As global focus on sustainability intensifies, Morocco is taking meaningful steps to advance environmental, social, and governance (ESG) practices. Recent regulatory efforts reflect a growing national commitment to sustainability, transparency, and responsible business behavior.
As ESG gains traction across key sectors, the question now is how Moroccan companies are actually engaging with ESG reporting, and what drives or hinders their ESG disclosures?
In our latest research, we explored these questions using a mixed-methods approach. We surveyed 66 experts and interviewed 19 professionals (both male and female) working in ESG-related roles in Moroccan firms. Our goal was to explore the factors that motivate Moroccan companies to disclose ESG information and the barriers they face, in order to assess the extent of their ESG reporting.
Key findings: motives, barriers, and gender roles
Our study found that companies are more likely to disclose ESG information when driven by motivations such as maintaining a strong reputation, meeting stakeholder expectations, or complying with regulations. Interestingly, challenges like limited internal expertise, high reporting costs, and the absence of clear standards also tend to encourage disclosure. Rather than discouraging transparency, these obstacles often prompt firms to strengthen their ESG reporting efforts.
An important finding: gender plays a crucial role. Our research shows that when decision-making teams include both men and women, companies are more likely to leverage positive motivations for ESG reporting and are less affected by challenges. This suggests that inclusive leadership can strengthen a firm’s commitment to good ESG reporting practices.
The context: why ESG matters in Morocco
Morocco has introduced mandatory ESG reporting for listed companies under its new sustainability guidelines. This move shows the increasing importance of ESG in managing long-term risks, strengthening financial resilience, and aligning with global standards.
However, ESG reporting is not consistent across all companies. While some leading companies, particularly in the finance and energy sectors, have started producing sustainability reports, many others, especially small and medium-sized enterprises (SMEs), are still behind. Indeed, while Morocco is progressing in ESG reporting, a national framework is still developing. As a result, many companies rely on international standards like GRI or SASB, which, while useful, may not always align perfectly with Morocco’s specific context and needs.
Unlocking the potential of ESG reporting in Africa
Africa’s growing economies position the continent as a key player in the future of sustainable business. However, many African firms, including those in Morocco, face challenges in fully aligning with globally dominant Western frameworks such as the Global Reporting Initiative (GRI) and the Task Force on Climate-related Financial Disclosures (TCFD). These challenges stem from a combination of factors that, while obstacles, also present opportunities for development and growth.
Create tailored ESG standards: Unlike the EU’s Corporate Sustainability Reporting Directive (CSRD), Morocco and other African nations lack sector-specific regulations. This gap presents an opportunity to develop local frameworks that better suit African industries, making ESG reporting more relevant and actionable.
Fostering regional collaboration: Establishing regional networks or alliances between African countries to share best practices and collaborate on ESG initiatives could enhance the overall impact of ESG reporting across the continent.
A path forward for policymakers and businesses
Our research highlights several actionable steps to enhance ESG practices in Morocco:
1. Make ESG reporting mandatory for all companies with simpler rules for smaller firms, and sector-specific guidance to help them report effectively.
2. Provide training and technical support for businesses, particularly SMEs, struggling with ESG integration.
Promote gender-inclusive governance as a key driver for strong ESG commitment, recognizing that companies with more balanced gender representation in ESG roles are more responsive to stakeholder concerns and report more concisely.
3. Financial incentives that provide rewards for firms that demonstrate credible ESG practices can motivate businesses to prioritize sustainability actions.
4. Encourage measurable ESG action, not just descriptive reports, by requiring firms to disclose clear goals, implemented initiatives, and performance metrics to track progress.
5. Invest in education through training programs for managers on ESG metrics and materiality, ensuring companies understand the key issues that impact their industries.
6. Leverage technology and data through investing in digital platforms and tools for easier and more accurate ESG data collection can help companies track, analyze, and report their ESG performance more efficiently.
Morocco is well-positioned to become a leader in sustainable business in Africa. With its growing economy, strategic location, and commitment to sustainability, the country has the potential to set a strong example in ESG reporting. By strengthening regulations, encouraging transparency, and embracing inclusive leadership, Morocco can unlock significant opportunities for businesses to thrive while contributing to long-term environmental, social, and economic goals.
