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Egyptian Corporate Responsibility Index S&P/EGX ESG Index 6/27/2009



The Egyptian Institute of Directors (EIoD), Egyptian Corporate Responsibility Center, ECRC, Standard& Poor’s (S&P) and Crisil created an Environment, Social and Governance (ESG) Index for Egypt. The S&P/EGX ESG Index that was launched on March 22nd 2010 is the first of its kind in the MENA region and the 2nd in the world. The first one was launched in India in 2008 and was created by Standard & Poor’s (S&P) in collaboration with a local company, CRISIL.


In February 2009, a team from S&P arrived to Egypt, and gave the Egyptian team an extensive training on data collection for the index. Team members were from the EIoD, Egyptian Corporate Responsibility Center (ECRC), EGX, and Misr for Clearance & Settlement. The team started immediately working on the data collection, in close consultation with S&P and CRISIL.

The Index was named "The Egyptian Corporate Responsibility Index" and measures the volume of information companies make available concerning their corporate governance, environment and social responsibility. It also ensures a selection of securities which are representatives of the Egyptian equity markets based on size and liquidity.

All of the EGX 100 listed companies are evaluated on an annual basis, in order to select the top 30 that can be listed on the ESG index.

Evaluation Process

In order to reach for the index composition, two screening processes take place, one focusing on environment & social indicators and the other one focusing on corporate governance indicators. Evaluation is made on two stages:


First Stage

This stage involves evaluating the company’s disclosure practices based on the information it provides to the public through its annual report, website, press releases or disclosure made to the Egyptian Stock Exchange. Information gathered cover the following key areas:

 Ownership Structure and Shareholder Rights such as:

·         The number of issued and outstanding ordinary shares.

·         The contents of any corporate governance charter or code of best practices.

·         The description of share classes provided.

 Financial and Operational Information such as:

·         The company’s accounting policy.

·         Annual financial statements according to an internationally recognized accounting standard (IFRS/U.S. GAAP).

·         A basic earnings forecast of any kind.

·         Revenue structure (detailed breakdown).

·         The ownership structures of affiliates.

 Board and Management Structure and Process such as:

·         Details about directors other than name and title.

·         A list or board committees and the names of all members of each existing committee as well.

·         Attendance record for board meetings.


   Corporate Governance & corruption

·         Policy and procedures on whistle blowing and insider trading.

·         Contribution to political parties.

·         Disclosure on policy and procedures on bribery and corruption.

 Business Ethics and Corporate Responsibility

·         Publication of CSR report.

·         Social and environmental performance in operational MD&A or operational analysis.


·         Emissions of greenhouse gases, NOx, SOx and other emissions.

·         Defined targets relating to emission.

·         Total water used by source.


·         Programs for career development.

·         Information on policy/rules relating to healthcare.

·         Number of strikes/ lockouts and the number of employees involved.

·         The gender breakdown of total workforce.


·         Explicit policy/statement regarding community investment.

·         Company participation in public-private initiatives for community development.




·         Number of customer satisfaction surveys conducted in a year.

·          Procedures and programs for adherence to laws, standards, and voluntary codes related to marketing communications including advertising, promotion and sponsorship.

·         Mechanism for redressing grievances and feedback from customer.

Second Stage

This stage involves evaluating the company’s practices through checking the news available in the media, newspapers, specialized magazines and CSR reports. Also by contacting the regulatory agencies, ministries and NGOs to know if there is any adverse information or violation made by the company.

Constituent Weightings

1.      Quantitative Score - Each of the companies trading on the Egyptian Stock Exchange is assigned a quantitative ranking based on the three factors; transparency and disclosure of (1) corporate governance, (2) environmental practices, and (3) social practices.

2.      Qualitative Score - Independent sources of information, news stories, websites and CSR filings are used to evaluate the actual performance of the company on a scale of 5 to 1.

3.      Composite Score - A composite score is calculated for each company by summing the qualitative score and the quantitative score.

4.      Each company’s weight in the index is determined as a function of its ESG score.


For more information about the index, please contact esgindex@eiod.info

The following tables show the companies’ ranking before adding the market capitalization: 





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