MENA Enterprise Survey Report Working Papers: Volume 9 - Green investment by firms

Description

Good management practices positively affect companies’ sustainable transition strategies. Companies that are more aware of the effects of climate change and of the various existing measures to tackle them are companies that engage the most in mitigation measures. Another important determinant for adopting mitigation measures is access to finance. The more financially constrained firms are, the less likely they are to pursue mitigation measures to reduce energy costs and their carbon footprint.

Based on a sample from the Enterprise Survey of almost 18 000 firms in 30 economies in Europe and Central Asia and the Middle East and North Africa, firms in these regions invest considerably less in sustainability measures compared to advanced economies located in the European Union and the United States.

In the Middle East and North Africa, high quality management practices are a more important factor in companies’ decision to make green investments than access to finance, according to the survey data.

The Enterprise Surveys, conducted by the EIB, EBRD and the World Bank, provide insight into what lies beneath the region’s relatively slow growth. This is the last of nine working papers supporting the full report: Unlocking sustainable growth in the Middle East and North Africa private sector.