This was first published on The Peninsula / Gulf Times.
Bassam Hajhamad, Qatar Country Senior Partner and Consulting Lead at PwC Middle East, sheds light on the intricate landscape of Qatar's sustainability efforts in this interview. With the nation's ambitious environmental goals in sight, Hajhamad reveals key insights from the recent 2023 PwC ESG survey on environmental, social, and governance (ESG) issues in the Middle East, addresses the pivotal role of Qatari companies in the green revolution, and unveils both the challenges and opportunities on their path towards a sustainable future.
Has Qatar seen a significant focus on sustainability?
Qatar has witnessed a significant focus on sustainability, which is underpinned by the National Vision 2030 and the establishment of the Ministry of Environment and Climate Change in 2021.
The Vision emphasises environmental sustainability, and the Ministry signals an institutional commitment to climate issues. The country has set a bold goal of reducing greenhouse gas emissions by 25% by 2030, tying this commitment into the larger global climate goals and the Paris Agreement. These initiatives place sustainability at the heart of Qatar's economic and social development strategy.
How are Qatari companies addressing climate issues ahead of COP28?
Companies in Qatar and the Middle East are increasingly prioritising transparency in their environmental footprint reporting, in addition to adopting systematic sustainability approaches through organisational changes, such as appointing Chief Sustainability Officers.
This emphasis on transparency is seen as part of a broader regulatory push, as companies are going beyond mere compliance to provide deeper insights into their environmental efforts. The appointment of dedicated sustainability roles represents a strategic move to embed climate considerations directly into the decision-making processes at the highest organisational levels.
Are ESG initiatives being embedded in company strategies in the Middle East?
Indeed, over 60% of respondents in our 2023 PwC survey on ESG issues in the Middle East affirmed that their companies have incorporated ESG issues into their strategies. Qatari companies formed the third-largest group among these respondents.
What challenges do companies in the Middle East face in moving towards sustainability?
Some of the major challenges include developing new skills among workers, accessing sustainable finance opportunities like green bonds, and meeting policy-related demands for effective environmental initiative frameworks.
These challenges require a multifaceted approach, and collaboration between companies, financial institutions, and regulatory bodies, to create comprehensive solutions that can effectively pave the way for a more sustainable future.
How has Qatar supported ESG reporting for its companies and how can companies address skills shortages in implementing ESG initiatives?
The Qatar Stock Exchange introduced ESG guidelines in 2015 and anticipates a shift towards mandatory reporting. Leading Qatari companies like Qatar National Bank have also been publishing detailed ESG reports, underscoring their ambition to be sustainability leaders. To address skill shortages, we believe companies should enhance training programs and collaborate with educational institutions.
How can Qatar leverage sustainable finance opportunities like green bonds?
Qatari companies should capitalise on sustainable finance avenues, including green bonds, and participate in programs like the Qatar Development Bank's green financing initiative for small and medium-sized enterprises.
Despite the challenges, Qatar is making significant strides towards its sustainability goals, with momentum continuing to grow. The upcoming International Horticultural Expo, themed "Green Desert, Better Environment," encapsulates the commitment of Qatari companies to a greener future."
Within ESG, what are the challenges that Qatar faces, and how is it resolving them?
According to our ESG blog, Qatar's progressive ESG journey, Qatar’s geographic position and arid desert climate make the nation particularly vulnerable to climate change. This has further driven the nation’s focus on environmental sustainability, with the establishment of The Ministry of Environment and Climate Change (MECC) in 2021, in addition to the launch of Qatar's inaugural green bonds, advancements in sustainable financing, the creation of 'Smart Cities' like Msheireb and Lusail–specifically designed to maximise sustainability and minimise emissions–and crucial initiatives like the 800MW Al Kharsaah Solar Power Plant, sufficient to provide about 10% of the country’s peak electricity demand.
