CFA Society Egypt held the “ESG Investment and Sustainable Finance Day” on Monday, 8 May 2023 under the patronage of the Egyptian Financial Regulatory Authority (FRA) and the Egyptian Exchange (EGX).  Attendees of the event included regulators, consultants, banks, asset managers, sustainability officers, companies listed on the Egyptian Exchange, and representatives from CFA Institute.

Dr. Mohamed Farid, Executive Chairman of the FRA, attended the event. Representing the CFA Institute were Chris Fidler, Head of Industry Codes and Standards, Antoine Shehadeh, CFA, Senior Director – MENA, and Jeanette Tawk, Director, Partnerships and Client Solutions – MENA.

CFA Society Egypt held a panel discussion to discuss challenges and opportunities of investment and sustainable finance. The discussion was moderated by Ashraf El Khatib, CFA, Chief Investment Officer – Private Equity at Ekuity Holding, Vice President at CFA Society Egypt and Chair of ESG Committee at the society. Members of the panel were Chris Fidler, Head of Industry Codes and Standards at CFA Institute, Alia ElKadi, Environmental and Social Specialist and Co-Project Lead for the Integrated ESG Egypt Program at the IFC, Mohamed Morsy, Egypt’s Country Head at Finance in Motion, and Tarek Shahin, Chief Investment Officer at CI Capital Asset Management.

The panel discussion was followed by a gameshow where attendees participated in an interactive game about ESG investing and the winning team received a trophy. The Certificate in ESG Investing was launched in Egypt and CFA institute announced the marketing of the updated version of the certificate in 2023. It represents a global qualification in investment management.  It sets standards that enable investment practitioners to analyze environmental, social, and corporate governance factors and integrate them into their daily practices in investment operations.

Margaret Franklin, CFA, President and CEO of CFA Institute, added: “We are seeing a real acceleration of interest in ESG investing – a major development that will shape the future of finance – while increased demand from clients and investment management firms has fuelled the need for education. This Certificate in ESG Investing is the first of its kind to be made available globally and will equip practitioners with foundational knowledge and competencies, enabling them to better serve the needs of their clients and contribute to building trust within the industry.”

Ahmed Aboul-Saad, CFA, President of CFA Society Egypt, commented: “ESG has become an extremely important matter in the investment decision-making process when it comes to emerging countries like Egypt that pays a lot of attention to this file following the COP27 that took place in Egypt last year. We are expecting to witness a big interest in the Certificate in ESG Investing following the change in regulations obliging large listed companies to have ESG reports as well as the increasing interest of many of the asset owners and asset managers to have their investment ESG compliance.”

Ashraf El Khatib, CFA, Vice President of CFA Society Egypt and Chair of ESG and Career Development Committees at the society commented: “Our focus is knowledge sharing and capacity building. We are looking forward to transfer international and local best practices of ESG investment and sustainable finance to asset managers, corporates, and banks, and to support the targeted calibers with latest international sustainability trends, aiming to attract new foreign investments.”

Chris Fidler, Head of Industry Codes and Standards at CFA Institute, introduced the Certificate in ESG Investing, explaining that the purpose of the certificate is to build a strong foundation of knowledge and skills on environmental, social, and corporate governance factors investment and integrate them in the investment decision-making process. Fidler then presented the results of a recent study by the CFA in which 100% of institutional investors and 77% of retail investors expressed interest in using strategies to invest in environmental, social, and corporate governance. He explained that this certificate will contribute to the evolution of the industry through the development of best practices and sustainable applications.

Fidler explained that the Certificate in ESG Investing was designed for two groups, the first being investment management roles (including portfolio managers, analysts, investment bankers, and loan officers), and the second being those who deal directly with clients, working in distribution and relationship management. A recent study showed that these two groups represent 60% of registered candidates, and the remaining 40% represent members of legal and compliance departments as well as marketing and human resources. The design of that certificate was intended not only to provide knowledge but also to develop skills.

Many of the world's leading companies have registered their employees as Certified Investors in Environmental, Social and Corporate Governance, including Aegon Asset Management, AXA Investment Managers, BBVA Asset Management, and HSBC Wealth Management and Personal Banking, to equip their employees with the skills required to meet growing challenges.

Fidler explained that registration and self-study is via the eco-learning system for approximately 100 hours. No prerequisites are required for the registration. It would be useful to have some prior knowledge of the investment but it is not entirely necessary, and the test is two hours and 20 minutes and consists of 100 questions. This is done on a computer at an accredited and monitored center or on the Internet, where available. The exam and online learning fee is USD795, including the cost of taking the exam, loading PDF subjects and learning through the eco-learning system, while a hard copy of these subjects can be obtained for an additional cost and delivered through Amazon. Candidates are given six months to take the exam after registration. The eco-learning system is described by Fidler as a "personal learning" system that has mock exams to help the candidate know which parts require more study time and effort. In addition, the system includes a "study planner" to schedule the test and help manage time as well as help manage subjects that need to be reviewed. The number of the registrations reached 30,000.

Chris Fidler then concluded that CFA Institute was currently offering a Climate Finance course. The course had been developed in conjunction with the Association of Certified Chartered Accountants (ACCA) and requires approximately 8 to 12 hours of online study and costs USD339, with a USD20 discount for CFA members.

At the end of the event, holders of the Certificate in ESG Investing were recognized.

It is worth mentioning that the Certificate in ESG Investing was originally developed by the CFA Society of the United Kingdom in consultation with leading practitioners and firms. It is now under the auspices of CFA Institute.

About CFA Society Egypt
CFA Society Egypt was established in 2005 as a non-profit Egyptian association and became a member society of CFA Institute in 2006. It aims at increasing appreciation and awareness of the CFA designation among practitioners, employers, regulators, and the investing public.  For more information, visit www.cfasociety.org/egypt/home

About CFA Institute
CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion of ethical behavior in investment markets and a respected source of knowledge in the global financial community. Our aim is to create an environment where investors’ interests come first, markets function at their best, and economies grow. There are more than 190,000 CFA charter holders worldwide in more than 160 markets. CFA Institute has nine offices worldwide and there are 160 local societies. For more information, visit www.cfainstitute.org
 or follow us on LinkedIn and Twitter at @CFAInstitute.