Environmental, social and governance
Environmental, social and governance

ESG Index

Hawkamah has launched the first ever MENA wide Environment, Social and Governance (ESG) Index in cooperation with Standard & Poor's with the support of the International Finance Corporation (IFC).

In response to changing economic conditions and to the practices that played a role in sparking the current financial crisis, 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, are also indicative of the future performance of companies.

The ESG Index provides an incentive to listed companies in these emerging markets to pursue sustainable business practices through improved environmental and socially responsible operations, as well as enhanced corporate governance systems. The purpose of the ESG Index is to raise the profile of those companies that perform well along the three parameters of environmental, social and corporate governance practices when compared to their market peers. The methodology is based on the one developed for the S&P ESG India index.

The Index covers Saudi Arabia, the United Arab Emirates, 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.

Not only will the project strengthen and promote the success of environmentally sustainable, socially responsible businesses in the MENA region, but by attracting long-term international institutional investors looking for exposure to socially responsible companies in emerging markets, the index will help reduce regional stock market volatility.

For more information, please contact info@hawkamah.org

S&P/Hawkamah ESG Pan Arab Index Downloads:

Index Methodology

Equity Indices

Hawkamah Publication:

Review of ESG practices in the MENA Region 2007-2017

Annual Rebalance of the S&P/Hawkamah ESG Pan Arab Index Announced

Testimonials

  • Great program! Very well done and very useful information delivered in an excellent manner. The workshop was very inspirational, energizing, bringing lots of ideas, with both substantial and in-depth knowledge together with case studies. Well-balanced composition of participants, which contributed to interesting and focused discussions and exchanges. I would highly recommend it to anyone that is interested in improving their proficiency and core competencies.

    Hassan Murad Agha - Group Head of Compliance & Internal Control - Gulf General Investment Co. (PSC)
  • All companies should promote their boards, executive managers or staffs who have board responsibilities for subsidiary companies to attend corporate governance training. Hawkamah provides the ability for people and companies in the GCC to upskill in the area of corporate governance and directorship through a comprehensive programme teaching international best practice which has been tailored to regional specific governance issues.

    Alastair Mulligan - VP Asset Management - National Central Cooling Company PJSC (TABREED)
  • I am truly honored to attain this certification and I recommend the Compliance Heads of all DFM listed companies to participate and achieve this certification.

    Nabeel Mirza - Senior Director & MLRO - Compliance - GFH Financial Group B.S.C.
  • The workshop has added a level of professionalism to my practice. It addressed and discussed  the right concepts to promote better governance and effective support for business in line with rules and procedures.

    Osama Issaq Al Haj - Head of Legal & Board Secretary - Dubai Islamic Bank
  • A very interesting and informative course which has helped me to adapt my Board Secretary knowledge further to my role as Company Secretary.

    Hamad Al Hosani - Group Company Secretary - Emirates NDB Bank
  • Anyone who wants to enter the world of boards and governance; this is your passport.

    Jehad A. Kazim - Director - Legal Services Dubai Chamber
  • The Directors Development Program was one of the most beneficial programs I attend during my career life. The strength of the program comes from the way it was structured as each part covered very important aspects of the required management role.

    Nada Ishaq Abdul Karim - Manager - The Secretary of The Board of Directors - Bahrain Islamic Bank BSC
  • The DDP offered by the Hawkamah Institute is an excellent course to prepare directors to understand and fulfil their obligations properly as members of the board. I have benefitted immensely from this program and have started to implement some of the best practices taught on the boards that I am involved in.

    Amir Arab - Director - Havenvest Private Equity Middle East Limited
  • The Director Development Program is great way to gain insight and improved understanding in areas such as corporate governance and board functionality. I would highly recommend the program as a foundational step before they begin their board experience. Bindu Ann Joseph - Chief Operating Officer - 3W Networks
  • Director Development Program was invaluable learning experience for me which has elevated my knowledge and broaden my understanding mainly on the corporate governance practices and board of directors role. It has addressed the main concepts from theoretical and practical perspectives. The material is comprehensive and provides the key information of the different aspects of the course. I strongly recommend the program for individuals who play role in corporate governance and seek to enrich their knowledge of companies’ board of directors. Sumaya Alshaer - Acting Head of Strategy & Corporate Governance - DUBAI SOUTH

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