EGX-listed companies will be required to file annual Environmental, Social & Governance (ESG) reports to the FRA beginning January 2022.
More details🧐: Companies will be required to fill out an ESG report consisting of more than 40 questions related to the three aspects of ESG. Environmental questions include: “Does your company follow Environmental and Social (E&S) or sustainability policies?” & “Does your company follow specific waste, water, energy, &/or recycling policies?”. Social reporting looks at whether companies disclose information on gender diversity, pay ratio, & labor rights, to name a few. While governance reporting looks at matters of ethics & code of conduct, data privacy, & risk management, among others.
Why is this important🤔: Investors are increasingly looking at ESG-compliant companies for their investments. Companies here are missing out on international partnerships & foreign investment opportunities because they don’t implement file ESG reports. It’s noteworthy, however, that a few EGX-listed companies already file ESG reports, including Cleopatra Hospitals (CLHO), El Sewedy Electric (SWDY), & Edita (EFID).