An increasing number of organisations in the Lower Gulf are making sustainability a key part of their business agenda, according to the findings of the recently published thought leadership – The value of CR reporting: Highlighting sustainability awareness in the UAE and Oman – which has been published in conjunction with the global KPMG CR reporting survey – Currents of Change.
37% of Oman’s top 100 companies reported on CR in 2015; meanwhile, 36% of top 100 UAE companies also reported on sustainability.
KPMG has been releasing the global bi-annually survey report for the past two decades, which featured the UAE for the first time in 2013, and this year Omani firms have been added to the list of companies.
Rajeev Batra, Partner and Head of Risk Consulting, KPMG comments on the regional report: “Companies in Oman and their stakeholders are increasingly interested in reporting on the environmental and social risks and trends that are affecting their business.”
The government of Oman has a long standing tradition of incorporating corporate and social sustainability into their growth agenda. Earlier this year, the Capital Market Authority (CMA) introduced a new draft code for corporate governance to improve transparency, fairness, accountability and responsibility of listed companies and their boards with a particular focus on Corporate Social Responsibility.
This report shows that Oman is leading in the space of adopting sustainability practice in local and international companies, within the public and private sector. Furthermore, the Global Reporting Initiative (GRI), which introduced the G4 framework last year, has placed a significant focus on the quality of reporting around the world. In Oman 13% of reporters use GRI.
Batra added: “Sustainability is reshaping the Middle East. Leading companies are increasingly moving away from focusing only on community and QHSE, towards a formalized reporting process, with stakeholder engagements and materiality assessments. Those who lack a formal process tend to have limited quantitative sustainability data, and qualitative data shared alone can be perceived as PR or green-washing, hence they are hesitant to report; while others simply need guidance on how to report. Our report highlights insights and best practices from leading companies across Oman that have a clear vision for their businesses.”
The government of Oman is placing increasing importance on renewable energy. A five year renewable energy research plan valued at RO7.36m was approved by the Research Council of Oman to promote clean energy technologies, energy-efficient appliances and the overall sustainable development of the Sultanate.
Additionally, the Oman Governance and Sustainability Centre (OGSC), a public institution focusing on the fields of corporate governance and sustainability has been established.
The analysis is based on seven quality criteria, including strategy, risk and opportunity, materiality, targets and indicators, suppliers, stakeholder engagement, governance of CR, transparency and balance.