Environmental, social and governance (ESG) emerging trends in the Middle East and North Africa (MENA) region; reflections from senior practitioners

Abstract

Environmental, social and governance (ESG) frameworks have gained significant traction globally, driven initially by the environmental imperative of climate change. Yet the social and governance dimensions are increasingly central to sustainable business strategy. This study examines the interdependence of all three ESG dimensions, identifying trends and patterns of implementation among senior leaders in the Middle East and North Africa (MENA) region. A qualitative approach was adopted, using semi-structured interviews with 11 C-suite leaders across diverse industries. The ESG pillars produced interconnected sub-themes centred on resource allocation, implementation barriers and the critical role of committed leadership. The findings underscore the importance of sustainability communication and stakeholder reporting and demonstrate that ESG strategies grounded in creating shared value (CSV) tend to produce more resilient and sustainable business models by orienting value creation towards all stakeholders and the environment. This study addresses an underrepresented context in the ESG literature, affirming the significance of stakeholder theory, stewardship-driven leadership and resource-based capabilities to ESG performance, and positioning CSV as a complete strategic framework for organisations seeking to move beyond compliance. Executive commitment, measurement capability and regulatory alignment emerge as the governance conditions most predictive of sustained ESG integration. The study synthesises real-world insights on leadership practice, measurement, reporting, regulation and resource deployment into a practical framework that can be applied across different contexts to build credible business cases for sustainability. Embedding community value creation and stakeholder engagement within ESG strategy contributes to broader societal outcomes, including workforce development and environmental stewardship. This study offers a non-Western perspective on ESG implementation, grounded in the experience of senior leaders operating across the MENA region. The resulting framework offers a new lens on existing, largely Western ESG models and a transferable reference point for practitioners globally, contributing geographic and cultural diversity to the growing body of ESG knowledge.