By Mohamed Ahmed
Head of the Egyptian Financial Supervisory Authority (EFSA) Sherif Samy said he is not sure whether there is a sustainable development index, adding that if there was one, the stock exchange should promote it among traders.
He said these indexes are designed to activate the stocks in them and not just to provide indications.
Samy will be among the main speakers in the first conference for sustainable development held by the management of the Egyptian Stock Exchange (EXG) on Sunday. Index S&P/EGX ESG represents the stocks that comply with sustainable development standards.
Samy said the popularity of the sustainable development index is linked to changing the investment community’s culture with regards to the impact of sustainable development on society, as well as its long-term effects on the company’s performance because sustainability will not have profitability in the short-term.
He went on to explain that some stock exchanges in Europe and the US include investment funds specialised in stocks committed to sustainable development standards, specifically through companies’ corporate social responsibility departments. These companies focus not only on contributors’ profitability but also on creating positive impacts on society whether in education, health, infrastructure, business development, or environment.
He noted, for example, that airline companies announced the rate of reduction of carbon emissions and compared the latter to the average amount of emissions in the sector, allowing investors to have an extra dimension when making the decision to invest.
