MENA ESG 2025 Report
Shifting tides and the future ahead
Companies across the region are showing promise for positive growth moving forward into 2026; however, many obstacles and challenges are yet to be resolved, with the region predominantly struggling with finding strategies through which to integrate ESG, all the while ensuring operational efficiency and positive bottom line impact.
52%
give equal weighting to Environmental, Social, and Governance pillars.
20%
of firms only began ESG efforts in the last two years — a sign of rising awareness.
51%
of leadership teams demonstrate ESG commitment through joint communication with external stakeholders — but most ESG reporting remains internal only.
36%
of firms struggle with ESG measurement due to lack of third-party support — but only 5% of firms with outsourced ESG report this issue.
Shaping a Sustainable Future
A Message from the CEO
ESG has become a vital mechanism, valued for both its social relevance and the credibility it brings to brands that engage meaningfully and deliver real results. While other regions have developed their own approaches, the Middle East is defining its own.
With adoption still in its early stages, this is the time to build a framework that reflects our realities, our priorities, and our people. Strong government backing has laid the groundwork. It’s now on businesses to move from awareness to action and to create impact that lasts.
This is a pivotal moment.
The region is poised to shape an ESG model that draws inspiration from its unique landscape.
We hope the insights in these pages push the conversation forward and strengthen the resolve to act.
Ahmad Itani
1.The regional growth of ESG has rapidly accelerated over the past year.
The past 12 months have marked a shift in how organizations across the MENA region engage with ESG. Today, ESG is a core part of business strategy.
A striking 100% of firms surveyed have undertaken at least one initiative across each of the Environmental, Social, and Governance pillars — signaling a region-wide, full-spectrum adoption. Moreover, 52% of MENA organizations now prioritize all three ESG pillars equally, demonstrating a notable evolution from piecemeal efforts toward integrated sustainability strategies. What began as regulatory compliance or corporate philanthropy has matured into a foundational framework for long-term growth and resilience.
This transformation is not limited to strategic vision; it is being operationalized with measurable intent. Nearly every firm (99%) now tracks ESG performance in some capacity, with a growing number leveraging internal KPIs, external ratings, stakeholder feedback, and structured reporting frameworks.
Question: How does your organization measure the impact of its ESG efforts?
Measurement method
- ESG ratings or indices
- Qualitative stakeholder feedback
- Internal metrics and KPIs
- Tech tools for impact measurement
- Third-party audits
- Sustainability reporting frameworks
- No ESG impact measurements
2. Overall impact and performance is on the rise, but challenges remain.
Across the MENA region, organizations are beginning to see tangible returns on their efforts. ESG is no longer a conceptual ambition, but a measurable contributor to reputation, operational efficiency, and stakeholder trust. A striking 99% of firms assess the qualitative impact of their ESG initiatives, using tools such as community engagement surveys, internal reviews, and sentiment analysis to track perception. In Jordan, 68% of organizations use sentiment analysis - signalling a more digital approach to monitoring and refining strategy in real time.
However, scaling these efforts comes with challenges. Despite widespread measurement, 36% of firms cite limited third-party support, and 34% point to resource constraints. Robust ESG tracking depends on capacity, systems, leadership, and buy-in. Even among larger firms (500+ employees), 29% report data consistency issues, while mid-sized companies often lack access to expert support. These obstacles are particularly visible in countries like Jordan and Egypt, where regulation is advancing faster than infrastructure and funding.
Question: What challenges does your company face when measuring the impact of its ESG efforts?
As ESG continues to mature across these markets, its purpose is shifting from compliance toward competitiveness.
Long-term profitability has emerged as a leading driver, particularly in Kuwait (41%) and Oman (35%), where companies are integrating sustainability into business strategy to strengthen their position. For larger firms, profitability is not a secondary benefit - it’s a targeted outcome. For organizations with over 11 years of ESG experience, nearly one-third cite profitability as their primary motivator, highlighting a growing understanding of ESG as a financially driven decision.
But financial goals aren't the only factor. In Lebanon, 36% of firms identify ethical commitment as their main driver, pointing to the rise of values-led business models. Among local firms, motivations rooted in competitive edge (26%) and ethical principles (22%) suggest that purpose and performance are becoming more closely aligned. Well-structured ESG strategies areincreasingly viewed as a means to foster internal cohesion, build employee loyalty, and enhancereputation - especially in markets where external stakeholder pressure remains limited.
Question: Which, if any, of the following is your organization’s biggest motivator for increasing ESG efforts, over the next 12 months (i.e. throughout 2025)?
Motivating factors
- Long-term profitability
- Regulatory compliance
- Competitive advantage
- Ethical commitment
- Stakeholder pressure
- None of these
Interestingly, ESG governance models shape motivation too. Firms relying on third-party ESG management are more likely to prioritize competitive advantage (32%), indicating that external advisors are helping position ESG as a strategic asset. Meanwhile, internally managed ESG frameworks tend to emphasize profitability (28%), aligning sustainability closely with performance metrics.
What emerges is a dual narrative - one of profit and purpose converging - where ESG is no longer a siloed obligation, but a forward-looking investment in both impact and return.
ESG is accelerating
Across the MENA region, organizations are beginning to institutionalize sustainability principles. From purpose-led volunteerism to boardroom-driven governance reforms, from green innovation in tech to water conservation in resource-scarce economies, the ESG movement has deepened its roots. Firms are no longer asking whether they should participate in ESG - they’re asking how to lead within it.
Yet, as the ecosystem matures, so too do the expectations.
Stakeholders are demanding substance over symbolism. The challenge is around depth. It's about moving from box-ticking to blueprint-building, from annual reports to everyday impact. The region is rising to that challenge, with data now in place to guide the journey forward.
These were just some of the high-impact insights from our report.
The full study spans over 20 data sets across 17 core questions - each rigorously cross-examined to offer brands, institutions, and decision-makers a holistic view of ESG progress across MENA. This report is a call to action, to understand, to lead, and to amplify the ESG momentum across the region.
About the survey
This report draws on one of the region's most comprehensive ESG-focused studies to date. It is based on direct input from 361 C-suite executives and senior decision-makers across the MENA region, all of whom play a central role in shaping strategic ESG direction within their organizations.
Respondents represented organizations ranging from 25 to 500 employees, with an intentionally balanced sample across business sizes to ensure that findings were not skewed by scale. This approach allowed for equal representation and comparability across company structures - from locally-rooted SMEs to internationally operating firms.
The survey covered over 20 industries - among them Financial Services, Construction & Engineering, IT & Telecommunications, and Consumer Goods - providing a detailed, sector-sensitive view of ESG maturity, adoption, and ambition.
Responses were gathered across 17 core questions, touching on environmental practices, governance structures, stakeholder engagement, and internal reporting. Cross-tabulated results offer a detailed picture of how ESG is developing across markets, sectors, company sizes, and operational models in MENA.