Raya Holding ranks fifth on the Environment, Social and Governance (ESG) Index
Raya Holding was ranked fifth on the Environment, Social and Governance (ESG) Index created by the Egyptian Institute of Directors (EIoD), the Egyptian Stock Exchange (EGX), Standard Poor’s and Crisil.
Raya Holding came in fifth place after ranking 10th last year based on Raya’s corporate governance and sustainable development activities in 2011.
The Index is designed to track the size of disclosure information made available by companies about their corporate governance, environmental and social responsibility practices, as well as the size of market cap and liquidity of the company. Companies listed on EGX 100 are evaluated yearly in order to choose the best performing 30 companies on the index on two phases. The first phase is concerned with tracking the level of the companies’ commitment with the standards of disclosure; and the second phase is concerned with evaluating the companies’ actual social responsibility practices, Concerning Raya’s corporate governance, Reem Asaad, Director of Investor Relations, said:
“corporate governance is a complete system of company management and a source of value ad for all stakeholders, as it leads to more effective performance, higher profitability and efficiency. On a macro scale, corporate governance takes into consideration the social responsibility of the company towards it's investors and the society at large.”
Medhat Khalil, Chairman and CEO of Raya Holding, said:
“The board of directors should play a main role in corporate governance, as part of its responsibility in approving the company’s strategy, setting its policies, and attracting high-level executives, as well as ensuring the company’s credibility to its shareholders and to all the governmental bodies. Since governance is tied to operational performance and the company’s valuation, it encourages foreign direct investments and it became a basic requirement for international financial organizations"