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Newsletter - ESG as a Strategic Imperative for GCC's Food & Beverages Industry
The GCC's Food & Beverages sector faces a dual mandate: capturing robust growth while addressing critical vulnerabilities in food security, water scarcity and environmental impact. For F&B companies in Kuwait and across the GCC, embedding ESG is no longer optional — it is a direct contribution to national resilience and long-term value creation.
Key figures shaping ESG in GCC's F&B sector
GCC food consumption projected to reach by 2029, driven by population growth and tourism
Share of GCC food supply that is imported from overseas, creating critical supply chain exposure
Kuwait's per capita water consumption, driving heavy reliance on energy-intensive desalination
Potential investor value losses for F&B companies that fail to adapt to policy and demand shifts by 2030
GCC F&B and the ESG Agenda
Kuwait has taken a proactive approach: the Central Bank of Kuwait (CBK) issued a circular in November 2022 directing local banks to integrate ESG into corporate governance and risk management. Boursa Kuwait has made sustainability reporting mandatory for Premier Market companies starting with their 2025 reports. Kuwait's food code further specifies that food must be nutritious and safe for consumption. Regionally, Saudi Arabia's CMA has required listed companies to report on ESG-related information since 2019, while the UAE's ADGM implemented a comprehensive sustainable finance regulatory framework in July 2023 and the DFSA waived regulatory fees for sustainability-related debt securities listings throughout 2024.
Key Reporting Frameworks
GRI
impacts on economy, environment and people
SASB
financially material metrics for F&B, including GHG emissions and water
ISSB / IFRS S1 & S2
global baseline for investor-focused sustainability and climate-related disclosures
TCFD & GHG Protocol
transparency and comparability on climate risk and emissions
The Strategic Way Forward for GCC F&B Companies
While limited data exists on sustainability in the GCC F&B sector, the momentum towards ESG adoption is undeniable. To successfully integrate ESG into core operations, companies should:
Move beyond mere compliance and adopt a proactive approach to ESG integration; treating sustainability as a core driver of innovation and value creation.
Utilise IFRS S1 and S2, TCFD, SASB, GRI and GHG Protocol to enhance transparency and comparability across ESG disclosures.
Identify, assess and mitigate ESG risks, especially those related to climate change and resource scarcity such as water stress and supply chain disruption.
Set measurable, Science-Based Targets (SBTi) for emission reduction, water conservation and waste diversion, aligned with the Paris Agreement and national goals.
Leverage technology for traceability, supply chain transparency and data collection. Explore sustainable financing instruments like green bonds and sustainability-linked loans.
How RSM in Kuwait Can Help
RSM in Kuwait is committed to supporting our business community in navigating the complexities of ESG integration. Our team of experts assists F&B and consumer-facing companies across the following services: ESG Strategy Development, IFRS S1 and S2 Compliance, Risk Assessment and Implementation Support, Sustainable Reporting Solutions, Assurance Services and Underwriting Services.
Have F&B ESG questions?
Connect with the RSM in Kuwait ESG team to discuss your organisation's reporting obligations, water and resource strategy, and ESG implementation roadmap.
Or reach us directly