GAMBIA SUMMARY

Okay, first of all, salaam alaikum to you all. Wakum salaam warahmatullahi wa barakatuh, selamat
siang . dan selamat pagi from the Gambia. So, yeah I will first of all like to read head of Yayasan
Samita Jaya Foundation, Doctor Pronoto Vice Rector Dua doctor Subarto, and then dean of faculty of
Economy dam business Doctor Idan Rohia, head of accounting department ifayati. And then my
fellow speakers. You know, you did justice to your topic, which was quite amazing. I've learned a lot,
and then I hope to share with you. And then I also want to greet the panelists and then the attendees,
students and researchers. So I will take you through. Will you do the PPT for me or do you want me to
present it from my side? You could share your PowerPoint. It's okay. Okay. All right. So just let me
know when you can see my PowerPoint. We can see your screen right now. Okay. Thank you so
much. Yeah, no worry.
Okay, I will take you through the topic on environmental social and governance ESG and responsible
investment in the Gambia. So, this presentation is divided into four sections. One, the world we need.
The world needs to change being part of the solutions. We are the problems already. So how can we
be part of the solutions And when we develop these solutions? how sustainable this can be?. And then
two, what is ESG investment? What is environment, social and governance investment? We will deal
with the environmental part, the social part, and then the governance part. Types of environmental,
social or governance investment. I will take you through the portfolio, impact or impact portfolio,
thematic portfolio, systematic portfolio. And then finally, you look at the possible approach of
environmental, social governance investment. Where do you want to be? The destination is worth it,
obviously.
So the world we need. Well, this will be a very short and precise presentation. Well, the world is
facing many real challenges. Important in some cases and some cases they are very urgent and then
very prolonged. So, one we have the nuclear waste you know, we have these deforestations happening
all around the world. Poverty, biological weapons, you know population growth, landmines, you
know, children abuse, hiv, climate change, corruptions, you name it, discrimination, human rights,
slave labor, you know, humanitarian crisis. As we are seeing now what is happening around the world.
Gender inequality, you know lack of equity, you know, so we will there is need for a better world
when investors are coming in a country. So they want to see these things now in a corporate society.
These are known financial factors that we look at. These are more of our environment, our socio
cultural activities, and then our leadership, the government, not the governance part.
Yes. So the world needs to change in terms of energy supply. Gone are the days when accountants or
investors will only look at the financial or the profitability return on investment Of companies, you
know, now they want to see a bigger picture. How do you do your energy supply? Sourcing green
energy, solar panels and smart meters. How do we go away from electricity, whole generator
generated electricity. How do we go to solar panels? How do you go to wind energy? These are the
things that investors want to see now. Housing. you know, better isolations. How do we isolate our
industries from residential places, appliance rating and then recycling. How do we do our sewage
recycling? You know, these are also some, some part solutions that we can do as. As companies.
Customer purchasing, avoid customers with bad, with poor reputations. Obviously, I don't want to go
to a company that has bad reputations in some. In terms of staff maltreatment, in terms of, you know,
lack of social corporate responsibilities, animal testing choices. You know, why do companies, why
are they taking other animals? Why are they taking animals as their samples? as their guinea pigs, I
call it. So all these things need to change now. And for this change to happen, we need to be part of
the solutions. So, you know, sustainable investment, food and agriculture, better animal welfare. It's
gone. Are the days when you just want to milk the animal and then, you know allow it to run dry? No.
How do we make it sustainable?
So, yes, these are the SDGs. And luckily for me, all the speakers have taught through SDGs, these
SDGs. But these SDGS are cross cutting issues from accounting, finance, from social sciences, you
know, from engineering, from education, you name it. You know, it's a cross cutting issue from all
sectors, all angles, all businesses. Well, you know, the previous panelists have really dealt in depth
with it, so I will just move ahead and then go to my core.
what is environment, social and governance investments? When we talk about these three
components, what do we really mean? Environmental, Social and governance. Environmental. This
can be divided into so many sections and what it comprises. Biodiversity losses. We are losing so
much of our biodiversity. You know, go to the marine, you see. Okay, this part. But this presentation
will be focused mostly in an african context, but then particularly in the Gambia. Well, ESG has been
around since the concept was developed around 2004, but then it was mainly conceptualized in a
framework around 2010, towards 2010, rather so, which is merely ten years. So obviously, this is still
a new topic in this part of the world. And it's a new topic still. Now businesses for investors are not
taking a good look at so, but if you look at our biodiversity losses in a particular case in the Gambia,
is so massive, is so huge. We have lost so much marriage in terms of our fish, our fish species. The
populations have really declined and the situation is really worrisome now. We have so many
investors who are investing in the country, depleting our marine diversity, taking our fishes and taking
it back to their countries, which is really affecting us. Greenhouse gas emissions, this also is a
problem. Most households in the gambia will use charcoal or gas, you know, and our refrigerators,
secondary refrigerators, refrigerators imported from abroad, which are used and then send, that have
been used for more than 20 years and then sent back to the dam here to be reused in our household. So
all these things affects our greenhouse customers. Energy efficiency. We rely hundred percent on
energy, let me say 99% on, on electricity. You know, renewable energy, for example, is quite low, is
quite minimal resource depletions. I mentioned this earlier. Our resources, our timbers, you know, our
forestry, our ozone, everything is just going away. When it comes to social, the social aspect of ESG,
mass migration, we have seen most of our youths have embarked on a journey we call the back way,
illegal migration to Europe, to Spain and some other parts of the parts of the EU. This has really
affected our youthful populations. The Gambia, we have, 70% of our populations are youth. If the
statistics is correct, you know, that is from 18, from 15, sorry, to 32 or 35 years old. They are all left.
Majority of them are between Europe and Gambia. Most of them also are inside Europe, you know,
waiting for papers and also. But this has really lost our human capital. Wealth distribution. Wealth
distribution is uneven in the Gambia and in so many parts of Africa too, even around the world. But
then I'm, you know, precisely talking about the Gambia in this case, wealth is not really distributed.
We have two to 3% of the population having the entire wealth of the country. So how, what do
businesses look at when they are doing this assessments before investing in the country. Access to
healthcare, quite not very promising. Diversity, employment rights, child labor and slavery.
Controversial weapons such as cluster bombs. So we talk about the governance aspect of ESG,
executive compensation, how executives are compensated, bribery and corruptions. Well, this is more
of a virus around the world, this is all over the world. This is a global pandemic. We have riot b and
corruption from down to the top or from the top to down. Ethics in business, independent directors,
transparent disclosure of ECH criteria, risk blowing policies, implications of business strategy on
social and sustainability issues. So all these things are components that we will look at in my
upcoming slides. But then I just want to make it brief here. These three components are what is
affecting most of our businesses in country. It's affecting our businesses, it's affecting investors
choices. And then we don't know it because we don't conceptualize these things, things in our criteria
before investing. We don't conceptualize them at all. We don't have a framework for it. You know, this
is probably a new topic for most, if not all, you know, businesses in country. Yeah.
So it's, you know, it's quite unfortunate, but then there is hope. ESG investing can be broadly defined
as integrating environmental, social and governance factors of companies into the fundamental
investment process. Like I said earlier, investment nowadays is not more of returns on investment
only or the profitability or the return on capital, or you call it shareholders dividend. No. Now there is
a shift. If I invest in this company, how environmental friendly this company is, what are the
governing issues? What are the governance structure of these companies? What are the social,
corporate responsibilities plus the social aspects of this company? How are they treating their
employees? How are they treating their customers? You know, all these things are, you know, how
diverse is this company? All these things now are components integrated in the investment, in
investment decision making process.
So we have types of, okay, this, these are just three main types that, that we can use for the case of the
Gambia and impact portfolio, schematic portfolio, and then the systematic portfolio. Well, I
recommend the impact portfolio. You know, these are often done mostly by private markets. Private
firms can take the initiatives, do the consulting, do the analysis, do the ratings and then everything for
you before you invest, you know, it's direct involvement and then return on capital, concentrate
concentration of risks. You try to minimize as risks as minimal as possible and liquidity and exit risk.
Okay, if I go on with, with this decision of investing in an environmental friendly, you know, I need to
hire experts to do. I need to hire experts to do a feasibility study for me. You know, before I make an
investment, I have to hire a social expert who will do the inclusion, diversity, you know, aspects for
me, who will do the gender, whatever policy for me. So all these things require a lot of capital, a lot of
money, you know, and then, quite honestly is, you know, sorry, let me just go through this. Okay. So,
yeah, so this is more of a, more feasible than the other parts. Let's say the thematic portfolio, the
thematic portfolio, second, capital markets. We have the capital markets in the Gambia an year ago or,
no, a year ago. Rather the capital market is still new. You really have to be part of it to really
understand. We even have a capital market. But why is quite honest, the capital market for the Gambia
is. It's not very active, you know, public and private markets. Okay. The thematic portfolio is more of
taking a one direction strategy. Okay. I want to focus on minimizing biodiversity losses when
investing in my business or when doing my business. Rather focus on that. Customize the size of the
company, you know, to be smaller and narrower than that. More highly concentrated impact implied
in term choices. So you want to focus purposely for this. This is what I want to do. And this
environment, or this is social aspect, this environmental and this governance path I want to solve. At
least let me tick a box, you know. So the systematic portfolio. This systematic portfolio seeks a
broader capital market, returns. Well, this is nowhere closer to the case of the gambia. From public
markets, risks and returns similar to traditional portfolio remain broadly diversified, tail towards
better, you know, better ESG. ESG credentials impact harder and quantify. So I just want to take one
part like the preferred approach of the systematic ESG portfolio. I mentioned this earlier in a broader
market because this is more. It's more concrete than the previous two, than the thematic one, because
it's more of a more complex, more systematic and more structured. Whenever a company is investing
or is making addition to invest in a particular country or in a particular company, they should take a
look at this systematic part. Low cost, passive options available. Well, diversify portfolios to reduce
risk, sustainable for large proportion of investors, and then steps in the right direction, retain sector
ratings and so.
Doctor Osman. Hello, Doctor Osman, sorry for the interruption. Your time is only three minutes left.
No problem. Good. I have only one more slice left. So I discussed this earlier. Okay, so I discussed
this thing.
Yeah. So the destination, it's it worth it where we head into. We have seen the status of. Of the
pandemic. How pandemic? How the COVID Sorry, the COVID have changed. Have made us believe
a lot of things is possible. It made us believe we can meet online without traveling by air, you know,
without having an impact on our greenhouse gas emissions. It shows us it's possible to do a whole
degree, a whole doctorate degree online while you sit in the comfort of your house. So also how
businesses can do a lot of transactions, lot of meetings. You know, If COVID was not here today, I
guarantee you I will fly into Indonesia to attend this conference. Most likely, yes. So there is
possibility that we can do it. And there is possibility that there is a way forward for it. How do we
make it happen? Use a sensible east approach where available. Maintain portfolio risk better, more
robust ESG metrics, a more consistent approach, great impact, understanding. Third, wider product
choices, better index constructions, full asset class coverage. And then finally a better world. Finally
we will achieve the sustainable development goals. I think this is the end of my presentation.
Questions? Opinion you can. Okay. Thank you so much for your sharing, Dr. Osman. Let's give big
applause.

NOTE :
1. noun clause are marked in yellow
- So just let me know when you can see my PowerPoint
- we be part of the solutions And when we develop these solutions?

2. Adjective clause are marked in green

- you did justice to your topic, which was quite amazing
- rather so, which is merely ten years.

3. Adverb clause are marked in blue

- Where do you want to be? The destination is worth it, obviously.
- ESG has been around since the concept was developed around 2004