Dubai—November 8, 2024—Bain & Company, in partnership with the World Economic Forum (WEF), has launched a pioneering report titled “Prioritizing Sustainability in MENA: Mapping Critical Environmental Issues for Regional Businesses.”
This report highlights the critical environmental challenges facing businesses across the Middle East and North Africa (MENA) region and provides a roadmap for corporate leaders to align their operations with global sustainability goals.
Following the historic commitments made at COP28 in Dubai last year, the region is under mounting pressure from stakeholders—including investors, regulators, and global markets—to enhance transparency, accountability, and sustainability practices.
Akram Alami, Middle East Head of Utilities, Aviation, and Sustainability & Responsibility Practices at Bain & Company, commented: “The MENA region is at a crossroads, where the choices made today will determine the sustainability and resilience of its economy in the coming decades. This report provides businesses with the tools and insights they need to navigate the complex sustainability landscape and take decisive action.”
The new report offers essential insights to help businesses navigate the increasing demand for environmental disclosure and corporate responsibility.
Key Findings:
1-Post-COP28 Pressure:
The MENA region is at a pivotal point in its sustainability journey, following the landmark commitments made at COP28. With 70% of MENA’s emissions now covered by net-zero pledges—up from 60% two years ago—the region faces heightened expectations to transition toward sustainability. However, the report finds that regional businesses still lack clear tailored guidelines to meet these ambitious goals effectively.
2-Environmental Materiality Assessments:
The report emphasizes the importance of environmental materiality assessments as a critical starting point for companies aiming to meet sustainability goals. By prioritizing issues that are most relevant to their industry and sector, MENA businesses can improve risk management, transparency, and investor confidence.
3-Sector-Specific Recommendations:
To assist businesses at various stages of their sustainability journey, the report outlines sector-based roadmaps. Raja Atoui, Partner and Leader within the Energy & Natural Resources and Sustainability & Responsibility Practices at Bain & Company, added: “MENA businesses have a unique opportunity to lead by example and redefine sustainable growth. Our sector-specific recommendations are designed to empower organizations at every stage of their sustainability journey—from those taking their first steps to those looking to achieve full environmental transparency.”
Key industries, such as oil and gas, retail, financial institutions, and utilities, receive tailored recommendations on how to measure and disclose environmental impacts.
4-The role of governments:
Government leadership remains crucial in fostering sustainability across MENA. Policymakers must continue to set clear regulations, provide financial incentives, and support collaboration between public and private sectors to accelerate the region’s transition to a more sustainable economy.
Industry and Government Collaboration Is Key:
The report acknowledges the significant progress made by major corporations in integrating sustainability into their core business practices. However, it stresses the importance of broader collaboration to ensure these advancements reach small and medium enterprises (SMEs) that play a critical role in the MENA economy. By fostering a collective effort across supply chains, the region can better meet its environmental and economic goals.
Looking Ahead:
As sustainability becomes a defining element of business strategy, the report calls for more robust collaboration between the public and private sectors, the adoption of regional sustainability reporting frameworks, and the acceleration of policies that support a sustainable future. With this new roadmap, MENA businesses can strengthen their environmental resilience and contribute meaningfully to global sustainability efforts.
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