Insights: Building a greener future for the Middle East

When we think of iconic skylines, cities like New York, Hong Kong, and London often dominate our imagination, symbolising a blend of economic power, architectural ambition, and global competition. In recent years, the Middle East has positioned itself to join this league of architectural giants, focusing on building taller, smarter, and greener structures.

As countries across the region pursue their ambitious sustainability objectives, such as the Kingdom of Saudi Arabia with its Vision 2030, urban development is gaining momentum as an enabler of the transition toward a more diversified and sustainable economy.

Major projects are reshaping the landscape, incorporating cutting-edge sustainability practices and advanced technology in alignment with the broader goals of creating a greener, more innovative future.

With two major global events — Expo 2030 and the FIFA World Cup 2034 — on the horizon, the Middle East and Saudi Arabia are preparing for an unprecedented global spotlight. While they are already making significant strides, there is an opportunity to further increase transparency and measurable progress towards sustainability goals.

As more mega-projects develop their ESG and decarbonization strategies, with some publishing their first ESG reports, emissions performance management (calculating and managing GHG emissions) is emerging as a crucial enabler to address these challenges. Local and global investors, and other key stakeholders, are raising their expectations for transparency in environmental reporting.

Being able to demonstrate credible emissions management and clear carbon tracking will help companies across the Middle East better position themselves to attract investment, boost stakeholder trust, and gain a competitive edge.

 The business case for emissions performance management: Beyond transparency

Emissions performance management has quickly evolved from a niche activity into a strategic asset for businesses, offering numerous advantages:

• Regulatory and risk management: It ensures compliance with future local and international climate regulations, standards, and practices. These regulations increasingly emphasize higher transparency targets, reducing the risk of reputational damage from greenwashing or inaccurate reporting.
• Financial Appeal: Investors are increasingly prioritising transparency and green investments. Companies that demonstrate effective emissions performance management practices are better positioned to attract capital, especially from institutions with sustainability mandates.
• Brand and Market Competitiveness: Companies that show genuine climate action might benefit from strengthened brand reputation. Consumers have infact indicated that certification and transparency around CO₂ savings, sourcing, and production processes significantly enhance their willingness to pay a premium for green buildings. In an increasingly eco-conscious marketplace, this competitive edge will be crucial, especially as the Middle Eastern construction market is poised for rapid growth, with Saudi Arabia’s sector projected to rise from $70.33bn in 2024 to $91.36bn by 2029.

Challenges on the path to sustainability

Managing environmental data presents a significant challenge for organisations, especially as the volume of data continues to grow. Relying on manual tools and scattered systems can lead to inefficiencies and inaccuracies, making it difficult to track and report on sustainability metrics. Organisations must implement robust processes and systems capable of capturing, organising, and analysing this extensive data consistently and reliably to navigate this complexity.

One of the primary challenges in emissions performance management is the absence of well-structured data collection processes and the difficulty in effectively implementing and integrating them into everyday business activities. This is particularly true for less mature companies that may lack the necessary systems and tools. Moreover, the absence of clear leadership or ownership within the organisation can lead to inconsistencies in tracking key data.

To address this, companies should focus on creating a comprehensive emissions performance management ecosystem — encompassing processes, tools, and people — which integrates seamlessly with daily operations. With strong leadership guiding this effort, organisations can achieve more reliable and consistent data collection and reporting.

Additionally, emission factors, which are crucial for accurately calculating GHG emissions, often fail to account for the specific characteristics of certain sectors and regions. This oversight means that companies must develop customised databases that reflect their unique operational environments, further increasing the complexity of the task.

Finally, the raw field data collected from various sources is often incomplete or unstructured, requiring significant cleaning and processing before it can be used in emissions estimations. This adds another layer of complexity, making it more difficult for companies to achieve reliable and accurate emissions performance management in a timely fashion.

 Key lessons

• Don’t wait for perfect data – Organisations should start emissions performance management even with incomplete or estimated data. Early action enables companies to identify gaps and refine processes over time. Such a pragmatic approach ensures that progress isn’t delayed by waiting for ideal conditions.
• Embed emissions performance management day one – Emissions performance management needs to be part of project planning and design phases. Incorporating it early allows for more precise data collection, whether through physical meters for utilities, procedures for tracking business travel, or methods to assess embodied carbon — the carbon footprint of materials used throughout the lifecycle of a building. Construction projects can minimise emissions from the start by monitoring the carbon impact of different materials and incorporating that data into procurement decisions. This proactive approach avoids the costly and time-consuming process of retroactively gathering data and supports more sustainable decision-making at every stage.
• Collective alignment of climate ambitions – Establishing and tracking carbon goals requires more than leadership buy-in. Every level of the organisation must acknowledge its role in achieving these ambitions. Businesses can implement effective systems to track and manage progress toward climate goals by ensuring that all employees are aligned with the broader strategy.
• Leverage technology – Emissions performance management should be approached as an evolving process from all perspectives, including technology. While starting with basic tools like Excel can be a practical first step, organisations should focus on steady progress to gradually integrate specialised software that aligns with the company’s broader IT ecosystem. These tools should enable comprehensive and efficient data management and generate actionable insights. Through dashboards and robust analytics, companies can derive insights that support business and operational decision-making throughout the project lifecycle, ensuring emissions performance management becomes a key enabler of sustainability and efficiency.

 Tools will enable to view and analyse data and trends over time

• Supplier engagement – Collaboration with suppliers, including contractors, consultants, and building materials providers, is essential, especially addressing Scope 3 emissions. This helps ensure accurate and comprehensive data is provided, enhancing accuracy and driving industry-wide sustainability progress. This collaboration can start by including mandatory requirements in tender documents, requiring suppliers to submit the necessary data for carbon accounting systems. As a second step, companies can further strengthen their efforts by developing or participating in sector-wide platforms to share best practices and emissions data, supporting broader sustainability goals.
• Third-party verification and global standards – Engaging third-party auditors to verify emissions are typically considered at a more advanced stage. While not an immediate focus, it is important to consider for future improvements as it ensures alignment with international standards such as the GHG Protocol. This step reinforces the credibility of carbon reporting and positions businesses to be recognized by global stakeholders, enhancing trust and transparency.

The strategic value of emissions performance management in the Middle East

This is an important moment for the Middle East and Saudi Arabia. As it seeks to meet global expectations for Expo 2030 and the World Cup 2034, its commitment to implementing credible ESG and decarbonisation strategies will define its success.

As countries like Saudi Arabia build the future of their cities, emissions performance management will provide the backbone for informed decision-making, driving sustainability both within organisations and across the value chain, offering more than just compliance as it unlocks substantial business value.

By investing in forward-thinking, holistic emissions performance management frameworks and fostering a culture of sustainability throughout organisations, companies across the Middle East are positioning themselves for long-term success.

As these companies take the lead in driving sustainable urban development, their projects also stand to gain significant competitive advantages in the global market.

Edoardo Geraci and Ingrid Cornander are partners at BCG, Stefania Neglia is a project leader and Peter Jonathan Jameson is MD and a partner at Boston Consulting Group.