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Egypt

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Egypt

In Egypt, the Egyptian Stock Exchange EGX is a pioneer in Sustainability Initiatives on the continent. EGX was one of four first exchanges that joined the United Nations’ Sustainable Stock Exchanges initiative (SSE) in 2009, along with Nasdaq, Bovespa, Istanbul and Johannesburg stock exchanges.

The aim of the initiative, founded by the UN Secretary General is to increase exchange-listed companies’ transparency and commitment to environmental, social and corporate governance issues. EGX contributed to the drafting of the SSE Model Guidance on ESG Reporting published in 2015.
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EGX then launched its S&P EGX ESG index in March 2010, creating the first ESG index in the Middle East and North Africa Region designed to track the performance of companies listed on EGX that demonstrate leadership in environmental, social and corporate governance issues, when compared to their market peers.
The exchange is also an active member of the Sustainability Working Group of the World Federation of Exchanges that was established in March 2014.

Most interestingly is the EGX new formed Sustainability Advisory Committee whose main goal for year 2016 is to issue a Model Guidance for the sustainability report for listed companies, as well as setting the criteria for green finance.

Model Guidance for Reporting on ESG Performance and SDGs
The enormous changes taking place in the global capital markets towards building more sustainable capital markets, aiming at achieving Sustainable Development Goals (SDGs), triggered many stock exchanges around the globe to emphasize on integrating sustainability concepts and dimensions in listed companies business plans and strategies, promoting their role in achieving SDGs.

The Egyptian Exchange (EGX) has played an important role in establishing sustainability frameworks for global and regional capital markets. EGX along with other four major stock exchanges participated in launching a public commitment to sustainability in their markets, thereby becoming a United Nations Sustainable Stock Exchanges initiative (SSE) Partner Exchange. In 2014, EGX contributed to the establishment of Sustainability Working Group (SWG) of The World Federation of Exchanges, today EGX is involved in the SWG leadership, after electing its representative Dr. Medhat Nafei last May as a vice chairman for the group.

The Egyptian Exchange has contributed to the establishment of various sustainability initiatives. EGX held its First Sustainability Conference in 2015, aiming at promoting sustainability awareness with the participation of diverse audiences on both domestic and international levels. EGX is a regular and pioneer participant in the celebration of the International Women’s Day as the first committed exchange to this initiative. Regarding environment and climate change, EGX has signed on both Paris and Marrakesh pledges to work for the cause. The Egyptian Exchange participates regularly and effectively in the United Nations Sustainable Stock Exchanges Global Dialogue conferences.

As one of the main regional and global players in sustainability reporting on the capital markets agenda, and as part of its commitment to the UN-SSE, the Egyptian Exchange is publishing ” EGX Model Guidance for Reporting on ESG Performance and SDGs”, which aims to promote transparency in the capital market, and to make sure that listed companies are able to develop a clear concept of sustainability, and to issuing effective sustainability reports disclosing their sustainability policies and performance.

Model Guidance for Reporting on ESG Performance and SDGs

The enormous changes taking place in the global capital markets towards building more sustainable capital markets, aiming at achieving Sustainable Development Goals (SDGs), triggered many stock exchanges around the globe to emphasize on integrating sustainability concepts and dimensions in listed companies business plans and strategies, promoting their role in achieving SDGs.

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The Egyptian Report on Sustainability
Global financial markets are currently witnessing tremendous changes to build more sustainable markets to help achieve the United Nations’ Sustainable Development Goals (SDGs). This in turn has led the Egyptian exchange to take pioneering steps on the sustainability front.

Exchanges promoting greater transparency of high-quality ESG information are actually developing well-functioning markets, which are more resilient and less volatile. They contribute to stronger, more transparent listed companies and create more attractive markets where investors can better evaluate fundamental drivers of value creation and would know how the company will likely to perform in the future. They also assist companies in differentiating themselves on ESG matters, which is quickly becoming a competitive imperative.

From another perspective, the benefits of ESG and integrated reporting, which expand the scope of financial results and integrate non-financial information about intangible factors related to the environment, social and governance issues, are numerous to listed companies as well. These include improving access to capital and global financial markets, lowering risks and cost of doing business, increasing company’s valuation and delivering better return to shareholders, enhancing corporate reputation as well improving employee perception of the company, helping attract, retain, motivate and align new and existing employees. In short, integrated reporting provides a more profound and holistic view about the company, enhances its strategy and unlock the company’s competitive advantage

The Egyptian Report on Sustainability

Global financial markets are currently witnessing tremendous changes to build more sustainable markets to help achieve the United Nations’ Sustainable Development Goals (SDGs). This in turn has led the Egyptian exchange to take pioneering steps on the sustainability front.

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