In recent years, environmental, social, and governance (ESG) considerations have taken the limelight, and the MENA region has been at the forefront of this discussion. A co-authored whitepaper by ValueCo (France) and Instinctif Partners (MENA), titled "Navigating ESG Integration: Assessing the Extra-Financial Landscape of Listed Companies in the MENA Region," offers valuable insights that could lead to increased transparency and understanding of key value drivers regarding environmental, social and governance factors, as the region moves towards integrating environmental, social, and governance factors into business decision making processes.
A co-authored whitepaper by ValueCo (France) and Instinctif Partners (MENA), titled "Navigating ESG Integration: Assessing the Extra-Financial Landscape of Listed Companies in the MENA Region," offers valuable insights that could lead to increased transparency and understanding of key value drivers regarding environmental, social and governance factors, as the region moves towards integrating environmental, social, and governance factors into business decision making processes.
Founder and Chief Technology Officer at ValueCo's, Mathieu Joubrel, commented on the following:
According to Mathieu Joubrel, ValueCo's Co-Founder and Chief Technology Officer:
According to my analysis, our proprietary tool, which is based on data gathered from the asset managers that contribute to our ESG collective intelligence model, illustrates the transformative path that the MENA region is on towards sustainable business practices. As seen through the eyes of asset allocators, the region continues to underperform compared to global peers, with MENA average ratings staying below 50% on a regular basis. As a result of our analysis, we have found that, although some markets and sectors in the region perform well on the Environmental and Social pillars, Governance issues persist, with international investors consistently awarding lower scores to MENA issuers than other markets.
As a result of our analysis, we have found that, although some markets and sectors in the region perform well on the Environmental and Social pillars, Governance issues persist, with international investors consistently awarding lower scores to MENA issuers than other markets.
There are formidable obstacles facing the MENA region, according to the whitepaper, which emphasizes that the Governance Scores consistently fall below global peers. Despite significant efforts by policy makers to enact more stringent governance regulations, cultural and workforce alignment issues are identified as barriers to meeting governance standards.
As a result of the whitepaper, different ESG profiles have been identified at the country level. The UAE scores the highest at 39.5% for investors, followed by Turkey and Oman on average. As a result of high performance in environmental and social aspects, as well as the regulatory environment requiring issuers to disclose their ESG performance, these scores are attributed to these scores.
The following are some of the comments made by Diana Estupinan, Chief Client Officer and ESG Advisor at Instinctif Partners MENA:
Our analysis of qualitative feedback from investors shows that there has been a paradigm shift in the importance of ESG factors in the investment process. In spite of the fact that ESG continues to grow in importance as an important factor in institutional investors' investment decisions, MENA issuers still have an excellent opportunity to adopt robust frameworks and address key concerns raised by investors at a regional and sector level.. It is essential for issuers to continue working hard to develop robust ESG frameworks and ensure they continue to adopt best practice reporting to make sure information is available to asset managers so they can make strategic decisions with the best information possible
It is essential for issuers to continue working hard to develop robust ESG frameworks and ensure they continue to adopt best practice reporting to make sure information is available to asset managers so they can make strategic decisions with the best information possible
The following comments were made by Samantha Bartel, Managing Partner and CEO of Instinctif Partners MENA:
As a result of the insights from our co-authored whitepaper on MENA ESG dynamics, there is a clear necessity for improved ESG adoption in the region in light of the findings. There exists a significant opportunity for issuers to enhance their IR and ESG practices as the average ratings and governance scores lag behind those of their global peers. Our commitment to guiding MENA issuers in the adoption of robust ESG frameworks and best practice reporting standards is unchanged.. It is crucial to take this step towards sustainable business practices, and we are eager to play a key role in transforming the ESG landscape of the region for the better through this journey
It is crucial to take this step towards sustainable business practices, and we are eager to play a key role in transforming the ESG landscape of the region for the better through this journey
In the paper, the paper evaluates the performance of ESG factors across 11 sectors, and it finds that there is a nuanced landscape. Information Technology and Communication Services lead the way, whereas Real Estate contends with challenges, consistently ranking among the lowest performers.
In the wake of historical legacies, the MENA region faces a number of challenges and opportunities in its journey toward enhanced ESG performance. In the whitepaper, it is predicted that proactive measures, comprehensive regulations, and universal standards will be the foundation for a sustainable and resilient future, as outlined in the whitepaper.
What ValueCo is all about
There is a mission-driven company called ValueCo, one that aims to explicitly integrate environmental, social, and human criteria into its performance and market valuations in order to maximize value for all stakeholders.
It is ValuCo's intention to develop the first SaaS ESG analysis solution based on the proprietary scores of professional investors. Due to their collaborative model and their cutting-edge research conducted both within-house and with academic partners, they are the only player that collects and leverages the internal opinions of asset managers.
By using this model, they are able to draw on the collective intelligence of responsible investors in order to improve market practices in general.
Instinctif Partners: An Overview
As one of the world's leading business communications consultancies, Instinctif Partners has expertise across a range of practice areas, including capital markets, corporate, public policy, content creation and insight and research. With experience across a wide range of industries, the company is a specialist in reputation and influence. The company specializes in working with clients across multiple and complex audiences by combining deep insights, expert storytelling, and creative delivery to change behaviors, emotions, and perceptions across multiple audiences. At present, Instinctif Partners is comprised of over 320 employees located in 12 offices in Europe, the Middle East, and Africa
At present, Instinctif Partners is comprised of over 320 employees located in 12 offices in Europe, the Middle East, and Africa
Details of the contact personSally JaroudyMobile: +971 52 146 7090Email: sally.jaroudy@instinctif.com
This image can be found at https://mma.prnewswire.com/media/2293243/ValueCo_and_Instinctif_Partners.jpg
The source of this information is ValueCo; Instinctif Partners
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