• Very few companies in the Arab region publish sustainability reports.

• Small and medium-sized enterprises (SMEs) in the region underperform larger companies and peers in other world regions in their ESG actions.

• Women-led enterprises in the region outperform men-led enterprises in ESG implementation.

• Few companies monitor their energy consumption and even fewer monitor water consumption.

• The social component is a weak point, notably in terms of women’s employment and the fair treatment of migrant workers.

• While government regulations and incentives continue to be a main driver behind private sector alignment with the SDGs, the business case for the SDGs is becoming clearer.

• The private sector is starting to perceive the risk to their business from not achieving the SDGs; this is notable for climate risks, including natural disasters and scarcity and increased cost of resources.

• Ambitious government commitments, such as net zero, could exert transition risk on companies as they seek to comply.

• Customer preference for sustainable products and services – an emerging trend according to surveys in the region – is playing an increasingly important role in driving Arab companies’ adoption of ESG measures, especially for exporters.

• A shift is yet to take place from CSR towards a more ambitious and holistic ‘shared value’ approach that can bring longer-term and cumulative gains to businesses and societies.