MSX’s ESG 30 Metrics Masterclass concludes

The MSX are leading the initiative to improve corporate reporting of ESG activities, aligned to the Oman 2040 vision of achieving net zero emissions by 2050, said Haithem Al Salmi, CEO of Muscat Stock Exchange.

He was addressing the participants at the two-day collaborative workshop on ESG 30 Metrics Masterclass organised by Muscat Stock Exchange in partnership with Crowe Oman at the Seeb Novotel hotel. The workshop was attended by delegates from almost all the listed companies and few government institutions.

Welcoming the participants Davis Kallukaran Managing Partner of Crowe Oman said, “Of all the countries in the Middle East, Oman is in the forefront of embracing the best practices, be it the environment, sustainability or corporate governance. This is clearly evident from the goals of Oman’s Vision 2040 strategic objectives.

“The government has allocated OMR190 billion towards net zero emissions by 2050. While this opens a plethora of opportunities in sectors other than in oil & gas, to the private sector to initiate projects towards attaining these sustainable development goals (SDG). ESG 30 metrics refers to a set of metrics used to measure an organisation’s environmental and social impact.

“This had become increasingly important in investment decision-making over the years. While the term ESG was first coined in 2004 by the United Nations Global Compact, the concept has been around for much longer. If we go back to history, we will see that the concept of sustainability started since 1970, when socially responsible investing emerged as a way for investors to align their portfolios with their values.

“The movement gained momentum in the 1980s with the disinvestment campaigns against companies doing business in South Africa during the apartheid. Over time, socially responsible investing (SRI) evolved into corporate social responsibility (CSR) and was primarily focused on social issues such as human rights and supply chain ethics.

“By 1997, the Global reporting initiatives (GRI) was founded with the aim of addressing environmental concerns and it soon broadened its scope and focus on social and governance issues. In year 2000, the United Nations hosted the Millenium Summit to discuss on work conditions, human rights, environment, and anti-corruption.

“They created the millennium development goals (MDG). In 2015, MDG was replaced by the sustainable development goals (SDG), which has later on evolved into ESG.”

The Security Exchange Commission of North America is considering mandatory ESG reporting to public companies as is the case in Canada, Brazil, India, Australia, and Japan, and same in Europe with the EU Corporate Sustainability Reporting Directives (CSRD).

As the world is facing increasing challenges related to climate change and social issues, ESG considerations will continue to play a crucial role in the way companies and investors operate and measure their performance,” Davis added.

Karl Jackson engaging the first session said, “In response to the growing complexity of existing sustainability frameworks, the IFRS launched IFRS S1 and IFRS S2, the sustainability standards effective from January 2024. ESG is no longer a fringe concept but a mandatory concept for both companies and investors. Today, ESG data is used to evaluate a company’s performance on specific environmental, social and governance issues. The companies have to report on the environmental and social impact of their business activities and the impact of their ESG initiatives.”

Bilal Imran, Manager ESG at Crowe and Paco Lari from Spain engaged the participants on various metrics.