2025/01/19

Egypt launches Arabic corporate conduct guidelines

The General Authority for Investment and Free Zones, the secretariat and chair of the Egyptian National Contact Point for Responsible Business Conduct, hosted an event titled "Responsible Business Conduct in Egypt: Towards a Sustainable Future" in cooperation with the Organization for Economic Cooperation and Development (OECD).

The event witnessed the launch of the Arabic version of the OECD Guidelines for Multinational Enterprises and was attended by Minister of Investment and International Cooperation, Engineer Hassan Al-Khatib, and other leaders and experts, including Dr. Mahmoud Mohieldin, the UN Special Envoy on Financing the 2030 Sustainable Development Agenda, and Alan Lerberg Jorgensen, Head of the OECD Centre for Responsible Business Conduct.

National Contact Points, numbering 52 worldwide, coordinate efforts among government agencies to achieve sustainability requirements, promote the OECD Guidelines for Multinational Enterprises, and raise awareness and build capacity among companies to follow procedures and recommendations through ongoing dialogue with all stakeholders.

The event underscored Egypt's dedication to fostering sustainable and responsible business practices. Key panel discussions explored the pivotal role of responsible business conduct in ensuring the sustainability of business success, enhancing competitiveness, achieving sustainable development, and sustainable value chains.

Engineer Hassan Al-Khatib highlighted the Egyptian government's commitment to aligning Egypt's Vision 2030 with the UN Sustainable Development Goals, emphasizing their close link to responsible business practices.

Dr. Mohamed Farid Saleh, Chairman of the Financial Regulatory Authority, stressed the authority's focus on driving sustainability within the non-banking financial sector, particularly by enhancing companies' capacity for social responsibility disclosures.

Dr. Mahmoud Mohieldin, the UN Special Envoy on Financing the 2030 Sustainable Development Agenda, underscored that responsible business conduct is no longer optional but crucial for the success and long-term sustainability of companies.

Hussam Heiba noted that Egypt was the first Arab and African country to sign the OECD Declaration on Investment in 2007 and to establish a National Contact Point to raise awareness and promote responsible business conduct and sustainable business practices. The General Authority for Investment remains dedicated to attracting investments that drive sustainable economic growth. Recognizing this, the Investment Law prioritizes creating a supportive environment that encourages companies to embrace responsible, sustainable, and ethical practices throughout their operations. This commitment aligns with Egypt's broader goal of achieving balanced and sustainable economic and social development.

Alan Lerberg Jorgensen, Head of the OECD Centre for Responsible Business Conduct, commended Egypt's strides in integrating responsible business conduct into its policies. This includes implementing mandatory ESG reporting for listed companies and developing a draft corporate social responsibility strategy. Jorgensen emphasized that numerous new sustainability regulations worldwide draw inspiration from the OECD Guidelines for Multinational Enterprises. Therefore, aligning with these guidelines is crucial for Egypt to enhance its sustainability performance and bolster its global competitiveness.

The Guidelines for Multinational Enterprises include recommendations in the areas of human rights, labor rights, the environment, disclosure, anti-corruption and bribery, consumer interests, science and technology, protection of competition and the tax system, and were updated in 2023 to include updated recommendations in key areas such as climate change, biodiversity, technology, business integrity, and supply chain due diligence, as well as updated implementation procedures for National Contact Points for Responsible Business Conduct.