Cyprus Business Now

ESG expert Nicole Phinopoulou this week released a piece of analysis that underscores the increasing global economic relevance of Environmental, Social, and Governance (ESG) frameworks.

For countries like Cyprus, embracing and adapting to these principles signifies not just a commitment to responsible development but is also crucial for economic resilience and global reputation.

She noted that Moody’s recent evaluation of Cyprus went beyond upgrading its investment grade, delving into sustainability matters and their impact on the country’s business sector and the broader economy.

Phinopoulou explained that Moody’s assessment of Cyprus offers a differentiated view of its ESG stance, focusing on Environmental (E), Social (S), and Governance (G) elements.

Regarding environmental challenges, Cyprus faces concerns like chronic water scarcity and increasing exposure to global temperature rise, common issues for Mediterranean countries.

However, proactive measures like desalination unit development signal commitment to addressing these challenges.

Moody’s also highlighted Cyprus’s opportunity to leverage solar energy due to its geographical position but notes the country lags behind the EU average in renewable energy consumption, emphasising the urgent need for diversification.

Socially, demographic challenges loom, with anticipated negative population growth by the 2040s, though net migration is expected to partially counter this by the 2060s.

To counter population ageing, attracting and integrating specialised foreign workers is crucial, according to Moody’s.

“Regarding the labour market in Cyprus, it is evident that unemployment indicators are no longer the sole criterion to consider,” Phinopoulou said.

“The analysis identifies specific issues causing problems, such as skill mismatches in relation to the needs of the modern job market, limited digital literacy, and the necessity for lifelong learning coming to the forefront,” she added.

Phinopoulou highlighted that this excerpt from Moody’s report has largely gone unnoticed, signalling the need for immediate attention to avoid being behind on these critical developments.

Andreea Stoinescu, Founder of Pastel Gifts, this week released a column questioning the benefits of businesses participating in Black Friday.

She highlighted the hidden costs—customer overwhelm, profit margin cuts, fostering unhealthy consumerism, workforce stress, short-term gains versus long-term relationships, and unfair competition for small businesses.

She explained that her own business, which focuses on curated gifts, has opted out of Black Friday, focusing instead on preparing their Christmas collection.

Moreover, she suggested that boutique shops, luxury brands, and B2B companies might find Black Friday campaigns damaging to their brand and relationship-focused model.

However, she pointed out that electronics retailers, large chains, online marketplaces, and home appliance manufacturers can leverage Black Friday for increased sales, drawing in customers and capitalising on the festive shopping season if managed strategically.

Stoinescu advocates for businesses similar to her own to prioritise brand integrity and customer relations over participating in this retail frenzy, emphasising sustainable sales practices and long-term benefits for certain types of companies.

The Cyprus Stock Exchange (CSE) ended Thursday, November 23 with negligible losses.

The general Cyprus Stock Market Index was at 129.69 points at 13:38 during the day, reflecting a decrease of 0.02 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 78.71 points, representing a drop of 0.03 per cent.

The total value of transactions came up to €287,032.

In terms of the sub-indexes, the main and investment firm indexes rose by 0.14 per cent and 2.17 per cent respectively. The alternative index fell by 0.13 per cent while the hotel remained stable.

The biggest investment interest was attracted by the Bank of Cyprus (-1.3 per cent), Hellenic Bank (+0.45 per cent), Logicom (-0.71 per cent), Demetra (+2.24 per cent), and Pandora (-6.43 per cent).