From ambition to action: ESG and decarbonisation as strategic imperatives across MENA

This article was originally published in the July edition of Construction Business News Middle East. 

Across the MENA region, momentum around ESG and climate action is accelerating, driven by a convergence of national net zero targets, global investor pressure, and increasingly visible climate risks. As countries move from ambition to enforcement, both public and private sector players are being called to act with greater urgency and clarity.

The UAE’s Federal Decree-Law No. 11 on Climate Change is a powerful example of this shift. As the first legally binding climate law in the Arab world, it mandates emissions reductions, introduces governance structures, and puts climate risk and resilience squarely on the agenda. While the UAE is charting a bold course, similar legislative and policy developments are underway in Saudi Arabia, Qatar, Egypt, and beyond, signalling a region-wide transition toward enforceable climate policy.

For businesses, the implications extend far beyond compliance. Climate risk, whether physical (such as rising temperatures, water stress, or extreme weather) or transitional (like regulatory shifts, carbon pricing, and evolving stakeholder expectations) is now a material consideration. Understanding how these risks impact asset performance, business continuity, and long-term value has become critical.

Climate risk assessments, scenario planning, and resilience strategies are no longer optional - they are foundational tools for forward-thinking organisations. This is especially relevant in MENA, where many companies manage aging, energy-intensive assets that were not designed for a carbon-constrained future. 

While retrofitting will continue to play a role, the wider shift is toward embedding climate and carbon thinking into investment strategy, procurement, operations, and governance.

Decarbonisation, too, is no longer limited to new projects. It now demands portfolio-level action setting baselines, establishing credible targets, identifying abatement pathways, and aligning with global standards such as TCFD, ISSB, and regional frameworks.

This is where ESG plays a unifying role: connecting climate strategies with governance structures, disclosure practices, and stakeholder engagement. Regulators, investors, and clients are all looking for transparency, action, and measurable impact. Organisations that respond early will secure competitive advantages, not just in compliance, but in resilience, reputation, and access to green capital.

Cundall has been supporting this transformation across MENA, working with both public and private sector clients to turn sustainability ambitions into actionable strategies. From ESG frameworks and climate risk assessments to net zero roadmaps and decarbonisation programs, we tailor our approach to regional realities and sector-specific challenges. Our work spans early-stage baselining, scenario modelling, and retrofit planning, through to aligning disclosures with global and local standards, helping organisations navigate complexity and move forward with confidence.

The path forward is clear. In a region already on the frontlines of climate change, leadership will not be judged by the strength of commitments, but by the speed, substance, and credibility of execution.