Distinguished as the first of its kind within the MENA region, the Lebanon Environmental, Social, and Governance (ESG) Stewardship Program is a collaborative endeavor between Capital Concept and USAID’s TIF Project. The core objective revolves around providing support to over 100 Lebanese companies as they integrate globally acknowledged environmental, social, and governance (ESG) practices. The overarching aim was to enhance the appeal of Lebanese companies to a wide spectrum of stakeholders, encompassing investors, clients, suppliers, and markets.
The Lebanon ESG Stewardship Program
The Lebanon ESG Stewardship Program was launched after months of engagement with stakeholders. In this ambitious endeavor, Capital Concept collaborated closely with esteemed stakeholders and partners, including the Lebanese League for Women in Business (LLWB), the Lebanese Business Leaders Association (RDCL), the Lebanese Private Sector Network (LPSN), and ALI (Association of Lebanese Industrialists). Simultaneously, Capital Concept participated in a serious of ESG awareness events among prominent institutions and companies within Lebanon’s private sector.
Enhanced Management Practices
Companies that embarked on the ESG Stewardship Program quickly came to realize that sustainable and responsible practices yield benefits not only for society and the environment but also for their long-term financial prosperity. As part of this transformative shift in perspective, these companies acknowledged the pivotal role of refining and implementing enhanced management practices that seamlessly integrate ESG principles into their business operations across a wide spectrum of industries covered by this stewardship program.
Impact
The profound impact of the ESG Stewardship Program was readily evident across all participating companies. Notable areas of advancement included risk mitigation, regulatory compliance, expanded ESG initiatives beyond Lebanon’s borders, fostering collaboration, engaging with like-minded entities, and cultivating sustainable operations.
Furthermore, the ESG Stewardship Program extended its influence to women-led businesses, wherein women entrepreneurs, stakeholders, executives, and leaders played a pivotal role in steering positive transformations. By integrating ESG principles into their management frameworks, these women-led enterprises wielded the potential to unlock substantial social, environmental, and economic value.
Among the companies engaged in our program, 35 enterprises have attained their Certification of Commitment, a testament to their diligence and achievements within the realm of the ESG program. These 35 businesses have merited their certification by substantiating their unwavering dedication and adherence to a set of ESG standards that gauge their performance across dimensions such environmental and social impact, and corporate governance.
This distinguished group of companies stands out by exemplifying an augmented dedication to sustainability and the seamless incorporation of environmental, social, and governance considerations into their operations. They have strategically allocated resources towards mitigating risks stemming from environmental and social factors, whether originating internally or from external entities like suppliers and clients. Demonstrating a comprehensive commitment to sustainability, these businesses have integrated this ethos into their overarching strategic frameworks, consistently pursuing avenues for enhancement.
Attract Investors and Open up New Venues for Capital Investment
The ESG Stewardship Program has proven to be a powerful catalyst, driving companies to recognize and harness the multifaceted benefits of sustainable and responsible practices. The integration of ESG principles into their operations has opened a pathway not only to societal and environmental betterment but also to sustained financial success.
Each of the 100 companies are now actively embracing this holistic approach, acknowledging the significance of weaving environmental, social, and governance considerations into the very fabric of their core business operations. Many investors, including institutional investors, pension funds, and impact investors, are aligning their portfolios with ESG principles. As investors seek investments that align with their values and long-term sustainability goals, the ESG Stewardship Program helped companies build strong ESG performance and become investment ready to access funds from these sources.
By fostering collaboration, the ESG Stewardship Program has ceased to be a mere exercise, evolving instead into a collective mindset and strategy that unites companies in the pursuit of corporate sustainability. The program promoted collaborative efforts that empowered companies in leverage diverse perspectives, leading to innovative solutions, retain and increase the value of their businesses.
