Financial Institutions Consulting

Global & National Market Compliance Services for the Financial Sector

ESG Value Today

In the wake of the economic volatility created by the coronavirus pandemic and the challenges posed by environmental distress and climate-related risks that generate further risks (e.g., financial), sustainability has become a critical factor in determining an organisation’s long-term value and profitability.

At the same time, the increasing ESG disclosure and compliance requirements by regulators, investors, raters, and other stakeholders witness that the role of the financial institutions is expanding to foster the transition towards sustainable and resilient economies.

Financial institutions (FIs), including central banks, commercial banks, savings and loans associations, investment banks, investment companies, insurance companies, leasing and mortgage companies, as well as sovereign and equity funds are now in a unique position to incentivize the transition through integrating ESG factors into mainstream finance and investments and addressing their strategies and operational policies and procedures, as well as lending/investment portfolio to finance sustainable projects.

How can we help?

Following the global and local developments, DCarbon acknowledges that the impact of ESG factors on the valuation of financial institutions will continue to rise in scope and importance. For this reason, we offer fully-fledged Global and National Market Compliance Services for the financial sector in Egypt and the MENA region.

Our mission is to sustain our unwavering commitment to supporting our clients as their trusted partners to measure, monitor, report, and further optimize their ESG impact in accordance with international ESG disclosure frameworks, principles, and standards, so they can achieve market compliance, mitigate risks and harness development opportunities

DCarbon’s Global and National Market Compliance Services cover a wide range of ESG consulting, training, and capacity building, along with reporting and assurance services, and digital solutions.

Please feel free to explore our services and related benefits for your organisation, as described below.

Frameworks

Our Value Proposition

There is a clear movement that is gaining momentum and leadership support on the global, regional, national as well as sectoral levels towards addressing and integrating environmental social, and governance (ESG) issues in the decision-making process. The success of ESG integration constitutes an overall transformation of process aspects such as leadership, planning, implementation, monitoring, and review. It represents a process of transition from traditional business practices to an adaptive system that can continuously improve.

At DCarbon Egypt, we assist our partners in integrating ESG factors across all levels of the strategic management cycle, enhancing coordination and participation for the implementation process, as well as customizing innovative solutions to the monitoring and evaluation of the transition.

Below are listed the benefits and output of our Market Compliance Services for the financial sector.

1- Compliance with Regulators98

Compliance with the recommendations of the Central Bank of Egypt (CBE) encouraging adopting sustainable finance principles, and the decisions of Financial Regulatory Authority (FRA) and the Egyptian Stock Exchange Guidelines on ESG reporting.

3. Compliance with Multilateral Development Banks’ requirements and standards98

To receive IFC, EBRD, or EIB financing, financial institutions need to comply with their E&S funding criteria. Accordingly, financial institutions need to incorporate these requirements and standards in their loan/investment appraisal processes and submit an annual E&S progress report to these international FIs.

5. Compliance for offering (new) sustainable and green financial products and services98

The current climate transition era is considered by the largest asset managers as a milestone for financial institutions’ investment opportunities. Today, financial institutions worldwide are grasping development opportunities and reaching new customer segments by complying with global standards and guidelines for offering (new) sustainable and green financial products and services such as green, social, and/or sustainability-linked loans and bonds.

2. Compliance with the EGX’s Recommendations95

The Egyptian Stock Exchange (EGX) is encouraging listed companies to adopt internationally accepted ESG reporting frameworks, such as the Global Reporting Initiative (GRI) Standards, to disclose their sustainability performance, as stated in the EGX Guidance for Reporting on ESG Performance and the UN Sustainable Development Goals.

4. Compliance with Investors’ and ESG Rating Agencies’ requirements95

Global and regional investors, as well as ESG rating agencies, demand increased disclosure of ESG performance and related ESG risk exposure of financial institutions. Thus, there is a global and national direction of banks and other financial institutions towards i) ESG reporting and ii) further compliance with international disclosure frameworks, so they can meet the requirements risen by the global investment community, rating agencies, and other stakeholders.