In line with its commitment to spearheading and promoting sustainable and transparent capital markets, the Bahrain Stock Exchange (BHB), an exchange licensed by the Central Bank of Bahrain (“CBB”), It concluded its participation with global companies, policy makers, governments and non-financial institutions. Government organizations will attend the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) to be held in Dubai, United Arab Emirates from November 30 to December 12, 2023, in the presence of His Excellency Mohammed bin Mubarak bin. and industry experts in attendance Dina, Minister of Petroleum and Special Envoy for Climate Affairs, presented the sustainability initiatives and progress made within the capital markets of the Kingdom of Bahrain.
At COP28, Bahrain Stock Exchange, together with CBB, participated in a panel discussion titled “Navigating the ESG Landscape: Insights from Bahrain Stock Exchange and Bahrain Central Bank” held at the Bahrain Pavilion on 4 December. The panel included Sheikh Khalifa bin Ebrahim Al Khalifa, Chief Executive Officer of the Bahrain Stock Exchange, and Abeer Al Saad, Executive Director of Financial Institutions Supervision at the Central Bank of Bahrain (CBB). , was moderated by Kalyan Subramanian, Head of Markets. KPMG Bahrain.
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. This has resulted in the recent introduction of a regulatory framework for ESG reporting by the Central Bank of Bahrain. The framework applies to all listed companies and eligible CBB licensees and is effective from the reporting period ending December 2024.
Shaikh Khalifa bin Ebrahim Al Khalifa, Chief Executive Officer of Bahrain Stock Exchange, said: “By supporting collaboration between listed companies and Bahrain Stock Exchange, we will improve transparency and disclosure in the Bahrain capital market. I am pleased to attend and participate in COP28 to highlight the major milestones that the Bahrain Stock Exchange has undertaken to strengthen.” Bahrain’s Economic Vision 2030 and the United Nations Sustainable Development Goals (SDGs) Our ESG Initiatives It began with the publication of voluntary reporting guidelines. Recommendations to the CBB for the introduction of a standardized regulatory framework for ESG reporting, which would increase the consistency and comparability of ESG disclosures in the market, particularly with respect to climate change, and provide an important milestone towards achieving a net-zero economy. It becomes a stone. Through the promotion of green finance initiatives and green index products, we aim to grow within the broader sustainability ecosystem in capital markets. ”
“The announcement by CBB builds on the Bahrain Stock Exchange’s efforts in promoting sustainable capital markets and is in line with the Kingdom of Bahrain’s efforts towards achieving net zero by 2060 and decarbonization efforts. Mandatory ESG disclosure also builds on the Bahrain Stock Exchange’s commitment 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. The Kingdom of Bahrain,” Sheikh Khalifa added.
Abeer Al Saad, Executive Director of Financial Institutions Supervision at the Central Bank of Bahrain, said: It is necessary to drive 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. CBB recognizes that implementing ESG reporting can have challenges, especially in the first few years. However, companies must make reasonable efforts to report key performance indicators, transparently explain any limitations in their reporting, and outline steps being taken to address those limitations. It is expected that. The recent publication of his ESG module represents an important step towards a sustainable financial market and is in line with the Bahrain Economic Vision 2030 and the United Nations Sustainable Development Goals (SDGs), in line with the Bahrain Government’s commitments. Thing. 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. ”
Bahrain Stock Exchange issued ESG Voluntary Reporting Guidelines for listed companies in June 2020, which included 32 ESG reporting indicators. In the same year, CBB published his ESG reporting survey. A year later, in August 2023, a consultation document on ESG requirements was issued by his CBB. Following this, CBB published his ESG module on November 5th, with immediate effect and for all listed companies as well as his CBB licensees covered for the reporting period up to December 2024. Applies. This module develops global standards, builds a framework to ensure effective ESG integration, and incorporates findings from ESG reporting surveys and consultation papers. Earlier this year, in January 2023, the GCC Exchanges Commission – GCC Secretariat announced the creation of a unified ESG report, including 29 ESG reporting indicators, to harmonize reporting across GCC exchanges and increase transparency within capital markets. It also published a set of disclosure indicators.