In remarks at an American Chamber of Commerce in Egypt panel, the Chair of the Egypt Financial Regulatory Authority set out how the Authority has broadened corporate governance expectations beyond Egyptian Exchange-listed companies to cover all entities under its supervision, around 3,500 non-banking financial institutions, and highlighted related sustainability disclosure initiatives. The Authority also announced the launch of Egypt’s first organised voluntary carbon market under the supervision of capital markets regulators. Key measures referenced included requiring female representation on boards and creating, with the American University in Cairo, a database of women qualified for board membership. Firms are also required to provide ESG and Task Force on Climate-related Financial Disclosures (TCFD) disclosures, with the Authority currently developing a unified methodology to evaluate and classify companies’ reports to improve disclosure quality and transparency. On green finance, the Authority has introduced a classification for sustainability bonds, including green and transition bonds, set criteria for establishing green investment funds, and opened the market to environmental, social and governance (ESG) rating agencies. The next phase is expected to include broader discussions on applying IFRS S1 and IFRS S2 sustainability disclosure standards, with an emphasis on proportionality and the development of a comprehensive roadmap with stakeholders.
Egypt Financial Regulatory Authority 2025-07-14
Egypt Financial Regulatory Authority outlines governance and sustainability disclosure requirements and launches the country’s first organised voluntary carbon market
The Chair of the Egypt Financial Regulatory Authority announced expanded corporate governance expectations for approximately 3,500 non-banking financial institutions. Key initiatives include mandatory female board representation, ESG and TCFD disclosures, and the launch of Egypt’s first voluntary carbon market. The Authority is developing a unified methodology for evaluating company reports and has introduced classifications for sustainability bonds and criteria for green investment funds.