Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Expanded Vortex renewable energy platform to 822 MW net capacity in Europe, aiming for 1.5-2 GW.
• Partnered with solar station suppliers to offer leasing facilities for agricultural clients in Egypt.

Social Achievements

• Tanmeyah microfinance disbursed 2 million loans, reaching 1 million clients.
• Established a USD 300 million platform for K-12 education in Egypt with GEMS Education.
• EFG Hermes Foundation's Naga’ El Fawal and El Deir Village project expanded with new partners, improving infrastructure and providing services to over 75,000 people.
• Implemented financial literacy programs for 655 students.

Governance Achievements

• Became the first Egyptian financial services corporation to sign the UN Principles for Responsible Investment (PRI).
• Articulated new human and labor rights and health and safety policies.
• Achieved over 91% training completion rate for mandatory compliance courses.

Climate Goals & Targets

Environmental Challenges

• Difficult operating environment in Frontier Emerging Markets (FEMs).
• Addressing social and income inequality and environmental damage in FEMs.

Mitigation Strategies

• Leveraging experience in navigating market volatility in MENA.
• Promoting strategic partnerships and investments in FEMs.
• Providing in-depth research on governance and corruption in FEMs.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, UN Principles for Responsible Investment (PRI)

Certifications: ISO 22301:2012 (Business Continuity Plan)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

EFG Hermes' initiatives across various business lines contribute to these SDGs.

Awards & Recognition

• Best Sustainable Financial Provider (The European magazine)
• Inclusion in FTSE4Good Emerging Index

Environmental Metrics

ESG Focus Areas

• Responsible Investment
• Corporate Social Responsibility
• Advocacy
• Climate Change
• Human Trafficking and Modern Slavery

Environmental Achievements

• Opened a Montessori nursery in Naga’ El Fawal, Luxor, running on clean solar energy.

Social Achievements

• Launched the EFG Hermes Foundation for Social Development's sustainable integrated development project in Naga’ El Fawal and El Deir villages in Luxor, including a preschool, water network, and housing upgrades.
• Tanmeyah's group lending program, focused on women, achieved over EGP 61.4 million in sales.
• EFG Hermes Egypt Asset Management was named Best Asset Manager in Egypt and Africa by the EMEA Finance African Banking Awards 2019.

Governance Achievements

• Implemented a new Corporate Governance Framework in 2017.
• Full compliance with FRA regulations and EGX listing rules.
• Issued statements on climate change and human trafficking and modern slavery.

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic and geopolitical backdrop, including US-China trade tensions, Iran-GCC tensions, fluctuating oil prices, and a global economic slowdown.
• Adverse market conditions, subdued volumes, and illiquidity in FEM markets.
• Rising interest rates, fluctuating oil prices, a depreciating currency, and political tension in Pakistan.
• Shifting regulatory environment and increasing competition in the Egyptian leasing sector.
• Adverse market conditions leading to losses for multiple players in the Egyptian factoring industry.

Mitigation Strategies

• Geographical and product diversification strategy.
• Strengthened market share in existing and new markets.
• Successful exits from investments (e.g., Vortex Wind portfolio).
• Development of new products and services (e.g., fixed income desk, securitization practice).
• Digitalization strategy to streamline operations and enhance client experience (Tanmeyah, valU).
• Securing additional funding and implementing a securitization program (EFG Hermes Leasing).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact (UNGC), UN Principles for Responsible Investment (UNPRI)

Certifications: ISO

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)

Investments in renewable energy, healthcare, education, and microfinance.

Awards & Recognition

• valU: Fintech Innovation of the Year (Seamless Awards 2019), Top Payment Solution in Egypt (E-Commerce Summit Award)
• EFG Hermes Leasing: Fastest Growing Leasing Company in Egypt (International Finance Magazine), Best Securitization Transaction in Africa (EMEA Finance)
• EFG Hermes Research: Top frontier markets research firm (Extel), Top Africa (Ex. South Africa) Equities House (Financial Mail)