**Casablanca, December 11, 2024** – The second edition of the Responsible Governance Barometer was presented yesterday, the result of a partnership between the General Confederation of Moroccan Enterprises (CGEM), the Club of Women Directors (CFA Morocco), the Moroccan Institute of Directors (IMA), and Ethics & Boards.
This barometer aims to annually assess the governance practices of Moroccan companies. It is part of a continuous improvement approach and aims to promote excellence in responsible governance. **“Responsible governance is not limited to compliance with legal and regulatory obligations. Its goal is to help build resilient companies capable of generating a positive impact on their ecosystem,”** stated Mr. Chakib ALJ, President of CGEM.
This edition is based on data from 2023 collected from 90 Moroccan companies that are publicly traded and published their reports before September 2024. It also offers a detailed comparison with the results of the previous edition, unveiled in December 2023.
This approach aims to track the evolution of governance practices in Morocco by identifying the progress made and the challenges that remain to align Moroccan companies with international standards of responsible governance. **“Responsible governance is a major strategic lever for better understanding risks, improving long-term performance, and creating true shared value. More than an opportunity, it has become an imperative, and we all have a role to play in carrying it with seriousness and commitment,”** emphasized Ms. Samira KHAMLICHI, President of CFA Morocco.
The second edition allowed for the following lessons to be drawn:
Greater transparency in the communication of governance data and environmental and social commitments, as well as a significant improvement in gender balance and the independence rate of directors, testify to the favorable evolution of governance practices. Indeed:
– The communication rate on governance indicators has evolved, increasing from 40% in 2022 to 60% in 2023;
– By the end of 2023, 91% of boards of directors have at least one independent member, marking a 4-point increase. Additionally, 76% of audit committee chairs are independent, recording a 6-point rise.
– The representation of women on boards of directors has increased by about 3 points, reaching 23.2% by the end of 2023. Furthermore, 31% of boards have now reached the threshold of 30% women, compared to 24% in 2022.
– 83% of issuers have communicated on social and societal policy.
– Environmental policy elements are widely communicated in the form of descriptions and initiatives for 88% of issuers.
However, it remains necessary to improve the communication of environmental and social data to make them clearer and measurable:
– The average publication rate of social indicators stands at 39%;
– Environmental commitments are mainly qualitative, and few issuers have published quantitative short- or medium-term targets related to their decarbonization plan or environmental preservation in general (water, soil, resources…);
– Only 17% have published their greenhouse gas (GHG) reduction targets;
– Only one issuer has set targets based on the SBTi (Science Based Targets initiative) tool.
These trends confirm the significant progress made in terms of responsible governance and materialize the commitment of issuers to align with best practices of transparency and accountability, contributing to a more efficient economy, respectful of the environment, combining shareholder prosperity with the interests of all stakeholders in the social utility of the company.
During this presentation, a round table addressed the theme: **“Aligning companies with responsible governance standards: state of the art, constraints, and challenges.”** It brought together leaders and representatives from the Association of Companies making APE, Upline Investment, the Casablanca Stock Exchange, the Institute of Family Business, the IMA, and the CGEM CSR and Diversity Commission.
The discussions highlighted the importance for all actors to support companies towards greater transparency. **“The adoption of international reporting standards for non-financial information will be necessary to elevate it to the same standards of rigor and reliability as financial information and to translate the risks and opportunities related to sustainability issues into the overall performance of companies,”** stated Lamia El Bouanani, General Director of the Moroccan Institute of Directors.
This adoption could, however, be gradual depending on the specificities and constraints of each company. The co-authors of this Barometer hope that their initiative will contribute to encouraging measured progress in this transparency and responsible governance practices over time.
The event concluded with the remarks of Chadia Jazouli, President of the CGEM Ethics and Governance Commission: **“Responsible governance is not a destination, but a journey. A journey towards greater transparency, ethics, and sustainability. Every step we take together strengthens our collective capacity to build a solid, resilient, and exemplary economic fabric.”**
**About CFA:** Founded in March 2012, its main objective is to promote the participation of women in the Boards of Directors and Supervisory Boards of companies in the public and private sectors in Morocco and abroad and to work for effective, responsible, and sustainable governance.
**Website:** cfa-maroc.com
**About CGEM:** CGEM is the voice of the private sector in Morocco. Established in 1947, it represents more than 90,000 direct and affiliated members, 95% of which are small and medium enterprises (SMEs). It has established itself as the official representative of the private sector to public authorities, social partners, and institutions.
**Website:** https://cgem.ma/
**About IMA:** Created in June 2009 as a non-profit association, its main mission is to provide training, information, and expertise necessary for company directors to promote good corporate governance practices within boards of directors and to professionalize the role of directors.
**Website:** institut-administrateurs.ma
**About Ethics & Boards:** Ethics & Boards is the specialist in engaged governance, a partner in board evaluation and strategic reflection. An expert in governance data serving issuers, investors, and stakeholders, Ethics & Boards enables the visualization, comparison, and definition of the materialities of engaged governance. Its international database has covered over 80 stock indices and proprietary data for more than 10 years.
**Website:** ethicsandboards.com