In a country synonymous with oil, building a sustainability consulting firm might seem paradoxical. Yet, Hani Badahdah, Managing Director of ECO CODE, is doing precisely that in Saudi Arabia, a nation at the forefront of global energy markets and economic transformation.
With Vision 2030 steering the kingdom toward diversification and renewable energy, Badahdah’s work sits at the intersection of strategy, finance, technology, and culture — helping both public and private entities turn ambitious sustainability goals into practical, bankable projects.
In this interview with CBR Magazine, he shares insights on what “sustainability transformation” really entails, how Saudi companies are reconciling local priorities with global ESG standards, and the opportunities and challenges of driving genuine change in a hydrocarbon-led economy.
You’re building a sustainability consulting firm in Saudi Arabia — the world’s biggest oil producer. Isn’t that a bit like being a vegan butcher?
It’s an evocative image, but it misses the point. Sustainability consulting in a hydrocarbon-led economy is not about moral purity; it’s about practical risk management, opportunity capture and resilience. Saudi Arabia is investing in new industries, major infrastructure, and renewables at scale. That transition creates huge demand for planning, technical design, finance structuring, workforce reskilling, and credible measurement. We help clients navigate those shifts so they can reduce exposure to regulatory, market and physical climate risks — and pursue new revenue streams. In short: we turn transition-related challenges into commercially viable projects.
What does “sustainability transformation” actually mean when you’re working with clients?
Practically, it’s a 5-part program:
- Strategy & governance — align leadership, KPIs, incentives and board oversight so sustainability is a business decision, not a side project.
- Operational decarbonization — energy efficiency, fuel switching, process optimisation, and deployment of low-carbon technologies.
- Financial alignment — green finance, blended finance structures, reporting for investors and access to incentive schemes.
- Value-chain transformation — supplier engagement, circularity, and product footprinting.
- Capability & culture — training, change management and new roles.
We deliver roadmaps, feasibility studies, procurement and technical supervision, finance packages, and monitoring systems so transformation is measurable and investible.
Your bio says “local identity with global standards.” What does that mean practically when advising a Saudi company?
It’s translation and tailoring. Global standards (TCFD, ISO, EU rules, IFI safeguards) set expectations. Local identity means adapting those standards to national policy (Vision 2030), market realities, labor norms and cultural governance. Practically that means: using local technical partners, proposing solutions that fit regulatory timelines, framing performance indicators in Arabic and English, and designing stakeholder engagement consistent with local social norms — while ensuring outputs meet global investor and buyer requirements.
Vision 2030 is throwing around massive numbers — $50 billion in ESG-aligned FDI. Are these real projects or just really expensive PR?
Both realities coexist. Many pipeline projects and commitments are genuine: sovereign and private capital is mobilising for renewables, tourism, green hydrogen and giga-projects. At the same time, announcements create expectations that must be validated by bankable plans, land and offtake arrangements, and procurement. The key is execution: viable projects need credible project sponsors, financial models and procurement transparency. Our role is to help move projects from announcements to bankable transactions.
You’ve got clients across public and private sectors. Are government entities just checking boxes or actually changing how they operate?
There’s a spectrum. Some entities are using sustainability as compliance or PR; others are embedding it into budgeting, procurement, and performance metrics. Indicators of genuine change we look for: reallocated budget lines for green investments, changes in procurement criteria (life-cycle cost, carbon intensity), new capacity units inside ministries, and formal social dialogue mechanisms. Where we see surface-level action, we work to convert it into institutional practice through pilots and measurable KPIs.
The ESG consulting market is supposed to hit $39 billion globally by 2034. What’s driving that beyond compliance?
Several forces:
- Capital markets — investors require ESG data for risk pricing and portfolio allocation.
- Cost savings — energy efficiency and waste reduction have immediate ROI.
- Access to markets — buyers increasingly require low-carbon supply chains.
- Talent and reputation — employees and clients prefer mission-aligned organisations.
- Regulation — but regulation catalyses the others; compliance alone doesn’t explain the strategic uptake.
NEOM claims to be a zero-carbon circular economy city. As someone in the sustainability space, do you believe that’s possible?
Zero-carbon at city scale is an aspirational target. Technically, much can be achieved—100% renewable power for electricity, electric mobility, circular water systems, and aggressive efficiency can reduce emissions substantially. But “zero” requires credible accounting (scope 1–3), avoidance of burden shifting (e.g., exporting emissions), and robust carbon removal or offsets where residual emissions remain. The feasibility depends on scale, timelines, transparency and availability of low-carbon inputs (green hydrogen, green steel). We treat such ambitions as useful horizons that need interim, verifiable milestones.
You gave a lecture on ESG governance principles. What’s the biggest misconception Saudi companies have about ESG?
That ESG is a reporting exercise or a cost center. The misconception is that it’s mainly about disclosure. In reality, governance and ESG are about strategic risk management and value creation — from lowering operating costs to unlocking new customers and capital. ESG should be embedded in investment decisions, procurement, and executive incentives. Treating it only as a disclosure task misses the upside.
Saudi companies are dealing with both Vision 2030 requirements and global ESG standards. Are these aligned or pulling in different directions?
Broadly they are converging: Vision 2030’s targets on renewables, diversification and tourism are compatible with global sustainability goals. The friction points are timing, reporting formats and enforcement. Local policy may prioritise rapid industrial growth while global standards emphasize measured decarbonization and human rights safeguards. The practical answer is harmonisation — translate Vision 2030 targets into global-grade metrics and build transitional roadmaps that satisfy both domestic development objectives and international expectations.
The EU is rolling out SFDR 2.0 and other regulations. Are your Saudi clients worried about being shut out of European markets?
Yes, concern is rising. Sophisticated exporters and financial institutions understand that compliance and supply-chain decarbonization are becoming commercial prerequisites for EU market access. The pragmatic response is twofold: (a) invest in upstream decarbonization and traceability (PCFs, third-party verification), and (b) engage in trade diplomacy and buyer partnerships to pilot low-carbon supply corridors. Early adopters will have a competitive advantage; laggards risk market exclusion.
