ESG in GCC: Practical issues to think about-Marmore Report
marmoremena.com/reports/esg-in…

#esginvesting #sustainable #finance #esgratings #investing
(1/5)
Although on paper ESG looks like a simple no brainer concept, it poses a great deal of issues
(2/5)
At present, there seems to be no standard ESG reporting framework or a standard ranking methodology. Companies choose what they disclose (and what they don’t).
(3/5)
Since most of the parameters used for assessing the ESG of a company are qualitative than quantitative, putting a number on them is highly subjective. The same company might have a higher ranking as per one institution and come at the bottom lot when ranked by another.
(4/5)
ESG is not an entirely new concept in the Islamic finance segment, at least with respect to sustainable and socially responsible investing
(5/5)
Things as simple as having a diverse board as a criteria for ESG ratings might reduce the ranking of a company where entry of women into the workplace is relatively a new concept for the region.
Also, in the GCC region, members of the royal families hold powerful positions in the board of many companies
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