QSE chief urges firms to effectively communicate sustainability strategies

Companies that effectively communicate their sustainability strategies will not only better raise capital from the markets but also have an overall competitive edge, according to a top official of the Qatar Stock Exchange (QSE).“Investors worldwide are increasingly incorporating sustainability factors into their investment decisions, and we are convinced that companies that effectively communicate their sustainability strategies will improve their capital raising abilities and have an overall competitive advantage,” QSE chief executive Rashid bin Ali al-Mansoori told at the launch of the Middle East Sustainable Investment Forum (MESIF).As part of the sustainable stock exchange initiatives (SSEI) in 2016, the QSE recently released its ESG (environment, social and corporate governance) guidance to encourage voluntary ESG reporting by the listed companies.The SSEI is a peer-to-peer learning platform for exploring how exchanges, in collaboration with investors, regulators, and companies, can enhance corporate transparency — and ultimately performance — on ESG issues and encourage sustainable investment.The surge in global investor interest, combined with the opportunity for improved performance for companies and their investors were two key reasons for the QSE to join the SSEI, a bourse spokesman said.“We believe that encouraging our listed companies to adopt ESG management and reporting will enhance their performance. We then want to ensure that investors reward that performance,” Hussain al-Abdulla, director of Marketing and Communication at the QSE, said.Globally, the leading advocate of ESG investing is the United Nations Principles for Responsible Investment (UNPRI).“The forum will support the growing interest in ESG among regional investors while alerting international investors to the ESG investment opportunity in the region. It will help embed sustainability into local markets and strengthen regional competitiveness,” MESIF chief executive Darin Rovere said.There are more than 20 SIFs around the world that have played important roles in creating awareness of the key role of investors in driving sustainability practices through investment decisions.“Investors worldwide increasingly recognise the positive relationship between sound environmental, social and governance performance, and a company’s financial performance. Responsible investing offers opportunities for long-term value creation for both investors and society as a whole,” according to Houssam Lahrech, Head of ESG Invest, the independent ESG ratings division of Sustainability Excellence.Graeme Griffiths, Global Network and Outreach director for UNPRI; and Adrian Bertrand, Head of Africa and Middle East of UNPRI; also participated at MESIF and demonstrated how strongly ESG considerations are being factored and how extensively ESG-minded investing is moving into mainstream investment analysis.