Sustainable Square, a UAE-headquartered ESG and sustainability advisory firm, has partnered with the Middle East Investor Relations Association (MEIRA) to launch a landmark white paper examining the future of collaboration between Investor Relations (IR) and Environmental, Social, and Governance (ESG) functions across the MENA region. The report, unveiled at the 2025 MEIRA Annual Conference in Muscat, calls for urgent action to bridge critical gaps in skills and strategic alignment as investor focus on sustainability intensifies.
A Call for Deeper Integration
Authored by Svenja Weber, Senior Responsible Investment & Sustainability Advisor at Sustainable Square, the white paper serves as a vital resource for capital markets leaders. It draws on interviews with heads of IR and ESG from prominent regional organisations, including First Abu Dhabi Bank (FAB), e&, Ominvest, and SAL Saudi Logistics Services Co. The research underscores a pivotal moment for regional companies to redefine how they integrate sustainability into their investor engagement strategies to build confidence and drive long-term value.
Key Findings Expose Structural Gaps
While MENA organisations are establishing the necessary functions, the report reveals that true integration is lagging. The research highlighted several critical areas that require immediate attention:
- Limited Alignment: Although 80% of surveyed organisations have an IR function and 65% have a dedicated ESG unit, only 40% have established cross-functional committees to ensure collaboration.
- Critical Skills Gaps: Many IR teams possess only moderate ESG knowledge, while ESG professionals often lack the specific investor-communication skills needed for effective capital market engagement.
- Proven Value: Despite these gaps, the majority of participants confirmed that even limited ESG–IR alignment has already resulted in a significant boost in investor interest, proving the clear value of deeper integration.
Three Priorities for Future Growth
The white paper outlines three strategic priorities for companies to enhance their ESG and IR capabilities and meet evolving investor demands:
- Cross-Disciplinary Fluency: IR teams must expand their expertise beyond financials to include sustainability metrics, while ESG professionals need to develop a deeper understanding of financial implications and investor priorities.
- Targeted Upskilling: Organisations must invest in specialised training and certifications to close the capability gaps within both IR and ESG teams.
- Harmonised Structures: Implementing clear governance and reporting frameworks is essential to clarify data ownership, streamline performance indicators (KPIs), and align financial disclosures with sustainability reporting.
About Sustainable Square
Headquartered in the UAE, Sustainable Square is a leading regional advisory firm specialising in ESG, sustainability, climate strategies, decarbonisation, and responsible investment. With over a decade of experience across the Middle East, the firm helps listed companies, private firms, and financial institutions embed ESG into their core strategy to enhance valuation, resilience, and investor confidence. To scale its impact, Sustainable Square developed SQUARELY, a fully AI-powered ESG reporting platform that automates complex disclosures and aligns with global investor-grade standards.
Source: Zawya
