As Digital Product Passports (DPPs) become mandatory for textiles from 2026 under the EU’s Ecodesign Regulation, today’s report shows these are not just a regulatory tool but a commercial opportunity. For example, a fashion item sold for £500 today could generate an additional £500 in resale and services when supported by a DPP, by improving trust, traceability and ease of resale. While resale platforms, brands and verification services benefit too, consumers gain the most.

Many brands – around 90% of those surveyed by Bain – currently view DPPs primarily as a regulatory burden. But today’s research encourages companies to reframe DPPs as a strategic investment capable of generating ongoing revenue, driving sustainability, and strengthening consumer relationships.

DPPs are standardized digital records, accessible via QR codes, NFC, blockchain or similar technologies, and contain detailed information about a product’s materials, components, origin, environmental footprint, and lifecycle. Designed to support sustainability, circular economy initiatives, and greater transparency, DPPs enable consumers, businesses, and regulators to trace and assess products throughout their lifecycle.

Regulation meets opportunity

Under the EU’s forthcoming Ecodesign for Sustainable Products Regulation

(ESPR), nearly every physical product sold in the EU will require a DPP by 2030 – yet 90% of brands still see this as a compliance burden, rather than a growth lever.

The Bain and eBay report urges brands to shift perspective, urging that, rather than being ‘red tape’, DPPs should be regarded as revenue tools. DPPs will unlock lifetime value beyond the original point of sale, support circularity, and open direct channels to secondhand markets, the report finds.

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From transaction to lifecycle
The digital records within DPPs store verified product information on materials, origin, care instructions, ownership history, and environmental impact. These records enable brands to:

• Launch resale, trade-in and buyback schemes with confidence
• Offer tailored warranties, repairs and aftercare
• Track usage and extend product lifespans
• Report on ESG goals with greater transparency

Consumers drive the change

The Bain/eBay report highlights that consumers will capture most of the DPP-driven value. By removing friction – no more lost receipts or clunky listings – DPPs will enable one-click resale and boost confidence. As second-hand markets expand, DPPs can act as a flywheel for growth – deepening trust, expanding participation, and making circular shopping second nature.

A call to move now

With the 2026 deadline for ESPR nearing, the message from the report is clear: act early. The brands investing in DPP infrastructure today – engaging consumers and testing resale models – will be tomorrow’s leaders in sustainable, data-driven fashion. Those that wait risk falling behind as the resale economy scales.

After five extraordinarily demanding years, costs are still increasing for retailers, driven by rising wages, further input-cost increases, supply-chain imbalances, and other complications. As costs climb, heightened pressure on consumer spending leaves little room to increase prices to preserve margins. Many executive teams feel they have already done what they can with productivity initiatives, leaving no additional savings available in the current cost structure.

AI is starting to unlock big savings. In Bain & Company’s cross-sector survey of generative-AI adoption, companies reported average productivity gains of 15% across eight key functions, leading to a 9% bottom-line impact from decreased cost or increased revenue. As AI accelerates tasks further, the prize will only get bigger, especially if retailers convert more of their time savings into either cost savings (through leaner structures) or top-line gains (through redeploying freed-up staff to higher-value activities).

Contact centers and administrative work are among the highest-potential areas for generative AI in retail. One retailer that created an AI copilot to advise on procedural queries found that store associates no longer had to scour user manuals, freeing time for customer interaction and reducing calls to HR and maintenance teams. Elsewhere, AI has cut the time it takes buyers to value a supplier’s offer from forty-five to fifteen minutes.

Yet to exploit these digital advances fully, retailers must also succeed in the very human task of overhauling the way they work, fixing the underlying inefficiencies, ingrown processes, and data-management failings that have been holding them back for years, or even decades. The brief outlines five principles for tech-enabled cost transformation:

1. Plan with a bold ambition.
2. Embrace zero-based redesign.
3. Get more from data.
4. Collaborate across functions.
5. Master change management.

With its keen operational focus, retail has a strong record of productivity gains, but most cost programs have still left money on the table. Now, retailers have a chance to be more efficient than ever, by embracing new technology and honing their overall approach to cost control. That opportunity couldn’t have come at a better time.

The panel featured Jayesh Patel, CEO of Wio Bank; Sunidhi Pasan, Founder and Group CEO of Finstreet; and Mary Anne Scicluna, Senior Executive Director at the Financial Services Regulatory Authority (FSRA) of ADGM. Together, they examined how generative AI, regulation, and modern market infrastructure are reshaping the very foundation of the financial sector.

The panel examined how financial institutions are rethinking their models—shifting from traditional vertical integration to ecosystem strategies that prioritize agility, partnership, and customer-centricity. In parallel, AI is becoming an increasingly powerful force across every layer of the sector: enabling hyper-personalized services, automating compliance, enhancing risk detection, and powering intelligent operations.

The conversation also underscored the role of regulators in embracing machine-readable rules, AI-enabled supervision, and outcome-based compliance to match the pace of innovation, while ensuring resilience and consumer protection.

Bain & Company’s participation reflects its ongoing commitment to supporting financial institutions in navigating structural change and building competitive, technology-enabled models that are fit for the future.

Dr. Jemili spoke on the panel titled “Transitioning to a new economic model: the GCC’s evolution into a global innovation and growth hub,” alongside Mohamed Bardastani, Chief Economist for CEMEA at Visa; Alexander Perjessy, Senior Credit Officer at Moody’s; and Lamya AlFozan, Senior Director of Compliance and Regulatory Affairs at the Public Investment Fund (PIF).

Reflecting on the region’s evolution, Dr. Jemili emphasized the catalytic role of technology and policy alignment in driving economic diversification. “We are witnessing a profound transformation in the GCC, where regulatory innovation, visionary leadership, and digital acceleration are converging to create future-ready economies. What sets this region apart today is not just the ambition to diversify, but the speed and scale at which ecosystems are being built,” said Dr. Houssem Jemili, Senior Partner at Bain & Company Middle East.

A major focus of the panel was the evolving role of ESG principles in economic planning and capital deployment. Dr. Jemili noted that ESG is no longer a compliance checkbox but a foundational pillar of strategy: “We’re seeing a shift where ESG is increasingly recognized as a driver of long-term competitiveness. Governance, in particular, is becoming central to how capital is allocated and how partnerships are formed, especially in sectors like infrastructure, clean tech, and urban development.”

The conversation also highlighted the region’s bold move toward generative artificial intelligence (AI) and digital innovation. Governments across the GCC are actively investing in AI infrastructure, data ecosystems, and public–private partnerships to position themselves as competitive global hubs for emerging technology. “AI is not just about automation—it is about reimagining public services, building smarter economies, and enabling entirely new industries. The GCC has the opportunity to lead, provided we continue to invest in skills, data ecosystems, and scalable AI applications,” said Dr. Jemili.

Panelists explored other key enablers of sustainable growth, including regional regulatory harmonization, sandbox environments for testing innovation, and public–private collaboration in sectors like logistics, fintech, biotech, and clean energy. The discussion acknowledged the importance of investing in talent and academic R&D, particularly in STEM fields, to close the human capital gap and sustain long-term innovation.

Bain & Company’s participation underscores its commitment to supporting the Middle East’s economic transformation through evidence-based consulting, bold leadership alignment, and ecosystem-scale innovation strategies.

The new Riyadh office marks Bain’s third successive location in the city, underscoring the firm’s long-term growth and continued investment in the capital. This latest move to a modern, state-of-the-art space in King Abdullah Financial District (KAFD) provides a dynamic environment for Bain’s growing team. Inspired by Saudi Arabia’s rich and diverse culture — with design elements reflecting its different regions — the office is designed to foster collaboration, innovation, and deeper client connection at the heart of the city’s thriving business community.
Bain & Company’s new Riyadh office more than doubles the footprint of its previous space, reflecting a significant upgrade in both scale and functionality. It incorporates the latest workplace technologies, including flexible hybrid workspaces, high-tech collaboration tools, and enhanced facilities to support both in-person and remote engagements. The design also reflects Bain’s ongoing commitment to sustainability, with the space aiming to achieve the highest environmental standards, including LEED certification for energy efficiency and sustainable building practices.

Tom De Waele is the Middle East Managing Partner at Bain & Company and pictured is Ahmed Boshnak, Partner and Head of Bain & Company’s Riyadh office. Bain’s new Riyadh office is located at King Abdullah Financial District (KAFD), Building 1.15, Level 41.

Following COP28, held in Dubai last year, there has been a wave of climate action across the MENA region. Governments have set ambitious climate targets, and approximately 70% of the region's emissions now fall under net-zero pledges, a 60% increase from two years ago. Large businesses are spearheading decarbonization within their operations, with 46% of large companies in the MENA region managing their emissions and 41% disclosing their Scope 1 and Scope 2 emissions.

Despite this progress, small and medium-sized enterprises (SMEs) and suppliers, which constitute over 90% of the region's businesses and employ a significant portion of the working population, are lagging in their decarbonization efforts. Addressing this gap is crucial, as SMEs contribute 20%-30% of the region's GDP and are integral to the economy’s stability and growth.

Barriers to Decarbonization

SMEs and suppliers face several barriers to decarbonization. These include a lack of awareness and insufficient leadership attention towards decarbonization, as well as, knowledge gaps related to the financial and technical aspects of implementing decarbonization practices.

Additionally, there is a limited perceived value of decarbonization due to minimal stakeholder and regulatory pressures. Financial constraints also play a significant role, hindering the funding of decarbonization initiatives.

Akram Alami, Partner and Middle East Head of Aviation, Utilities, and Sustainability & Responsibility Practices at Bain & Company, underscored the importance of addressing these challenges, “Supporting SMEs and suppliers on their decarbonization journeys is not just an environmental imperative but an economic necessity. These organizations are the backbone of our economy, and their transition to sustainable practices will determine the success of our regional climate goals.”

Promising Developments and Best Practices

Encouragingly, several initiatives are emerging to support SME decarbonization. Some members of Leaders for a Sustainable MENA, the World Economic Forum’s community of public and private-sector leaders are pioneering best practices in climate resilience.

For instance, Aramco’s Taleed program accelerates SME growth in decarbonization by providing capability-building, strategy development, and funding. Moreover, Aramco, in partnership with Linde and SLB, is developing a carbon capture and storage hub in Jubail, Saudi Arabia, to assist SMEs and other industrial emitters in overcoming technological and financial barriers.

In the retail sector, Majid Al Futtaim’s sustainable procurement policy promotes local sourcing and supports suppliers with sustainable offerings. Additionally, their participation in the CDP supply chain program enables the collection and analysis of environmental data, aiding suppliers in reducing emissions.

Additionally, during the World Economic Forum Special Meeting in Saudi Arabia, the Kingdom introduced the Sustainability Champions program. This initiative aims to promote collaboration among top companies by enhancing their capabilities and sharing best practices thereby accelerating their adoption of sustainability principles and reporting.

Government interventions also play a crucial role. Saudi Arabia, through Monsha’at and the Saudi Green Initiative, supports SME decarbonization with substantial funding. The UAE’s Abu Dhabi Global Market (ADGM) has developed a regulatory framework for sustainable investment funds, while Egypt mandates ESG disclosure reports for companies listed on the Egyptian Stock Exchange.

Raja Atoui, Partner and member of the Energy & Natural Resources and Sustainability & Responsibility Practices at Bain & Company stated, “Government interventions are essential to create an enabling environment for SMEs to transition to sustainable practices. Policies and funding must align with the broader climate goals to foster innovation and resilience in our value chains.”

The Path Forward

Achieving climate-resilient growth in the MENA region necessitates collaboration across the entire value chain. Technological innovation, infrastructure development, and capability-building are critical components. Integrating local supply chains with global expertise will be pivotal in bridging the gaps in financing, innovation, and risk-taking.

As the region builds on the momentum from COP28, partnerships between the private and public sectors will be instrumental in meeting net-zero commitments by 2050.

Image Above: Akram Alami, Partner and Middle East Head of Aviation, Utilities, and Sustainability & Responsibility Practices and Raja Atoui, Partner and member of the Energy & Natural Resources and Sustainability & Responsibility Practices at Bain & Company

Samer Bohsali, Head of Social & Public Sector across the Middle East

Julie Coffman, Global Chief Diversity Officer at Bain & Company

How does a comprehensive, responsible approach to AI help leading companies accelerate and amplify the value they get from the technology?

Bain’s AA Maturity Assessment 2023 found that companies with a comprehensive, responsible approach to AI earn twice as much profit from their AI efforts. These leaders aren’t afraid of possible risks, and they aren’t tentative about what they pursue and deploy. Rather, they quickly implement use cases and adopt sophisticated applications, accelerating and amplifying the value they get from AI. Importantly, they also identify the uses of AI they will not pursue until the technology develops further or their organization is mature enough to manage those uses.

While generative AI is recent, machine learning and AI run in the oldest pages of tech history. The financial sector pioneered model risk management, with the implementation of the US Office's Comptroller of the Currency’s guidance on model validation (2000) and model risk management (2011). These policies promoted robust model development, validation, and monitoring. Additionally, throughout the 2010s, tech giants like Google advanced machine learning testing and operations, expanding the understanding of how to enhance security, accuracy, and stability of such systems.

How can companies manage six specific system risks?

Beyond long-established risks such as bias, explainability, and malicious use, generative AI brings additional risks, including hallucinations, training data provenance, and ownership of output. Building on the experiences of the financial services and technology industries, organizations should make six commitments to managing AI system risks and need to span the most critical areas of risk across an organization within each application. The six commitments include: security and reliability, transparency and explainability, fairness and safety, privacy and ownership, society and environment, and accountability and compliance.

How can a company enable responsible AI?

A comprehensive approach to responsible AI has three components.

1. Aspirations and commitments: To demonstrate to their stakeholders including customers, employees, shareholders, investors, regulators, and communities, that they will be responsible stewards, companies must clearly explain how they intend to manage the risks from these new technologies. This starts with acknowledging the new and enhanced challenges—that they include not only technology questions but also equity and societal concerns, and that they require attention, disclosure, and communication. 

Stakeholders expect companies to invest in secure, accurate, and unbiased systems. They expect these systems to be ethical and designed with potential future regulations and compliance requirements in mind. Of course, each organization will tune its commitments to its capabilities, potential exposures, and the specific requirements of its markets and location.

2. Governance processes, roles, and technology: Companies will need to augment existing approaches with new technology and practices that address the unique systems life cycle of AI solutions. For example, data governance and management practices will be required to cover new security, privacy, and ownership challenges. Roles, accountabilities, forums, and councils will all need to be revised and extended to effectively monitor these new systems and how they are used. This could include appointing a Chief AI Ethics Officer and/or an AI ethics council. After companies articulate their commitments, they need to ensure that the appropriate structures, policies, and technology are in place. 

3. Culture: Given the broad impact, rapid advancement, and adoption of generative AI technologies, organization-wide training, and engagement covering their use—as well as the organization’s aspirations and commitments—will be needed. By ensuring these efforts are iterative, a company can nurture a culture of vigilance and learning that continuously improves its ability to use AI responsibly. Many companies will find value in establishing or updating a clear code of conduct, either through the adoption of a broad digital citizenship or data responsibility codes or through more specific codes of ethics for AI. These might include an AI-acceptable use policy that outlines specific dos and don’ts or defines the risk assessments required for individual AI use cases. 

Modern AI systems are dynamic and complex to govern through manual efforts alone. Effective AI technology platforms and application development frameworks are vital to enabling the rapid development and deployment of AI technology while embedding controls required to deliver on responsible AI commitments. 

Hallmarks of a responsible AI culture

For successful AI integration, it's crucial to embed responsibility into the company culture. This involves instilling responsible AI principles, ensuring leaders comprehend and manage risks, holding managers accountable for overseeing AI policies and governance, equipping team members with necessary resources and skills for responsible AI use, and actively engaging in dialogue with stakeholders about the risk-benefit balance.

This is a complicated terrain to navigate, but generative AI can’t be ignored. The scope of the technological and economic change it is likely to bring is just too great.

“The drop in deal multiples led to a wait-and-see atmosphere in 2023, with many sellers hesitant to come to the table at a market bottom,” said Les Baird, partner and head of Bain & Company's global M&A and Divestitures practice. “This year, buyers have their eyes on a growing backlog of deals. A need for liquidity will motivate some sellers, while others will divest assets while reshaping their portfolios. As interest rates stabilize, we expect the logjam in M&A markets will break. When it does, competition for assets will be significant. Winning buyers will use diligence to uncover a differentiated view on revenue and cost synergies and win the deal.”

Beneath the Surface of 2023 Dealmaking

Across industries, the collapse of tech M&A has been the biggest drag on strategic M&A. Tech deal values declined by roughly 45% as median valuations tumbled from 2021’s high of 25 times to 13 times in 2023. At the same time, a healthy dose of big-ticket deals supported a strong M&A year for energy and healthcare, prompted by differing sector dynamics.

Megadeals made a mark in the second half of 2023, a possible signal that dealmakers are ready to look forward. For M&A observers, the timing wasn’t too surprising. Many companies had sustained high levels of proactive deal screening and outside-in due diligence even as deal counts fell.

Finally, the year 2023 showed a widening of the gap between how frequent acquirers and their inactive peers behave in M&A down cycles. Most frequent acquirers never stop doing deals even as the market overall contracts. This is significant as Bain’s long-term research shows frequent acquirers outperform in total shareholder return and that this margin continues to grow.

"Throughout history, economic downturns and periods of upheaval have consistently given rise to resilient competitors who have capitalized on the chaos to gain ground in the market," observed Gregory Garnier, leader of Bain’s Private Equity and Sovereign Wealth Fund practice in the Middle East. "It is highly likely that last year's downturn will follow this pattern, leading to an anticipated increase in deal-making activity in 2024, driven by the abundance of assets available for trading. However, this upward trend will not be without its challenges. In the current regulatory landscape, the approval processes for contested deals are becoming increasingly prolonged and unpredictable, necessitating that companies embarking on significant, transformative mergers and acquisitions demonstrate unwavering determination and resilience."

Gregory Garnier also highlighted the burgeoning trend of investments by Sovereign Wealth Funds (SWFs) in Asian companies, particularly aimed at revitalizing manufacturing and fostering innovation within the Middle East. According to the data presented in the M&A Report 2024, the value of SWF deals with Asia saw a remarkable upsurge of nearly 60% during the first three quarters of 2023, signaling a strategic shift towards increased investment in the region.

The M&A Report 2024 sheds light on the transformative role of SWFs in redefining the economic landscape of the Middle East, steering the region beyond its traditional dependence on oil and gas. Notably, SWFs have emerged as the primary drivers of investment activity in the GCC, collectively representing a staggering 86% of the total deal value, underscoring their pivotal influence in shaping the region’s investment landscape.

"The Middle East is undergoing a significant shift towards accelerating the energy transition, with a growing emphasis on clean energy investments and ambitious net-zero targets,” said Elif Koc, a partner at Bain & Company Middle East. "Through strategic investments, sovereign wealth funds are leading the charge in reshaping the economic future of the Middle East, diversifying beyond oil and laying the groundwork for sustainable growth and prosperity.", she added.

An Evolving Regulatory Climate

At least $361 billion in announced deals were challenged by regulators around the globe over the past two years. Among the $255 billion of those deals that ultimately closed, nearly all required remedies. While most contested deals do make it to close, new research from Bain shows timelines for scrutinized deals have extended considerably. The pre-close period, that crucial and vulnerable phase between announcement and close, can stretch from quarters to years. Most deals close within about three months. But the average time to reach a regulatory outcome for scrutinized deals is now 12 months.

Meanwhile, the regulatory climate continues to evolve. For example, regulators have differentially focused on deals in technology and healthcare, given wider concerns about competition and consumer well-being in those industries. Even as the rulebook changes, companies looking for growth and transformation are staying in the M&A game. The best-prepared acquirers use extensive diligence to wrestle the deal thesis to the ground, confirming a base case with plenty of upsides to withstand the twists and turns of deal approval.

Generative AI in Dealmaking

Bain’s survey of more than 300 M&A practitioners shows that while only 16% are currently deploying generative AI for deal processes, 80% expect to do so within the next three years.

Early generative AI users are focused on process efficiencies in the early stages of the M&A process—idea generation in sourcing and reviewing data in diligence. A full 85% of early users reported that the technology met or exceeded their expectations, and 78% said they achieved productivity gains from reduced manual effort.

Practitioners are quick to point out challenges too, identifying data inaccuracy, privacy, and cybersecurity as the most concerning risks to using generative artificial intelligence for M&A. Companies that get the most out of generative AI will invest early to identify the efficiency gains that could deliver a competitive advantage today. Using it for targeted purposes now is a way of building familiarity and setting the stage for higher-impact uses in the future.

Industry Perspectives

Bain & Company’s M&A Report 2024 explores trends across 14 industries and 4 regions, among them:

• Technology: These are not the best of times for tech dealmakers. Overall, tech deal volume dropped 26% in the first 10 months of 2023, and value was down by 59%, more than almost any other major industry. Despite this, deals were still getting done — more than 4,100 during the first nine months of the year, with 31 valued in excess of $1 billion. Looking ahead, Bain’s research shows the valuation gap between what tech sellers need and what buyers are willing to pay may be narrowing 42% of tech industry practitioners saw an easing of the valuation gap as key to unlocking deal flow, and roughly 40% expect the gap will decrease next year.
• Healthcare and Life Sciences: Despite the turbulence, 2023 demonstrated that the healthcare and life sciences industry can’t keep M&A on the back burner for long. Bain anticipates this trend to continue. The industry is sitting on high levels of cash — $171 billion across pharma companies, and 80% of healthcare executives predict they will do as many, if not more, deals in 2024 than they did in 2023.
• Energy and Natural Resources: After three years of steady growth, the volume of energy transition deals plateaued in the first nine months of 2023. Energy and natural resources companies are balancing deals between reinforcing the core businesses and promoting a low-carbon agenda. To strike the right balance, the best companies will take a more targeted approach to their energy transition acquisitions.
• Aerospace and Defense: In 2023, the space industry saw a string of multibillion-dollar deals announced in prior years officially close. Looking forward to 2024, we see the space industry entering a new era triggered by a higher interest rate environment and defined by reduced costs for space access and the emergence of space as a fully contested geopolitical arena. Bain believes portfolio reshaping and lower valuations will spur M&A activity.

Bain & Company published a new study in November exploring the top sustainability concerns for business leaders, their customers, and their employees.

“With the upcoming global focus on the region with COP 28 and the potential implications from this critical gathering, it is critical that CEOs and sustainability plans in the corporate sector take center stage in the next phase of the world’s transition. Our global report on the topic is grounded on the philosophy of Visionary Pragmatism in this path for executives to adopt as they are navigating taking the global ambitions and translating them into the day-to-day functioning of their respective companies” said Akram Alami, Middle East Partner at Bain & Company.

Surprising Truths About Consumers

Bain’s research reveals several surprising truths about consumers, dispelling some common misperceptions. Among them, are the ideas that consumers won’t pay more for sustainable products and that consumer behavior is fixed.

• Baby boomers are often just as concerned as Gen Z. Many companies have long viewed younger consumers as more focused on sustainability than their older counterparts, but the reality is not as clear-cut. For example, 72% of Gen Z consumers and 68% of boomers globally are very or extremely concerned about the environment, but in countries as diverse as India, France, and Japan, boomers are more concerned.
• Consumers are recommending brands if they are supporting social causes. As concerns grow, consumers are looking to make environmentally sound choices – 82% of consumers in Europe, the Middle East, and Africa are likely to recommend a brand after learning that it supports a social cause.
• Consumer behavior can change more quickly than many companies anticipate, with external factors such as government regulation heavily influencing the market. China began offering financial incentives for electric vehicles in 2009; now 19% of Chinese consumers report driving an electric car, compared with 8% of consumers globally. In England, the use of single-use supermarket plastic bags has fallen 98% since the government began requiring retailers to charge for them in 2015. Similarly, in the UAE, the recent imposition of charges on plastic bags in supermarkets has swiftly prompted a notable reduction in their usage, showcasing the significant impact of government initiatives on shaping consumer behavior.
• There is a disconnect between what consumers want and what most companies sell. Worldwide, 48% of consumers consider how products are used when thinking about sustainability. These consumers are more concerned about how a product can be reused, its durability, and how it will minimize waste. In contrast, most companies sell sustainable goods based on factors such as how they are made, their natural ingredients, and the farming practices deployed. These factors cause many consumers to conflate “sustainable” with “premium.” One result of this disconnect: Nearly half of all developed-market consumers believe that living sustainably is too expensive. By comparison, roughly 35% of consumers in fast-growing markets believe this.
• Consumers struggle to identify sustainable products and don’t trust corporations to make them. In Bain’s survey, 50% of consumers said sustainability is one of their top four key purchase criteria when shopping. Yet they may be making decisions based on misconceptions. When asked to determine which of two given products generated higher carbon emissions, consumers were wrong or didn’t know about 75% of the time. Consumers say they rely most on labels and certifications to identify sustainable products, yet most were unable to accurately describe the meaning behind common sustainability logos, such as organic production or Fairtrade. A lack of trust in corporations compounds the issue. Bain found only 28% of consumers trust large corporations to create genuinely sustainable products, compared to 45% who trust small, independent businesses.

Four Critical Areas of Focus For Companies

The momentum behind sustainability and dynamic shifts in consumer behavior have profound implications for any company. Bain sees four critical areas of focus.

• Devise a future-proof and flexible strategy. Few companies plan beyond the typical 3-year strategic planning window, and even those that do look out 5 to 10 years tend to focus on expectations for technology adoption. These plans fail to fully consider two other factors that move just as rapidly and with as big an impact: regulations and consumer behavior.
• Acknowledge a fragmented consumer base. Companies need to deaverage consumers and innovate products and design propositions that appeal to different segments— local markets, consumers with different definitions of sustainability, and consumers with a range of purchasing motivations.
• Test and learn to determine what works—and repeat. In such a fluid environment, companies can lean aggressively on marketing experimentation, using digital tools to quickly test the sustainability messages that resonate with different segments and adapt accordingly. It’s a way to help consumers gain enough clarity to make decisions that are consistent with their values.
• Get out in front of regulations. As we’ve seen throughout the world, government policy inevitably becomes a huge contributor to changing consumer behavior. Across all industries, companies need to be at the forefront of helping to shape the regulations affecting their business. A company’s ability to anticipate policy shifts and build future-proof portfolios will help determine whether it can outpace competitors.

Upskilling Employees to Rise to the Challenge

Bain found that 75% of business leaders believe they have not embedded sustainability well into their business. The instinct of many CEOs is to prioritize external hiring to address all skill gaps, including in sustainability. Bain advocates for addressing sustainability challenges through a combination of smart upskilling and cultivating a learning mindset.

A new Bain survey of 4,700 people found that 63% felt different skills and behaviors would be required for their company to execute its ESG ambition or strategy. Yet only 45% of nonmanagers said their employer offers reskilling and upskilling opportunities that would enable internal mobility.

Despite almost every CEO saying they have a talent problem, few companies have defined what it means to be a great employer. In Bain’s recent survey, 44% of respondents said it is easier to find a better opportunity outside of their company than within it.

To get a broad sense of environmental concerns around the world, Bain surveyed 23,000 consumers. The results underscore the growing urgency of sustainability topics. Some 64% of people reported high levels of concern about sustainability. Most said their worries have intensified over the past two years and that their concern was first prompted by extreme weather.

Tom de Waele, Managing Partner of Bain & Company Middle East, said: “We are delighted to announce five very well-deserved new partner promotions. Each of these individuals has demonstrated an exceptional track record of commitment and results to their clients, teams, and the firm. We are privileged to have them join the partner team where they will be a driving force of our growth story in this dynamic and rapidly expanding region as they support our clients to successfully capitalize on the opportunities in the Middle East and navigate global markets.”

Jawad Abdulsamad has been at Bain & Company based in Riyadh since 2018 and is an integral part of Bain's Advanced Manufacturing, Real Estate, and Sustainability practice areas. His core areas of expertise include sustainable cities, clean manufacturing, and the localization of advanced industries such as the semiconductors industry. Jawad has worked extensively on city strategies and has been involved in advising various Saudi Arabia's giga-projects. He has also supported clients to equip their employees with the right skills in the context of transition to Industry 4.0. He has played a key role in the growth of Bain’s Riyadh presence helping to drive our recruiting efforts, and social impact initiatives in particular leading Bain’s collaboration with the MISK fellowship program over the last few years. Jawad holds an MA in Economics and Politics from the University of Oxford, UK.

Kyle Strong joined Bain & Company in 2015 in its Sydney office and has since then advised C-level executives across the EMEA and APAC regions. He has accumulated a wide array of expertise, particularly in his work for major national energy champions, as well as across the chemical, real estate, construction, airport ground operations, and insurance sectors. He has advised clients on topics ranging from full potential transformation, M&A strategy, corporate/portfolio strategy, operating model, and performance improvement. He has significantly impacted Bain's Middle East practice, particularly through overseeing recruitment for the company's office in Doha. Kyle graduated with a bachelor’s degree from Northwestern University and a master's degree in business administration from the University of Virginia Darden School of Business, where he was a Shermet scholar.

Marwan El Hachem has been with Bain & Company since 2015 and is a key leader in Bain's Public and Social Sector practice in the Middle East. Marwan’s key expertise lies in performance improvement, human capital development, and advising on agile operating models. He also supports clients on sustainable development, strategy, due diligence, and digitalization projects. He has a varied background in utilities, energy, funds, and governmental bodies and is experienced in leading engagement in the non-profit sector. Marwan will continue to counsel leading organizations in the GCC on funding models, budget optimization, and turnaround tactics.  A graduate of the Ecole Polytechnique, Paris, with an MSc in the field of sustainable development, he also gained an MBA from Harvard Business School, Boston, and a B.Eng. in electrical engineering from ESIB, Beirut.

Naim Daher Mansour has been with Bain & Company since 2016 and currently works in Bain's EMEA financial services and enterprise technology practices in Riyadh, Saudi Arabia. With over 10 years of experience across the Middle East, Naim has worked with industry giants in banking, insurance, and market infrastructure.  His areas of expertise include strategy, operating model design, process optimization, post-merger integration and digitalization. In the GCC, Naim has supported the launch of banking and insurance digital platforms and oversaw substantial banking post-merger integrations.

As a member of the leadership team, he has played a crucial role in establishing and developing the Riyadh office, driving its internal growth. Naim holds a BBA from the American University in Beirut, an MBA from INSEAD Business School, as well as a master's in finance from Grenoble Business School.

Sergey Glushkin has been working with Bain for over a decade, between Bain’s Moscow and Middle East offices. Throughout his career, he has worked with top organizations across the energy and natural resources, manufacturing, transportation, and private equity sectors. His areas of expertise include strategy development, performance improvement, and operating model design.

At different points in his career, Sergey also launched an e-commerce start-up and led technology partnerships for a leading Russian Oil and Gas company. Sergey holds a master's degree from the State University of Management and Bauman Moscow State Technical University.