Egypt’s Financial Regulatory Authority (FRA) signed two cooperation agreements with the International Finance Corporation (IFC), a member of the World Bank Group, on Wednesday to strengthen sustainability practices, environmental, social and governance (ESG) standards, and corporate governance across the non-banking financial sector.

The agreements form part of the FRA’s efforts to modernize regulatory frameworks, improve institutional practices, and promote the adoption of international sustainability and governance standards.

Under the first agreement, IFC will provide technical and advisory support to help the FRA develop its sustainability and ESG framework.

The cooperation includes designing an ESG scorecard to assess companies’ sustainability performance, establishing the relevant indicators and assessment criteria, and reviewing the authority’s proposed sustainability reporting framework.

IFC will also assist in defining the roles and responsibilities of sustainability officers within financial institutions, in line with international best practices.

The partnership will include specialized training workshops for FRA employees on IFRS S1 sustainability-related financial disclosure requirements and IFRS S2 climate-related disclosure standards, aiming to strengthen their technical capabilities in assessing sustainability practices and reporting compliance.

The second agreement, signed between IFC and the Egyptian Institute of Directors (EIoD), which operates under the FRA, will allow the institute to use and develop IFC’s specialized corporate governance training materials for three years.

The materials cover four key areas: sustainability training for board members, board director certification, corporate secretary responsibilities, and internal control frameworks.

The programs aim to improve corporate governance practices, clarify board-level responsibilities, and strengthen institutional knowledge of risk management, internal auditing, and regulatory compliance.

FRA Chairman Islam Azzam said the agreements reflect the authority’s commitment to strengthening governance and sustainability standards across regulated financial activities by combining regulatory development with practical implementation tools and professional training.

He explained that the sustainability partnership will deliver several technical outcomes, including an ESG assessment scorecard, a review of sustainability reporting requirements, and clearer responsibilities for sustainability officers.

These measures are expected to improve the monitoring of institutional sustainability performance and enhance the quality of ESG disclosures.

Azzam added that the agreement with the Egyptian Institute of Directors will expand its professional training programs, covering board governance, sustainability oversight, corporate secretary responsibilities, internal controls, and risk management.

Meanwhile, FRA Vice Chairman Tarek Seif highlighted the importance of establishing clearly defined responsibilities for sustainability officers, noting that the role is essential for coordinating sustainability reporting, monitoring related activities, and integrating ESG requirements into institutional decision-making.

He also emphasized that training FRA employees on IFRS S1 and IFRS S2 will strengthen their ability to assess sustainability-related and climate-related financial disclosures.

Regarding the corporate governance partnership, Seif said the effectiveness of the training programs will be assessed through regular performance indicators, including participation levels, satisfaction rates, and the extent to which institutions implement the recommendations covered in the programs.

The assessments will help measure the impact of the training initiatives and identify areas requiring further development.