Beschreibung:
Companies in emerging economies lag in the introduction of environmental, social and governance practices, and firms in the Middle East and North Africa are among the worst performers. The actions of private small to medium enterprises in emerging economies to foster sustainability and green growth significantly lag in the transition to a more sustainable business environment and large gaps persist, according to data from the Enterprise Survey. Among emerging economies, those in the Middle East and North Africa (MENA) region are among the worst performers. Larger companies in the MENA region show better environmental, social, and governance performance than small and medium-size enterprises in other regions. But smaller firms in the Middle East and North Africa show extremely weak performance in many aspects, even when controlling for the relative level of economic development. The weakness of environmental, social and governance practices among firms in the region is due to both environmental and social factors (with large gaps in female participation in the workforce and management). This calls for urgent policy action to address these weaknesses and exploit the region's full potential. The analysis in this working paper relies on the Enterprise Surveys, conducted by the EIB, EBRD and the World Bank. This is the fourth of nine working papers supporting the full report: Unlocking sustainable growth in the Middle East and North Africa private sector.