ESG is a global mega trend.
More than 70 countries globally have set a net-zero target,
covering about 76% of global emissions,
and over 1,200 companies have put in place
science-based targets in line with net zero.
This momentum has been mirrored in the Middle East,
with the UAE joining the global race and committing
to net zero by 2050
and Saudi Arabia by 2060.
The UN has also announced that Egypt will host COP27 this year,
followed by the UAE who will host the COP28 in 2023.
There is a renewed focus in the Middle East to show leadership
and initiative on tackling issues of climate change
given the strategic role the region plays in energy transition,
pioneering low carbon, developing sustainable destinations
and localising supply chains.
While most countries have committed to ambitious targets
in line with global expectations,
the heavy dependence on oil and gas creates challenges,
particularly for economic growth.
Tax and fiscal instruments are important policy levers
that can help drive net zero and the ESG agenda.
The region is currently undergoing a massive wave of change.
This is driven by a number of global agreements,
making it the perfect time to include ESG
within the region’s economic plans.
We recently conducted a survey of top level executives with
responsibility for ESG in their organisations.
The aim was to get a better understanding
of the level of ESG maturity
in the region and to explore the main ESG
issues facing businesses today.
86% of large companies say increased ESG regulation
would strengthen and accelerate the implementation
of their own ESG strategies,
and 61% rank diversity and equality as their
top societal focus for 2022
It is clear that companies in the Middle East have
a strong sense of what is needed to achieve progress in this area.
We can’t achieve ESG targets through a single national policy.
Tax and policy strategies must be successfully aligned
between businesses and countries across the region.
Together, we can ensure a smooth transition
to a more sustainable future.