Qatar’s ESG Journey: Past, present, and future through a legal lens

Apr 03, 2023

Overview

The State of Qatar is becoming increasingly proactive on environmental, social and governance (ESG) issues. The continuing evolution of the ESG agenda in Qatar in recent years has galvanised the appetite for a legal framework to underpin these developments. Here, we take a look at Qatar’s ESG journey so far and the regulatory developments that are driving this focus and ambition.

The term “ESG” was coined in 2004 when then-UN Secretary General Kofi Annan commissioned a report to consider ways to integrate environmental, social and governance values into international capital markets. The resulting report, published in 2005 and entitled “Who Cares Wins”, boldly declared that ESG values not only contributed to a better society, but to “more stable and predictable markets, which is in the interest of all market actors.” Today, ESG has become a key priority globally, regionally and locally in Qatar.

 

The ESG journey in Qatar

The Qatar National Vision 2030 (QNV 2030)1 was launched in October 2008, two years before the country was awarded the FIFA World Cup 2022, which remained in the spotlight over the past decade.

QNV 2030, among other things, established Qatar’s ambition to “transform into an advanced society”2 by focusing on four key pillars, namely:

  • Human
  • Social
  • Economic
  • Environmental

The QNV 2030 report was launched long before the term ‘ESG’ became so embedded in the public discourse, it nevertheless reflected the same values: protecting the environment, promoting social justice, and ensuring corporate governance and responsible business practices.  

Beyond QNV 2030, Qatar’s commitment to ESG has been reflected in a wide range of legal sources, including:

  • The 2015 Commercial Companies Law and its 2021 Amendment
  • The Qatar Financial Market Authority (QFMA) Corporate Governance Codes (2014 and 2016)
  • The Qatar Stock Exchange (QSE) ESG Guidelines (2016)
  • The establishment of the Ministry of Environment and Climate Change in 2021
  • Several reforms to the country’s labour laws (as recently as 2022)

“The green transition requires innovation, not just innovative products and services, or an agile supply chain, but innovation in ways of working and engaging with a broader ecosystem of partners, suppliers, and academia. Human resources functions with a mindset of innovation, open to reimagining what they do and how they do it will create winners of their organisations in their ESG journeys.”

Khaled Bin Braik, Partner, People & Organisation, PwC Middle East

What’s next for ESG in Qatar?

Qatar’s commitment to environmental, social and corporate governance development is evident in its recent accomplishments and future plans - and businesses in Qatar have an opportunity to contribute by leveraging recent regulations and legislations from multiple government ministries and agencies that we have outlined in this article.

With the FIFA World Cup in the rear window and Qatar National Vision 2030 on the horizon, it is reasonable to expect that Qatar will continue to develop its ESG framework and establish itself as an ESG leader in the region.




Contributors

Rachelle Samaha, Manager - Advisory, PwC Middle East
Nesrine Bez, Senior Associate - Advisory, PwC Middle East

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