BrazilDriving sustainability in Saudi Arabia: A bold vision towards a greener future
Sustainability has emerged as a key focal point for businesses and governments across the world, with Saudi Arabia making major strides in its progress, writes Riyadh Al-Najjar, Chairman of the Board at PwC and Senior Partner of the Saudi business.
Saudi Arabia's sustainability strategy under Vision 2030 emphasises renewable energy expansion and improved energy efficiency across sectors, targeting a net-zero emissions goal by 2060. Key initiatives, include scaling renewable capacity to 130 GW by 2030, establishing a domestic EV manufacturing sector, and promoting sustainable tourism.
Policies like the Green Financing Framework and the Circular Carbon Economy underscore the Kingdom’s integrated approach to reducing emissions and conserving resources, positioning it as a leader in regional sustainability efforts, as discussed in the Saudi Economy Watch 2024.
As the Kingdom continues to build climate resilience as a competitive advantage, businesses are now adopting net-zero greenhouse gas emission targets. This forward-looking and comprehensive approach to sustainability aligns with the nation’s Vision 2030 goals.
At PwC, we are working with clients who, alongside organisations like Saudi Aramco, ACWA Power, Saudi Electricity Company and the STC Group, have made commitments to enhancing their sustainability practices. In fact, 19 leading companies in Saudi Arabia have registered for the Sustainability Champions Program on the sidelines of the World Economic Forum this year to advance the sustainability revolution across Saudi Arabia.
This echoes the sentiments of business leaders in the KSA, as seen in PwC’s latest CEO Survey, where almost a third identified climate change as a major concern – higher than the 15% regionally and 12% globally. CEOs who responded to us spoke of a heightened awareness that is driving significant action, with 60% now focusing on improving energy efficiency, more than half innovating climate-friendly products, and around 43% incorporating climate risk into financial planning.
This alignment of economic ambitions with environmental stewardship is a testament to one of Vision 2030’s key values – that prosperity and environmental responsibility are not mutually exclusive but mutually reinforcing.
Sustainable cross-society foundations
I am proud to see the Kingdom is making significant strides in sustainability through efforts such as the Saudi Green Initiative (SGI) and extensive renewable energy projects. These initiatives encompass 17 projects generating a total a capacity of 13.76 GW of renewable power, including the NEOM clean hydrogen project – the world’s largest of its kind, which aims to produce 600 tons of hydrogen per day by 2026. These efforts underscore the nation’s commitment to diversifying its energy mix and reducing its carbon footprint.
Saudi Arabia’s Circular Carbon Economy (CCE) approach also focuses on reducing, reusing, recycling and removing carbon emissions. There is significant investment in technologies to convert captured CO2 into green methanol. As part of the Kingdom’s digital transformation efforts and its Smart Government Strategy, it is aiming to improve efficiency, transparency and service delivery across government sectors, all in support of broader sustainability goals.
Further reading: Substantial progress booked at half-way mark of Vision 2030.
A focus on innovation and sustainability
Having spent over three decades in Saudi Arabia, I have had the privilege of witnessing the Kingdom’s incredible transformation firsthand. The last eight years, leading the firm’s PwC’s business in the Kingdom, have been particularly remarkable as we have seen unprecedented strides in sustainability across industries. This journey has demonstrated a deep commitment to environmental stewardship and social responsibility at every level.
As the Kingdom continues to invest in innovation and sustainability, CEOs in Saudi Arabia must continue to improve the energy efficiency of their businesses and innovate new climate-friendly products, services, or technologies to appeal to a more climate-conscious consumer.
Saudi Arabia is also home to several innovative climate tech start-ups. These start-ups, spanning sectors including energy, industry, manufacturing, resource management, financial services and the built environment, are pushing the boundaries to accelerate the path to net zero emissions. Regional investors must continue to tap into the Kingdom’s entrepreneurial energy and empower innovators with the necessary resources and tools to transition to a greener economy.
Additionally, promoting sustainable finance and fully integrating ESG factors into core financial strategies will help mitigate the effects of climate change.
What’s next?
In the Middle East, we face some of the world’s most urgent climate challenges. Yet, our region is also leading some of the most ambitious decarbonisation efforts, with significant investments in policies and initiatives to protect nature and vulnerable wildlife.
Saudi Arabia’s next phase of Vision 2030 could set ambitious new targets toward 100% renewable energy generation, shifting away from gas and promoting electric vehicles, supported by domestic EV production and charging infrastructure. Positioned for leadership in the global green economy, Saudi Arabia’s strategic focus on renewable exports, green technology, and energy partnerships will strengthen its commitment to sustainability and economic growth.
In the Kingdom, I see organisations eager to harness technology to reduce their environmental impact while simultaneously driving growth, transformation, and value creation across their businesses.
To sustain this momentum, regional investors must continue to tap into the Kingdom's entrepreneurial energy, empowering innovators with the resources and tools they need to scale impactful solutions. With growing awareness of the climate crisis, I am confident that business leaders in the country will increasingly prioritise climate-friendly investments – even if it means accepting lower returns in the short term – to accelerate the transition to a green economy.
