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Environmental, Social and Governance (ESG) is not just a trend but becoming a "license to operate", according to Iyad A. Al-Garawi, General Manager, Board Affairs & Corporate Governance, Saudi Basic Industries Corp. (SABIC).
Speaking at the MEIRA 2021 – "An Odyssey from ESG to IR" conference yesterday (Oct. 25), he stated the Kingdom's commitment to carbon neutrality by 2060 showcases the transition into a more ESG friendly future that is possible and can be achieved.
The Kingdom has built SABIC on an ESG story, Al-Garawi said, explaining the company was created to transform the gas flaring from oil exploration into an economic opportunity.
"ESG is not a challenge, but definitely, its practice brings some difficulties for certain companies and regions," the executive noted, asserting ESG is becoming part of the norm and how business is done.
Al-Garawi said SABIC has focused on sustainability, which is part of the company's culture.
"Europe is leading the way in terms of environmental practices and green focus, so because of our operations there, we have to navigate and be a responsible player. This does cascade to our global operations, including the Kingdom where we have the bulk of our operations."
Al-Garawi further pointed out that SABIC has a sustainability committee for over a decade and has been publishing sustainability reports, which have gradually improved in terms of reporting and disclosures over the years.
Write to Parag Deulgaonkar at parag.d@argaam.com
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