From intent to action: new report reveals surge in sustainability integration across MENA strategies
January 21st, 2026 Posted by Kimberly Tilar Uncategorized 0 thoughts on “From intent to action: new report reveals surge in sustainability integration across MENA strategies”
The integration of sustainability into strategy has moved from a peripheral concern to a defining aspect of organizational strategy. In its fourth edition, The KPI Institute’s State of Strategy Management Practice – 2025 MENA Report reflects this trend alongside its wider analysis of strategy management practices.
Findings indicate that 74% of professionals reported that sustainability is part of their organization’s strategic plan this year—a 10-percentage-point increase from 2024. The report attributes the overall rise to heightened investor demands, shifting consumer behavior, and growing global and regional pressure on environmental, social, and governance (ESG) standards.
Expanding on this finding, the report includes insights from Mohummed Haris, head of corporate strategy in the automotive industry, who shared that his organization’s sustainability strategy is guided by a broader vision that “brings with it expectations around specific reporting standards, whether it be International Financial Reporting Standards (IFRS) or certain KPIs.” He added that the organization aims to become a process-driven entity, aligning its strategy with the Public Investment Fund (PIF) Sustainability Framework, the United Nations (UN) Global Compact standards, and Saudi Arabia’s national net-zero ambitions.
Sector-specific data highlights how the integration of sustainability into strategy varies across industries. Retail demonstrates the strongest commitment, with 100% of respondents confirming sustainability as part of their strategic planning process. Manufacturing and energy follow closely at 75%, driven by strict regulatory frameworks and scrutiny from global markets.
Meanwhile, the report shows banking as the least aligned, with half of the respondents stating that sustainability is not part of their strategy. The healthcare and engineering sectors also show majority agreement, but 18% and 16% of respondents disagreed, respectively, which indicates that sustainability is not yet fully integrated into their strategy. The report’s findings show that stronger integration could be achieved by setting “clearer policy mandates or improved understanding of how sustainability impacts long-term performance in those sectors.”
In the report’s Recommendations for Best Practices section, Teodora Gorski, Managing Director – MENA at The KPI Institute, recommends embedding sustainability into the core of strategy design by integrating ESG priorities into strategic themes, KPI frameworks, and initiative portfolios. She further advises extending accountability beyond ESG teams by assigning executive ownership, tracking business unit contributions, and aligning sustainability goals with investment and board-level reporting.
The 2025 report shows that despite the growing momentum gained due to certain industries making bold strides toward sustainability, some remain cautious. To uncover the full picture, download the State of Strategy Management Practice – 2025 MENA Report, which features a refined survey design, broader regional coverage, and expert interviews that bring practical, real-world context to the findings. Access the report here.

