Broad Environmental Agenda Is Making Saudi Arabia A Sustainability Leader

Saudi Arabia’s massive investment in green energy, innovation, climate adaptability and natural resource renewal are positioning it to set new standards in sustainability regionally and globally, says a new Agility report on the country’s sweeping environmental agenda.

The report released today says the Kingdom is:

• Becoming an emerging actor in green tech and climate innovation. Saudi investment accounts for 75% of overall Middle East investment in climate tech startups, and the Kingdom is committing more than $180 billion to grow a “green economy.”
• Leading the hydrogen revolution globally.Saudi Arabia aims to produce 4 million tons of green hydrogen annually by 2035. Its futuristic NEOMmega-city, currently under development, will feature the world’s largest green hydrogen plant, worth $8.4 billion.
• Building sustainability into giant infrastructure projects. NEOM, for example, is to run entirely on renewable energy.
• Hitting or exceeding most performance targets in its Saudi Green Initiative and the sustainability goals in its Vision 2030 national strategy.

Under the Saudi Green Initiative, the Kingdom has connected 2.8 GW of renewable energy to its grid. Renewables are to provide 50% of Saudi power capacity by 2035, under the plan.

Ninety-five percent of Saudi territory is classified as desert, and habitable and productive land is “at risk of degradation.” The report notes the country’s efforts to combat climate change by planting more than 49 million trees, rehabilitating agricultural areas, protecting marine environments, and investing in sustainable land management.

The report also acknowledges Saudi Arabia’s “challenging transition from a historic reliance on hydrocarbons towards a more sustainable future” and highlights areas that could strengthen and accelerate the country’s efforts.

Among them:

• Accelerating renewable projects
• Giving businesses more incentive to be resource efficient
• Expanding public transportation
• Improving air quality

The Saudi report expands on Agility’s Middle East and Africa Environmental Sustainability Scorecard, issued last November. The Score card examined the performance of 17 MEA countries in environmental sustainability outcomes, government policies and corporate practices.

Agility Vice Chairman Tarek Sultan said: “Saudi Arabia has moved to the forefront of the clean-energy revolution and the drive to innovate and find answers to the global climate challenge. Very few countries can match its determination or its record of investment and leadership in sustainability.”

The report and 2023 Scorecard were both commissioned by Agility, a global supply chain services, infrastructure and innovation company, and compiled by Horizon Group, an independent global research and analysis firm.

Horizon’s findings show Saudi policymakers out ahead of businesses in the Kingdom. In a survey for the 2023 Scorecard, only 28% of executives said they consider climate change to be a significant business concern. Even so, they are preparing for it: 54% of Saudi executives said their companies have made plans to introduce new green technologies and tools; half said their companies had allocated at least 5% of capital expenditure to achieving environmental sustainability targets.

Agility is a sustainability pioneer in Saudi Arabia. The Agility Logistics Park in Riyadh features the first EDGE Advanced “zero carbon ready” warehouse in the Kingdom and broader Middle East region, demonstrating at least forty percent more efficiency than the market. The company’s Tristar business works with Aramco, SABIC and other energy sector customers in the Kingdom adapting new standards in safety, sustainability, and innovation. Menzies Aviation, Agility’s aviation services business, is electrifying its ground support equipment (GSE) fleet and preparing for the rollout of low-carbon Sustainable Aviation Fuels (SAFs). Homoola, a Saudi startup that Agility has invested in, helps to lower trucking emissions through a platform that matches cargo shippers with fleet operators, eliminating empty and low-load trips.