The Middle East has been making significant progress in sustainability and ESG (Environmental, Social, and Governance) reporting, driven by a combination of regulatory requirements, investor demand, and a commitment to global sustainability goals. Though a late starter, governments and regulatory bodies across the Gulf Cooperation Council (GCC) countries have increasingly startedfocusing on ESG reporting to promote sustainable development and align with their countries’ visions.

One of the early movers, the UAE government has been proactive in promoting sustainability through various initiatives such as the UAE Vision 2021 and the UAE Green Agenda 2015-2030. The UAE’s Green Agenda -2030 is a vision to achieve the goals of sustainable development in the UAE and make its economy more environment-friendly. The aim of the Green Agenda -2030  increase the UAE's GDP by 4 to 5 percent, increase its exports by about AED 24 to 25 billion, and reduce the country's emissions to less than 100 kilowatt-hours.

Some innovative initiatives from government companies in UAE include Dubai Electricity and Water Authority (DEWA) – which has launched the "Green Dubai" initiative, aimed at reducing carbon emissions through increased use of renewable energy and smart grid technologies. In the Oil & Gas sector, 

ADNOC Decarbonizing Our Operations - ADNOC has made investments to advance towards net-zero by 2045. Their Al Reyadah project, a commercial-scale carbon capture, utilization, and storage (CCUS) facility captures significant amounts of CO2 and use it for enhanced oil recovery, thus reducing overall emissions. 

One of the noted family groups, Majid Al Futtaim (Our Sustainability Mission & Positive Impact | Majid Al Futtaim) has committed to becoming net positive in carbon and water by 2040. As of 2023, they reported 24% reduction in scope 1 and 2 market-based emissions across the company compared to the 2019 baseline, 3.18K+green-certified assets, residential units and neighborhood communities as of 2023 and 26% women in the top three seniority levels as of 2023.

In the other large economy, Saudi Arabia, the Vision 2030 emphasizes sustainability and ESG reporting. The Saudi Stock Exchange (Tadawul) ESG Guidelines (saudiexchange.sa)has introduced ESG disclosure guidelines to encourage listed companies to report on their sustainability practices. 

The flagship Oil & Gas company, Saudi Aramco Environmental, social, and governance | Aramco has introduced a comprehensive sustainability strategy that includes reducing greenhouse gas emissions, increasing energy efficiency, and investing in renewable energy projects. They are also pioneering advanced technologies for carbon capture and storage.

NEOM This is NEOM (youtube.com) is a futuristic city project focused on sustainability and innovation. NEOM aims to be powered entirely by renewable energy, incorporate sustainable building practices, and promote a circular economy with zero waste initiatives.

Qatar National Vision 2030 outlines the country’s commitment to sustainable development. The FIFA 2022 world cup Sustainability (fifa.com) was the first edition to be certified for event sustainability management systems. Sustainable stadiums, initiatives around climate action & recycling, energy & water efficiency were part of the overall sustainability strategy.

From the banking sector, QNB has a group-wide sustainability programme (Sustainability Management at QNB)which has been developed in alignment with UNSDGs, GRI Standards and the Qatar Stock Exchange (QSE) ‘Guidance on ESG reporting’. QNB also launched green financing products enGreen2021 (qnb.com) to support sustainable projects and promote environmentally responsible investments.

In neighboring Kuwait, the Vision 2035 focuses on sustainability and economic diversificationSDG National Commitments Form Submissions | Sustainable Development (un.org). 

The flagship Kuwait Petroleum Corporation Kuwait Petroleum Corporation(KPC) has committed to achieving Net-Zero by the year 2050 by actively reducing scope 1 and scope 2 greenhouse gas emissions from their global operations and to be among the least emissions-intense oil and gas producers. 

Zain Group Zain, a leading telecommunications company, has integrated sustainability into its operations by reducing energy consumption, promoting e-waste recycling, and supporting various community development programs.

Bahrain’s Vision 2030 Sustainable Development (bahrain.bh)emphasizes sustainable development. The Central Bank of Bahrain (CBB) has mandated ESG reporting ESG Reporting Guidelines (cbb.gov.bh) for all listed companies, banks, financing companies, insurance firms, and category 1 and 2 investment firms from the financial year 2024.

In manufacturing, Alba (Aluminium Bahrain) Alba's ESG Roadmap - Aluminium Bahrain (Alba) (albasmelter.com)is committed to reducing its carbon footprint through energy efficiency measures, waste reduction programs, and the use of renewable energy. They have also implemented initiatives to promote sustainable practices across their supply chain.

The EDB is promoting sustainable economic development (4) Post | LinkedIn by attracting investments in renewable energy, green technologies, and sustainable infrastructure projects. They focus on creating a sustainable and diversified economy.

Oman Vision 2040 highlights the importance of sustainability Oman Vision 2040 Implementation Follow-up Unit | Sustainable Environment (oman2040.om). 

Petroleum Development Oman (PDO) Petroleum Development Oman (pdo.co.om) has implemented several sustainability initiatives, including reducing greenhouse gas emissions, improving energy efficiency, and investing in renewable energy projects such as solar and wind power.

These examples illustrate the diverse and comprehensive efforts by Gulf Cooperation Countries to enhance sustainability and ESG reporting in 2024, demonstrating a regional commitment to environmental stewardship, social responsibility, and good governance.

While mandatory ESG reporting is not yet a standard requirement across all GCC countries, there is a strong push from governments, regulators and stock exchanges to encourage companies to disclose their ESG practices. This is part of a broader strategy to promote sustainable development, attract responsible investment, and enhance transparency.