New research from APCO-GCC Board Directors Institute pinpoints trends defining ESG in Gulf region

• In the Gulf Region, 55% of surveyed GCC companies are reporting on their ESG goals.
• The CEO has ultimate accountability for reaching ESG goals and targets, according to 58.8% of GCC organizations surveyed.

September 13, 2022: APCO Worldwide and GCC Board Directors Institute (GCC BDI) released the results of a joint study seeking to better understand where companies in the region are on their ESG journey, their priority issues and barriers to ESG implementation, Liam D. Clarke, senior director and head of APCO’s MENA Climate Practice, announced today.

“Now more than ever before, there is a heightened focus on ESG from regulators, investors, employees and even the general public,” Jane Valls, executive director of GCC BDI, said. “It is critical that boards take a proactive approach in centering ESG in corporate strategy discussions. This guide highlights the growing consensus around why ESG belongs in the boardroom—and why it’s here to stay.”

The joint survey found that companies are beginning to take action on ESG, but that a lack of transparency and standardised metrics remain major points of friction. ESG programs in the regions have emerged largely as a reactive response to investor and stakeholder pressure. However, GCC-based public and private companies are just starting their ESG journeys, and there’s room for growth and development to understand and better utilize their data, the report found.

“This 2022 report showcases how mindsets surrounding ESG are rapidly shifting within the GCC region, underpinned by emergent risks and the need for strategic planning,” Clarke said. “APCO sees ESG as a catalyst for cross-sectoral collaboration around urgent social and environmental problems within the GCC region. We stand ready to support organizations of all sizes as they work to strategically build their ESG capabilities and emerge as global leaders in sustainability."

Some of the key findings of the report include:
• ESG is mostly seen positively—largely due to the importance that GCC companies place on ESG’s impact on their reputation, risk and value creation.
• As government policies around ESG are rapidly evolving, GCC-based companies are still at the “start-up” phase of their ESG journey and grappling to understand, analyse and act upon their data.
• Most private companies are not reporting on their ESG goals, but more than half of listed companies that were surveyed are doing so.
• Reporting from both public and private companies primarily takes the form of an annual ESG report separate from financial reporting, or an integrated annual sustainability report.

ESG strategies and programs can enhance cross-sectoral collaboration to tackle urgent social and environmental challenges within the GCC region. As ESG strategies are implemented by the public and private sectors, they benefit from a deepening commitment to sustainability through opportunities to capitalise on ESG opportunities and an acceleration of the region’s net-zero goals.

Click here to download a copy of ESG in the GCC Region: Accelerating Integration.


About GCC Board of Directors Institute
GCC Board Directors Institute (GCC BDI) is a not-for-profit organisation which guides board directors of organisations, from family-owned businesses to listed companies, to acquire the know-how and the tools to reach and sustain effective governance. Launched in 2007, we are very proud to be celebrating our 15th anniversary of
operating across the GCC. We are supported by eight leading regional corporations and professional services firms who serve as our strategic partners.

Our mission is to enhance board member capabilities, create a strong and influential regional network of board members, and disseminate high-quality corporate governance knowledge, leading the regional debate on emerging best governance practices. We aim to accomplish these goals through a combination of effective practice and experience sharing, access to global knowledge and interaction with regional and international counterparts.

GCC BDI has grown to become the leading organisation in the region for board directors. We have delivered over 400 programmes and forums to top-tier companies in the Gulf and now comprise over 2600 members, each with extensive knowledge and experience in operating at the most senior levels of business in the GCC.
For more information, please visit https://gccbdi.org/

About APCO Worldwide
APCO Worldwide is an advisory and advocacy communications consultancy helping leading public and private sector organizations be catalysts for progress by navigating the challenges of today, acting with agility, anticipating social risk and building organizational reputations, relationships and solutions to succeed. APCO is an independent and majority women-owned business. For more information, please visit www.apcoworldwide.com.

 

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