Sustainability Strategy for GCC Businesses | A Practical Guide

 

 

Sustainability Strategy for GCC Businesses | A Practical Guide

 

Sustainability Strategy for GCC Businesses is no longer a peripheral initiative—it’s a core driver of competitiveness, innovation, and long-term resilience. Across the Gulf Cooperation Council (GCC), organizations are aligning with national visions such as Saudi Vision 2030 and UAE Net Zero 2050 to integrate sustainability into their operations and governance.

The transition toward more sustainable business practices requires a clear and effective strategy: a defined Sustainability Strategy. For GCC businesses operating across the Gulf region—from Riyadh to Doha and from Dubai to Muscat—developing a robust Sustainability Strategy is no longer optional. It is a fundamental commitment necessary for future fitness and secured competitive advantages.

GCC businesses face unique demands, driven by regional diversification goals, climate realities, global investor pressure, and evolving government regulations. This guide provides sustainability professionals and business owners with a step-by-step roadmap for developing, implementing, and maintaining an effective Sustainability Strategy for GCC businesses that minimizes negative impacts, drives positive developments, reduces risks, and seizes opportunities.

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Key Insights into Sustainability Strategy for GCC Businesses

Developing and implementing a robust Sustainability Strategy is vital for GCC businesses to secure competitive advantages and long-term financial resilience. These section summarize the core concepts presented in this blog post:

The Foundation of Sustainability Strategy

• Holistic, Long-Term Approach: A sustainability strategy is a comprehensive, long-term plan balancing business activities with essential social, economic, and environmental objectives. It involves a coherent concept of instruments and methods to achieve sustainable development
• Purpose and Value: The strategy must flow from the company’s core corporate purpose, vision, mission, and values. This alignment ensures the strategy builds upon the organization’s reason for being and contributes to business growth, rather than just being a drain on resources.
• Core Benefits: A strategy makes companies fit for the future and provides clear advantages such as strategic planning, a better public image, increased customer loyalty, and greater attractiveness for talent. It also minimizes negative impacts, reduces risks, drives positive developments, and helps seize opportunities.
• ESG Integration: The strategy typically provides a holistic focus on Environmental, Social, and Governance (ESG) issues, ensuring these aspects are implemented across the company. In the long term, the most effective strategy combines classic economic aspects with ecological and social objectives to create a holistic strategy.

Strategic Development and Implementation Roadmap

• Status Quo Analysis: The process begins by determining the current state of the company through a thorough status quo analysis, which involves the initial collection of data in the ESG area. This data forms the basis for all future sustainability efforts.
• Materiality and Prioritization: A materiality analysis is essential to identify the sustainability issues that matter most to the business and its stakeholders, prioritizing those that present the greatest impacts, risks, and opportunities (IROs). Good strategy requires ruthless decision-making to focus investment on a small number of key areas.
• Setting SMART Targets: Objectives must be defined using the SMART method: Specific, Measurable, Achievable, Reasonable, and Time-bound. Targets must be clearly linked to key strategic goals (material) and set measurable improvements over a specified time period (meaningful)
• Integration and Awareness: To anchor the strategy, sustainability should be integrated into the overall corporate strategy, not treated as a separate concept. This requires creating a shared awareness of sustainability across all departments and ensuring buy-in and active promotion from senior management.
• Governance and Accountability: Effective implementation requires clear responsibilities and a formal system of accountabilities, often involving an ESG Steering Committee. Performance tracking using Key Performance Indicators (KPIs) allows for constant review and necessary adjustments, as ESG management is viewed as a long-term process.

Regional Best Practices of Developing Sustainability Strategy for GCC Businesses

• Aramco (Saudi Arabia): Energy Efficiency and Emission Reduction: Aramco’s sustainability strategy targets net-zero Scope 1 and Scope 2 emissions by 2050 for its wholly-owned operated assets by focusing on energy efficiency, reduced flaring and methane, carbon capture and storage (CCS), increased renewables, and natural climate solutions. It also includes developing a New Energies business for lower-carbon products, aiming to lower the net carbon emissions of its operations and support the global energy transition.
• Emaar Group (UAE): Governance and KPIs: Emaar’s strategy is built on three pillars: Safeguarding the Environment, Maximizing Social Value, and Ensuring Strong Governance. The company’s ESG Steering Committee oversees the strategy and sets annual ESG KPIs that are integrated into employee performance management, ensuring high-level accountability.
• QNB (Qatar): Sustainable Finance Focus: QNB utilizes three pillars (Sustainable Finance, Sustainable Operations, and Beyond Banking) to ensure sustainable financial performance. The Sustainable Finance pillar is crucial, integrating ESG criteria into lending and investment decisions to manage financial risks and capitalize on opportunities arising from the green economy transition.
• OMRAN Group (Oman): ICV and Cultural Heritage: OMRAN adopts an integrated approach centered on responsible tourism, anchoring its strategy in enhancing In-Country Value (ICV) and empowering local communities. They apply the ESG framework with a strong emphasis on preserving cultural heritage. Human capital development is supported through initiatives like #IAmTourism to build future-ready national capabilities.

Future Strategic Trends

• Data and Technology: Efficient data collection, management, and analysis are crucial for tracking targets and reporting. Specialized ESG software solutions are available to streamline this process and transform data into valuable insights.
• Regulatory Adaptation: Businesses must be prepared for increased regulatory demands, such as those related to CSRD, CSDDD, and anti-greenwashing directives (e.g., the Green Claims Directive). Strategies must include mechanisms for robust reporting and alignment with standards like ESRS and GRI.
• Resilience and Value Creation: A resilient strategy supports long-term commercial goals by identifying measurable benefits alongside long-term risks and opportunities. Sustainability leaders recognize that effective ESG performance correlates with superior financial returns and a lower cost of capital.

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Sustainability Strategy: Background, Definition & Driving Forces

Introduction

Modern business faces significant demands today. These demands come from varied groups: challenging regulators, demanding shareholders, more discerning consumers, and activist campaigners. For practitioners working in corporate responsibility and sustainability roles, a central challenge is deciding where to focus attention among all the possible initiatives an organization could pursue.

A Sustainability Strategy offers the necessary structure and clarity. It serves as a framework for prioritization. If a company lacks a clear Sustainability Strategy, integrating initiatives and aligning them with core business priorities becomes hugely challenging. Without an authentic and focused strategy, communicating progress and engaging stakeholders will also be made harder.

Whether a business is developing its first Sustainability Strategy or refreshing an existing one, the task can seem daunting due to the “bewildering range of different standards, initiatives, processes and examples” available. However, the goal remains singular: to create a clear, long-term plan for the future with social and environmental practices. This plan ensures that businesses can tackle key issues in a targeted and structured manner.

The resulting benefits of a good Sustainability Strategy are tangible. They include strategic planning, competitive advantages, a better public image, increased customer loyalty, and greater attractiveness for talented employees.

What is a Sustainability Strategy?

To successfully implement a Sustainability Strategy for GCC businesses, it is vital to first understand what the strategy is and the core principles that guide it.

A Sustainability Strategy is a comprehensive, long-term approach that an organization adopts to balance and align its business activities with essential social, economic, and environmental sustainability objectives. It represents a coherent concept encompassing methods and instruments aimed at achieving sustainable development for the company regarding ecological, social, and economic aspects.

In its classic, initial form, a Sustainability Strategy may appear as a separate, complementary concept running parallel to the core business-oriented corporate strategy. However, over the long term, the most effective Sustainability Strategy combines classic economic, corporate strategy aspects with ecological and social objectives, resulting in a holistic strategy.

This strategy translates into specific actions and policies designed to achieve several critical outcomes:

• Minimizing the organization’s negative impact on the environment
• Improving society’s well-being
• Ensuring the organization’s economic viability and prosperity

A complete Sustainability Strategy framework focuses on holistic ESG issues—Environmental, Social, and Governance aspects—and their effective implementation. This framework typically translates into implementing specific initiatives and programs addressing issues like waste reduction, energy efficiency, community engagement, and corporate responsibility. Crucially, an effective strategy must also include mechanisms for measuring and reporting performance against defined sustainability objectives. This enables the organization to assess its progress, make necessary adjustments, and communicate its achievements transparently to stakeholders.

A Sustainability Strategy is a prioritized set of actions. It provides an agreed framework to focus resources and investment, drive performance, and engage both internal and external stakeholders.

Driving Forces of Sustainability Strategy

While the development of a formal Sustainability Strategy is a modern business requirement, its necessity has been driven by increasing external pressures:

• Key Drivers of Strategy Development: One main reason a Sustainability Strategy is needed is the increasing pressure from three crucial groups: government regulations, investors, and consumers. Governments worldwide are enacting laws that mandate companies reduce their environmental impact. Investors are increasingly interested in the sustainability practices of the companies they invest in. Similarly, consumers often choose products and services from companies that show a genuine commitment to sustainability.
• Global Alignment and Standards: The United Nations 2030 Agenda for Sustainable Development, which established 17 Sustainable Development Goals (SDGs), provides a global framework for sustainability. A comprehensive Sustainability Strategy assists organizations in aligning their operations and objectives with these SDGs, ensuring their contribution to global efforts for a more sustainable future.
• The evolution of reporting frameworks also shapes the strategy development process. For instance, the Global Reporting Initiative (GRI) G4 Guidelines placed the concept of materiality at the core of sustainability reporting, challenging companies to thoroughly link their sustainability impacts to their business strategy and operations. More recently, directives such as the Corporate Sustainability Reporting Directive (CSRD) in Europe oblige companies to conduct a double materiality analysis. The sustainability landscape is constantly changing, with expectations of what issues companies should address, and how they should tackle them, evolving daily.

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How to Develop a Sustainability Strategy for Your Business?

Developing a Sustainability Strategy is a crucial commitment for any organization seeking to thrive today. The process involves clear steps to identify priorities, set goals, integrate them across the business, and ensure continuous monitoring.

Analysis & target definition

To know where the company aims to go, one must first determine the current standing. The initial phase centers on status assessment and identifying key material topics.

1. Status Quo Analysis

The current state of the company is determined through a status quo analysis. This involves the first thorough data collection in the ESG area. The information collected forms the foundation for all future sustainability efforts. This analysis usually requires significant effort and involves numerous departments, as necessary data might not be readily available or previously collected. The status quo analysis acts as the basis for the subsequent materiality analysis.

2. Materiality Analysis: Identifying the Issues that Matter

Materiality means identifying, understanding, and prioritizing for action those issues that are significant to both the business and its stakeholders. No business can address every issue that every stakeholder is interested in. Therefore, materiality provides the rationale for why certain topics are tackled while others are left to organizations better placed to deal with them.

If a company is subject to the CSRD, a double materiality analysis must be conducted. For a DNK report, a simple materiality analysis is sufficient. The analysis results in determined fields of action and specific Impacts, Risks, and Opportunities (IROs).

The Value of Stakeholder Input: Stakeholders include both internal (employees, management) and external groups (shareholders, customers, regulators, suppliers). Stakeholder input is essential because:

• It creates a better business: Listening to the concerns of shareholders, customers, and employees helps the company meet the needs of significant groups more effectively.
• It provides an early warning signal: By listening to concerns about fast-rising issues, companies can minimize risks and adapt to changing expectations more quickly.
• It provides challenge and innovative insights: Stakeholders offer critical challenge that often does not arise from within the organization.

The core of materiality is balancing stakeholder priorities with priorities for the business. A materiality matrix typically maps issues based on the level of interest to stakeholders versus the current or potential impact on the business.

3. Establish Vision, Define Targets, and KPIs

Based on the key issues identified, the next step is to define targets and Key Performance Indicators (KPIs) for monitoring, along with suitable measures to achieve the targets set. The lack of concrete goals and KPIs is cited as one of the biggest obstacles to sustainable business transformation.

When defining objectives, companies should rely on science-based support, such as using the GHG Protocol (Greenhouse Gas Protocol) or projects aligned with the Paris Climate Agreement. Industry-specific assistance can be found, for example, from the Science Based Targets Initiative (SBTi).

Setting SMART Goals: It is crucial to set SMART targets, a method derived from project management:

• Specific
• Measurable
• Achievable
• Reasonable
• Time-bound

The goals set in the sustainability area should not be detached from overall corporate goals; otherwise, conflicts can quickly arise. Instead, ESG goals should be integrated into the overall strategy.

Targets vs. KPIs:

A Target/Goal is what the organization is trying to achieve; while a Key Performance Indicator (KPI) is a quantifiable measure used to monitor and evaluate performance toward a target or goal.

Targets should ideally be quantifiable and time-bound, especially environmental targets. While some qualitative targets (e.g., promising to “explore” possibilities) may be used, they risk seeming vague. Wherever possible, it is more impactful to commit to numbers.

Good targets must be meaningful (setting measurable improvements over a specified time period), material (clearly linked to strategic goals), complete (covering the most important social, environmental, and economic impacts), consistent (remaining relatively steady over time), and ambitious (moving beyond business as usual).

Strategy formulation & integration

A strategy must provide focus—not just a shopping list of activities. Developing the Sustainability Strategy must begin with defining the company’s vision, mission, and values.

Aligning with Core Corporate Purpose

The starting point for developing a Sustainability Strategy should be the reason why the company is in business. Many organizations have a vision, mission, and set of values; being clear on this purpose is crucial for shaping an effective strategy. This ensures that the Sustainability Strategy does not appear as a “side show, bolted on to the organization,” but instead builds upon the organization’s core assets and reason for being.

• Vision: The desired end-goal; an inspirational picture of the future world the organization seeks to create.
• Mission: How the organization plans to deliver its vision—what it does, and for whom. The mission is a critical starting point as it explains what the business is setting out to do.
• Values: The guiding principles by which the organization lives and judges its behaviors. Values should be reflected in the Sustainability Strategy, which should provide tangible means to bring these values to life.

By flowing the strategy from corporate aims, a genuine link to the company’s overall objectives is provided, forming a foundation to build aspirations and focus on the right priorities. This alignment ensures the strategy creates real value by contributing to business growth, rather than being a drain on resources.

Prioritizing and Focusing the Strategy

Simply identifying the most important issues is insufficient. Good strategy requires deciding which issues to truly focus on, creating a framework where all programs converge on a peak. The best strategies cut a very clear path.

A common mistake is trying to shoehorn every activity into the strategy, making it the sum total of everything the business does. Good strategy demands ruthless decision-making to scale down or stop some activities, continue others, and start new ones. A good strategy needs both a hierarchy and a focus. This focus must be on the issues most material to the company, allowing the business to channel investment into a small number of key areas.

An effective strategic framework groups different issues and explains how the company plans to address them, which aids in targeting resources, engagement, and communication.

Implementation & reporting

Once the strategy development is complete, the next critical step is implementation. A Sustainability Strategy is only as successful as its delivery.

Translating Strategy into Action

Implementing the Sustainability Strategy requires translating the strategic document into concrete actions and tangible changes. Practical tips for putting the strategy into practice include:

• Get Leadership Support: Senior management backing is essential for success. They must actively promote sustainability throughout the organization.
• Allocate Resources: Sufficient human and financial resources must be allocated to achieve the sustainability goals.
• Form a Sustainability Team: A dedicated team, comprising representatives from various departments, helps coordinate actions across the organization.
• Train Employees: Employees implement the strategy daily. They must understand their role and possess the necessary skills and knowledge.
• Set Goals: Establish both short-term goals to maintain momentum and show rapid progress, alongside long-term goals for deeper, more significant changes.

Sustainability is a company-wide team project, requiring all departments for implementation, target definition, and providing data for ESG reporting.

Building Company-Wide Awareness

It is crucial to create a shared awareness of sustainability across the entire company. The best time to build this is while developing the Sustainability Strategy. A clear vision and mission for the sustainability area give the topic the necessary importance.

To anchor the ambition of a sustainable future, sustainability should not be seen as a separate strategy. Instead, it must be integrated into the overall corporate strategy, embedding the topic into all processes and areas of the company. Leaders must communicate openly about ambitions, explaining what drives the company and what it aims to achieve, thereby fostering trust, understanding, and motivation.

Transparency and Reporting

Measurement is the be-all and end-all during implementation. By consistently reviewing and measuring efforts using suitable KPIs, control over progress and the entire process is maintained.

In addition to internal measurement, many organizations disclose their sustainability performance publicly. This can improve the perception of the organization and encourage greater commitment to sustainability. Reporting frameworks such as GRI, GRESB, and SASB often utilize data collected during the production of the Sustainability Strategy. Transparency is a key factor during implementation to further increase awareness among stakeholders and employees. Organizations demonstrate this commitment through annual Integrated Reports and Sustainability Reports, which provide valuable insights into sustainability efforts, sustainability initiatives, and corporate performance.

Monitoring & further development

ESG management must be viewed as an ongoing process. Achieving medium- and long-term goals requires taking a long breath, as it will take many years

Control and Adjustment

Constant monitoring and evaluation of progress toward sustainability goals is crucial. This process allows for necessary adjustments to the strategy and ensures continual advancement. Deviations from targets become apparent early, allowing for timely adjustments. It is likely that measures and targets will need adjustment over time as new developments emerge, such as new regulations, products, or business models. Regular review and updating are essential to maintain the strategy’s relevance and effectiveness, as it must adapt to changes in operations, the industry, and environmental regulations.

Governance and Oversight

A formal system of accountabilities must be established to oversee the strategy. This governance framework ensures performance is on track and provides necessary challenge to the strategy itself. Day-to-day responsibilities for implementation must be clear, with a designated person accountable for delivery of each target and program. Many companies utilize an ESG Steering Committee composed of executive management to oversee the strategy, manage ESG-related risks and opportunities, and set annual ESG KPIs.

Ensuring Resilience for the Future

The sustainability landscape is dynamic. Strategy development must be fit for the future, considering how issues might change over time. Taking a longer-term view of trends should inform strategy development. Developing a resilient strategy involves constantly reviewing, refreshing, and updating commitments as expectations move on and new opportunities emerge.

A resilient Sustainability Strategy must be designed to support the organization’s long-term commercial goals. If sustainability fails to create business value, it risks being cut when times become difficult. Ultimately, good strategy aligns with the business, optimizing it for long-term success, which includes financial sustainability and a purpose beyond profit.

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Sustainability Challenges Facing GCC Businesses & Possible Sustainability Strategies to Address Them

The GCC region operates in a unique environment characterized by high resource intensity, rapid urbanization, and a strong push for economic diversification. While the sources do not explicitly list regional challenges, they detail the strategic focus areas companies are prioritizing, which implicitly addresses major regional risks and opportunities.

Key Strategic Focus Areas for GCC Businesses

1. Environmental Stewardship and Resource Management

Many GCC businesses face the challenge of climate change mitigation and operational environmental impact. Sustainability Strategies in this area focus on:

• Energy and Emissions: Measuring, managing, and reporting carbon emissions associated with operations, often in alignment with regional or national criteria. Strategies include optimizing energy efficiency and aiming for green building certifications. For example, OMRAN Group focuses on achieving LEED (Leadership in Energy and Environmental Design) certification for its developments, demonstrating adherence to global sustainability standards in design, construction, and operations.
• Resource Efficiency: Implementing measures for efficient resource management, including water and waste reduction.

2. Social Value and Human Capital Development

A crucial element of a Sustainability Strategy for GCC Businesses is maximizing social value. Key strategies include:

• In-Country Value (ICV) and Local Empowerment: Strategies must enhance ICV, integrate Small and Medium-sized Enterprises (SMEs) and entrepreneurs into supply chains, and empower local communities. This strategic approach fosters local economic development and creates meaningful employment opportunities.
• Talent Management: Focusing on attracting, developing, and retaining national talent and ensuring diversity and inclusion within the workforce. Human capital development is often a foundational pillar of strategy, as seen in OMRAN Group’s roadmap to build future-ready capabilities.
• Community Investment: Contributing toward wider socio-economic development through Corporate Social Responsibility (CSR) activities, often prioritizing areas like education, arts, culture, and humanitarian efforts.

3. Governance, Compliance, and Financial Resilience

Strong governance ensures that sustainability commitments are managed effectively. Strategies here focus on:

• Ethical Operations: Ensuring strong governance, business ethics, and transparency. This includes adherence to policies on anti-corruption, bribery, data privacy, and legal compliance.
• Risk Management: Integrating ESG criteria into lending, investment decisions, and operations to manage risks to financial performance.
• Sustainable Finance: Embedding sustainability practices into products and services, which is the most significant way financial institutions can support national and global sustainable development goals, opening up new business opportunities from the transition to a greener economy.

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Regional Best Practices of Developing Sustainability Strategy for GCC Businesses

The strategic choices made by leading GCC companies provide tangible examples of how a Sustainability Strategy is localized and integrated into operations.

Aramco (Saudi Arabia)

Aramco’s sustainability strategy targets net-zero Scope 1 and Scope 2 emissions by 2050 for its wholly-owned operated assets by focusing on energy efficiency, reduced flaring and methane, carbon capture and storage (CCS), increased renewables, and natural climate solutions. It also includes developing a New Energies business for lower-carbon products, aiming to lower the net carbon emissions of its operations and support the global energy transition. Key sustainability strategies of Aramco are as follows:

• Energy Efficiency: Implementing measures like cogeneration plants to generate electricity and improve energy conservation across its facilities. 
• Emissions Reduction: Reducing flaring, minimizing methane emissions, and maintaining one of the lowest carbon intensities in the upstream sector. 
• Carbon Capture and Storage (CCS): Investing in CCS technologies and developing projects like the Jubail CCS hub to capture CO₂ from its facilities and other industrial sources. 
• Renewable Energy: Increasing renewable power generation capacity to reduce its overall carbon footprint. 
• New Energies Business: Establishing a New Energies business focused on developing and commercializing lower-carbon energy solutions, including renewable power generation, lower-carbon products, and materials. 
• Natural Climate Solutions and Offsets: Utilizing natural solutions and offsets to further mitigate its carbon emissions. 
• Water Conservation: Implementing initiatives like treating and reusing seawater for operations to conserve precious groundwater resources. 

Aramco has also set the following goals & ambitions:

• Net-Zero Goal: Achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions by 2050. 
• Lower Carbon Intensity: Maintain its leadership position in low carbon intensity for its upstream operations. 
• Contribution to the Energy Transition: Play a pragmatic role in the energy transition by ensuring energy affordability, security, and a diverse energy mix. 

Emaar Group (UAE)

Emaar, with its purpose of creating and sustaining exceptional places to live, work, and visit, places sustainability at the forefront. Its integrated approach to Sustainability Strategy is framed around the ESG pillars.

Emaar’s ESG Strategy Framework

Emaar’s Group ESG Strategy Framework outlines key material topics aligned with the United Nations’ Sustainable Development Goals. The strategy focuses on three fundamental pillars:

• Safeguarding the Environment: This pillar includes key focus areas such as resource management and climate change mitigation. Environmental initiatives include obtaining green building certifications and optimizing energy efficiency.
• Maximizing Social Value: This focus area includes ensuring customer satisfaction, health, safety, and well-being. Emaar’s Standards of Conduct policy promotes workplace inclusivity, protects employee rights, and addresses harassment or discrimination.
• Ensuring Strong Governance and Business Ethics: This pillar covers key focus areas such as ethics, transparency, anti-corruption, anti-bribery, data privacy, legal compliance, and human rights.

Governance and Oversight

Emaar ensures accountability through strong governance. The ESG Steering Committee, comprising the Executive Management team, reports directly to the Chairman of the Board of Directors. This committee oversees the ESG strategy, manages related risks and opportunities, and ensures effective assessment. Furthermore, the Committee sets annual ESG Key Performance Indicators (KPIs) to measure progress, integrating them into employee performance management. The Group ESG Department drives the strategy and agenda, supporting ESG integration across all operations.

QNB (Qatar)

QNB’s (Qatar National Bank) Sustainability Framework and Strategy is designed to ensure sustainable financial performance by reducing risks, strengthening the brand, and opening up new business opportunities. The framework is structured around three interconnected pillars:

1. Sustainable Finance: This pillar integrates Environmental, Social, and Governance (ESG) criteria into investment and business decisions for the lasting benefit of society and clients. Embedding sustainability practices across investments, lending, products, and services is the most significant way QNB supports national and global sustainable development goals. This approach helps manage risks to QNB’s financial performance and allows the bank to profit from business opportunities emerging from the transition to a greener, more inclusive economy. Material topics within Sustainable Finance include:

• Sustainable investment, lending, products, and services.
• Financial inclusion, accessibility, and financial education.
• Supporting entrepreneurship and SMEs.
• Digital innovation, customer experience, and data security.

2. Sustainable Operations: Sustainable Operations focuses on managing the bank’s direct ESG impacts to ensure ethical and efficient operation. QNB’s approach is to measure, manage, and report performance in alignment with the criteria set by the Qatar Stock Exchange ‘Guidance on ESG reporting’. Material topics within Sustainable Operations emphasize:

• Strong corporate governance, compliance, and risk management.
• Minimizing the carbon emissions associated with operations.
• Respecting the human rights of employees and suppliers through responsible procurement.
• Talent attraction, development, retention, diversity, and inclusion.

3. Beyond Banking: Through this pillar, QNB actively contributes toward broader socio-economic development via Corporate Social Responsibility (CSR) activities. There is an overarching focus on education within the communities where QNB operates. The bank also supports a range of external initiatives across social, humanitarian, arts, culture, health, environment, economic, and international affairs categories.

Omran Group (Oman)

OMRAN Group, Oman’s tourism development arm, embodies a deep-rooted commitment to responsible and sustainable tourism. Sustainability lies at the core of the Group’s business model.

Integrated Approach to Sustainability

OMRAN adopts a holistic and integrated approach that magnifies both social and economic impact. This approach is anchored in key strategic focus areas:

Enhancing In-Country Value (ICV): Driving local economic development by integrating SMEs and entrepreneurs into the tourism and hospitality supply chains.

• Empowering Local Communities: Enabling local populations to play an active role in shaping authentic, place-based tourism experiences rooted in heritage and sustainability.
• Preserving Cultural Heritage: Applying the ESG framework across operations with particular emphasis on cultural preservation as a cornerstone of responsible tourism.

OMRAN’s focus on sustainable tourism development acts as a catalyst for balancing human needs with the protection of natural ecosystems. The Group works closely with local communities, government entities, and private sector partners to implement targeted initiatives that strengthen the connection between tourism development and social responsibility, ensuring growth is participatory, inclusive, and sustainable.

Human Capital and Innovation

Human capital development is a foundational pillar in OMRAN’s Sustainability Strategy.

• #IAmTourism Initiative: This initiative establishes a clear roadmap to empower national talent and build future-ready capabilities. The strategy has four pillars: Inform, Attract, Retain, and Partner.
• Capacity Building: Through the Oman Tourism College, OMRAN provides specialized academic and vocational programs to equip future generations with the knowledge and skills needed to shape Oman’s tourism sector.
• Technology and Culture: The Group bridges tourism with arts, culture, traditional crafts, and creative technologies through its #Creatourism program. It also encourages digital innovation through platforms like the OMRAN Hackathon, designed to inspire youth in co-creating bold, technology-driven solutions for tourism.

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Sustainability Strategy for GCC Businesses: Future Trends

The sustainability landscape is rapidly evolving, driven by new regulations, climate science, and shifting stakeholder expectations. GCC businesses must ensure their Sustainability Strategy is resilient and capable of adapting to these future trends.

Increased Regulatory Scrutiny and Standardization

Governments around the world are enacting laws that mandate reductions in environmental impact. This trend affects GCC businesses directly through global supply chains and regulatory environments in key markets. Compliance with standards such as the EU Carbon Border Adjustment Mechanism (CBAM) or the EU Deforestation Regulation (EUDR) will become essential. Furthermore, new anti-greenwashing directives are being introduced, setting barriers for companies that advertise using terms like “climate neutral”.

Companies are increasingly obliged to report in alignment with standards like ESRS (European Sustainability Reporting Standards) and the CSRD (Corporate Sustainability Reporting Directive). These regulations enforce detailed disclosure requirements and place governance obligations on executives. Future strategies must include robust data management and reporting systems to meet these evolving obligations.

Focus on Resilience and Long-Term Value Creation

An effective Sustainability Strategy must be designed to support an organization’s long-term commercial goals. Sustainability leaders recognize that managing sustainability performance effectively correlates with superior financial returns and a lower cost of capital.

Future trends emphasize aligning sustainability efforts with business value creation. Sustainability Strategy is not a burden; it must be aligned with the business. This means identifying measurable benefits, alongside long-term risks and opportunities, to ensure the strategy is resilient and creates genuine value for the company and society. This includes seeking innovation for growth through new business models that meet environmental or social needs, and minimizing vulnerabilities to anticipate upcoming issues.

Data-Driven Sustainability Management

The efficient collection, management, and analysis of sustainability data will be critical. The complexity of tracking targets and reporting against frameworks necessitates robust technological solutions. Specialized ESG software solutions are emerging to help companies streamline the process of tracking their sustainability targets and transforming collected data into valuable insights. This data-driven approach enables companies to fine-tune their Sustainability Strategy, make informed decisions, and demonstrate verifiable progress to all stakeholders.

Sustainability Strategy for GCC Businesses: Final Words

Developing a robust Sustainability Strategy is a non-negotiable step for businesses aiming to thrive in the modern GCC economy. While the process may seem challenging, the rewards in terms of corporate reputation, operational efficiency, and contribution to global welfare are enormous.

A Sustainability Strategy provides an agreed framework for deploying resources, creating impact, and communicating results effectively. The key to success is beginning with a careful materiality analysis. This ensures focus on the most material areas. The strategy must then be outlined with clear, measurable, and ambitious objectives.

Ultimately, success hinges on the commitment to continuously implement the strategy and measure progress. By harnessing the unique capability and energy of the organization, the Sustainability Strategy can create enduring value for both the company and society.

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Sustainability Strategy for GCC Businesses: Resources

QNB Sustainability Framework and Strategy, Link

Emaar: Our ESG Strategy, Link

The Omran Group: Sustainability & Legacy, Link

Aramco: Corporate Sustainability 2023, Link

Verso – Guide: How do I develop an effective sustainability strategy for my company?, Link

Aplanet, How to Create a Sustainability Strategy for Your Business: A Practical Guide, Link

Plant-Values, Sustainability Strategy, Link

Harvard Business Review (HBR): Getting Strategic About Sustainability, Link

CSR Tools: Developing a sustainability strategy: The practical guide, Link

Wikipedia: Sustainability Strategies, Link

People Thriver: What is a Sustainable Business Strategy?, Link

Corporate Citizenship: Sustainability Strategy – Simplified, Link

Consultancy-me, Effective sustainability strategies to navigate challenges and drive progress, Link

ScienceDirect, The GCC’s path to a sustainable future: Navigating the barriers to the adoption of energy efficiency measures in the built environment, Link

 

Link:  Sustainability Strategy for GCC Businesses | A Practical Guide