Environmental, social and governance
Environmental, social and governance
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Advisory

ESG Index

In 2011, Hawkamah launched the first ever Middle East and North Africa (MENA) Environment, Social and Governance (ESG) Index in cooperation with S&P Dow Jones Indices with the support of the International Finance Corporation (IFC). The S&P/Hawkamah ESG Pan Arab Index measures the performance of 50 of the best performing stocks in the MENA region as measured by environmental, social and governance factors.

The rising prominence of ESG issues and growing regulatory demands are reshaping requirements for disclosure and analytics. For example, stakeholders require more information about a company’s ESG track record, while companies are looking to explore their strengths and weaknesses in this realm. A global transition is now underway to finance a more resilient, sustainable global economy, which may bring with it significant growth opportunities. A growing body of evidence also indicates that a company’s dedication to ESG could be an important factor in risk management and returns.

More investors around the world are taking an interest in the opportunities, risks related to ESG.

In response to changing economic conditions and to the practices that played a role in sparking the 2008 financial crisis, and growing regulatory demands globally, institutional investors are increasingly focusing on long-term risks in their investments, and environmental, social and governance factors play a significant role in making those assessments. Financial performance indicators have traditionally marked whether or not to invest in a company. Non-financial indicators, however, may also be indicative of the future performance of companies.

The S&P/Hawkamah ESG Pan Arab Index measures listed companies in emerging markets that pursue sustainable business practices. The purpose of the ESG Index is to identify those companies that perform well along the three parameters of environmental, social and corporate governance practices when compared to their market peers.

The Index covers companies in Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Qatar, Bahrain, Oman, Jordan, Egypt, Lebanon, Morocco and Tunisia, and provides qualitative information to investors looking to analyze these companies' sustainability performance. Index constituents are derived from listed companies and selected by total market capitalization. This universe of stocks is then subjected to a screening process which yields a score based on a company's ESG disclosure practices in the public domain. Examples of disclosure channels in the public domain include annual reports, websites, bulletins, and disclosures made on stock exchanges.  For more information on the methodology, please see the link below.

Not only does the presence of this ESG index highlight environmentally sustainable, socially responsible businesses in the MENA region, but by potentially attracting long-term international institutional investors looking for exposure to socially responsible companies in emerging markets, the index may help reduce regional stock market volatility.

In addition to this index, in April 2020, S&P Dow Jones Indices and Hawkamah launched the S&P/Hawkamah ESG UAE Index. The S&P/Hawkamah ESG UAE index is designed to reflect the performance of 20 of the best-performing stocks in the UAE as measured by ESG factors. It uses the same process as the Pan Arab index but focuses on companies within the UAE.

For more information, please contact info@hawkamah.org

 

 

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Testimonials

  • ‘’There was no doubt that once we communicate with Hawkamah for a workshop, we were sure that we will achieve our goals and get an added value. And thats what happened; we got a lot of positive feedback from participants which confirms the success of the company secretary 2 days workshop which took place in Manama – Bahrain as well as the fruitful feedback on the knowledgeable and insightful trainers and experts. We would be more than happy to have such cooperations in the future since we consider Hawkamah our patterner in success’’

    Faisal Al-Modlij - GM, Corporate Affairs and Governance - Sipchem KSA

  • "We extend our thanks and appreciation to Hawkamah institute for its cooperation and the effectiveness of the Director Development Program"

    Saeed Al Kaabi - Abu Dhabi Monitoring and Controlling Centre(ADMCC)

  • "The Director Development Program was very rich in useful information and added a lot to us, and the trainers’ experience, skills and capabilities had positive impact on delivering the information to us in a direct and clear manner"

    Hamad Al - Tamimi - Osool Asset Management

  • The corporate Governance in all type of entities adds morality and ensures implementation of the best practices to fulfill the responsibilities of those entities and to ensure the rights of all parties involved, especially those who have no authority to participate in the decision-making cycle.

    Hawkamah institute contributed to enrich the knowledge of these responsibilities and the role of governance for the success of institutional work in accordance with principles that establish values and ethics.

    Ajman Municipality

  • '‘Excellent, well delivered, informative program presented by well-seasoned trainers. The training program has helped transform and empower the Board’s vision and focus our minds on the relevant issues at hand. We sincerely thank you for the training sessions which helped broaden our perspective and decision making processes. We strongly recommend this training to elevate directors to the next level".

    Bank of Maldives

  • "I would like to thank Hawkamah for the ESG Reporting training , I found the two days ESG Reporting training very informative and helpful and I have definitely received some tools that I will use in my work"

    Rania Zaatari - Head of Makassed Communal Healthcare Bureau

  • "The DDP provides a solid foundation of corporate governance for existing and aspiring directors."

    David Haglund - Senior Executive Director and Portfolio Manager of the Templeton Frontier and MENA Market strategies

  • “Thank you so much for sharing such insightful webinar. It was great and valuable to all participate”

    Shady Rashed - Senior Economic Researcher at The Ministry of International Cooperation of Egypt

  • “Good session and very well organized on the webinar about How to buffer and lessen the impact of the novel Covid – 19, to maintain business sustainability with Hawkamah - AUB / Makhzoumi” 

    Bilal Hamade - Executive Advisor

  • "One of the best webinars I attended. Well done OSB Makhzoumi and Hawkamah”

    Fida Kanaan – Director – Executive education  OSB AUB

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