Steps taken by the Central Bank of Bahrain (CBB) towards introducing a standardized regulatory framework for environmental, social and corporate governance (ESG) reporting highlighted at the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) held in Dubai.
This came while the Bahrain Stock Exchange (BHB) was participating in the ongoing event alongside the Central Bank of Bahrain (CBB).
At COP28, the exchange, along with regulators, participated in a panel discussion entitled “Navigating the ESG Landscape: Insights from the Bahrain Stock Exchange and the Central Bank of Bahrain” held at the Bahrain Pavilion.
The panel included BHB Chief Executive Officer Sheikh Khalifa bin Ebrahim Al Khalifa and CBB Executive Director for Financial Institutions Supervision Abeer Al Saad, as well as KPMG Bahrain Market Head Kalyan Mr. Subramanian served as the moderator.
During the panel discussion, panelists highlighted the growing awareness of ESG issues in the region and the importance of ESG reporting for sustainable growth.
Panelists also highlighted the role of regulators and exchanges in strengthening enforcement of ESG reporting requirements and ensuring sustainable and transparent capital markets.
As a result, a regulatory framework for ESG reporting by the CBB was recently introduced. The framework applies to all listed companies and eligible CBB licensees and is effective from the reporting period ending December 2024.
Shaikh Khalifa said: “The Bahrain Stock Exchange will strengthen transparency and disclosure in the Bahrain capital market by supporting the alignment of listed companies with the Bahrain Economic Vision 2030 and the United Nations Sustainable Development Goals. I am pleased to attend and participate at COP28 to highlight the major milestones we have undertaken.” SDGs).
“Our ESG efforts began in 2020 with the publication of Voluntary Reporting Guidelines for Listed Companies to encourage and support the disclosure of ESG information by listed companies. We strongly commend the steps taken by the CBB towards introducing a standardized regulatory framework for This is an important milestone towards the economy. This milestone will foster further growth within the broader sustainability ecosystem in capital markets through the promotion of green finance initiatives and green index products. I guess.”
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He further added, “The announcement by the CBB builds on the Bahrain Stock Exchange’s efforts in promoting sustainable capital markets and reinforces the Kingdom’s commitment to achieving net zero by 2060 and decarbonization efforts. It is consistent with that,” he added. Mandatory ESG disclosure also builds on Bahrain Stock Exchange’s commitments as a partner exchange member of the Sustainable Stock Exchanges (SSE) Initiative and a member of the World Federation of Exchanges; has formally committed to promoting sustainability in capital markets. Bahrain. ”
Ms Al Saad said: “We at CBB recognize the importance of ESG reporting and its role in strengthening transparency and corporate governance across the Kingdom, and the importance of ESG reporting to foster sustainable economic growth and ensure long-term stability. The introduction of the ESG module sets out a clear framework and guidelines to enable listed companies and financial institutions to effectively measure, report and manage their ESG performance. Masu. ”
He further added: “CBB recognizes that there may be challenges in implementing ESG reporting, especially in the first few years. However, companies should make reasonable efforts to report key performance indicators and You are expected to transparently explain the limitations in your reporting and outline the steps being taken to address those limitations.The recent publication of an ESG module on Sustainable Financial Markets It represents an important step towards achieving the goals of the Bahrain Economic Vision 2030 and is in line with the Bahrain Economic Vision 2030 and the United Nations SDGs, in line with the Bahrain Government’s commitments.
“We call on all financial institutions in Bahrain to embrace this transformation journey and work with us to realize our vision of a more sustainable financial sector.”
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