The Gulf is going green — but are companies actually delivering, or just talking? Joining me on Zoom is Gihan Hyde, corporate governance strategist and MFTA member. Gihan, welcome to Wall Street to Mena.
Thank you, thank you for having me.
Gihan, environmental, social, and governance standards — ESG — corporate commitments are everywhere right now. How do you tell the real ones from the empty promises?
First, you need to understand who is owning ESG within the organisation. Once you understand that, you need to look at what is being measured and, most importantly, where the cost is being spent. If it is owned by board members, then rest assured it is being taken seriously. If it's clear how it's being measured, and if the reporting is transparent about the challenges faced in measuring impact, that is a strong indication that it is genuinely embedded — and that it will have a real impact on society, on the environment, and most importantly, on how the company is governed for the long run.
You have advised BP, HSBC, and Barclays. What do global companies get wrong when they try to apply ESG standards in this region specifically?
Honestly, it's not just about this region — everyone is finding it very difficult to apply ESG in the right way. Not because they don't want to, but because they're doing it for the wrong reasons. Organisations mainly report on ESG for three reasons: regulators are asking them to, investors are pressuring them, or shareholders are demanding answers. The major issue — not just in this region but globally — is that companies are treating ESG as a compliance activity rather than an opportunity to transform and ensure the company survives into the next generation.
The other challenge specific to this region is that external regulations are being imported and expected to be applied immediately. Our region is not ready for that yet. We accept that we need to adhere to global standards, but not every data point within ESG reporting frameworks is applicable here. Calculating carbon, water usage, recycling — we are getting there, but we are not there yet, and we need to acknowledge that honestly.
So do we need different regulations for this region?
We don't need new regulations. We need regulations that suit our current infrastructure and match our future vision. And I think Saudi Arabia is doing this really well. ESG in Saudi Arabia is not being used merely as a tool to attract investors — what I genuinely admire about the Saudi government is that they are treating ESG as part of their transformation agenda. They are embedding it within infrastructure, within regulations. Tadawul and the Capital Market Authority are issuing frameworks that suit the country. That is a very different approach from simply following what Europe is doing because everyone else is doing it. That approach does not work here.
Greenwashing is a real concern globally. How do you spot it in the Gulf context?
Greenwashing is greenwashing whether you are in Europe, Asia, or the Gulf — it is not a regional issue. But how do you spot it? First, if ESG is not owned by the board. Second, if it is not integrated within the business model and the employee lifecycle. Third, if it has not been reported accurately and transparently.
If you read an ESG report and it shows a clear journey — here is where we are, here is where we are going, these are the obstacles we face, and these are the steps we are taking to overcome them — that is transparency, and that is how you know a company is not greenwashing. But if you find a glossy report full of promises with no concrete plan and no honest acknowledgement of challenges, you need to start worrying. If ESG is not embedded in leadership remuneration and salary structures, you need to worry. Glossy reports without strategy, no integration into the business model, no integration into the employee lifecycle — these are the signs.
You advise Saudi Arabia's Saafah Foundation. How is Saudi's approach to ESG different from the UAE's?
They are very different — but both are valid, just different in approach. The UAE model is focused on investor attraction and drawing in international capital. The Saudi model is purely about transforming the country. Saudi Arabia is integrating ESG within green bonds, green loans, infrastructure, and regulation itself — weaving it into a greater transformation agenda. That is the fundamental difference.
International investors are increasingly demanding ESG credentials before deploying capital here. Is the region ready for that scrutiny?
The short answer is yes — but the region also owes it to investors to educate them. What investors are used to seeing in ESG reporting from Europe, the US, or Asia is very different from how we report here. That is not because we don't want to align with international standards — it is because we are still early in that journey. The onus is on us to explain that honestly. We are on the right track, but investors need to understand that we are still in our infancy in this region, and that context matters.
Thank you so much, Gihan Hyde, for joining us today on Wall Street to Mena.
Thank you.
