The UAE Sustainable Finance Working Group (SFWG) launched the ‘Principles for Sustainability-Related Disclosures for Reporting Entities’ to upgrade requirements for sustainability-related disclosures for the UAE financial institutions.
The principles serve as a declaration of common understanding among the UAE SFWG members of the minimum expectations in this area within their respective jurisdictions to ensure the development and implementation of disclosure frameworks in line with these principles and within the targeted scope related to environmental, social, and governance (ESG) factors, the state news agency WAM reported.
The Securities and Commodities Authority (SCA) hosted the working group members to announce the launch of the principles, which were signed by Mohammed Ali Al Shorafa Al Hammadi, Chairman of the SCA; Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE); Essa Kazim, Governor of the Dubai International Financial Centre; and Emmanuel Givanakis, CEO of the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM).
Following the signing, the UAE SFWG member authorities will officially release the principles for licensed financial institutions to encourage them to promote transparency in sustainability-related matters best to serve the interests of all stakeholders in the UAE.
According to the report, the principles highlight four major considerations for reporting entities, including:
- Having in place adequate policies, procedures, and systems for reporting on sustainability-related matters.
- Taking into consideration factors, such as transparency, materiality, relevance, and stakeholder engagement when disclosing information.
- Disclosures made must mirror the way they operate, including in the areas of governance, strategy, and risk management.
- Market participants should consider specific elements when dealing with and offering sustainability-related products to enhance the transparency and quality of sustainability-related, product-level disclosures.
