4. Prioritising People

The past two years have undoubtedly taken a toll on people around the world, whether in terms of health, lost income, or mental wellbeing. At EFG Hermes, the wellbeing of our stakeholders has always been central to our value system. Our CSR initiatives focus on providing integrated development solutions that provide holistic improvement to people’s lives across the countries where we do business.

Internally, the “human” in Human Resources was front and centre this year, and we worked hard to ensure that our employees had the support they needed not only to overcome the difficulties of the COVID-19-related circumstances but to thrive and grow as well.

Just as EFG Hermes has expanded its geographic footprint and business reach, the Group has also extended its CSR commitments to several frontier markets, both in terms of financial commitment and in encouraging community engagement activities.

The EFG Hermes Foundation for Social Development takes a very personal approach to development: if a project cannot sustainably improve lives, both in the short-term as well as the long-term, then it is not fulfilling its goals. Since its establishment, the Foundation has adopted a sustainable integrated development approach as the most effective means of maximizing both impact and return on investment of scarce development funds. Partnership is a key tenet of the Foundation’s approach, and each project brings together partners from both public and private sectors, donors and civil society in synergistic that have tangible, measurable impact on both communities and individuals.

To date, the Foundation has implemented three ground-breaking integrated development projects in economically deprived rural areas in Upper Egypt. Each one has been more ambitious than the ones before, and today, we are proud to announce forthcoming collaboration with the Tahya Misr Fund, a synergistic partnership that will further extend our reach and impact.

Launched in 2017 under the leadership of the EFG Hermes Foundation for Social Development, the EGP 70 million Naga’ El Fawal and El Deir Village Integrated Development Project takes a holistic approach to the SDGs, tackling almost all the SDGs applicable to rural environments simultaneously. Benefitting over 75,000 inhabitants, the ambitious project involves the rehabilitation of an entire community starting with infrastructure development and encompassing economic and human development initiatives, as well as access to a variety of services.

Since inception, progress on the fulfilment of project goals has been steady and has effected a profound transformation in the community. For the first time, the residents find that they have access to decent, up-to-date services, not just in one area, but across their entire daily experience. They live in houses with access to clean water and sanitation; if someone gets sick, the refurbished health unit is close by; there are job opportunities providing economic benefits; and there’s an excellent preschool that can put their children on an educational footing even better than their urban peers. The future in Naga’ El Fawal & El Deir Village is just starting.

Project implementation has been steady since inception in 2016 with tangible progress on many SDGs over the lifetime of the project. This year achievements have been focused on four key SDGs:

EFG Hermes maintains a strong commitment towards the communities where it does business through a proactive CSR policy. We also believe in the synergistic effects of partnerships and consistently seek to identify partners in development who can make sure the impact of our contribution is tangible and effective.

At EFG Hermes, we believe that it is our duty to champion and enable financial literacy at all levels. The ability to make informed financial choices is key for people to thrive and grow regardless of their financial capability. Over the years, the Group has produced a series of financial literacy videos for students, sponsored the Model Egyptian Stock Exchange, and conducted orientation and mentorship sessions in cooperation with several Egyptian universities and with GEMS Egypt for Education Services.

In 2021, EFG Hermes’ financial literacy efforts were targeted at two distinct and very different stakeholder groups: EFG Hermes non-officer employees in Egypt and clients of EFG Hermes One, the Group’s state-of-the-art flagship online trading app.

Helping EFG Hermes Staff Manage Their Finances

Our employees are our biggest asset, and we always make an effort to identify flash points or issues that may be holding them back or causing them stress and develop appropriate solutions to address each problem. This is one such case. We noticed that our non-officer staff members were often in financial difficulty in spite of remuneration rates that are higher than market standards. We realized that they lacked the basic financial literacy skills to manage their finances, and, although the firm employs a loan policy that allows us to assist those in need, we could see that this was not sustainable in the long term and was a mere panacea that in many cases exacerbated the situation.

In response, we designed a programme to provide them with simple, actionable knowledge to better manage their financials, avoid incurring debt, and possibly save as well. It covered critical fields, such as:

• information on the various banking products and when each should be considered;
• how to plan their finances based on their income and liabilities;
• how to manage debt; and
• how to choose a suitable savings plan.

Piloted in Egypt, where the issue was most obvious, we plan to roll it out in other countries in the future. Attendance was encouraged rather than mandated, and we received 40 applications.

EFG Hermes One is a universal trading platform rolled out by the Group in 2021 in two of our key markets, Egypt and Kenya. It provides users with one-click access to multiple MENA markets as well as global exchanges, allowing users to trade multiple asset classes across some of the world’s most exciting markets anytime, anywhere. The app also includes intelligence as a real-time service by EFG Hermes Research, incorporating a full suite of research products that leverage the global-award-winning insights of an international team.

Understanding the fundamentals of money management, however, is critical before embarking on online trading. In tandem with the product launch, EFG Hermes rolled out a financial literacy campaign on social media with a hotline to field queries and virtual training modules embedded in the app to help clients understand how best to invest their money and how to avoid unnecessary risk.

EFG Hermes ONE is also proud to have sponsored the 4th edition of the World Youth Forum, which took place in Egypt, from the 7th to the 13th of January, at the Sharm El Sheikh International Convention Center (SHICC) under the auspices of H.E. President Abdel Fattah Al Sisi. The forum tackled many critical issues and was an excellent opportunity to create awareness of the platform capabilities and encourage investment literacy among youth.

It has always been of paramount importance for us at EFG Hermes to create a work environment that not only supports employees but also provides them with the opportunity to grow and thrive. In 2021, we continued to face the fallout of pandemic circumstances and restrictions, but we were better prepared to deal with them. We also rolled out new policies and procedures in our effort to always anticipate the needs of our team members and to build a resilient organisation for the future.

Navigating the second year of the COVID-19 pandemic

Throughout 2021, and in spite of the continued mayhem brought about by COVID-19, HR continued to provide support to EFG Hermes employees in various forms. Rather than simply tweaking programmes and processes originally conceptualized for in-person interaction, to work virtually, we revisited our offering and re-built programmes and workflows consciously for the virtual world, focusing on our annual DNA, promotions, hiring and onboarding processes, and helping our employees deal with the mental stress of balancing work and home life in these difficult circumstances.

For the third year running, we ran our Development Needs Assessment (DNA) Open House (virtually) encouraging employees to take an active role in mapping out their development path and encouraging managers to take an interest in the development and growth of their teams. 133 employees participated, and 18 managers. We also ensured that enrolment criteria for The Academy secured participation from all the company’s geographic locations, so that those in the more remote locations are not left out.

The firm continues to run an active internship and job shadowing programme, which we believe contributes positively to helping participants identify their career interests in preparation for graduation. The programme is also a golden opportunity for the firm, allowing us to identify future employees.

EFG Hermes prides itself on maintaining a transparent policy environment that is continuously updated to stay in tune with changing market and societal realities. This has been particularly vital given EFG Hermes’ expansion into both new jurisdictions and product lines as well as in response to evolving global risks and circumstances.

In October 2021, Karim Awad, the CEO of EFG Hermes, signed the Statement of Support for the Women’s Empowerment Principles (WEPs), a set of principles that offer guidance to business on how to promote gender equality and women’s empowerment in the workplace, marketplace and community. Established by UNGC and UN Women, the WEPs are informed by international labour and human rights standards and grounded in the recognition that businesses have a stake in, and a responsibility for, gender equality and women’s empowerment.

WEPs are a primary vehicle for corporate delivery on gender equality dimensions of the 2030 agenda and the United Nations Sustainable Development Goals. By joining the WEPs community, the CEO signals commitment to this agenda at the highest levels of the company and to work collaboratively in multistakeholder networks to foster business practices that empower women. These include equal pay for work of equal value, gender-responsive supply chain practices and zero tolerance against sexual harassment in the workplace.

In 2021, EFG Hermes issued several statements that have underscored its commitment to upholding basic human rights across its operation. Two of the statements articulated by EFG Hermes Senior Management this year—gender equality and sexual harassment—are designed to guarantee an equitable, inclusive and safe work environment.

CEO STATEMENT OF SUPPORT

We, business leaders from across the globe, express support for advancing equality between women and men to:
• bring the broadest pool of talent to our endeavours;
• further our companies’ competitiveness;
• meet our corporate responsibility and sustainability commitments;
• model behaviour within our companies that reflects the society we would like for our employees, fellow citizens and families;
• encourage economic and social conditions that provide opportunities for women and men, girls and boys; and
• foster sustainable development in the countries in which we operate.

Statement on Gender Equality and Gender Equity - Summary

EFG Hermes values diversity in all its forms and works hard to incorporate conscious gender equality in how we operate. We pride ourselves on providing clear career paths and a supportive, equitable environment for women at all levels throughout the Group. We also pride ourselves on being one of very few listed companies in the Middle East with a female chairperson who has held the position since 2008. Across the Group, there are many examples of women in leadership positions working to advance gender parity and underlining the company’s commitment to attracting, retaining, and developing women into senior leadership positions.

Statement on Sexual Harassment - Summary

EFG Hermes is committed to providing a safe environment for all its employees, one that is free from discrimination on any grounds and from all types of harassment, including sexual harassment. The Group operates a zero-tolerance policy for any form of sexual harassment in the workplace. All incidents are treated seriously, with allegations investigated promptly and handled in strict confidence and with appropriate sensitivity and respect.

At a time when women were feeling the brunt of COVID-19, we were eager to participate in a women-focused programme run by the US Embassy in Cairo. Targeting women in financial services, the programme ‘Empowering Egyptian Women in Banking and Finance’ invited EFG Hermes to nominate three participants. All three were accepted to the programme, which ran from July to December 2021, and included six sessions by prominent female figures in Banking & Finance. This is the first time we’ve offered a programme targeting women, and it has encouraged us to develop our own programmes for this vital segment.

In celebration of International Women’s Day, valU, EFG Hermes’ flagship NBFI subsidiary, is providing an internship opportunity for women who took leave from work and would like to return. Compared to men, more women need leave from work for family or medical reasons such as caring for a new born, a sick child or other family member. In recognition of this inequality, valU is proud to announce its new internship program offering women of all ages the opportunity to enter the world of fintech with valU. The internship opportunity will provide a hands-on orientation experience where selected candidates will go through a series of in-depth classroom and on-the-job shadowing opportunities across various functions within valU from operations to marketing to business development and much more, providing a much-needed re-introduction into the professional world and equipping candidates with the needed skills to re-launch their career in a progressive and innovative work environment.