and improve efficiency in the transportation sector through integrated,low-carbon mobility solutions.4.Sustainable food production and consumption:Seeks to

272、 enhance food security,reduce waste and promote the use of regenerative agricultural practices.Relevant outcomes Since the policys implementation,there has been a shift towards circular practices across various sectors.A key lesson learned is that clear policy direction and priorities enable swift m

273、obilization of both public and private stakeholders,leading to the development of projects aligned with circular economy principles.The policys effectiveness is further shown through tangible examples of circular economy practices highlighted and published in the UAE Circular Economy Landscape Repor

274、t 202328 that have resulted in significant environmental benefits,summarized below.Key projects highlighting the initiatives impact The Waste Lab,composting food waste:Reducing landfill waste and turning organic waste into valuable compost for agriculture.Emirates Global Aluminium,converting bauxite

275、 waste into soil:Transforming industrial waste into a resource for soil enhancement,contributing to land restoration.Majid Al Futtaims communities,recycling water in households:Implementing water recycling systems that reduce water consumption and promote sustainability in residential communities.En

276、vironmental Authority of Abu Dhabi,restoring marine ecosystems:7,500 hectares of mangroves,seagrass and coral ecosystems have been restored,with 4,500 more to be restored by 2030.Protecting and rehabilitating these crucial marine ecosystems plays a vital role in carbon sequestration and biodiversity

277、.Udrive,providing sustainable transport options:Offering eco-friendly transportation alternatives that reduce carbon emissions in urban areas.Beeah and Masdar,developing a landfill site into a 120 MW solar farm:Transforming a former waste site into a renewable energy source,demonstrating the potenti

278、al for circular solutions to address environmental challenges.CASE STUDY 9Circular Economy Policy Ministry of Climate Change&Environment,United Arab EmiratesPrioritizing Sustainability in MENA30Overview and objective In 2022,the EU and Morocco embarked on a ground-breaking initiative to forge the fi

279、rst green partnership between the EU and another country focused on energy,climate and the environment.Announced ahead of COP27,this partnership signifies a pivotal shift towards sustainable development and climate resilience in the MENA region.It is expected to become a model for similar partnershi

280、ps with countries outside the EU.The partnership aims to accelerate the renewable energy transition,enhance climate adaptation strategies and promote environmental protection.Aligning with the objectives of the European Green Deal and Moroccos National Sustainable Development Strategy,the programme

281、will intervene in the four pilot regions of Tetouan/Tangier/Al Hoceima,Beni Mellal/Khenifra,Draa-Tafilalet and LOriental.This high-level partnership has encouraged the design of innovative initiatives and the implementation of large-scale projects to support the green transition.Key success factors

282、The EU-Morocco Green Partnership is underpinned by a series of cooperation frameworks agreements that facilitate sustainable electricity trade between the European internal market and North Africa.It is a unique example of international collaboration to achieve sustainability goals.The programme is

283、designed not only to address environmental challenges,but also to create economic opportunities and improve social well-being,creating a“win-win”scenario for both partners.Renewable energy sector development is expected to generate numerous jobs,fostering local expertise and technical skills.By redu

284、cing reliance on traditional energy sources,Morocco can diversify its economy and boost exports of green energy.Improved access to clean energy and water resources will enhance quality of life and reduce socio-economic disparities.Relevant outcomes A 50 million programme entitled“Green Energy”is sti

285、mulating the greening of the Moroccan economy and its energy sector,by supporting the completion of regulatory reforms for a more open and flexible electricity market and for local energy production,strengthening integration with the European electricity market and improving governance of the Morocc

286、an electricity market.“Terre Verte”This programme,worth a total of 115million,supports the research and development,training,support and mentoring for sustainable,resilient and inclusive management of agricultural and forest ecosystems in Morocco.It aims to boost meaningful employment,green entrepre

287、neurship and social provision for workers in rural regions,while enhancing agricultural resilience and productivity.Key initiatives supporting the partnership National Energy Strategy:Aims for 52%of power generation via renewable sources by 2030.Green Generation Plan(2020-2030):Promotes sustainable

288、agricultural practices.New Investment Charter:Incentivizes green investments.Moroccan Industrial Acceleration Plan(PAI):Promotestransition to sustainable industries such asrenewable energy.CASE STUDY 10EU-Morocco Green Partnership European Union and the Kingdom of Morocco50millioninvestment into gre

289、ening Morocco energysector115millioninvestment into“Terre Verte”programme to develop sustainable agricultural practices31Financial incentives/regulationsSaudi Arabia:Developed green finance framework for sustainable projectsQatar Foundation:Invested$4 billion to develop green energy centreEgypt:Prov

290、ides 30%tax break on investment cost of renewable energy projectsEnvironmentQatar:Marine reserves development initiative to ensure survival of key speciesUAE:Promotes sustainable agricultural practices such as hydroponics and vertical farmingSaudi Arabia:Saudi Green Initiative to plant 10 billion tr

291、eesSupport for supply chainSaudi Arabia:Loan risk guarantee programme to support SMEs in obtaining necessary financing Egypt:Provides sustainable financing services to micro,small and medium enterprisesEnergy transition Jordan:31%of power generation needs met through renewables by 2030Oman:Target pr

292、oduction of 1 Mtpa green hydrogen by 2030UAE:Retrofit of 30,000 buildings for energy efficiency by 2030Saudi Arabia:Increase share of power generated by renewables to 50%by 2030DecarbonizationEgypt:Ongoing implementation of 20+projects to improve downstream performance in petroleum sectorUAE:Mandate

293、s non-flaring operations as part of zero-flaring commitmentUAE:Leveraging AI and big data for analysis and monitoring of sustainability activitiesSaudi Arabia:Developed carbon credits trading marketplace along with GHG crediting and offset mechanismSustainability policies in the MENA region Other pr

294、omising initiatives are emerging across key areas including decarbonization,energy transition,financial incentives,environmental protection and biodiversity,and support for the supply chain(see Figure 8).The examples below demonstrate how targeted strategies can yield significant environmental and e

295、conomic benefits.4.3 Other best practices for regional referenceBest practice sustainability policies in MENAFIGURE 8Note:This list of policies is not exhaustive.Prioritizing Sustainability in MENA3231%target share of renewables in Jordans power generation capacity by 2030.Energy transitionSignifica

296、nt investments are being made to shift towards renewable energy and improve energy efficiency.Key initiatives include:Jordans Renewable Energy and Energy Efficiency Fund(REEEF):29 The fund aims to ensure that renewable energy supplies 31%of Jordans power generation needs by 2030,from less than 1%in

297、2014.30 Omans green hydrogen production:Oman aims to be one of the worlds largest producers of green hydrogen,producing over 1 million tonnes annually by 2030.31 Projects worth$11 billion have already been awarded.32 UAEs Etihad Energy Service Company:This company aims to retrofit 30,000 buildings b

298、y 2030,enhancing energy efficiency and reducing overall energy consumption.33 Saudi Arabias national renewable energy programme:This programme seeks to increase the share of renewable energy to reach 58.7 GW by 2030,34 supporting the kingdoms transition to a more sustainable energy mix.Decarbonizati

299、onSeveral countries in the MENA region are improving emissions reductions through innovative and strategic programmes.Key initiatives include:Egypts petroleum sector modernization programme:This programme implements over 20 projects aimed at improving downstream performance in the petroleum sector,e

300、nsuring more efficient and sustainable operations.35 UAEs zero-flaring commitment:UAE now mandates non-flaring operations as the norm as part of its zero-flaring commitment,significantly reducing emissions from gas flaring.36 UAEs EARTH Platform:UAE has launched a smart platform to leverage AI and b

301、ig data for sustainability activities analysis and monitoring.37 Saudi Arabias carbon credits trading:Saudi Arabia has launched a marketplace for carbon credits trading along with a greenhouse gas crediting and offsetting mechanism to help entities voluntarily offset their emissions.38 This initiati

302、ve supports the kingdoms broader decarbonization goals.Support for supply chainEnhancing sustainability within the supply chain is vital for comprehensive environmental progress:Saudi Arabias Kafalah programme:This provides guarantees for up to 80%of the loan amount for banks to finance SMEs,includi

303、ng those investing in sustainability and energy efficiency.This programme supports SMEs in adopting sustainable practices.39 Egypts micro,small and medium enterprises development agency:This supports 173,000 MSME projects and aims to provide finance totalling$700 million,promoting sustainability acr

304、oss various sectors.40Prioritizing Sustainability in MENA33The MENA region is making strides towards sustainability through the collaborative efforts of both private and public sectors.By fostering innovation,optimizing resource utilization and enhancing transparency,institutions across the region a

305、re transitioning to sustainable solutions that drive profitability,growth and long-term economic resilience.However,challenges remain,particularly in areas where regulations are not yet clear or tailored to the unique context.The regions growth trajectory is on an upward path,necessitating the use o

306、f resources,materials and minerals.Sustainability must be at the forefront,with a strong emphasis on decarbonization in every process.As these innovative initiatives evolve,they contribute to regional goals and offer valuable lessons,showcasing the potential benefits of a unified,sustainable approac

307、h while also highlighting areas that require further attention for a more resilient future for the entire region.4.4 What does this mean for MENA?Financial incentivesFinancial mechanisms and regulations are being established to encourage green investments.Key initiatives include:Qatar Foundations R&

308、D investment:Qatar plans to invest$4 billion in a green energy research and development centre in the UK and Qatar,promoting innovation in sustainable energy solutions.41 Saudi Arabias Public Investment Fund (PIF):The PIF has established a green finance framework to support sustainable development p

309、rojects.42 Egypts Investment Law No.72 of 2017:This law provides a 30%tax deduction on investment costs for renewable energy projects and SMEs,incentivizing green investments.43Environmental protectionSome countries in the region are focusing on advanced agricultural technologies and large-scale ref

310、orestation and conservation efforts:Qatars marine ecosystem conservation:Established a national programme to conserve coastal ecosystems,designating 2.5%of the countrys area as marine reserves.44 UAEs hydroponics and vertical farming:The UAE adopts technologies like hydroponics and vertical farming,

311、45 along with desalination and solar-powered irrigation systems in the agricultural sector.For example,Bustanica Farm produces over 1 million kg of leafy greens annually while using 95%less water than traditional farming methods.46 Saudi Arabias green initiatives:These initiatives aim to plant 10 bi

312、llion trees across the country.47 The interim target is 600 million trees by 2030 and 43.9 million trees were planted in 2023.600milliontree-planting target by 2030 under Saudi Arabias greeninitiatives.Prioritizing Sustainability in MENA345The Middle East and North Africa region is at a pivotal mome

313、nt in its sustainability journey,driven by increasing global pressure for enhanced corporate transparency around sustainability risks and opportunities.With countries representing over 70%of global GDP poised to require sustainability reporting in the near future,MENA companies must be prepared to r

314、emain competitive,attract international investments and support the regions economic diversification goals.MENA presents unique challenges,including an evolving regulatory landscape with diverse and complex reporting standards and the spectre of high-cost implementation without much practical guidan

315、ce.These obstacles highlight the need for tailored solutions and increased government interventions to help MENA companies improve their organizational sustainability practices.As the initial focus of sustainability policies expands from disclosing emissions and decarbonization plans towards broader

316、 environmental issues such as water stewardship,waste management and biodiversity,companies will need to identify their material sustainability topics to drive better sustainability performance.The proactive adoption of sustainability practices,supported by clear regulatory frameworks and incentives

317、,is essential for the MENA region to navigate this complex landscape successfully.The actionable insights derived from this report summarized below are designed to empower and inspire corporate leaders,policy-makers and other stakeholders across the region to take concrete steps in their sustainabil

318、ity journeys.Actionable insights from this reportMateriality assessments will accelerate sustainabilityConducting a materiality assessment is an essential first step for companies to identify and prioritize the sustainability issues that have the most significant impacts across operations,investor d

319、ecisions andthe broader ecosystem.Defining clear metrics/KPIs to measure and track sustainability performance is key to monitoring progress.By focusing on these core areas,companies can more effectively manage risks,allocate resources and integrate sustainability into their strategic priorities,in a

320、lignment with stakeholder expectations.Embedding sustainability into strategic priorities,rather than treating it as a separate reporting process,is critical to generating long-term value and enhancing business performance.Conclusion:next steps in MENAs sustainability journeyTo drive better sustaina

321、bility performance,companies will need to identify material topics from emissions and decarbonization plans to water stewardship,waste management and biodiversity.Embedding sustainability into strategic priorities,rather than treating it as a separate reporting process,is critical to generating long

322、-term value and enhancing business performance.Prioritizing Sustainability in MENA35Government policies tailored to the local context will prove pivotalGovernments across MENA play a pivotal role in shaping the sustainability landscape through clear policies,financial incentives and regulatory frame

323、works.The UAE Energy Strategy 205048 and Saudi Arabias Vision 203049 are models of ambitious national strategies that integrate renewable energy targets,waste management and ecosystem conservation.However,sustainability efforts in the region vary significantly,particularly between GCC and non-GCC co

324、untries.GCC countries have a higher emissions intensity(CO2 emissions per capita)and tend to exhibit higher CO2 emissions per unit of GDP(PPP).This reflects the carbon intensity of their oil-and gas-dependent economies,which require more comprehensive and robust regulatory frameworks.This divergence

325、 underscores the need for tailored sustainability strategies that consider each countrys unique economic context,resource availability and environmental challenges.Collaboration and knowledge-sharing are essential to leverage best practicePromising developments are emerging in the region,with organi

326、zations demonstrating notable progress integrating sustainability into core business operations.The importance of sustainable development is increasingly being recognised as a key driver of long-term resilience and growth.These progressive organizations provide valuable inspiration and instructive i

327、nsight for others in the region.In particular,their innovative approaches illustrate how leading companies are integrating sustainability into their strategic priorities.These practices underscore the importance of adopting comprehensive sustainability frameworks while engaging stakeholders.Regional

328、 collaboration and knowledge-sharing are essential for leveraging best practices and addressing common challenges.Initiatives such as Egypts National Initiative for Smart Green Projects,Moroccos EU-Morocco Green Partnership and Saudi Arabias Sustainability Champions programme demonstrate the power o

329、f collaborative efforts in mobilizing local solutions,enhancing sustainability reporting and supporting SMEs,all of which create ripple effects across the region.Next steps to boost sustainable performanceTo translate these insights into actions,sustainability must be prioritized across all organiza

330、tional activities.Companies and policy-makers should consider taking the following steps:Integrate sustainability ambitions with strategic priorities:Embed sustainability into the core of the organization to meet market demands and stakeholder expectations in a rapidly evolving landscape.Conduct com

331、prehensive materiality assessments:Regularly evaluate and prioritize sustainability topics that are most relevant to the organization and its stakeholders,ensuring alignment with strategic objectives versus treating sustainability reporting as a standalone compliance process.Establish metrics/KPIs a

332、nd report progress:Develop transparent mechanisms for tracking and communicating sustainability performance,allowing for continuous improvement and accountability.Work towards the establishment of regional sustainability reporting guidelines and best practices,adapted to the unique context,to provid

333、e clear guidance for tracking and improving performance.Engage with policy-makers and promote public-private partnerships:Actively participate in policy dialogues and advocacy to shape supportive regulatory environments and leverage government incentives for sustainable development.Foster partnerships between the global innovation ecosystem and MENA companies to fast-track solutions through collab