Middle East businesses have to script a full-on ESG strategy – there is not much time left to get on it

Middle East businesses have to script a full-on ESG strategy – there is not much time left to get on it

The volume of government-led sustainability initiatives rolled out in the Middle East is staggering - their potential impact might be even more impressive. The UAE launched the region’s first independent Climate Change Accelerators to drive its commitment towards Net Zero by 2050 on the back of an earlier announcement about creating the world’s first regulated carbon credit trading exchange and clearing house. Saudi Arabia plans to increase renewable energy production to 50 per cent of its grid needs by 2030. The world’s biggest oil producer, Aramco. unveiled a green initiative endorsing a circular carbon economy and commitment to plant 50 billion trees in the Middle East. And Kuwait outlined its plans to commit to carbon neutrality by 2050. Egypt’s plans include a $11 billion wind farm to provide electricity to Saudi Arabia and other countries. A private company from the Kingdom has signed an MoU with the Egyptian government for a $3.5 billion green hydrogen project. Increasing international pressure stemming from the climate crisis side effects, combined with the need to diversify energy sources, are the major forces behind the speed and scale of the region’s energy transformation. There’s no doubt the ‘E’ in the ESG - Environmental Social Governance