Why ESG Practices Are Becoming a Priority for Moroccan Companies
Morocco is increasingly prioritizing environmental, social, and governance (ESG) practices, reflecting a growing national commitment to sustainability, transparency, and responsible business conduct. Recent research examining ESG reporting among Moroccan firms, through surveys of 66 experts and interviews with 19 professionals, reveals that companies are motivated to disclose ESG information to maintain reputation, meet stakeholder expectations, and comply with regulations. Surprisingly, challenges such as limited expertise, high reporting costs, and the lack of clear standards often encourage rather than deter disclosure. Gender-inclusive decision-making teams further enhance ESG engagement by leveraging positive motivations and mitigating obstacles. While leading firms in finance and energy have begun reporting, many small and medium-sized enterprises lag, often relying on international standards that may not fully align with Morocco’s context. Opportunities exist to develop tailored ESG frameworks, foster regional collaboration across Africa, and provide policy support, technical assistance, and financial incentives. Promoting measurable ESG actions, inclusive governance, and digital tools for data collection can strengthen ESG practices. Morocco’s strategic position, growing economy, and regulatory initiatives position it to lead sustainable business development in Africa, demonstrating that strong ESG reporting can simultaneously drive business resilience, social impact, and environmental stewardship.
