OPINION
4 TRUTHS OF ESG THAT WILL HELP DECISION-MAKERS CRAFT THEIR STRATEGY
T
he Middle East consumer base is increasingly dominated by a young, socially conscious subsection. According to PwC research, shoppers here base their buying decisions on environmental, social, and governance (ESG) issues to a greater extent than the global average. Some 31% of those in the Middle East say they consider ESG when making a purchase compared with 18% globally. ESG strategies have leaped up several places on the priority lists of regional boardrooms as regulators and employees join consumers in demanding more responsible business operations. But calling for it is one thing. Navigating its challenges to deliver on ESG pledges is another. In a fragile global economy, how do we choose wisely from the many potential areas for investment? And how do we solve problems of measurement to demonstrate progress? The fog on the path forward starts to clear when considering four central truths of ESG.
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NO TWO JOURNEYS ARE THE SAME ESG will mean something different for each enterprise, based on the nature, maturity, and scope of operations. Legal demands, values, and customer expectations will also come into play. The business leader must then decide how to translate these requirements into consistent practices that reach across the organization itself and along the value chain to each partner and supplier for the optimum community impact. Where Europe may be further along in sustainability and other ESG areas, the Middle East journey is admittedly more recent given governments’ prior focus on rapid growth. But in areas such as the Arab Gulf, sustainability clauses have found their way into the government guidelines that drive national economic programs. The region’s decision-makers must take care in timing their ESG forays. Invest too impulsively and the ability to deliver could be compromised. Conversely, the potential for partnerships with global organizations on ESG could be missed if enterprises wait too long.
biznesstransform.com
5/2/2023 10:31:55 AM
