Manama, Bahrain – In line with its commitment to transparency, strong corporate governance, and the pursuit of social and climate-related goals, the Central Bank of Bahrain (CBB) released its Environmental, Social and Governance (ESG) Requirements Module on November 5th. 2023. This module is aimed at all listed companies, banks, financial companies, insurance companies and category 1 and 2 investment companies and provides guidelines on reporting requirements on environmental, social and corporate governance factors .
CBB recognizes that the ESG landscape is constantly evolving and this module represents a transformative step towards more sustainable financial markets. The publication of this module underscores CBB’s dedication to national and international social and climate-related goals, as well as its comprehensive commitment to maintaining transparency in disclosures and promoting strong corporate governance standards. It reinforces the goal.
Commenting on the publication of the new module, Abeer Al Saad, Executive Director of Financial Institutions Supervision at CBB, said: “In today’s business environment, financial metrics are no longer the sole criteria for evaluating companies. Shareholders and investors now expect companies to demonstrate greater transparency regarding their impact on environmental, social, and governance practices. The ESG module is intended to serve as a valuable tool for companies beginning their reporting efforts with the aim of producing reliable, informative and comparable reports. Additionally, all publicly traded companies, banks, financial companies, insurance companies, and Category 1 and 2 investment companies shall begin reporting these requirements starting in fiscal year 2024.”
This module leverages global standards and frameworks to ensure effective ESG integration. It incorporates the results of an ESG reporting survey conducted by CBB in 2022 with the participation of various entities such as listed companies, insurance companies, banks and investment companies. Additionally, the development of the module took into account industry feedback received during the consultation on the draft guidelines held in mid-2023.
CBB encourages companies to actively implement strategies that improve their environmental and social performance while maintaining the highest standards of governance. It also highlights the importance of addressing ESG-related risks in line with Bahrain Economic Vision 2030 and the United Nations Sustainable Development Goals (SDGs).