In the UAE and Saudi Arabia, ESG reporting has become a fundamental requirement for doing business. But there’s a growing disconnect between what companies publish and what they actually do. And that gap is no longer safe.

Reporting is Increasing. Performance Isn’t.

In 2023, over 90% of UAE-listed companies published sustainability disclosures, according to the Securities and Commodities Authority (SCA). Saudi Arabia's Tadawul exchange introduced ESG disclosure guidelines that encourage companies to report across 33 KPIs aligned with global standards.

These developments are good for transparency. But disclosures don’t mean decarbonization. The majority of reports still rely heavily on qualitative commitments, with limited auditability or data-backed performance indicators.

In both markets, regulators are shifting focus from policy alignment to implementation. The ADGM and DIFC have hinted at adopting more binding frameworks, and the Saudi Green Initiative continues to push corporate accountability. Companies that treat ESG as a marketing exercise are increasingly exposed.

Investors Are Following the Data

ESG reports that read like brochures are losing relevance. Institutional investors, sovereign funds, and banks in the GCC are looking deeper.

Mubadala now integrates ESG data into its investment process. Saudi Arabia's Public Investment Fund (PIF) has a clear climate strategy and expects portfolio companies to align. Green finance issuance in the GCC hit a record $23 billion in 2023, up from $8.5 billion in 2021, with frameworks increasingly requiring verifiable emissions data.

Global players like BlackRock and State Street are applying similar scrutiny to the region. Sustainability claims without structured data raise flags. Ratings agencies are adjusting methodologies accordingly.

The Real Risk: Compliance Without Capability

Publishing an ESG report may meet today’s baseline expectations. But without systems in place to track, verify, and improve environmental performance, companies face real operational risks:

  • Reputation: Claims without action invite scrutiny, both public and regulatory. As mandatory disclosure frameworks take hold, greenwashing carries reputational cost.

  • Finance: Access to sustainability-linked loans and green capital increasingly depends on actual emissions metrics. Reports alone won’t meet eligibility criteria.

  • Procurement: Large enterprises are asking suppliers for Scope 3 data. Those without it risk being dropped from procurement lists.

  • Audit: Independent assurance requirements are rising. Without structured data, audit becomes expensive or infeasible.

The Path Forward: From PDF to Platform

The future of ESG isn’t static reporting. It’s continuous, intelligent performance management.

To close the gap between reporting and reality, companies need more than consultants and checklists — they need infrastructure that turns emissions data into actionable insight. This is where Zeroe leads.

Our platform ingests data directly from operational systems — ERP, utilities, suppliers — and uses advanced AI to classify, map, and enrich emissions data with precision. No guesswork, no generic assumptions. By automating these complex processes, Zeroe removes the manual bottlenecks that slow down reporting cycles and expose companies to risk.

But it goes further than automation. Zeroe’s AI engine continuously refines emissions factor mappings as new data becomes available, helping companies stay ahead of evolving standards such as GHG Protocol and ISSB. With built-in audit trails and version control, every data point is verifiable, traceable, and ready for independent assurance.

This is not a static PDF that gathers dust after publication. It’s a living system of record that aligns sustainability performance with financial outcomes, supports investor-grade disclosures, and prepares your organisation for what’s next — whether that’s regulatory changes, green financing opportunities, or value chain pressure.

For multi-entity, regional enterprises, Zeroe turns ESG from a reporting obligation into a strategic asset.

Whether you’re listed on Tadawul or reporting in ADGM, Zeroe ensures you're not just saying the right things — you’re doing them, and it’s all backed by defensible, auditable data.

Bottom Line

ESG reporting is no longer a PR exercise. It’s a compliance baseline, a financial gatekeeper, and a strategic differentiator.

Companies in the GCC that continue to focus on optics instead of outcomes risk more than their ratings. They risk relevance.

The era of ESG theatre is over. Time to perform.