UNAIR NEWS 鈥 The Center for Environmental, Social, and Governance Studies (CESGS) has launched its latest publication titled Leaders in ESG Management in Saudi Arabia 2022鈥2024. The report provides a comprehensive overview of the evolving ESG landscape in Saudi Arabia, covering regulatory developments, regional comparisons, and the role of executive leadership in shaping the quality of ESG implementation in corporations.
According to Prof. Iman Harymawan, CEO of CESGS 东京热, ESG development in Saudi Arabia has progressed beyond basic reporting practices. 鈥淔or many companies, ESG is no longer limited to annual sustainability disclosures. It has become part of boardroom discussions and strategic planning processes,鈥 Prof. Harymawan said.
Saudi Arabia enters an ESG transition phase
Based on MSCI ESG Ratings from 2022 to 2024, the Saudi market still shows a relatively large share of companies categorized as laggards. However, over the past three years, this category has steadily declined while the number of companies classified as average and leader has grown. This trend indicates that many companies in Saudi Arabia are gradually moving from ESG awareness toward more concrete implementation. These findings are among the key highlights presented in the CESGS report Leaders in ESG Management in Saudi Arabia 2022鈥2024.
The report also showed that this progress is closely linked to Saudi Vision 2030, which positions sustainability, governance reform, and economic diversification as national priorities. In this context, ESG is no longer viewed merely as a compliance requirement but is increasingly incorporated into strategic discussions at the management level.
Strategic integration amid stronger ESG regulations
CESGS observes that many Saudi companies already have established ESG frameworks, governance structures, and formal policies. However, in many cases ESG remains insufficiently integrated into core business decision-making, capital allocation, and operational execution. As a result, ESG initiatives often remain limited to documentation rather than functioning as a central element of business strategy.
At the same time, Saudi Arabia鈥檚 ESG regulatory environment is becoming increasingly structured. The Saudi Exchange introduced ESG Disclosure Guidelines in 2021, while the Capital Market Authority continues to promote more systematic ESG disclosures. These guidelines reference international frameworks such as GRI, SASB, TCFD, and IFRS, strengthening alignment with global sustainability standards.
Executive leadership as a key driver
One of the main focuses of the report is the role of executive leadership. CESGS applies two analytical approaches,Consistent ESG Excellence and Rapid ESG Improvement, to identify corporate leaders who either maintain strong ESG performance or significantly improve ESG outcomes.
In the Consistent ESG Excellence category, the top position is held by Eng. Salman Abdulaziz Al Badran of Etihad Etisalat Company (Mobily). Under his leadership, Mobily improved its ESG rating from BB to A and eventually reached AA. The report highlights this achievement as evidence of the company鈥檚 ability to integrate sustainability into its core business model rather than treating ESG merely as a compliance checklist. This achievement is one of the main highlights of the Saudi Arabian ESG Leadership Report 2022鈥2024.
ESG as a driver of long-term value
Through this publication, CESGS emphasizes the importance of a new direction for ESG development in Saudi Arabia. The future of ESG will depend on companies鈥 ability to move beyond disclosure-based compliance and adopt fully integrated ESG practices. Organizations that successfully connect ESG with strategic planning and enterprise risk management will be in a stronger position to create long-term value, strengthen market trust, and enhance competitiveness.
Download the full ESG Outlook Saudi Arabia report at:
Author: CESGS UNAIR
Editor: Yulia Rohmawati
