It’s still relatively early days for ESG in the Gulf’s private sector, but that’s starting to change. Important drivers behind this are government targets such as the UAE Net Zero 2050 Strategic Initiative, the Saudi Green Initiative, and ESG reporting mandates for companies.
Recent regulatory changes such as the second phase of the UAE’s ban on single-use products, which came into effect on 1 January 2026, has created additional impetus. Another factor is the growing interest of international companies to invest in or open on-the-ground operations in the region.
Multi-nationals are much more likely to require ESG commitments and reporting before providing investment capital, and they typically carry out due diligence on these matters with suppliers, distributers and manufacturers. In addition, consumer awareness of and concern about environmental, governance and social factors is growing, which creates demand for more sustainability and accountability from the companies they buy from. This creates a substantial opportunity for firms to achieve a leadership positioning on sustainability, to help to drive further change, and to support operational efficiency and future business resilience.
But to avoid accusations of greenwashing, loss of consumer trust, and a negative impact on business and reputation, it’s important to take an extremely considered approach to PR and other communications activities with a sustainability focus.
Why strong messaging needs a proper business strategy on ESG
Business strategies increasingly consider ESG because it makes business sense for a whole host of reasons.
They increasingly need to conform to environmental regulations that aim to protect the natural environment, and reduce carbon emissions. These are often aligned with government drivers such as the UAE’s clean energy commitment and its broader programme of environmental protection.
Social factors, such as employee rights, tend to come to the fore during times of stress such as war or pandemics, but are recognised now as always being important to running an effective business. And how robustly a company manages itself is another essential consideration today to ensure effective decision making, risk management and business growth.
An effective ESG messaging platform is based on an array of business processes, including internal aspects that govern how a business operates, such as management oversight, net-zero targets, and employee wellbeing – as well as external factors like product design, social responsibility and supply chain assessments.
What else should Gulf-based businesses be thinking about when developing a good communications strategy?
ESG-related claims in promotional and reporting activities must be highly aligned to how the business is tackling these concerns.
As PR professionals, we are constantly considering reputational risks and reviewing messaging, and this is particularly crucial for ESG-related statements. The risks around loss of consumer trust, erosion of reputation and financial cost are real and potentially substantial.
As the battle against climate change becomes more critical, it is no longer enough to make vague statements of commitment to ESG. A more unique and robust positioning is to use tangible statements of action, progress and results. Policies and the messages used to convey them need to be tangible, specific, and measurable. The targets and details of the actions being taken to achieve the goals also need to be clearly set out – even if the sustainable business strategy isn’t yet fully formed.
There is a temptation for companies not to say anything at all in the face of the bold, yet often unsubstantiated claims of competitors, but this is a lost opportunity for companies to lead by example and achieve an authentic positioning on ESG.
Progress is often not simple or easy, and it doesn’t happen overnight, but strong messaging will reflect this by explaining the challenges and how they’ll be overcome, while celebrating the wins along the way. At any stage on this journey, it’s always vital to be specific, credible and authentic.