The Central Bank of Bahrain (CBB) has released the Environmental, Social, and Governance (ESG) requirements module on November 5, representing a transformative step towards a more sustainable financial market.
The module draws on global standards and frameworks to ensure effective ESG integration. It incorporates findings from the ESG Reporting Survey conducted by the CBB in 2022, which involved various entities such as listed companies, insurance firms, banks, and investment firms.
The module is directed at all listed companies, banks, financing companies, insurance firms, and category 1 and 2 investment firms, providing them with guidelines on the reporting requirements for the environmental, social, and corporate governance factors.
“In today’s business landscape, financial metrics are no longer the sole criteria for evaluating companies. Shareholders and investors now expect companies to demonstrate greater transparency regarding their impact ESG practices,” says CBB Executive Director of Financial Institutions Supervision, Abeer Al Saad.
“All listed companies, banks, financing companies, insurance firms, and category 1 and 2 investment firms shall start reporting these requirements from the financial year 2024,” she adds.
The CBB emphasises the importance of addressing ESG-related risks that align with Bahrain’s Economic Vision 2030 and the UN Sustainable Development Goals (SDGs).
